New Zealand Official Yearbook 1972


Table of Contents

Preface

The New Zealand Official Yearbook portrays New Zealand and its people. It describes the physical resources of the country and their use. It enumerates statistics of the population, their health and education, their employment and their production, their trade and their national finances, their wages and their savings, their housing and food consumption, their means of communication, and their international relationships. Supplementary material gives other social, administrative, and legislative information.

There is real value in combining such a breadth of information in one volume. Thus the Official Yearbook is established as a standard reference work both within and beyond New Zealand.

As a series, Official Yearbooks are a rich source of material for research workers and students. The yearly record becomes a survey of both growth and change. Every endeavour is made to give comprehensive accurate information as clearly as possible within the limits of space. Each section is progressively revised and the emphasis varies with economic and social developments.

In this latest issue some sections have been more extensively revised than usual; these include History, Government and International Relations; Health and Hospitals; Social Welfare; Education; Justice; Land Use and Resource Development; Marketing of Farm Produce; National Development Council; and Support of Cultural Activities.

The metric system of weights and measures is to be taught educationally in 1973, and will be in common use by 1976; in this issue areas have been converted to hectares and wool production to metric tons.

Special articles survey the history and evolution of social security in New Zealand and also the evolution of the dairy industry with its 100 years of co-operative activity.

The photographic section features some of the natural appeal of the New Zealand environment.

Additional and more recent detail on many subjects may be obtained from publications of the Department of Statistics. These are listed towards the end of this Yearbook and are available from Government bookshops.

J. P. LEWIN
Government Statistician.

Department of Statistics
Wellington
31 July 1972.

Maps and diagrams

MapsPAGE
General Map of New Zealand and Island TerritoriesInside back cover
Mean Annual Rainfall15
Holdings in Regional Areas by Type of Farming373
Minerals (non-metallic)436
Factory Production---North Island455
---South Island456
Diagrams 
Population56
External Passenger Migration78
Vital Statistics86
Principal Causes of Death102
Infant Death Rate108
School Population209
Railways302
Motor Vehicles Licensed and Motor Spirits Consumption312
Civil Aviation326
Gross Farming Income378
Milkfat Production381
Meat Production382
Wool Production385
Area and Yield of Wheat for Threshing397
Production of Rough-sawn Timber420
Pulp and Paper Industry423
Fisheries430
Factory Production474
Building Permits507
Growth of Demand for Electricity525
Electricity Generation529
Retail Trade568
Direction of External Trade576
Value of External Trade with individual Countries582
Value of Exports---New Zealand Produce589
Volume of Exports---New Zealand Produce590
Consumers' Price Index645
Expenditure on Gross National Product670
Balance of Payments by Areas688
Changes in Overseas Direct Investment in New Zealand689
Revenue from Taxation711
Trading Banks---Deposits and Advances777
Trading Banks---Classification of Advances779
Savings Banks782
Overseas Reserves793
New Mortgages803
Life Assurance---New Business821
Life Assurance---Total Assets826
Industrial Stoppages889

SYMBOLS

The interpretation of the symbols used in the tables throughout this publication is as follows:

- nil or zero

..figures not available not yet available --- space left blank

... not applicable

- - amount too small to be expressed

x revised

VALUES

All values are shown in New Zealand currency, unless another currency is specifically stated.

MEASURES

Unless otherwise stated, a ton is a long ton (2,240 lb).

METRIC EQUIVALENTS

1 yard= 0.914 metre
1 inch= 25.4 millimetres
1 mile= 1.609 kilometres
1 square foot= 929.03 square centimetres
1 square yard= 0.836 square metre
1 acre= 0.405 hectare
1 square mile= 2.59 square kilometres
1 pound= 0.454 kilograms
1 hundredweight (cwt)= 112 lb = 50.8 kilograms
Celsius (centigrade)= 5/9 (°Fahrenheit --- 32)
1 cubic foot= 0.028 cubic metre
1 cubic yard= 0.765 cubic metre
1 gallon= 4.546 litres
1 bushel= 36.37 litres
1 long ton= 1.016 metric tons
1 short ton= 0.907 metric ton

ROUNDING

On occasions figures are rounded off to the nearest thousand or some other convenient unit. This may result in a total disagreeing slightly with the total of the individual items as shown in tables.

FISCAL YEARS

Figures for fiscal years ended 31 March (the fiscal year) are indicated in the text and headings of tables; otherwise figures are mainly for calendar years.

ABBREVIATIONS

bd ftboard feet
chchains
ctd.continued
cu ftcubic feet
cwthundredweight
Eeast
ftfeet
ggram
galgallon
hhour
hphorsepower
in.inch
kWkilowatt
kWhkilowatt-hour
lbpound
mmile
minminute
mmmillimetre
Nnorth
n.e.i.not elsewhere included
n.e.c.not elsewhere classified
ozounce
$(000)thousand dollars
$(m)million dollars
ccent
Ssouth
sq ftsquare feet
sup ftsuper feet
Wwest
ydyard

STATISTICAL AREAS

The boundaries of statistical areas are shown on the map inside the back cover.

Chapter 1. Section 1 GEOGRAPHY

Table of Contents

New Zealand is in the south-west section of the Pacific, that great ocean stretching across one-third of the earth's surface. To the west, beyond the Tasman Sea, is Australia, 1,600 kilometres away. From its position on the rim of the Pacific basin, New Zealand is a little over 10,000 kilometres from San Francisco and Panama and a similar distance from Tokyo and Singapore. In area 26.9 million hectares, it is similar in size to the British Isles and Japan.

One of the chief charms of the New Zealand landscape is its infinite variety. Such level lowlands as exist are small in area; contrasts between coastal plain and bordering hard-rock mountains are abrupt. High mountains make up most of the South Island area—often stark and bare or mantled in permanent snow. By contrast, most of the North Island is weak-rock hill country. From Cook Strait to the Bay of Plenty a hard-rock mountain core dominates the North Island scene, forming an effective barrier between cast and west; the only low level gap across it is at the gorge cut by the Manawatu River near Palmerston North.

A peculiar and special feature of the North Island is the volcanic country of the interior. Here are the largest North Island lakes and in a line from Ruapehu to White Island, most of the still active volcanoes, hot springs, and geysers.

The most spectacular mountains are in the South Island; high mountains, deep and narrow valleys, swift rivers, and glacial lakes, large and small, give infinite variety to the scene. It is in this high country, that ice has left its special mark in glacial troughs and fiords and, above all, the noble southern lakes. There is little weak-rock hill country in the South Island; the lowlands are mainly bordering plains, basin plains, and valley plains. Of these the most extensive are the plains of Canterbury and Southland.

New Zealand has large areas of luxuriant forests which are the delight of trampers, campers, and hunters. Forests cover nearly a quarter of the total land area, of which national parks and scenic reserves set aside as permanent forest form 2 million hectares.

The indigenous forests may be grouped broadly into two main formations: mixed temperate evergreen forest and southern beech forest. The former is a mixed community of many species of broad-leaved trees and conifers, and the latter a pure community of one or more of the species of southern beech. Generally, the mixed temperate evergreen forests are the forests of the north and of the warm, wet lowlands and lower mountain slopes. The beeches form the forests of the south, of the high mountains, and of the drier lowlands. But there are extensive areas where the types mingle in forests of extremely varied composition.

Mountains, forests, lakes, rivers, and beaches have influenced the characteristics of the people. New Zealand society has been shaped and subtly tempered by a number of factors—geographical, historical, social, and psychological during more than a century of growth as a nation. New Zealand today represents both an extension and a modification of the European tradition. In addition to its Maori population, New Zealand has experienced in recent years a considerable inflow of Polynesians from its associated territories and elsewhere in the Pacific. Auckland has become the major city of Polynesia, and as such a focal point of the South Pacific. The Polynesian (including Maori) population is of greater significance than its relatively small numbers would suggest. Outside the Pacific area New Zealand may present a basically European face to the world, but the preservation of distinctive life-style by the Maori, together with a close compatibility (extending to frequent intermarriage) between the two races, has doubtless been a determining factor in the evolution of New Zealand society.

GEOGRAPHICAL POSITION—The islands of New Zealand have been shaped from the projecting crests of earth folds which rise as broad ridges from the floor of the South Pacific Ocean, 1,600 kilometres east of the continent of Australia. There are three main islands—North, South, and Stewart separated only by relatively narrow straits—with adjacent islets and a small group called Chatham Islands, 850 kilometres to the east of Lyttelton. Dating from 1842 the administrative boundaries ofNew Zealand, including the minor islands, extend from 33 degrees to 53 degrees south latitude and from 162 degrees east longitude to 173 degrees west longitude. Inhabited outlying minor islands are 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 is also responsible for the administration of two island groups in the South-west Pacific—Niue and the Tokelau Islands. These are incorporated within the boundaries of New Zealand. Niue is 2,460 kilometres north-east of Auckland, while the Tokelau Islands are 1,130 kilometres further north. The territorial area reaches to within 8 degrees of the Equator.

The Ross Dependency, some 2,300 kilometres to the south, has been under New Zealand's jurisdiction since 1923 and comprises the sector of the Antarctic continent between 160 degrees east and 150 degrees west longitude, together with the islands lying between those degrees of longitude and south of latitude 60 degrees south.

The administrative area of New Zealand can be classified as follows. In this Yearbook, in general, New Zealand refers to the group of islands shown in (a) only.

 Area in Square Kilometres
(a) New Zealand 
    North Island114,688
    South Island150,453
    Stewart Island1,735
    Chatham Islands963
    Minor islands— 
      Inhabited— 
        Kermadec Islands34
        Campbell Island114
      Uninhabited (Auckland and other off-shore islands)680
            Total268,667
(b) Overseas territories 
    Tokelau Islands, comprised of— 
        Fakaofo Island, Nukunonu Island, Atafu Island10
    Niue259
(c) Ross Dependency(Estimated) 414,400

The 16 Cook Islands achieved a status of self-government in free association with New Zealand on 4 August 1965; more detail is given in Section 38 of this Yearbook.

GEOGRAPHICAL FEATURES: Coastline—Since the combined length of the North and South Islands extends just over a thousand miles, and since the width of neither Island exceeds 280 miles at its broadest point, New Zealand possesses a very lengthy coastline in proportion to its area. With the exception of the low-lying North Auckland Peninsula, the New Zealand land mass lies along a south-westerly and north-easterly axis, parallel to the direction of its mountain chains.

In the North Island, Whangarei, Auckland, Tauranga, and Wellington are natural harbours which have been developed into ports for extensive use by overseas ships. At Napier and Gisborne artificial harbours have been made. On the east coast of the North Auckland Peninsula several other deep and sheltered harbours exist, but production from the hinterland is limited. In the South Island the Marlborough Sounds and the West Coast Sounds form perfect land-locked harbours, but owing to their situations and the rugged nature of the terrain they have—with the exception of Queen Charlotte Sound—little or no commercial utility. By dredging and by breakwater construction, ports capable of accommodating overseas vessels have been formed in Lyttelton, Otago, and Bluff Harbours and on the coast at Timaru. On the west coast of both Islands the strong ocean drifts and high seas cause shoaling at river mouths and harbour entrances, although an overseas port has been developed at New Plymouth, while on the east coast of the South Island similar circumstances prevail, due to the large quantities of shingle brought down by the rivers being spread along the coast by ocean currents.

Mountains—The mountainous nature of New Zealand is one of its most striking physical characteristics, less than one-quarter of the land surface lying below the 650 ft contour. In the North Island the higher mountains occupy approximately one-tenth of the surface; but, with the exception of the four volcanic peaks of Egmont (8,260 ft), Ruapehu (9,175 ft), Ngauruhoe (7,515 ft), and Tongariro(6458 ft), they do not exceed an altitude of 6,000 ft. Of these four volcanoes only the first named can be classed as dormant. Ruapehu and Ngauruhoe have been particularly active from time to time. Other volcanoes include Mount Tarawera and White Island, each of which has, upon one occasion within historical times, erupted with disastrous consequences. Closely connected with the volcanic system are the multitudinous hot springs and geysers.

The mountain system of the North Island runs generally in a south-west direction, parallel to the coast, from East Cape to Turakirae Head, and includes the following ranges from the north: Rau-kumara, Huiarau, Ruahine, Tararua, and Rimutaka. This chain is flanked on the west between the Huiarau and Ruahine by the Ahimanawa, Kaweka, and Kaimanawa Ranges, while west of the Kaimanawa is the National Park volcanic comprising Mounts Ruapehu, Ngauruhoe, and Tongariro. The Hauhangaroa and Rangitoto Ranges run in a northerly direction from the National Park group. In the east the Moehau Range parallels the length of the Coromandel Peninsula. Mount Egmont forms the only area above 4,000 ft on the west coast of this Island.

The South Island is much more mountainous than the North. Along almost the entire length of the Island runs the massive chain known as the Southern Alps, which attains its greatest height in Mount Cook (12,349 ft), while no fewer than 16 peaks exceed 10,000 ft. West and north-west of the main portion of the Southern Alps are the Victoria, Brunner, and Lyell Ranges and the Tasman Mountains, the Victoria Range being flanked by the Paparoa Range. To the north run the St. Arnaud and Richmond Ranges, while to the north-east are the Spenser Mountains and the Kaikoura and Seaward Kaikoura Ranges, the two latter ranges running parallel to the east coast. The south portion of the Southern Alps breaks up into a miscellany of ranges dominating the mountainous Fiord and north-western Southland regions.

There are at least 223 named peaks of 7,500 ft or more in altitude. Below is a list of the peaks restricted to the four largest volcanic cones in the North Island and to mountains of a minimum height of 9,000 ft in the South Island.

Mountain or PeakHeight (Feet)
NORTH ISLAND 
Ruapehu9,175
Egmont8,260
Ngauruhoe7,515
Tongariro6,458
SOUTH ISLAND 
Kaikoura Ranges 
    Tapuaenuku9,465
    Alarm9,400
Southern Alps 
    Cook12,349
    Tasman11,475
    Dampier11,287
    Silberhorn10,757
    Lendenfeldt10,503
Mt. Hicks (St. David's Dome)10,443
    Malte Brun10,421
    Torres10,376
    Teichelmann10,368
    Sefton10,359
    Haast10,295
    Elie de Beaumont10,200
    Douglas Peak10,107
    La Perouse10,101
    Haidinger10,059
    Minarets10,058
    Aspiring9,960
    Hamilton9,915
    Glacier Peak9,865
    De la Beche9,817
    Aiguilles Rouges9,731
    Nazomi9,716
    Darwin9,715
    Chudleigh9,686
    Annan9,667
    Low9,653
    Haeckel9,649
    Goldsmith9,532
    Conway Peak9,519
    Bristol Top9,508
    Walter9,507
    Grey9,490
    Green9,305
    Hutton9,297
    D'Archiac9,279
    Ronald Adair9,276
    Hochstetter Dome9,258
    Earnslaw9,261
    Nathan9,200
    Barnicoat9,183
    Sibbald9,181
    Arrowsmith9,171
    Spenser9,167
    The Footstool9,073
    Rudolf9,039
    The Dwarf9,025
Darran Range 
    Tutoko9,042

Glaciers—In keeping with the dimensions of the mountain system, New Zealand possesses, in the South Island, a glacial system of some magnitude. Of the glaciers the largest is the Tasman, which, with others of comparable size, rises in the more elevated area surrounding Mount Cook. Flowing down the eastern slope of the range, the Tasman Glacier has a length of 18 miles and a width of 1 1/4 miles. In common with other glaciers on the eastern slope, of which the more important are the Murchison (11 miles), the Mueller (8 miles), the Godley (8 miles), and the Hooker (7 1/4 miles), its rate of flow is slow, while its terminal face is at an altitude of somewhat over 2,000 ft. On the western slope of the range, owing to the greater snow precipitation, the glaciers are more numerous and descend to lower levels, while the steeper slope gives them a more rapid rate of flow. The two largest of these are the Fox and the Franz Josef, with lengths of 9 3/4 miles and 8 1/2 miles respectively, and terminal faces at altitudes of 670 ft and 690 ft.

Rivers—New Zealand rivers, owing to the high relief of the country, are mostly swift-flowing and difficult to navigate. As sources of hydro-electric power the rivers are of considerable importance, since their rapid rate of flow and dependable volume of water make them eminently suitable for this purpose. The Waikato and the Rangitaiki in the North Island and the Waitaki, Cobb, Clutha, and Waipori in the South are used for major hydro-electric schemes.

Following is a list of the more important rivers. For purposes of uniformity, the length of a river is taken to be the distance from the mouth to the farthest point in the system, whether this should happen to bear the same name or that of an affluent, and is inclusive of the estimated course of a river flowing into and emerging from any lake in the system.

RiverLength (Miles)
*Cook Strait is defined as follows: northern limit is a line between northern point of Stephens Island and Kapiti Island: southern limit is a line between Cape Palliser and Cape Campbell.
NORTH ISLAND 
Flowing into the Pacific Ocean 
    Piako56
    Waihou (or Thames)109
    Rangitaiki120
    Whakatane65
    Waipaoa (from source, Mata River)75
    Waipaoa (from source, Waipapa Stream)70
    Wairoa (from source, Hangaroa River)85
    Mohaka (from source, Taharua River)107
    Ngaruroro96
    Tukituki70
Flowing into Cook Strait* 
    Ruamahanga77
    Hutt35
Flowing into the Tasman Sea 
    Otaki30
    Manawatu113
    Rangitikei150
    Turakina85
    Whangaehu100
    Wanganui180
    Waitotara67
    Patea89
    Waitara61
    Mokau98
    Waikato (from source, Upper Waikato River)264
    Wairoa (from source, Waiotu Stream)82
    Hokianga (from source, Waihou River)45
SOUTH ISLAND 
Flowing into Cook Strait 
    Pelorus40
    Wairau105
    Awatere78
Flowing into the Pacific Ocean 
    Clarence130
    Conway30
    Waiau-uha (or Waiau)105
    Hurunui86
    Waipara40
    Ashley60
    Waimakariri100
    Selwyn59
    Rakaia90
    Ashburton56
    Rangitata (from source, Clyde River)75
    Opihi50
    Pareora35
    Waihao40
    Waitaki (from source, Hopkins River)130
    Kakanui40
    Shag45
    Taieri179
    Clutha (from source, Makarora River)200
Flowing into Foveaux Strait 
    Mataura149
    Oreti126
    Aparima (Jacobs River)70
    Waiau (from source, Clinton River)135
Flowing into the Tasman Sea 
    Hollyford47
    Cascade40
    Arawhata42
    Haast40
    Karangarua23
    Cook20
    Waiho (from source, Callery River)20
    Whataroa32
    Wanganui35
    Waitaha25
    Hokitika40
    Arahura35
    Taramakau50
    Grey75
    Buller (from source, Travers River)110
    Mokihinui35
    Karamea50
    Heaphy22
    Aorere (from source, Spee River)45
    Takaka (from source, Cobb River)45
    Motueka67
    Waimea (from source, Wai-iti River)30

The discovery in 1861 that the beds of rivers in the South Island contained extensive deposits of alluvial gold was of considerable importance in the early economic development of the country.

With the very successful acclimatisation of freshwater fish, notably trout, many rivers now provide exceptionally fine fishing.

Lakes—In considering New Zealand's numerous lakes a distinction can be made, especially from the scenic viewpoint, between the lakes of the two Islands. Surrounded by extremely rugged country the larger lakes of the South Island are distinguished by the grandeur of their alpine settings, while some of the larger ones of the North Island, situated on a volcanic plateau, have their own particular beauty. As reservoirs the lakes of both Islands are of vital importance for the maintenance of the rivers and streams draining them and as a means of flood prevention. More especially is this the case where hydro-electric schemes are involved, Lakes Waikaremoana and Taupo in the North Island, and Lakes Coleridge, Pukaki, Tekapo, Wanaka, Hawea, and Wakatipu in the South Island, being of particular significance in this respect. A series of narrow man-made lakes have been produced in connection with hydro-electric development along some of the rivers. In 1965 Lake Benmore, New Zealand's largest artificial lake, was created. It lies on the Waitaki River in North Otago and covers 30 1/2 square miles in area and consists of two arms, the main arm being 18 1/2 miles in length and the Ahuriri Arm 11 1/2 miles in length.

Some particulars of the more important lakes are given in the following table.

LakeLength, in MilesGreatest Breadth, in MilesArea, in Square MilesDrainage Area, in Square MilesApproximate Volume of Discharge, in Cubic Feet per SecondMaximum Height Above Sea Level in Feet (Range in Brackets)*Greatest Depth, in Feet

The range in lake levels is not available for all lakes.

†1 square mile equals 259 hectares.

NORTH ISLAND       
Natural       
Taupo25172341,2704,4901,172 (5)522
Rotorua7 1/2631203..920 (2)84
Rotoiti10313248852916 (2)230
Tarawera75 1/21472273981 (2)285
Rotoaira31 3/45502401,852 (3)..
Waikaremoana126211656232,015 (45)840
Wairarapa124311,236..564
Rotorua32317..968 (4)..
Rotoma3 1/42 1/44 1/212..1,036 (6)..
Okataina43425..1,018 (9)..
Okareka1 1/21 1/41 1/48..1,160 (4)..
Rotomahana41 3/43 1/227..1,116 (22)..
Rerewhakaitu2 1/21 3/43....1,441 (4)..
Tikitapu13/41/2....1,364..
Rotokakahi2 1/211 3/411401,298..
Artificial       
Ohakuri211/45 1/21,8505,540942..
Atiamuri41/41/21,9805,830826..
Whakamaru13 1/21/232,1556,160742..
Maraetai4 1/21/21 1/22,3906,730618..
Waipapa61/41/22,5007,010417..
Arapuni101/252,6557,310363 (2)..
Karapiro151/432,8807,820176..
Whakamarino1/21/41/10....900..
SOUTH ISLAND       
Natural       
Rotoiti5 1/21 3/44714402,020 (6)250
Rotoroa9291459601,462 (5)499
Brunner5 1/25 1/215160..280357
Kaniere61 1/4611..429646
Coleridge11214216..1,672680
Sumner61 1/25 1/2130......
Tekapo113 1/2375503,0602,347 (25)620
Pukaki9 1/25325234,5201,640 (30)..
Ohau113234602,3101,730 (9)..
Hawea195465672,2401,133 (53)1,285
Wanaka283749827,150915 (14)..
Wakatipu4831131,1506,1601,017 (7)1,239
Te Anau3861331,2759,730686 (15)906
Manapouri185551,78513,630608 (21)1,455
Monowai12111105495643 (13)..
Hauroko221 1/227 1/22251,100513 (6)..
Poteriteri181 1/2181601,05096..
Waihola41 1/432,200..(Tidal)52
Ellesmere14870745..(Tidal)7
Artificial       
Cobb31/43/4281982,650 (50)..
Waitaki31/22 1/23,75012,150753..
Roxburgh201/42 1/46,01217,270430..
Mahinerangi9181202301,282..
Benmore—       
    Ahuriri Arm11 1/22 3/430 1/23,00012,0001,181315
    Main Arm18 1/2

GEOLOGY—The islands of New Zealand are part of the unstable circum-Pacific Mobile Belt. This is a region where volcanoes are active and where the earth's crust has long been buckling and breaking at a geologically rapid rate. The interplay, in the past of earth movements and erosion has made the sedimentary rocks that cover almost three-quarters of New Zealand. Land areas that the earth movements have raised have been attacked by erosion, and the sand, mud, shingle, and other debris thus formed has been carried away to the sea, where it has accumulated in great thicknesses to form rocks such as sandstone, mudstone, greywacke, and conglomerate; the shells and other skeletons of sea creatures have accumulated to form thick layers of limestone. Many of the sedimentary rocks are in distinct layers called strata. Earth movements have later raised them above the sea to form land, and the strata are in many places tilted and folded by pressure. Seas have advanced and retreated over New Zealand many times and these sedimentary rocks represent almost every geological period since the Cambrian (see Time Scale). Their age is revealed by the shells, foraminifera, and other fossils that they contain

As well as sedimentary rocks, and volcanic rocks of various ages, New Zealand incorporates in its complex structure schist, gneiss, marble and other metamorphic rocks, and granite, diorite, gabbro, serpentine, and other intrusive igneous rocks. Most of these metamorphic and intrusive rocks are hundreds of millions of years old. They were formed at depth in the earth's crust early in New Zealand's history, in the “roots” of ancient mountain ranges, long ago destroyed, and are visible at the land surface today only because erosion has removed thousands of feet thickness of other rocks that once covered them. The metamorphic rocks developed when huge, elongated sea basins (geosynclines) were formed, in which tens of thousands of feet thickness of sediments accumulated. When these geosynclines were slowly compressed during major mountain-building episodes the deeper sediments were subjected to great pressure and shearing stress, which caused new minerals and structures to develop, changing the sediments into metamorphic rocks. The granites and other intrusive rocks are coarsely crystalline, and are usually considered to have intruded into the outer crust in a molten state during mountain building; some, however, may be the products of an intense metamorphism of sediments.

GEOLOGICAL TIME-SCALE
ErasPeriodsApproximate Time Since Period Began (Years)
CenozoicHolocene (Recent)Quaternary10 thousand
Pleistocene2 million
Pliocene11 million
MioceneTertiary25 million
Oligocene20 million
Eocene60 million
Paleocene70 million
MesozoicCretaceous135 million
Jurassic180 million
Triassic225 million
PaleozoicPermian270 million
Carboniferous350 million
Devonian400 million
Silurian440 million
Ordovician500 million
Cambrian600 million

Geological History—Evidence of the earliest-known events in New Zealand's history is given by ancient rocks in Nelson, Westland, and Fiordland that were formed in the early Paleozoic era, perhaps as long as 600 million years ago (some in Westland may be older). They include thick, geosynclinal sedimentary rocks. This suggests that a large land mass existed at that time to yield the great volume of sediments, but little has been deduced about its shape or position.

The history of the later part of the Paleozoic era, and the Mesozoic era, is rather better understood. For a vast span of time from the Carboniferous period—probably until the early Cretaceous period—an extensive geosyncline occupied the New Zealand region. At first, during much of late Paleozoic time, huge quantities of submarine lava and volcanic tuff were included in the materials that accumulated in the geosyncline, but in the later Permian and Mesozoic times the sediments were mainly sand and mud, derived probably from some land west of present New Zealand; they were compacted into hard greywacke (a type of sandstone) and argillite (hard, dark mudstone).

In the early Cretaceous period one of the main mountain-building episodes in New Zealand's history took place. Although geosynclinal sedimentation continued through the Cretaceous period in eastern New Zealand, the geosyncline elsewhere was compressed, and the sediments were intensely crumpled and broken and raised above the sea, probably forming a large, mountainous land mass. Some of the geosynclinal deposits, now exposed over much of Otago, alpine Westland, and parts of Marlborough Sounds, were metamorphosed into schist and gneiss by the tremendous deforming pressures to which the geosyncline was subjected.

The time that has elapsed since the intense folding of the strata in the New Zealand geosyncline in the mid-Cretaceous period may be considered as the later geological history of this country, embracing roughly 100 million years.

During the early part of this late history, erosion slowly wore down the mountains that had risen, producing a land of low relief. Over these worn-down stumps of the Mesozoic mountains the sea gradually advanced, beginning its transgression earlier in some areas than in others. In the early Cretaceous period it began to submerge land in the region of present North Auckland and the eastern margins of the North and South Islands, and thick deposits of mudstone and sandstone accumulated in some parts of these areas. At the close of the Mesozoic era, and in the very early Tertiary, land became so reduced in size and relief that little sediment was formed, and only comparatively thin deposits of fine bentonitic and sulphurous muds, and fine, white, foraminiferal limestone accumulated. In some areas New Zealand's main coal deposits accumulated in swamps on the surface of the old land. These became buried by marine deposits as the sea continued its transgression in the Eocene period.

By the Oligocene period, most of the land was submerged, and in shallow waters free of land sediments, thick deposits of shell and foraminiferal limestone accumulated. (Scattered, remnant patches of this Oligocene limestone furnish most of New Zealand's cement and agricultural lime.)

After the Oligocene submergence earth movements became more vigorous; many ridges rose from the sea as islands, and sank or were worn down again; sea basins formed and rapidly filled with sediments. New Zealand's late Tertiary environment has been described as follows: “The pattern of folds, welts, and troughs that developed was on a finer scale than in the Mesozoic ... the land moved up and down as a series of narrow, short, interfingering or branching folds ... we can think of Tertiary New Zealand as an archipelago ... a kind of writhing of part of the mobile Pacific margins seems to have gone on ...”. The thick deposits of soft, grey mudstone and sandstone that now make up large areas of the North Island, and some parts of South Island, are the deposits that accumulated rapidly in the many sea basins, large and small, that developed in the later Tertiary.

Very late in the Cenozoic era—in the Pliocene and Pleistocene periods—one of the greatest episodes of mountain building in New Zealand's history took place. Earth movements became intense, and slowly pushed up the Southern Alps and other main mountain chains, and determined the general shape and size of the present islands of New Zealand. Much of the movement during this mountain building period (the Kaikoura Orogeny) took the form of displacement of blocks of the earth's crust along fractures called faults. The total movements of the earth blocks adjacent to major faults amounted to thousands of feet. It must have been achieved very slowly, probably by innumerable small movements, each of a few inches or feet. The blocks adjacent to “transcurrent” faults moved not only vertically but also laterally along the faults. The New Zealand landscape today in some regions shows well preserved tilted fault blocks bounded by fault-scarps—steep faces hundreds or even thousands of feet high. Fault movements continue to the present day, and have accompanied several major earthquakes of the past century. Many minor but revealing landscape features such as scarplets, fault ponds, and shutter ridges show where movement has been occurring in recent centuries.

Erosion during this time has eaten into the major landscape forms that the earth movements have built, carving detailed landscape pattern of peaks, ridges, valleys, and gorges, and has built up alluvial plains, shingle fans, and other construction forms. At the coast, waves have driven back the headlands and built beaches, splits, and bars. The Pleistocene period was the time of the Ice Age, and in the highmountains of the South Island glaciers carved deep valleys and carried huge loads of rock, dumping them as moraines. The late Pleistocene glaciers carved the fiords of Fiordland and the basins occupied by most South Island lakes; there were small glaciers also on Ruapehu, where remnants survive, and on Mount Egmont and the Tararua Range.

Volcanic activity of the past few million years has played an important part in making the rocks and shaping the landscape of parts of the central and northern North Island. Banks Peninsula, a twin volcanic dome in Canterbury, achieved much of its growth then. The largest volcanic outpourings of late geological times in New Zealand have been in the region between Tongariro National Park and the Bay of Plenty Coast: andesite lava, scoria, and ash were erupted in the Pleistocene period and later to build the huge volcanoes, Ruapehu, Tongariro, and Ngauruhoe. More than 2,000 cubic miles of molten rhyolitic magma was erupted in the form of ignimbrite, pumice, and rhyolite lava, building up the Volcanic Plateau. This is one of the largest and youngest accumulations of acid volcanic rocks in the world.

Mount Egmont is a huge, conical, andesite volcano, with the remnants of two other volcanic cones nearby; all are of Pleistocene age. In the Waikato there are eroded Pleistocene cones of approximately basic andesite composition. The largest is Pirongia, some 3,000 ft high. Auckland city and the area immediately to the south has been the scene of many eruptions of basalt lava and scoria in late Pleistocene and Holocene times; and many small scoria cones can be seen in the locality. Late Tertiary and Quaternary basaltic eruptions in North Auckland have built lava plateaus and many young cones.

Geological maps and an accompanying description were included in issues of the Official Yearbook up to 1971, and are also included in An Encyclopaedia of New Zealand.

A Descriptive Atlas of New Zealand contains geological maps of New Zealand and summaries of New Zealand's geology and landscape development. New Zealand Geological Survey Bulletin 66, The Geological Map of New Zealand, 1:2,000,000, is a lengthier summary with a more detailed geological map and cross sections.

EARTHQUAKES: Geophysical Background—Earthquakes are geographically associated with active volcanoes and with major earth movements such as mountain building; these types of disturbance are confined, for the most part, to certain limited regions of the world. Such disturbed regions, of which New Zealand is one, are evidently the site of some kind of development affecting the outer shell of the earth. Little is yet known about the internal processes that give rise to these geophysical disturbances, nor are the relations connecting them fully understood.

Formerly earthquakes were believed to be caused by volcanic activity, but it is now recognised that volcanic earthquakes are restricted to small shocks in the immediate vicinity of the volcanism. In New Zealand, tremors of this kind are experienced in the zone of active volcanism that extends from Mount Ruapehu to White Island.

In some places geological faulting at the surface gives visible evidence that a major earth movement has occurred. Occasionally movement on a fault has been observed to occur simultaneously with an earthquake in the same vicinity. New Zealand provided one of the earliest examples of this to become generally known, when movement took place on the Wairarapa Fault at the time of the great Wellington earthquake of 1855. Such events as this have led to the idea that earthquakes in general are caused by fault movements. It is noteworthy, however, that there seems to be little earthquake activity along much of the Alpine Fault, which has been traced for 300 miles from Milford Sound to Lake Rotoiti and is classed by geologists as one of the largest and most active faults in the world. The nature of the connection between earthquakes and faulting is still somewhat obscure.

The great majority of the world's earthquakes occur at depths of less than 40 miles, and in many earthquake zones there are no shocks at any greater depth. A moderate number of New Zealand earthquakes are classed as intermediate in depth, i.e., originating at between 40 miles and 190 miles deep. The two deepest New Zealand earthquakes recorded so far occurred four and a half minutes apart on 23 March 1960, with a common focus 370 miles deep under North Taranaki, about 80 miles shallower than the deepest earthquake known.

It is difficult to compare the degree of earthquake activity in New Zealand with that in other regions because of the many differences that arise in earthquake type and mode of occurrence. New Zealand and California are often regarded as roughly similar, with an activity very much less than, for example, Japan or Chile.

Regional Distribution—There are two separate regions of earthquake activity in New Zealand. The larger northern region may be roughly defined as lying between latitude 36 1/2°S and 43 1/2°S. It thus includes the northern half of the South Island, and all the North Island apart from the North Auckland peninsula; but the area from Kaipara Harbour to the lower Waikato River should be excluded. The southern active region lies to the west of longitude 169 1/2°E, and incorporates Southland, western Otago, and southern Westland. Earthquakes have only occasionally been located in the parts of New Zealand lying outside these two regions.

Within the active regions the occurrence of shallow earthquakes is widely scattered. There has been a tendency, however, for the larger shallow earthquakes to lie towards the Pacific side of the northern active region and towards the Tasman side of the southern active region. Earthquakes with deeper foci are mostly confined to a narrow belt in the northern region, extending from the Bay of Plenty south-westwards to Tasman Bay.

The historical record is too brief to support a quantitative assessment of the frequency with which one might expect earthquakes to be felt at a given intensity in various parts of New Zealand. Considering the distances at which major earthquakes can be effective, in relation to the size of New Zealand, it would be imprudent to regard any part of the country as permanently exempt from the possibility of earthquake damage.

Outside the active regions there are many areas, however, where no damaging intensity has actually been experienced in historical times. Moreover, since the major shallow earthquakes on record have been rather widely distributed within the active regions, there appears to be no particular area of markedly intense seismicity.

The Hawke's Bay earthquake of 3 February 1931 resulted directly or indirectly in 255 deaths. The total of deaths that have been recorded as due to other earthquakes since 1848 is 32, of which three resulted from the Inangahua earthquake of 1968.

Seismological Observatory—Earthquake recorders are operated continuously at the following stations by the Seismological Observatory, Wellington: Apia and Afiamalu (Western Samoa); Nandi (Fiji); Rarotonga (Cook Islands); Raoul Island (Kermadecs); Cape Reinga, Onerahi, Auckland, East Cape, Karapiro, Whakatane, Wairakei, Gisborne, Tuai, Tarata, Chateau, Taradale, Castlepoint, Mangahao, and Wellington (North Island); Cobb, Kaimata, Christchurch, Gebbies Pass, Mount John, Milford Sound, Oamaru, Roxburgh, Monowai, and Waipapa Point (South Island); Chatham Islands; Campbell Island; and Scott Base (Antarctica). The Naval Research Laboratory, Auckland, operates a station on Great Barrier Island, the records from which are analysed at the Seismological Observatory. The installations at the following stations include instruments for recording distant earthquakes: Afiamalu, Rarotonga, Wellington, Roxburgh, and Scott Base. At the Pacific and Antarctic stations preliminary readings are made locally and notified by radiogram. The analysis of records from all stations is carried out at the Observatory in Wellington.

The analysis involves using observations from stations in other countries as well as those from the local network, and the Observatory likewise contributes data to the international seismological agencies about distant earthquakes as well as large local ones. Details of tremors felt in New Zealand are supplied to the public and the press. In the study of felt earthquakes the instrumental results are augmented by “felt reports"; these are supplied by a large number of voluntary observers throughout New Zealand in response to a standard questionnaire issued by the Observatory.

Earthquake data are used by the Observatory for studying the fundamental characteristics of the earth's crust in New Zealand, Antarctica, and the neighbouring oceanic regions, and also for contributing to geophysical knowledge of the earth's interior.

Earthquakes during 1971—Earthquakes did not cause any appreciable damage in 1971. The largest New Zealand earthquake during the year was that of 15 April, which occurred at a depth of 170 miles beneath the Bay of Plenty, about 70 miles to the north of Whakatane. Its magnitude was 6.2 on the Richter Scale, and it was felt on the east coast of the North Island, and as far south as Wellington, but because of its depth caused no damage. Two other deep shocks that were felt widely in the North Island originated at a depth of 90 miles beneath the Lake Taupo region on 1 November (magnitude 5.7) and 12 November (magnitude 5.5).

For the third year in succession, no shallow earthquake in New Zealand has reached a magnitude of 6. The largest shallow shock had a magnitude of 5.9, and occurred on 14 August near Maruia, about 25 miles to the east of Reefton. It was felt extensively over the northern part of the South Island, and caused minor damage at Westport, Greymouth, and Reefton. Other shallow earthquakes that were felt widely were those of 16 March, near the northern end of Lake Te Anau (magnitude 5.7) and 29 April, near Cape Turnagain, off the Hawke's Bay coast. The latter earthquake had a magnitude of 5.5 and was felt most strongly at Waipukurau and Dannevirke. A series of earthquakes took place near Lake Benmore on the Waitaki River. The largest, on 7 April, had a magnitude of 5.0, and was felt as far afield as Oamaru and Dunedin. Three other shocks of magnitude between 3 and 4 were recorded from the region within a few days of the main event, and a further earthquake of magnitude 4.1 occurred there on 30 June.

Several earthquakes were also reported felt from the Christchurch area. That of 25 September, with a magnitude of about 4.5, appears to have been located directly under the city, and caused minor damage. An earthquake of magnitude 3.8 on 23 April, also felt in Christchurch, probably originated about 10 miles to the north, near Kaiapoi.

Of scientific interest is an earthquake of magnitude 4.4 that occurred on 31 January, near the Reinga Ridge, about 180 miles to the north-west of North Cape. This is the first earthquake to have been located in this region, and appears to be part of a weakly-active seismic region running through the North Auckland Peninsula to Norfolk Island.

Mt. Ruapehu was again active during April and May. Several eruptions of rock, ash, and steam occurred, the most important being on 8 May and 16 May. No significant earthquake activity was associated with these eruptions.

WEATHER INFORMATION—The collection of weather information and the provision of weather forecasts and climatic data for diverse interests in aviation, shipping, agriculture, Government departments, and the general public are functions of the New Zealand Meteorological Service. By arrangement with the administrations concerned the Service performs similar functions for British territories in the Pacific.

Weather reports for use in forecasting are made at about 140 places within New Zealand and 50 in the Pacific islands and collected by telegraph and radio, along with measurements of winds at upper levels made at 9 radio wind stations, and of temperatures made at 8 radiosonde stations. Daily observations are made for climatological purposes at about 250 places in New Zealand and 80 in the islands. Rainfall measurements are made at a total of about 2,000 places within New Zealand and 270 outside the country.

Detailed climatological statistics are published annually by the New Zealand Meteorological Service in the Meteorological Observations, in Rainfall Observations, and in Fiji Annual Meteorological Summary. Current statistics appear monthly in the New Zealand Gazette and in the Fiji Gazette.

CLIMATE—Situated between 34 °S and 47°S the main islands lie within the broad belt of strong westerly winds which encircles the hemisphere south of about latitude 35°S. Just to the north is the high-pressure ridge of the subtropics from which barometric pressure decreases southwards over New Zealand to the deep low-pressure trough located near latitude 70°S.

The weather pattern from day to day is dominated by a succession of anticyclones, separated by troughs of low pressure, which pass more or less regularly from west to east across the Australia-Tasman Sea - New Zealand area and beyond. In this region there is no semi-permanent anticyclone such as those found in similar latitudes over the Indian Ocean and eastern Pacific Ocean respectively. The troughs normally have a north-west to south-west orientation and are associated with deep depressions centred far to the south. A typical weather sequence commences with a low-pressure trough approaching from the west. Freshening north-westerly winds prevail with increasing cloud, followed by rain for a period during which winds may reach gale force. The passage of the trough, with its associated cold front, is accompanied by a change to cold south-westerly or southerly winds and showery weather, occasionally with some hail and thunder. Barometers then rise with the approach of the next anticyclone from the west. Winds moderate and fair weather prevails for a few days as the anticyclone moves across the country.

While the sequence just described is very common the situation is frequently much more complex. The troughs are very unstable systems where depressions readily form, some of which develop into vigorous storms that may pass over New Zealand at any time of the year. Occasionally in summer a cyclonic storm of tropical origin passes over or near New Zealand accompanied by gales and heavy rain affecting mainly northern and eastern districts of the North Island. The anticyclones vary in size, intensity, and rate of movement. Their centres, on the average, follow a track across the North Island but individual centres may pass either north or south of the country, the more northerly tracks being favoured in spring and the southerly tracks in autumn. At times when little development occurs within the troughs the anticyclones follow each other at intervals of about 6-7 days.

The other main factors which influence the climate of New Zealand are first, its position in the midst of a vast ocean, and second, the shape and topography of the country itself.

Hot air masses from the interior of Australia in summer or freezing air masses from the Antarctic, which occasionally reach New Zealand, retain little of their original character after their long ocean passage. Thus, there is an absence of extreme variations of temperature. On the other hand, since abundant supplies of moisture are supplied by evaporation from the ocean, and depressions are frequent and vigorous, the average precipitation is high.

The chain of high mountains, which extends from south-west to north-east through the length of the country, rises as a formidable barrier in the path of the prevailing westerly winds. The effect is to produce much sharper climatic contrasts from west to east than in the north-south direction. In some inland areas of the South Island just east of the mountains the climate is distinctly continental in character, despite the fact that no part of New Zealand is more than 80 miles from the sea.

Winds—Winds from a westerly quarter prevail in all seasons, with a general tendency to increase in strength from north to south. However, considerable local modifications to the general air flow occur during its passage across the mountainous terrain. Approaching the main ranges the flow from the west turns towards the north-east and on descending on the eastern side swings towards the south-east. This results in an increased number of south-westerlies in Westland and a predominance of north-westerlies in inland districts of Otago and Canterbury, where strong gales from this quarter occur at times in the late spring and summer. Daytime sea breezes usually extend from the coast inland for 20 miles or more during periods of settled weather in summer. On the Canterbury coast the wind comes most frequently from the north-east, partly because there is a persistent sea breeze from this quarter, but south of Dunedin south-westerlies predominate. Cook Strait, the only substantial gap in the main mountain chain, acts as a natural funnel for the air flow and is a particularly windy locality afflicted by gales from the south-east as well as the north-west. This “funnel” effect is also in evidence about Foveaux Strait. North of Taranaki the general air flow is more from the south-west, and there is a noticeable reduction of windiness in the summer.

An indication of the variation in the frequency of strong winds from summer to winter, and in different parts of the country, is given in the next table. These were all obtained by the use of Dines pressure-tube anemometers at well-exposed sites.

CLIMATE
StationAverage Number of Days with Gusts ReachingYears of Data
40 mph or More60 mph or More
Nov-AprMay-OctYearNov-AprMay-OctYear
Kaitaia1429430.61.62.216
Whangarei620260.20.40.612
Auckland (Mechanics Bay)2029490.91.62.524
Tauranga1319320.31.11.424
Rotorua67130.20.10.316
Hamilton913220.00.60.610
Gisborne1925440.30.91.223
Napier1720370.40.40.817
New Plymouth3448822.34.87.127
Wanganui3540752.44.56.910
Palmerston North2523480.70.81.512
Wellington (Kelburn)727414616.013.929.913
Nelson2314370.50.40.926
Blenheim (Woodbourne)2216380.70.71.425
Westport1319320.81.01.818
Hokitika1518331.21.62.821
Christchurch3224561.81.53.324
Timaru138210.60.41.010
Taieri3025551.31.42.726
Gore2920490.90.00.95
Invercargill4842905.44.710.124

NOTE—These are all aerodromes, with the exception of Auckland (Mechanics Bay) and Wellington (Kelburn).

Rainfall—The distribution of rainfall is mainly controlled by mountain features, and the highest rainfalls occur where the mountains are exposed to the direct sweep of the westerly and north-westerly winds. The mean annual rainfall (see map) ranges from as little as 300 mm in a small area of Central Otago to over 7000 mm in the Southern Alps. The average for the whole country is high, but for the greater part it lies between 600 and 1500 mm, a range regarded as favourable for plant growth in the temperate zone. The only areas with under 600 mm are found in the South Island to the east of the main ranges. These include most of central and north Otago, and South Canterbury. In the North Island, the driest areas are central and southern Hawke's Bay, Wairarapa, and Manawatu where the average rainfall is 800-1000 mm a year. Of the remainder, much valuable farm land, chiefly in northern Taranaki and Northland, has upwards of 1500 mm. Over a sizeable area of both Islands rainfall exceeds 2500 mm a year but, with the exception of Westland, this is mountainous and unoccupied, much of it being forest covered.

For a large part of the country the rainfall is spread evenly through the year. The greatest contrast is found in the north, where winter has almost twice as much rain as summer. This predominance of winter rainfall diminishes southwards. It is still discernible over the northern part of the South Island but, over the southern half, winter is the season with least rainfall, and a definite summer maximum is found inland due to the effect of convectional showers. The rainfall is also influenced by seasonal variations in the strength of the westerly winds. Spring rainfall is increased in and west of the ranges as the westerlies rise to their maximum about October, while a complementary decrease occurs at the same time in the lee of the ranges.

Areas which are exposed to the west and south-west experience much showery weather, and rain falls on roughly half the days of the year. Over most of the North Island rain can be measured on at least 150 days a year except to the east of the ranges where there are, in places, fewer than 125 rain days. Those areas of the South Island with annual rainfall under 600 mm generally have about 100 rain days a year. In the far south the frequency of rain increases sharply; in Stewart Island and Fiordland rain days exceed 200 a year. Over most of the country between 55 and 65 percent of the rain days also qualify as wet days (2.5 mm or more). The percentage increases to over 70 in Westland, but in the low rainfall area of inland Otago there are only about 40 wet days a year compared with 100 rain days.

On the whole the seasonal rainfall does not vary greatly from year to year, the reliability in spring being particularly advantageous for agricultural purposes. It is least reliable in late summer and autumn when very dry conditions may develop east of the ranges, particularly in Hawke's Bay.

The highest daily rainfall on record is 560 mm which occurred at Milford Sound where the mean annual rainfall exceeds 6000 mm. Other areas with considerably lower rainfall are also subject to very heavy daily falls; such areas are to be found in northern Hawke's Bay and in north-eastern districts of the Auckland Province. By contrast, in the Manawatu district and in Otago and Southland daily falls reaching 80 mm are very rare.

NORMAL MONTHLY AND ANNUAL RAINFALL (MILLIMETRES)* (1921-50)
StationJanFebMarAprMayJunJulyAugSepOctNovDecYear
*25 millimetres equal 1 inch.
Te Paki8491841421651831851421149776791,442
Kerikeri114999114518818818515714011997941,617
Dargaville8186691041351401301221029481761,220
Auckland (Albert Park)84104711091221401401099710781791,243
Tauranga Aerodrome8989971271241421271229711784861,301
Hamilton (Ruakura)8481741021091241171049410994741,166
Rotorua122104891241501501191301141351041091,450
Gisborne Aerodrome718176861279912499746656511,010
Lake Waikaremoana (Onepoto)1961931882112722312412211881701631472,421
Taupo949961941221241091129910797791,197
Taumarunui999984122130150124135122145117991,426
New Plymouth119104941271351631571501221471141221,554
Napier667156699779897148484851793
Wanganui697656717986747664816974875
Palmerston North767661848999798974978484992
Masterton (Waingawa)646956691041029910779796674968
Wellington (Kelburn)7189769111411712413094117791041,206
Nelson Aerodrome695866768679749174916979912
Blenheim514841486658616461644648656
Westport Aerodrome1851551651781651911781851682061782062,160
Hanmer89948486122899410210210984971,152
Hokitika Aerodrome2462162112212262012082342082722392462,728
Lake Coleridge666153717166797979816171838
Christchurch (Botanic Gardens)564643467669615851515161669
Lake Tekapo534641484636414153564658565
Timaru646446464341383646534874599
Milford Sound6485875665545493733734395036605875946,433
Queenstown816479746656566466766461807
Alexandra463830332320181520202833334
Dunedin (Musselburgh)716464646674645856647174790
Gore817981716674535364698179851
Invercargill Aerodrome91971099794997176848691911,086

Thunderstorms—Thunderstorms are not numerous. Their frequency is greatest in the north and west where thunder is heard on 15 to 20 days a year; east of the ranges (except in Gisborne) the figure is five or less.

Hail—Hail is most frequent in the south-west where it is reported on about 20 days a year, but for the greater part of the country it occurs on about 5 days a year or less. Most of the hailstones are small, but occasionally large stones cause local damage to glasshouses, and to orchards and market gardens, chiefly in Canterbury and Hawke's Bay.

Temperature—Mean temperatures at sea level decrease steadily southwards from 15°C in the far north to 12°C about Cook Strait, then to 9°C in the south. With increasing altitude, temperatures drop about 2°C per 1,000 ft. January and February, with approximately the same mean temperature, are the warmest months of the year; July is the coldest. Some temperature statistics for selected places are included in the table on climatological averages. Highest temperatures are recorded east of the main ranges, where they exceed 30°C on a few afternoons in most summers, usually in association with a north-westerly Föhn wind. The extremes for New Zealand (measured in a standard thermometer screen) are 38°C at Ashburton and -19°C at Ophir (Central Otago).

As is to be expected, there is a small annual range of temperature (difference between mean temperature of the warmest and coldest months). In Northland and in western districts of both Islands the annual range is about 8°C. For the remainder of the North Island, and east coast districts of the South Island, it is 9°-10°C. Further inland it exceeds 11°C in places, reaching a maximum of 14°C in Central Otago where there is an approach to a continental type of climate.

Temperatures in the preceding paragraphs are recorded on the Celsius scale (formerly called centigrade), and not the Fahrenheit scale. The degree Celsius (°C) equals 5/9 (°F-32).

Frost—It is well known that local variations in frostiness are considerable, even within quite small areas. On a calm, clear night the cold air in contact with a sloping surface gravitates slowly downhill to collect in valleys and depressions, and it is these “Katabatic” drifts which are mainly responsible for local temperature variations at night. Gently sloping ground with a northerly aspect tends to be least affected by frost. Favourable sites in coastal areas of Northland are free of frost, although further inland light frosts occur frequently in the winter months. At Albert Park, Auckland, the screen minimum thermometer (4 ft above the ground) has registered below 0°C only once in nearly 50 years, yet across the harbour at Whenuapai Aerodrome there are eight screen frosts per annum on the average. Excluding the uninhabited mountainous areas, the most severe winter conditions are experienced in Central Otago and the Mackenzie Plains of inland Canterbury, and on the central plateau of the North Island. Even in these areas night temperatures as low as -12°C are rarely recorded. Elsewhere over the North Island the winters are very mild and pastures maintain continuous growth. In both Islands sheep and cattle remain in the open all the year round.

Snow—The majority of New Zealanders rarely see snow except on the mountains. The North Island has a small permanent snow field above 8,000 ft on the central plateau, but the snow line rarely descends below 2,000 ft even for brief periods in winter. In the South Island snow falls on a few days a year in eastern coastal districts, and in some years may lie for a day or two even at sea level. In Westland it does not lie at sea level. The snow line on the Southern Alps is around 7,000 ft in summer, being slightly lower on the western side where the Franz Josef and Fox Glaciers descend through heavy bush to within 1,000 ft of sea level. In inland Canterbury and Otago, where there are considerable areas of grazing lands above 1,000 ft, snowfalls are heavier and more persistent and have caused serious losses of sheep during severe winters in the past. However, only rarely does the winter snow line there remain permanently below 3,000 ft.

Relative Humidity—Humidity is commonly between 70 and 80 percent in coastal areas and about 10 percent lower inland. It varies inversely to the temperature, falling to a minimum in the early afternoon when temperature is highest and frequently lying between 90 and 100 percent during clear nights. As the following table shows, the diurnal variation is greater than the difference between summer and winter.

StationMean Relative Humidity
JanuaryJuly
3 a.m.3 p.m.3 a.m.3 p.m.
 percent
Auckland (Mechanics Bay)85639074
Gisborne89629072
Ohakea Aerodrome87628972
Wellington89718777
Christchurch87618973
Hokitika95789375
Invercargill90729178

Very low humidity—between 20 and 30 percent or lower—occurs at times in the lee of the Southern Alps where the Föhn effect is often very marked. In summer the hot, dry “Canterbury Nor'-wester” is generally a most unpleasant wind. Cool south-westerlies are also at times very dry when they reach eastern districts. In Northland the humid mid-summer conditions are inclined to be rather oppressive though temperatures rarely reach 30°C. Dull, humid spells are generally not prolonged anywhere, but their frequency shows a marked increase in the south.

Sunshine—The sunniest areas are to be found near Blenheim, Nelson, and Whakatane, where the average duration of bright sunshine exceeds 2,400 hours a year. The rest of the Bay of Plenty and Napier are only slightly less sunny. A large portion of the country is favoured with at least 2,000 hours. Even Westland, despite its high rainfall, has 1,800 hours. Southland, where sunshine drops sharply to 1,700 hours a year, lies on the northern fringe of a broad zone of increasing cloudiness. Four hundred miles further to the south at Campbell Island the sunshine has the extremely low value of 650 hours a year. A pleasant feature of the New Zealand climate is the high proportion of sunshine during the winter months. To eliminate the effect of varying day-length the summer and winter sunshine at a few selected stations have been expressed as a percentage of the possible sunshine.

StationSummerWinter
 percent
Auckland5144
Hamilton5244
New Plymouth5347
Napier5752
Wellington5242
Nelson5857
Hokitika4344
Christchurch4645
Dunedin4143
Invercargill4235

As these figures indicate, there is a marked increase in cloudiness in the North Island in winter, but little seasonal change in the South Island, except in Southland.

Climatological Averages—The following table provides a brief summary of the main climatological elements for selected locations.

StationAnnual AveragesAir Temperatures (Degrees Celsius)
Altitude (ft)Rain Days (0.2 mm or More)Wet Days (2.5 mm or More)*Bright Sunshine HrsDays of Screen Frost (min. air temp. less than 0°C)Mean Temp.Mean Daily MaximumMean Daily MinimumMean Annual
JanJulJanJulMaximumMinimum
*2.5 mm. equals 0.10 in.
Te Paki1901811052,140215.1231514826-1
Kerikeri2401801022,010314.72415136290
Dargaville641851071,940614.3231514629-2
Auckland (Albert Park)1601731012,090015.32314168273
Tauranga Aerodrome12153932,320814.0241413429-2
Hamilton (Ruakura)1311691001,9802513.0231311329-5
Rotorua1,006149972,0002412.1231212230-4
Gisborne Aerodrome16156832,210713.8241413432-2
Lake Waikaremoana (Onepoto)2,110195133 510.920911328-1
Taupo1,232157932,0303911.7231111229-4
Taumarunui5621751111,6903412.7241212231-5
New Plymouth1601771122,110013.42113136260
Napier5126642,280813.9241314432-2
Wanganui72146852,120413.4221214529-1
Palmerston North110167921,8101512.8221213428-3
Masterton (Waingawa)340171902,0602812.2241211231-4
Wellington (Kelburn)415158972,010012.42011135261
Nelson Aerodrome6123722,4104111.8221212128-5
Blenheim17105572,4303412.5241212132-4
Westport Aerodrome61881381,960111.91912124250
Hanmer1,270143901,910849.82299-232-9
Hokitika Aerodrome1271911371,8602511.91911112262
Lake Coleridge1,19512071..6910.021910-131-8
Christchurch (Botanic Gardens)22117551,9903611.4221012132-4
Lake Tekapo2,24097542,2001059.12168-320-10
Timaru56113571,9103911.0221011032-4
Milford Sound5197161..2710.118910225-3
Queenstown1,080128721,9805410.121810-130-5
Alexandra46197382,0808810.523711-232-8
Dunedin (Musselburgh)5167781,7301210.9191011331-2
Gore235172931,7504610.22199031-8
Invercargill Aerodrome11991061,660509.51899128-5

NOTES: (1) Averages of rain days and wet days 1950-66; sunshine 1935-60; mean temperature 1931-60; other temperature data and days of screen frost, various periods—all exceeding 10 years.

(2) For normal monthly and annual rainfall for these stations, see table under subsection on Rainfall.

Brief Review of 1971:Year—There were two unusual features of the 1971 weather. The first, which affected all other weather elements, was a persistently high frequency of easterly to north-easterly winds; the only months in which this feature did not occur were September and October. The second special feature of 1971 was its high temperatures, making it the warmest year in New Zealand in 110 years of observations, with an average departure from the 1931-60 normal of 1.0°C. The previous warmest years, all about equal, were 1956, 1962, and 1970. Highest departures from normal were in Westland, and lowest departures in eastern districts of both Islands. The only months in which temperatures were not above normal but only close to it were July, October, and November.

The easterly to north-easterly winds brought excessive cloud to areas east of the ranges in the North Island, to Bay of Plenty and Taupo, and to Nelson and most of Marlborough; and in these areas sunshine was mainly 200-370 hours below normal. Rotorua and Waipukurau both recorded sunshine more than 100 hours below their previous lowest. On the other hand, sunshine was above normal, mainly by 100 hours, on the West Coast, in the Mackenzie basin, and in Wellington and Manawatu.

The greater part of the North Island had rainfall above normal. Highest departures of over 35 percent were in central and northern Hawke's Bay with most of Gisborne, in Bay of Plenty and Rotorua, and in eastern Northland. In the South Island rainfall was somewhat below normal in Canterbury and Westland, and in most of Southland; but somewhat above normal in Nelson, central Marlborough, and parts of Otago. The greatest departures below normal, exceeding 25 percent, were recorded over parts of Canterbury, especially about and south of Christchurch.

Seasonal Notes—Both January and February were very warm, besides being cloudy and wet over a considerable area of the North Island but mainly dry in the South Island. The rainfall at the Hermitage in January of 60 mm was the lowest for that month in 50 years of observations. From 3 to 8 January cyclone Rosie brought upwards of 50 mm of rain to the greater part of the country and this relieved the prevailing very dry conditions. Napier, Blenheim, and Hanmer recorded their lowest January sunshine for at least 45 years. February 1971 was equal with February 1935 as the third warmest month on record, the two warmest being February 1938 and January 1956. In February nearly all the rain fell from the 23rd to the 25th and this was preceded by 6 weeks of dry, hot weather affecting especially the South Island and southern districts of the North Island. Parts of the Southland Plain and western Southland were still very dry by the end of the month. Forest fires were exceptionally frequent in February in Westland, Otago, and Southland.

In March, rainfall was only about half the normal value over the greater part of the country and it was less than a quarter in the north Canterbury high country. A total of 645 mm of rain at Hokitika from November to March was the lowest in over a century of observations. Most of the country was favoured with more sunshine than normal and departures of 50-80 hours were recorded in western districts. In Canterbury and southern districts of the North Island the weather was too dry, causing a shortage of feed in some areas and also affecting crops.

April weather was a continuation of that of March, but with floods and slips in eastern districts from Hawke's Bay to Bay of Islands, while the remainder of the country had sunny, warm, dry weather.

May was rather wet. A small but intense depression off the coast of northern Hawke's Bay caused heavy rain with slips, considerable flooding, and disruption of transport in Gisborne and Hawke's Bay on the 3rd and 4th. Good growth was reported for the time of the year in most areas.

June was the warmest in over a century of observations for a considerable part of the country, especially in the North Island. In the South Island rainfall was mainly above normal but in the North Island it was mainly below normal. Flooding occurred in Bay of Plenty after rainfalls of up to 300 mm in the 4 days, 3-6 June; and it occurred in parts of Otago after rainfalls of 150 mm on the 6th and 7th. The mild weather was appreciated by farmers, who found growth good for the time of year.

In July considerable cloud and rain affected some eastern districts, but rainfall was mainly low elsewhere, with fairly sunny conditions. Depressions over Northland caused severe gales there on the 22nd and 26th and these were reported in other northern districts on the 2nd. In some districts unusually frosty weather cut back growth but stock were healthy. Lambing commenced under mainly favourable conditions.

August was unusually mild, especially in the north. In the North Island rainfall was mainly up to 50 percent above normal but in the South Island it was predominantly 25 percent below normal. Sunshine was mainly below average. In Northland and eastern districts of the North Island and about Cook Strait serious losses of new-born lambs were reported, some in violent south-easterly gales with rain, affecting especially the Cook Strait area from the 16th to the 18th.

In contrast with other months of the year, September and October were marked by an unusually high frequency of westerly and north-westerly winds. In September, Waikato and parts of Bay of Plenty and central Hawke's Bay received more than double the normal rainfall; while sunshine was below normal west of the main ranges from Waikato to Manawatu, and also on the Southland coast. Unusually violent north-westerly gales buffeted Canterbury and Otago on 10 and 11 September, with considerable damage in some inland districts.

October was a wet month over most of the country and too wet for the farmers in the North Island. Violent north-westerly gales buffeted parts of Otago on 27 October, with a gust of 85 knots at Dunedin Airport.

November was a sunny month. Rainfall was somewhat above normal over the greater part of the North Island, but somewhat below normal over the greater part of the South Island. Daily falls of up to 160 mm on the 15th caused flooding on the Taieri Plains. Strong gales from a westerly quarter buffeted most of the North Island on the 26th, causing some damage. Conditions were good for farming except in some eastern districts of the North Island, where it was too wet for the lambs.

December was dry in the South Island. Over most of the North Island and in northern districts of the South Island sunshine was below normal. It was a good month for stock, and there was plenty of growth except in parts of Marlborough and Canterbury, where it was too dry.

Summary of Meteorological Observations for 1971—The observations from which the following summary was compiled for the year 1971 were at 0900 hours New Zealand standard time, i.e., 2100 hours Greenwich mean time.

StationRainfallRain Days (0.2 mm* or More)Bright SunshineDays of Screen FrostAir Temperature (Degrees Celsius)
Mean Temp.Mean Daily MaximumMean Daily MinimumExtremes
JanJulJanJulMaximumMinimum

*0.01 in.

†Minimum Air Temperature Less than 0.0°C.

‡ °C = 5/9 (°F -32).

 mm hours        
Kerikeri2,2622001,893..15.825.315.815.46.536.41.2
Dargaville1,3101882,038615.426.015.214.56.229.4-2.5
Auckland1,4091932,090..16.525.114.817.87.728.83.9
Tauranga Aerodrome1,7501762,117..15.024.214.516.04.330.40.0
Hamilton (Ruakura)1,3441681,9591514.425.714.115.02.628.2-2.9
Rotorua1,9491711,624813.423.212.614.47.630.0-1.1
Gisborne Aerodrome1,3881771,969..14.623.513.614.45.530.01.0
Taupo1,3181691,81528..25.111.013.20.729.4-2.7
Lake Waikaremoana2,648226..111.721.28.512.13.630.7-0.2
Taumarunui1,5871911,5853513.826.013.414.80.132.3-4.3
New Plymouth1,9951782,148..14.622.913.115.66.526.82.6
Napier1,2721471,979..14.823.413.614.45.330.20.5
Wanganui9671432,108314.322.612.515.23.328.6-0.4
Palmerston North1,0861461,891314.022.612.414.64.529.9-1.6
Masterton9961641,827912.922.611.312.22.830.5-2.6
Wellington (Kelburn)1,2311512,102..13.520.411.413.85.728.43.0
Nelson Aerodrome9231192,2392412.922.112.614.50.429.4-3.0
Blenheim729992,2441213.422.812.513.42.132.4-2.0
Westport Aerodrome2,1831771,907....22.513.214.94.326.10.5
Hanmer Forest1,0051391,74883..21.1..9.4-2.831.9-7.5
Hokitika Aerodrome2,3661721,9871212.721.513.014.12.324.7-2.4
Lake Coleridge717108..2510.821.68.810.8-2.733.9-7.0
Christchurch4411131,8732512.621.310.613.21.733.5-5.9
Lake Tekapo510922,310739.722.44.610.4-3.431.8-8.3
Timaru4901191,7772411.920.710.212.20.829.3-3.4
Milford Sound6,815182..2511.121.38.813.61.025.7-2.5
Queenstown7981051,9082711.124.27.411.70.331.4-3.9
Alexandra368901,9966411.625.26.512.1-3.232.5-6.9
Dunedin (Musselburgh)8141471,632211.819.99.711.93.131.7-2.0
Gore6281461,67140..22.28.6..-0.631.7-7.0
Invercargill Aerodrome9541801,6744710.420.29.010.01.827.6-6.2

For 1971 the mean sea level pressure values in millibars at 0900 hours New Zealand standard time were: Auckland, 1015.7; Kelburn, Wellington, 1014.7; Nelson Aerodrome, 1015.1; Hokitika Aerodrome, 1014.3; Christchurch, 1014.0; and Dunedin Airport, 1013.2.

Chapter 2. Section 2 HISTORY, GOVERNMENT, AND INTERNATIONAL RELATIONS

Table of Contents

EARLY HISTORY: General—When New Zealand was discovered by Europeans in 1642 it was found to be inhabited by a race of Polynesians called Maoris, who had migrated to these islands at least 300 years previously. It is generally accepted that the Maoris came originally from South-east Asia, whence, as proto-Polynesians, they moved eastwards from island to island until they reached the eastern Pacific, where they settled the islands now known collectively as Polynesia. From Polynesia the ancestors of the Maori sailed south-west in ocean-going canoes to reach New Zealand and these voyages were probably spread over several generations, perhaps several centuries. Oral Maori history and genealogy support the view that there was a final wave of migration of considerable magnitude about A.D. 1350. Adapting themselves to a new physical environment, in isolation from the outside world, the Maoris produced forms of social and economic organisation and material culture which were significantly different from their Polynesian prototypes.

Coming from tropical latitudes, the Maoris mainly confined themselves to the warmer North Island, and when discovered by Europeans were in a high state of neolithic civilisation, with marked superiority in the arts of wood carving and military engineering. Their principal social unit was the family group, and from combinations of the numerous groups were formed the subtribes and tribes. They had highly developed social and ritualistic customs, and their system of land tenure and methods of cultivation were communal within the subtribes. Inter-tribal and intra-tribal warfare was common, and as individuals Maoris displayed exceptional courage and intelligence.

From the early days of European settlement in the first half of the nineteenth century many Maoris believed that their interests were best served by co-operation with the settlers. For the most part the Europeans adopted a humanitarian attitude to the Maori people, who accepted their assurances and found a satisfactory safeguard for their interests in the exercise of their rights and privileges of British subjects. As the Europeans established a self-contained and aggressively growing society, there grew up a rivalry for land and a clash of power. In the 1860s Maori tribes in Taranaki, Waikato, and Bay of Plenty fought the settlers and Government troops in a series of sporadic campaigns based on loss of land rights and rising Maori nationalism. After 1870 there followed the development of a European colony of settlement with Maori people making further economic adjustments to European ways.

The introduction of European diseases and firearms, and the impact of European civilisation on the traditional way of life and customs of the Maoris, had such an adverse effect that their numbers must have been reduced by over half during the nineteenth century. However, the virility of the race gradually asserted itself, and from the beginning of the twentieth century the Maori population has been rapidly increasing though still forming a minority component.

The overseas territories of Niue Island and the Tokelau Islands had also long been inhabited by Polynesians from various successive migrations extending over considerable periods prior to their discovery by Europeans.

Discovery by Europeans—On 13 December 1642, Abel Janszoon Tasman, a navigator of the Dutch East India Company, discovered the country to which he gave the name of Staten Land, and which later became known as “Nieuw Zeeland”. Tasman had left Batavia on 14 August 1642, and, after having discovered Tasmania, he steered eastward and sighted the west coast of the South Island, described by him as a high mountainous country. Sailing north, he had the misfortune to come into conflict with the Maoris at Golden Bay, on the north coast of the South Island, so that, though he continued his northward journey until he reached the northern tip of the country, he did not again attempt to land.

There is no record of any European visit to New Zealand after Tasman's departure until Captain James Cook sighted land on 7 October 1769 near Gisborne. Cook and a party of men from the Endeavour landed at Gisborne on 9 October 1769. On his first voyage Cook spent 6 months exploring the New Zealand coastline, and he completely circumnavigated the North and South Islands. Hisactivities can best be described by saying “he found New Zealand a line on a map, and left it an archipelago”. Not only was Cook's ability shown by his cartographical accuracy, but also in his peaceful dealings with the Maoris. He returned to New Zealand again in 1773, 1774, and in 1777. His careful observations made New Zealand known to the western world; the accounts of his voyages were translated into a dozen languages. The bi-centenary of Cook's first visit to New Zealand was celebrated in 1969; an account of his voyages of discovery in the Pacific is given on pages 1116 to 1128 of the 1969 issue of the Official Yearbook.

The European discovery of Niue Island was made by Captain Cook in 1774. The first recorded discovery of the Tokelau Islands was made by Quiros in 1606.

European Settlement and Colonisation—Whaling stations sprang up along the coast from 1792 onwards and a trade with New South Wales began not only in whale oil and seal skins, but also in flax and timber. In 1814 Samuel Marsden, chaplain to the Governor of New South Wales, was responsible for the establishment of the first mission station in the Bay of Islands. To promote the translation of the Bible into Maori, Thomas Kendall (one of Marsden's assistants) took two Maori chiefs with him to England in 1820. The printing of the Bible in Maori was made possible through the establishment of a printing press by William Colenso at Paihia in the Bay of Islands in 1835.

The growing white population in the Bay of Islands, and the lawlessness of crews of visiting ships led to the appointment by the British Government of James Busby as British Resident at Waitangi in 1833. The Governor of New South Wales in 1837 sent Captain William Hobson, in command of HMS Rattlesnake, from Sydney to the Bay of Islands to report on New Zealand. Among other things, Hobson suggested a treaty with the Maori chiefs and the placing of British subjects under British law. On 29 January 1840 Hobson arrived at the Bay of Islands as Governor to proclaim British sovereignty (see later).

By 1840 numerous mission stations had spread through the northern half of the North Island. Conversion of Maori tribes to Christianity was accompanied by the introduction of new crops and methods of cultivation and pacification of the warring tribes.

The first body of immigrants to reach New Zealand under a definite scheme of colonisation arrived at Port Nicholson, Wellington, on 22 January 1840 to found the initial settlement of the New Zealand Company. The colonists were in the main sturdy resourceful people seeking a better future than was offering in nineteenth century industrial England.

The guiding genius of the company, Edward Gibbon Wakefield, aware of the intention of the British Government to annex New Zealand, had earlier (in 1839), dispatched his agents in order to purchase large areas of land from the Maoris before the Crown could assume a monopoly of land purchase.

Wakefield's scheme of colonisation was based on the sale of land to investors or men of wealth for development by labouring class immigrants. With the profit from land sales the company could bring out more immigrants. Wakefield aimed at a balance between landowners and labourers; in effect he aimed to transplant a cross-section of English society. But, ignorant of the system of tribal ownership of Maori land, the company had bought land from individual Maoris; then Hobson provided that all European land titles should derive from the Crown which would be the only purchaser of land from the Maoris. Title to land remained a difficulty for some years and was a cause of distress to the colonists and, combined with a considerable degree of absentee ownership and land speculation, made most precarious the existence of the early company settlements of Wellington, Wanganui, New Plymouth, and Nelson. The company had brought nearly 10,000 persons to New Zealand by 1848. The later settlements of Otago, in 1848, and Canterbury, in 1850, organised under the aegis of the New Zealand Company in co-operation with the Free Church of Scotland and the Church of England respectively, achieved a much greater measure of success owing to the absence of any large Maori population and to satisfactory land purchase arrangements.

The non-Maori population in the main settlements in 1842 totalled 3,801 in Wellington, 2,895 in Auckland, 2,500 in Nelson, 895 in New Plymouth, 380 in Russell, 263 in Hokianga, and 198 in Akaroa. By 1862 the non-Maori population had reached 125,000 (as against 55,000 Maoris) and by 1866 it had jumped to 200,000 with men from Australia joining in the gold rush to Otago. Migration then dropped away until 1874 when there was a high inflow for several years from Britain with the Vogel policy of public works development.

After the death of Hobson in 1842, subsequent governors, through lack of funds and weak administration, found themselves unable to protect the small and helpless settlements from threatening Maori aggression engendered by strong feelings on land ownership. The response of the Colonial Office was to appoint Captain George Grey as Governor and to provide him with adequate funds and troops so that he soon restored order and won not only the confidence of the Maoris but also for a time that of the settlers. Grey, through his chief land purchase officer, Donald McLean, endeavoured to buy up land in advance of the settlers' needs in order to prevent conflict between settlers and Maoris. By 1858 the census revealed that the settlers outnumbered the Maoris who, fearful that they were being swamped by the settlers, became increasingly reluctant to sell their land. At the same time the intensified settler pressure for more land led McLean to negotiate only with those Maoris still favourably disposed to land sales. This practice alarmed the other Maoris and finally the war broke out in 1860 over a land dispute at Waitara in Taranaki where settler demand for land was strongest. The return of Grey as Governor did not solve the problem for, as an autocrat, he could not work with elected ministers nor could he regain the confidence of the Maoris and finally he quarrelled with the commander of the Imperial troops. Widespread confiscation of Maori land by the settlers' government in order to pay the cost of the war included land belonging to friendly as well as hostile Maoris and aroused further resentment. Although the war had died down by 1870 it was only during the term of Donald McLean as Native Minister that some measure of reconciliation began with the establishment of four Maori electorates in 1876.

Subsequent History and Development (1870 onwards)—The absence of hostilities and the discovery of gold there had allowed the South Island to obtain a lead in commercial and political development which it long maintained. Moreover, with the subsequent agrarian expansion especially in the development of the large pastoral holdings, the country ceased to be merely self-sufficient agriculturally but began to develop a substantial export trade, mainly in wool.

By 1870 the gold boom had ended in the South Island. To remedy the situation of economic stagnation, Sir Julius Vogel began a policy of extensive borrowing for railway and road construction and for immigrant labour. The results of this policy were to double the population to 500,000 by 1880, to immensely improve transport and communications and to encourage industry in the towns where most of the immigrants had congregated. After Vogel's plans for these loans to be secured against the land were frustrated by the provinces, he decided that the provincial system, begun in 1853, had outlived its usefulness and that parochialism was a hindrance to the development of the colony. The system was abolished in 1875, local administration being provided for by the Counties Act and the Municipal Corporations Act 1876.

When systematic colonisation began, New Zealand's only important trade association was with the cast coast of Australia. It was, however, the inflow of British capital which set the New Zealand economy on a path of growth: that determined by the requirements of markets in the United Kingdom. Britain with a vigorously expanding demand from its working population required from the young colony an assured and increasing supply of food and raw materials, and a guaranteed market for its industrial goods. In accordance with this archetypal pattern of colonial development agricultural trade with the United Kingdom assumed over-riding importance as the land was brought into production. By 1868, in spite of the problem of distance, the United Kingdom had already become New Zealand's principal trading partner.

With the introduction of refrigeration in 1882 and steam navigation in the late 19th century, the development of exports of frozen meat and dairy products assured the dominance of the United Kingdom in New Zealand's external trade. These developments, with a continued substantial investment of British capital, particularly in farming and food processing industries, established that degree of specialisation to meet the needs of the British market, which shaped the entire New Zealand economy during its first hundred years.

The depression of the 1880s, a consequence of a fall in world price levels, resulted in unemployment and large emigration but export prices recovered in the nineties. From 1880 onwards the natural increase of births over deaths exceeded the net inflow from migration.

In 1891 John Ballance, as leader of the Liberal Party, became Premier to be followed on his death in 1893 by Richard John Seddon, who remained Premier until his death in June 1906. The Government pursued a vigorous legislative programme in which the main emphasis was that of social justice, the principal manifestations of which were the breaking up of the large estates, the establishment of the Court of Arbitration, and the introduction of old age pensions. The policy of subdivision of large estates to produce closer settlement included the compulsory purchase of large holdings bythe State, but more important were the effects of refrigeration, which encouraged the smaller dairy and fat-lamb farms, the accelerated Government purchase of Maori lands and the widespread introduction of systems of Crown leasehold with subsequent loans to small farmers to establish themselves. In inaugurating the Court of Arbitration, the object was to eliminate strikes by giving labour a recognised bargaining status; and the enactment was in accord with the enlightened code of labour legislation passed at that time under the influence of William Pember Reeves.

The expansion of the exports in dairy produce and frozen meat during the 1890s produced more intensive settlement and the rise of a new farming class in which the “cow-cockie” was the dominant figure. These farmers, having benefited by the spread of prosperity, were in 1911 mainly responsible together with the city businessmen for the overthrow of the Liberal regime. The new Reform Government under Massey, in order to strengthen the primary producer, introduced measures of which the extension of rural credit was typical. Industrial conflict on the waterfront and with the Waihi miners ended in a victory for Massey who relied on the use of troops and special constables to repress the strikes.

Three years after the advent of the Reform Party, the First World War, 1914-1918, broke out, leading to a coalition Government and an Imperial commandeer of exports which created the precedent for the establishment after the war of central boards to regulate the exports of pastoral products. War activities were marked by heavy casualties in proportion to the population while the landing at Gallipoli signified the growing awareness of a sense of nationhood.

Though the effects of the post-war depression during the period 1921-24 showed themselves in an increase in unemployment and slight wage reduction, no drastic legislation was necessary to stabilise economic conditions. During the following years the price level rose; and on the administrative side, the period was characterised by extensive public works expenditure, with particular attention to hydro-electric schemes and highways.

Land values rose steeply, accelerated by Government efforts to settle returned servicemen on the land, and between 1915 and 1925 forty percent of the occupied land had changed hands. New Zealand was extremely vulnerable to the overseas price fluctuations of the pastoral products. With the advent of the depression by 1930, farmers, despite greatly increased production, were faced with a serious decline in income (over forty percent) together with heavy mortgage commitments on land bought at high prices so that many were faced with foreclosure. In the towns, tradesmen and shopkeepers faced bankruptcy, and wage earners unemployment or reduction in wages. A coalition Government, formed in 1931 to meet the crisis had, as its leading figure, Coates, who was Minister of Finance from 1933. In order to produce balanced budgets and cope with the effects of the depression, enactments provided for unemployment relief, for the suspension, in effect, of compulsory arbitration, for the establishment of a Reserve Bank, for a mortgage moratorium, for raising the exchange rate, and for reduction in interest rates and wages. Partly as a consequence of these measures and of a rise in overseas price levels a general economic revival was taking place by 1935.

Development as a Nation—The election of a Labour Government in 1935 (with notable politicians including Savage, Fraser, and Nash, who successively became Prime Ministers) reflected the general climate of opinion and led to change in administrative policy, the preoccupation being mainly with social problems. These attitudes were reflected in certain distinctive trends in legislation.

The first major influence was a humanitarian attitude reinforced by a progressive economic policy. Evidence of this is implicit in the provision for a basic wage, and later for a minimum wage, employment-promotion legislation, amendments to workers' compensation, industrial conciliation and arbitration, mining, etc., legislation, the system of basic prices for certain primary produce, the creation of farm industry reserves, and the rationalisation of production and marketing by the establishment of boards for certain items of primary produce.

Another dominant trend was the acceptance of the principle that society should take active steps towards the improvement of the working, living, and social circumstances of its members. Foremost in this category was the Social Security Act and its later extensions providing for monetary benefits such as age, superannuation, family allowances, sickness, and unemployment, and by the provision of a system of medical, pharmaceutical, hospital, maternity, and other related benefits.

Other legislative enactments under this heading include the provision for paid annual holidays, reduction of working hours, extension of workers' compensation insurance, improvement in safety and health and welfare conditions in industry, and extension of educational facilities and opportunities.

Shaken by conflict with its industrial left-wing, and faced with increasing public impatience at the continued existence of some wartime controls and concern at inflation, the Labour Government was defeated at the 1949 election after holding office since 1936. The National Party took office under the leadership of Sidney Holland and its first term was marked by a conflict with the Waterside Workers' Union. This dispute in 1951 ended in a complete victory for the Government after it introduced most stringent emergency regulations to deal with the situation. For the first time this century, Holland held an emergency election before parliament had run its full 3-year term. The result was to return the National Government with an increased majority.

In 1952, continued inflation and a balance of payments crisis produced restrictions on exchange allocation to importers in an effort to build up overseas reserves. The 1954 election reduced National's majority and was marked by the appearance of a third party, the Social Credit Party which gained 11 percent of the votes.

During his time as Prime Minister, Holland initiated a constitutional change with the abolition of the Legislative Council on the grounds that it no longer possessed any effective function. Illness caused Holland's retirement in 1957 when he was replaced as leader by Keith Holyoake.

In 1957, the Labour Party gained a narrow victory at the polls under the leadership of Walter Nash. Budgetary policy to meet a recurrence of the balance of payments crisis proved unpopular and at the 1960 election, the National Party under the leadership of Keith Holyoake was returned to power, as it was in subsequent elections in 1963, 1966 and 1969.

International affairs have assumed growing importance in recent decades. It was evident when peace returned to the Pacific area in 1945 that New Zealand found itself in a different world, where its relations with the countries geographically closest to it would grow rapidly in importance. This did not, however, alter the extent to which New Zealand identified itself as a European nation. New Zealand took part in the Paris Peace Conference and it was not until 1955 that it altered the planning commitments of its defence forces from security arrangements in the Middle East to similar arrangements in the South-east Asia and Pacific areas.

The most far-reaching reorientation required of New Zealand in this new situation was the need to obtain a guarantee of its security from the United States rather than the United Kingdom to which it had traditionally turned. With Australia it signed the ANZUS pact with the United States in 1951 and this provides the cornerstone of New Zealand's security arrangements. It also gives New Zealand a common interest with the nations of Western Europe in encouraging the United States to maintain outward-looking policies and a global defence capability.

New Zealand's growing regional awareness has been expressed partly in its defence relationships through SEATO, and through the collective defence arrangements with Malaysia and Singapore; but more widely in its participation in the Colombo Plan and other arrangements for extending development aid to South-east Asia, the South-west Pacific and the Indian subcontinent. The stability and well-being of these areas are vital to New Zealand's interests and relationships with the countries of the region are becoming closer every year.

Contemporaneously with the expansion of the field of political interest, the economic and industrial development of the country has proceeded. Expansion and diversification of manufacturing and servicing industries have provided avenues of employment for the growing labour force.

Agricultural development has continued to be based on the principle of the family farm, and the New Zealand farmer remains typically both labourer and manager, as well as landowner. The present level of efficiency has been won by hard effort, skilled management, the application of the results of scientific research, and a heavy personal investment in farm improvement. Dairy producers are now faced with problems of maintaining overseas markets as a result of Britain's move to join the European Economic Community.

Farm production has constantly expanded so that New Zealand has become one of the world's greatest exporters of pastoral produce. The bulk of this produce still goes to the British market.

The advantages of a closely bilateral trading relationship with the United Kingdom were not one-sided. The association was grounded in economic logic, and enabled New Zealand to develop its only major natural asset into a pastoral system of unmatched economic efficiency, which, to the present day would, under free trading conditions, enable its primary products to meet any competition.

The pattern of economic dependence developed in accordance with a series of mutually agreed decisions extending over a long period, and these were formalised by the Ottawa Agreement of 1932 between the British and New Zealand Governments which provided preferential access to each other's markets. The advantages of this economic rationalisation were demonstrated most strikingly in the Second World War, 1939-45 when, apart from the New Zealand military contribution, its continued substantial supply of food to a beleaguered Britain was vital to the continuation of the Allied war effort.

Settlers came originally to New Zealand because of some dissatisfaction with the conditions of life they knew in their country of birth. They sought to build a new society which, while retaining what was good in Britain and Europe, would exclude the pressures which they had found damaging to the quality of their own lives. It is perhaps ironic that, to the extent which a new society has been created, this has been achieved by means of, and is contingent upon, continued strong economic ties with Europe.

Increasing interest has been taken in the last decade in welfare and social development generally of both the rapidly growing Maori population and the inhabitants of the islands of the Pacific with New Zealand ties.

New Zealand has experienced in recent years a considerable inflow of Polynesians from its associated territories and elsewhere in the Pacific. Auckland has become the major city for Polynesians, and as such a focal point of the South Pacific.

The Polynesian (including Maori) population is of greater significance than its relatively small numbers would suggest. Outside the Pacific area New Zealand may present a basically European face to the world, but the preservation of distinctive life-style by the Maori, together with a close compatibility (extending to frequent intermarriage) between the two races, has doubtless been a determining factor in the evolution of New Zealand society. As such it is complementary to the basic evolutionary drive in that society, based as it is on the inheritance of European liberal ideas.

In early days, the New Zealand Government saw its role in the country's overseas territories as that of providing direction and guidance to less-developed areas. More recently, successive Governments have, in various ways, encouraged the inhabitants to take an increasing share in the administration of their communities, thus paving the way for self-government. Much attention has been paid to combating tropical diseases and to health problems generally; such island industries as citrus fruit and banana growing have been fostered and encouraged in various ways, with outlets being found for produce available for export. Financial and other assistance has been provided from New Zealand Government sources for the expansion of educational facilities and opportunities, public works such as roading, conservation of water supplies by reservoir construction, communication facilities, etc. Fuller information is given in Section 38 of this Yearbook.

For detailed information, reference should be made to the many excellent books dealing with the subject of New Zealand history, of which the more recent ones are listed in the section New Zealand Books in this Yearbook. A useful reference is the Encyclopaedia of New Zealand, published in 1966.

Sovereignty—On 29 January 1840 Captain William Hobson, R.N., arrived in the Bay of Islands. His instructions from the British Government required him to take possession of the country with the consent of the Maori chiefs, this policy being designed by the Colonial Office strongly influenced by missionary opinion, to safeguard the well-being of the native people. Hobson read his commission at Kororareka on 30 January and on 6 February 46 chiefs signed the Treaty of Waitangi, a compact whereby all rights and powers of sovereignty were ceded to the Queen, all territorial rights were secured to the chiefs and their tribes (with the Crown having the sole right of purchase) and in return the Queen extended her protection and all the rights and privileges of British subjects. Other chiefs throughout both Islands later adhered to this Treaty.

On 21 May 1840 Governor Hobson proclaimed British sovereignty in the case of the North Island by virtue of the Treaty of Waitangi, and in the case of the South Island and Stewart Island by right of discovery. New Zealand remained a dependency of New South Wales until 3 May 1841, when it was created a separate colony by Royal Charter dated 16 November 1840. The capital was at first transferred from Russell to Auckland, but in 1865 it was again transferred, on this occasion to Wellington, where the seat of Government has since remained.

During Governor Grey's term, steps were taken to draft a constitution for the colony. An Act granting representative institutions was passed by the Imperial Parliament on 30 June 1852, and was published in New Zealand by Proclamation on 17 January 1853. Under it, provision was madefor the constitution of a General Assembly consisting of a Legislative Council and a House of Representatives. Provision was also made for the division of the country into provinces, each province having an elected Council and Superintendent. (The provincial system was abolished in 1875 and the Legislative Council in 1950.) In the first General Assembly of 27 August 1854 certain members of this body were associated with the permanent members of the executive but they did not hold any portfolios. It was not until 7 May 1856 that responsible government was actually established.

One aspect, that of native affairs, was withheld from the responsible Ministers and the Governor, as representative of the Crown, continued to act independently of his elected advisors in this sphere. In 1861 Grey attempted unsuccessfully to hand over this responsibility but the Ministers were unwilling to assume responsibility for the cost of the war. Finally in 1864 Sir Frederick Weld instituted the “self-reliant policy” whereby the colony accepted responsibility for the settlement of difficulties with the Maoris and consented to the withdrawal of troops by the Imperial Government.

In recognition of a nascent sense of nationality and of an increasing desire for self-reliance in political matters New Zealand was given the title of Dominion in lieu of Colony, the new title taking effect on 26 September 1907.

Of the constitutional events in recent years the passing by the United Kingdom Parliament of the Statute of Westminster in December 1931 was of major importance. The draft of this statute was submitted for the confirmation of the various Commonwealth legislatures before its passage through the United Kingdom Parliament. The statute granted complete autonomy to the various self-governing member countries, but it did not automatically apply to Australia or New Zealand. In other words, its operation in the latter self-governing members of the Commonwealth was declared to require specific adoption by the legislatures of those countries. It was not until 1947 that the New Zealand Government formally adopted the Statute of Westminster.

NEW ZEALAND'S INTERNATIONAL RELATIONS—Few pressures existed prior to the early 1930s to impel New Zealand towards enunciating an independent foreign policy. Successive Governments preferred to make known any views on matters of foreign affairs only to the British Government and through the confidential channels of intra-Commonwealth consultation. The population was mainly British in composition and comparatively few were concerned to distinguish between New Zealand's interests and those of Britain. Nor had they much cause to do so: New Zealand had established a fruitful economic partnership with Britain, upon which country nearly all her material and cultural links were centred; and New Zealand's surest protector against dangers which it was incapable of meeting alone was the Royal Navy. It was, moreover, realised that New Zealand in her own right could make little impact on world affairs, whereas Britain was a great power capable of affecting the pattern of world events. New Zealand “foreign policy” therefore consisted chiefly in seeking to modify British policy in those few cases where New Zealand had a strong interest or a viewpoint rather different from that of Britain.

The emergence of an independent New Zealand foreign policy is usually held to date from 1935. The Labour Government held strong views on the principle of collective security and upon the League of Nations as the embodiment of that principle. In its method of championing the principles of collective security, it pressed for the restoration of the authority of the League of Nations at a time when the United Kingdom Government was pursuing the policy which came to be known as appeasement, urging positive League action over Abyssinia, Spain, and China. In addition to making its views known in confidential communications to the United Kingdom Government, it also stated them with vigour in the international forum of the Council and the Assembly of the League of Nations.

There was nevertheless, no fundamental departure from the traditional policy of association with Britain. Moreover, the course that would be followed in the event of war was never in doubt. As early as 16 May 1938 a leading member of the Government had said, “If the Old Country is attacked, we are too ... we will assist her to the fullest extent possible”. When war broke out the Prime Minister the Right Hon. M. J. Savage, expressed New Zealand's position in terms that were as true in 1939 as they would have been in 1914:

“Behind the sure shield of Britain we have enjoyed and cherished freedom and self-government. Both with gratitude for the past, and with confidence in the future, we range ourselves without fear behind Britain. Where she goes, we go. Where she stands, we stand.”

But the Second World War changed the pattern of power in the world and made it necessary for New Zealand gradually to revise its foreign policy and its method of implementing that policy. Also during the war years New Zealand was admitted to the councils of the Allies and was expected to advance informed views. The Government honoured its responsibility and, having established in wartime the habit of participating in the making of international decisions, accepted it as natural that New Zealand should continue to participate in the development of a post-war world order and in subsequent international consultations. To this end New Zealand established (in effect from 1943) a career foreign affairs service, and proceeded slowly to establish diplomatic missions in countries where New Zealand's interests merited protection. In particular, New Zealand sought increasingly to make its individual contribution to fostering good relationships with its neighbours in the Pacific and Asia and to increasing the measure of security and welfare in these areas.

To be woven into any post-war policy was the now traditional New Zealand belief in the principle of collective security and international justice, especially as symbolised by the United Nations This was by no means an easy task in a world where the divisions of the cold war were reflected in competing regional alliances. There had to be a place, too, for belief in the ability of international co-operation to control armaments and to eliminate poverty, disease, and other economic and social causes of international tension.

The threat to New Zealand's security, posed by the entry of Japan into the war in 1941 at a time when the United Kingdom was fully committed in Europe, brought New Zealand into the closest relations with two of her neighbours on the borders of the Pacific—Australia and the United States. Recognition of the need for a greater measure of collaboration with Australia resulted in the signing in 1944 of the Canberra Pact which provided machinery for continuing consultation between the two Governments. Upon the entry of Japan into the war, both New Zealand and Australia had looked principally to the United States for protection. Relations among the three countries thus entered a new phase. The close association of wartime found expression in peacetime in the ANZUS Treaty, in which, for the first time, New Zealand and Australia entered into a treaty of alliance and mutual defence with a foreign country and achieved the aim of both countries to enter into a close relationship with the major Pacific power. The ANZUS Treaty, which came into force in April 1952, gives an assurance of United States support in the event of an armed attack from any quarter in the Pacific and so constitutes New Zealand's major safeguard from aggression in the area.

The establishment of SEATO, like the formation of the ANZUS alliance, took place against a background of continuing insecurity and of danger in the Far East. In 1950 New Zealand had participated in collective action by the United Nations in Korea. In 1954, following the Indo-China crisis and the Geneva Accords, a broader collective defence treaty covering South-east Asia and the South-west Pacific, known as the Manila Treaty, was signed by New Zealand and Australia, France, Pakistan, the Philippines, Thailand, the United Kingdom, and the United States. The parties agreed that in the event of armed attack on the parties or on a “protocol” State (Laos, Cambodia, and South Vietnam) they would act to meet the common danger. The parties established the South-east Asia Treaty Organisation (SEATO) in Bangkok.

From 1955 New Zealand contributed forces to a Commonwealth Far East reserve stationed in Malaya. In 1959 New Zealand, with Australia, became associated with the Anglo-Malayan Defence Agreement, concluded in 1957, which subsequently became the Anglo-Malaysian Defence Agreement with the formation of Malaysia in 1963. When the United Kingdom decided to withdraw its forces east of Suez by the end of 1971, New Zealand, in association with Australia, indicated its intention to maintain a military presence in Malaysia and Singapore after British withdrawal. Subsequently, with a change of government in the United Kingdom in June 1970, the British decided to retain forces in the area although they upheld the earlier decision to revoke AMDA. A new five-power defence arrangement involving Australia, Malaysia, New Zealand, Singapore, and the United Kingdom replaced the Anglo-Malaysian Defence Agreement on 1 November 1971.

The scope of New Zealand's presence in Asia widened considerably in the years following signature of the Manila Treaty—diplomatic relations were established with a growing number of countries in the area, and increased activity in other fields of co-operation besides that of defence followed the extension of this network of diplomatic posts. By the mid 1960s New Zealand had more complete representation in Asia than in Western Europe. Subsequent accession to regional membership of ECAFE, the Asian Development Bank and ASPAC (the Council for Asian and Pacific Co-operation is further demonstration of this country's acceptance that it has a role to play in the Asian area.

New Zealand's direct interest in political, social, and economic developments in the South Pacific countries is reflected not only in its membership of such regional organisations as the South Pacific Commission, but also in an increased sense of involvement in their problems. The evolution of self-government and nationalism in the South Pacific reached a new stage when Western Samoa became the first independent Polynesian State on 1 January 1962. Three years later the Cook Islands achieved internal self-government. In 1968 Nauru achieved independence as did Fiji and Tonga in 1970. In August 1971, at the request of these five countries New Zealand hosted the first meeting of the South Pacific Forum. New Zealand's liberal tradition of friendship for emergent peoples, and the fact that large numbers of Polynesian people have settled here, means that the islanders tend to look to New Zealand for leadership and encouragement. Inevitably, New Zealand is going to be increasingly involved in the South Pacific region.

New Zealand has continued to place special importance upon its membership of the United Nations. It has been an active participant in the work of the General Assembly, has been a member of all Councils of the Organisation, has provided troops to the United Nations Force in Korea, and military observers and civilian police in various peace-keeping operations, and has endeavoured to assist all efforts to attain the political and social objectives outlined in the Charter.

The historic links with Britain and with Western Europe and North America remain as close as ever; and the economic links with Britain, New Zealand's best customer, remain strong. One of the key problems of external political and economic policy for New Zealand remains the movement towards political and economic integration in Europe and the likelihood that Britain will join the European Economic Community at the beginning of 1973.

Ministry of Foreign Affairs—The primary responsibility of the Ministry of Foreign Affairs is for the formulation and execution of New Zealand foreign policy. It conducts relations with other countries and communications with their governments and representatives in New Zealand. It operates New Zealand's aid programme and maintains diplomatic and consular representation abroad. Its overseas functions are discharged through a network of 27 diplomatic and consular posts consisting of embassies, high commissions, consulates-general, and other permanent missions. At home, the preparation and co-ordination of foreign policy recommendations is carried out in close association with a number of other Government departments. The ministry is administered jointly with the Prime Minister's Department. Prime Ministers have found it appropriate on occasions to hold the Foreign Affairs portfolio. The Secretary of Foreign Affairs is also Permanent Head of the Prime Minister's Department.

In economic and commercial matters the ministry works closely with the Department of Industries and Commerce and with the Treasury. The ministry has a special role too as a clearing house for material provided by New Zealand posts overseas for other departments, and through its posts it performs numerous services on behalf of departments without representatives abroad.

In the Official Section at the end of the Yearbook the diplomatic and other New Zealand representation overseas is listed.

New Zealand in the Commonwealth—Despite the emphasis in New Zealand's approach to international affairs resulting from the realities of its geographical position, membership of the Commonwealth remains a significant feature of its policy. While the Commonwealth association no longer reflects the similarity of outlook that was formerly apparent among its members, it has taken on new importance as a broadly-based grouping of nations that hold certain elements of their heritage in common and that adhere to the same fundamental principles, such as mutual respect and tolerance, in their dealings with others.

There have been many changes in the Commonwealth association both in constitutional respects and in numbers of members. Whereas at the beginning of the Second World War there were only 5 members, in 1971 there were 31 full members and one “special member”, Nauru. The accession to full membership in 1970 of Tonga, Western Samoa and Fiji has greatly increased South Pacific representation in Commonwealth forums. The Commonwealth has thus become an entity embracing several continents and its relationships have taken on a new scope and emphasis. As Commonwealth heads of government affirmed in the Commonwealth Declaration adopted in Singapore in January 1971, the association “provides many channels for continuing exchanges of knowledge and vowson professional, cultural, economic, legal, and political issues among member states. These relationships we intend to foster and extend for we believe that our multi-national association can expand human understanding and understanding among nations, assist in the elimination of discrimination based on differences of race, colour or creed, maintain and strengthen personal liberty, contribute to the enrichment of life for all and provide a powerful influence for peace among nations”. New Zealand, itself a country where two races live in harmony, sees in the Commonwealth a special opportunity for multi-racial co-operation and understanding.

New Zealand contributes to the budgets of the Commonwealth Secretariat and the Commonwealth Foundation, which were both established at the Commonwealth heads of government meeting in 1955. The Commonwealth Foundation, an independent fund administered by a board of trustees consisting of representatives of “member nations”, has contributed greatly to the growing areas of common endeavour. It has sponsored official and non-official Commonwealth organisations that provide links between administrators, engineers, lawyers, accountants, scientists, and private individuals in the different Commonwealth countries. Similarly, the Commonwealth Secretariat, under the leadership of its Secretary-General, has provided a focus for Commonwealth activities, and a basis for extending co-operation between Commonwealth Governments.

New Zealand and the South Pacific—The South Pacific is New Zealand's immediate environment, its Polynesian peoples are close kin to the New Zealand Maori, its islands nearest and most important in the lines of communication which link New Zealand with America and Europe.

Through the South Pacific Commission the Governments administering territories in the South Pacific—Britain, the United States, France, Australia, and New Zealand—have made a concerted effort to promote the economic and social development of the area and its peoples. In the 24 years of its existence the commission has, within its budgetary limits (its budget for 1971, $1,096,954), done much valuable work, particularly in bringing the islanders together and developing a sense of community amongst them. Originally laying much stress on research, the commission has come to concentrate mainly on providing technical assistance and on pooling experience of handling common problems of development. Its membership has grown to include Western Samoa and Nauru. At the same time the importance of the South Pacific Conference has increased. The territorial representatives who attend the conference now have a decisive voice in determining the commission's work programme. Close working links are maintained with United Nations specialised agencies which take an active interest in the region.

But New Zealand has not been content with promoting progress in the economic and social spheres only. At the San Francisco Conference in 1945 it took a leading part in working out the trusteeship system embodied in the United Nations Charter, and subsequently the League of Nations Mandate for New Zealand to administer Western Samoa was replaced by a trusteeship agreement.

In accordance with the wishes of the Samoan people, a programme of political and constitutional development was launched which continued throughout the 1950s and which culminated in the establishment of the independent State of Western Samoa on 1 January 1962. The transfer of sovereignty did not, however, weaken the close and friendly relationship which had grown up between Western Samoa and New Zealand and this was confirmed in a treaty of friendship between the two countries signed in August 1962. In the educational as well as in other fields New Zealand assists Western Samoa.

Whilst Western Samoa was moving towards independence, constitutional development was taking place in New Zealand's other island territories. Following expert surveys a programme of economic and social development for the Cook Islands was formulated in 1955 and legislative assemblies for the Cook Islands and for Niue were set up in 1957. In 1962 the New Zealand Government gave these bodies full responsibility for allocating the large subsidies granted by New Zealand. In the same year possible alternatives concerning constitutional development were submitted to the assemblies. Both chose full internal self-government together with a continued association with New Zealand. Events thereafter moved most rapidly in the Cook Islands. On 4 August 1965 the Cook Islands became a self-governing nation in free association with New Zealand. The Legislative Assembly, assured of New Zealand's financial assistance, is fully responsible for the internal affairs of the Cook Islands.

Progress in the constitutional field has also been made in Niue and the Tokelau Islands, New Zealand's remaining dependent territories. On 1 November 1968, at the request of the Niue Assembly, a full-member system of government was introduced, giving the Executive Committee responsibility for the portfolios controlling all Government departments. Under the Niue Amendment Act 1971 the Executive Committee has general direction and control of the executive government of Niue. There is a Resident Commissioner responsible to the Executive Committee who acts as a liaison officer between the Governments of New Zealand and Niue.

Responsibility for deciding priorities for Government works and expenditure has been given by the Administrator to the Tokelau Islands councils or fonos which have also fully discussed their future development and have expressed the wish (as have the people of Niue) to retain their association with New Zealand. At the request of the fonos, the New Zealand Government has instituted a pilot programme to assist Tokelau Islanders to resettle in New Zealand.

The independence of Western Samoa, self-government in the Cook Islands and Niue are indicative of broader developments in the South Pacific, developments which included in 1970 the attainment of full independence by the Kingdom of Tonga and by Fiji. Economic, social, and educational development has made the peoples of the area more self-reliant. Students from certain English-speaking territories in the South Pacific undertake courses at the University of the South Pacific in Fiji under the New Zealand bursary scheme.

New Zealand in the United Nations—If New Zealand is better known and commands more influence in international affairs than some other small states similarly situated, this is, in some measure at least, due to New Zealand's record of active participation in the United Nations.

New Zealand's share of the United Nations' regular budget is 0.32 percent, in 1971 this meant a New Zealand contribution to the organisation of $433,784.

United Nations Security and Peace-keeping Activities—New Zealand Governments have acted upon the conviction that the United Nations, and it alone, contains the rudiments of a universal collective system, and that it is through the United Nations, and not through its abandonment in favour of some alternative, that an effective and comprehensive collective security system may eventually be developed and agreement on disarmament achieved. At San Francisco in 1945 the Right Hon. Peter Fraser argued forcibly but unsuccessfully to eliminate the veto and to strengthen the collective security provisions of the United Nations Charter. Within the United Nations New Zealand has sought to remove the causes which might produce the need for recourse to collective security action. Its representatives have urged that the Assembly be used as a place for harmonising relations between nations; they have voiced the need for restraint in the pursuit of national objectives; they have consistently sought and supported responsible action in aid of an effective international organisation; and they have reiterated the need for the early adoption of a broad programme of supervised disarmament.

New Zealand was elected to the Security Council, which is charged with the primary responsibility for the maintenance of international peace and security, for the years 1954 and 1955, and for a second term in 1966 when membership of the Council was increased from 10 to 15.

New Zealand has also advocated adequate and timely preparations in case aggression should occur and has supported the fullest possible development of the United Nations' capacity for peacekeeping. New Zealand has been prepared to play its part; forces were supplied to the United Nations Force in Korea and military observers to the United Nations observer groups in Palestine, Kashmir, and Lebanon; and a civilian police unit has served in Cyprus.

New Zealand has recognised that the objective of developing the United Nations' potential in security and peacekeeping is a long-term one.

Economic and Social Activities—Apart from this substantial and primary concern with international peace and security, other aspects of the work of the United Nations have increased greatly in importance in recent years. Article 55 of the United Nations Charter recognises that peaceful and friendly relations among nations depend largely on conditions of economic and social progress. Advancement in these latter fields absorbs annually more and more of the United Nations' resources, and represents at least one area in which international understanding and co-operation are reapingtangible rewards. First the '60s and now the '70s have been designated as “development decades” and an international development strategy—an overall plan setting targets for development during the second decade—was adopted by the Twenty-fifth Anniversary Commemorative Session in 1970.

The United Nations Organisation with primary responsibility in this vast field is the Economic and Social Council (or ECOSOC), an elective body of 27 members, which co-ordinates the activities of the wide variety of bodies with interests in these fields, ranging from the functional commissions and committees of the United Nations itself to the autonomous specialised agencies.

The biggest single task now facing ECOSOC is to promote and direct programmes for economic development in the less-developed countries. New Zealand had always recognised the need for this type of development, and has been concerned to ensure that the international programmes in this field should be effective and realistic. Its interest in social and economic questions is illustrated by its membership of ECOSOC from 1947-49, and 1959-61; and it was again elected by the General Assembly to serve over the period 1971-73. New Zealand in 1963 became a full regional member of the Economic Commission for Asia and the Far East (ECAFE), a body of which it had previously been a non-regional member. New Zealand has also served terms of office from time to time on the Status of Women Commission, the Technical Assistance Committee, and on the Statistical, Social, and Fiscal Commissions. Most recently, it served on the Commission on Human Rights for two consecutive terms covering the period 1966-71, and it is currently serving on the Population Commission for the period 1969-72.

Specialised Agencies—New Zealand is a member of all specialised agencies, except the International Development Association, and is also a member of the International Atomic Energy Agency (IAEA), which, though not strictly a specialised agency, exists under the aegis of the United Nations. New Zealand's contributions to the regular budgets of the agencies, which are based for the most part on a scale of assessment similar to that used in the United Nations itself, range from $2,700 to $216,000 annually and totalled some $767,000 in 1971-72. New Zealand has also subscribed capital to the financial agencies.

Convinced of the value of the form of international co-operation that the agencies represent, New Zealand participates actively in their work. In the case of the technical agencies, there are direct benefits to New Zealand in membership. Membership of the Universal Postal Union, for example, is essential to facilitate the efficient international movement of mails to and from this country; and the International Telecommunication Union works to promote the most rational and efficient operation of world-wide telecommunications services. The World Meteorological Organisation is the medium for establishing a world-wide network for the rapid exchange of meteorological information, which is of particular value to remote areas like New Zealand. In other cases, New Zealand benefits by the free interchange of knowledge and experience, and from the endeavours of the agencies to establish world-wide standards of safety, to promote facilitation of international traffic, and to examine restrictive or discriminatory practices in these fields. The ILO is concerned with protecting the basic dignities and freedoms of the wage earner and brings together representatives of governments, employers, and workers to frame international conventions on working and living conditions.

In addition to its contributions to the regular budgets of the agencies, New Zealand gives voluntary assistance in the form of further monetary grants, the service of experts to developing countries (for example in physiotherapy, police work, forestry, and education) and donations of equipment or commodities.

Two major fields for this sort of additional assistance are the contributions made to the United Nations Development Programme and to the World Food Programme. New Zealand has given annual contributions to UNDP (in 1971-72 $500,000), and in addition has sent experts abroad to work in the field on UNDP assignments. The WFP is a programme approved by the United Nations and FAO in 1961 and administered jointly by them. In 1963-70 New Zealand made total grants of US$1,670,000, of which US$610,000 was in cash and US$1,060,000 in commodities. For 1971-73, New Zealand has pledged a further US$840,000, of which US$280,000 will be in cash and US$560,000 in commodities. New Zealand is a member of the inter-governmental committee which supervises the programme.

New Zealand's accession to the International Bank for Reconstruction and Development, the International Monetary Fund, and the International Finance Corporation not only allows this country to participate in measures designed to increase the stability of international trade and promote the economic development of the underdeveloped areas of the world, but also serves to strengthen New Zealand's own economic position by providing access to more varied sources of capital for capital projects or for balance of payments purposes.

New Zealand is also a foundation member of the Asian Development Bank, established in 1967 under the auspices of ECAFE “to foster economic growth and co-operation in the ECAFE region”.

New Zealand has supported agency activity which will help the social and economic development of the Pacific Islands and some projects are now listed. WHO has assisted in the past in the eradication of yaws and tuberculosis; FAO is at present the executing agency for a UNDP project designed to control the rhinoceros beetle which ravages much of the islands' coconut crops, and has also established a regional fisheries development agency; UNESCO has set up a curriculum development unit at the University of the South Pacific; a development assistance team, backed by ECAFE and the specialised agencies, is being established in Suva.

New Zealand has in the past served on the governing bodies of WHO, FAO, UNESCO, and UPU, and is a member of the FAO Council for 1970-72. Although, because of its size and limited scale of contributions, New Zealand is not likely to be elected frequently to the boards of at least the larger agencies, it can expect, over the years, to bear its share of administrative responsibility within them.

Conference on Trade and Development (UNCTAD)—As a result of the United Nations Conference on Trade and Development held in Geneva in 1964, the General Assembly agreed to hold a triennial conference on trade and development with the objective of promoting international trade, particularly between countries at different stages of development, with a view to accelerating the economic growth of developing countries. UNCTAD held its second session in New Delhi early in 1968. UNCTAD is the United Nations body generally responsible for all matters relating to trade development. It is open to all United Nations members and other states who are members of the specialised agencies and the International Atomic Energy Agency. The conference has become a permanent organisation, with a trade and development board which conducts the affairs of the organisation between plenary conferences. New Zealand commenced its second consecutive term on the board in 1968. There are also within the organisation functional committees on commodities, manufacturers, finance invisibles, and shipping. New Zealand held a seat on the Committee on Commodities from 1967 to 1969, and the Committee on Shipping from 1969 to 1971. The second UNCTAD conference was held in Delhi in 1968 and the third conference was convened in Santiago, Chile, in April 1972.

GATT—New Zealand has been a contracting party to the General Agreement on Tariffs and Trade since its inception in 1947. Although not strictly a specialised agency, the GATT has assumed some of the characteristics of one, and its activities have extended into all aspects of international trade including, more recently, measures to liberalise non-tariff barriers to agricultural trade and to provide special export opportunities for the goods of the developing countries.

New Zealand Collective Security—The defence of New Zealand has been judged by successive Governments to call for active support for the concept of collective security New Zealand alone is unable to defend its considerable but very isolated territory against aggression by any militarily significant power. As a small country with limited resources, New Zealand is in no position to maintain the extensive defence effort needed if all possible contingencies are to be met. It has therefore supported efforts to promote the effective implementation of the provisions of the United Nations Charter designed to establish a universal system of collective security and, until this goal is reached, has accepted that its defence efforts should be made in concert with like-minded countries in order to create a broader framework for security than its individual national effort could provide. This in turn involves the obligation to make credible and effective contributions to collective defence arrangements from New Zealand's own armed services.

Since the Second World War, New Zealand has contributed to collective security action on several occasions both within the United Nations and under other arrangements. From 1955, military units were based in Malaya as part of the Commonwealth Strategic Reserve, where they took part in actions during the emergency. New Zealand forces later supported Malaysia in itssuccessful resistance to Indonesian Confrontation. In 1965 an artillery battery was sent to South Vietnam under the Manila Treaty. It was subsequently joined by two infantry companies and a small Special Air Services troop. Force strengths rose to 560 before the beginning of withdrawals in 1970. All combat forces were withdrawn from South Vietnam at the end of 1971. Some 30 army personnel remained in a training role.

ANZUS—A basic expression of New Zealand's support for the principles of collective security is provided by the ANZUS Pact. This tripartite security treaty between Australia, New Zealand, and the United States was signed at San Francisco on 1 September 1951 and came into force on 29 April 1952. It assured New Zealand and Australia of American support in the event of aggression in the Pacific.

The main provision of the ANZUS Pact is that each party recognises “that an armed attack in the Pacific area on any of the parties would be dangerous to its own peace and safety and declares that it will act to meet the common danger in accordance with its constitutional processes”. In the context of the agreement, an armed attack on any of the parties is deemed to include “an armed attack on the metropolitan territory of any of the parties or on the island territories under its jurisdiction in the Pacific or on its armed forces, public vessels, or aircraft in the Pacific”.

In keeping with the close ties between the three countries, the machinery for consultation has been kept as simple and flexible as possible. Meetings of a council of ministers are generally held once a year to review situations affecting the treaty area.

SEATO—Eight governments—Australia, Britain, France, New Zealand, Pakistan, the Philippines, Thailand, and the United States—signed the South-east Asia Collective Defence Treaty, also known as the Manila Treaty, on 8 September 1954. The treaty came into force on 19 February 1955. Under its terms, each party recognised that aggression by means of armed attack in South-east Asia or the South-west Pacific against any of the parties or against “a protocol state” (Cambodia, Laos, and South Vietnam) would endanger its own peace and safety, and agreed that it would act to meet the common danger in accordance with its constitutional process. In the event of any other threat, the parties would consult on the measures to be taken for the common defence.

The South-east Asia Treaty Organisation (SEATO) established under the treaty is headed by a council, made up of the foreign ministers of the signatory governments, which meets annually in members' capitals. Between meetings a body known as the Council Representatives provides continuity with representation generally provided by the heads of member countries' diplomatic missions in Bangkok; New Zealand is thus represented by its Ambassador to Thailand. From time to time various expert committees and study groups are convened to give collective advice to Council Representatives. The council also agreed in February 1955 that the military advisers to the ministers should meet as a group to advise it on measures for common defence. The civil and military secretariat has its headquarters at Bangkok.

The Manila Treaty has special significance because it is the only multilateral defence treaty applying to South-east Asia and the only treaty under which the United States has an obligation towards mainland South-east Asia. It is also the only treaty under which Thailand has any security guarantee. Thus the treaty helps maintain the fabric of collective defence without which the region would become the target of intensified communist pressure. It provides a backing for the efforts of those countries of the area striving, as the Manila Treaty states, “to uphold the principles of democracy, individual liberty and the rule of law”. The military planning and exercises carried out under the treaty are valuable in improving the capacity of the members to act together against aggression.

Neither in concept nor in structure is SEATO fitted for a major role in spheres other than defence. Nevertheless, the nature of the challenge in South-east Asia was recognised by making provision in the treaty for the parties, separately and jointly, to increase their capacity to counter subversion and to co-operate in economic measures to promote economic progress and social well-being. While most of this action is taken outside the framework of SEATO, the organisation has a useful aid programme designed to meet particular needs of the members of the treaty area. Thus SEATO has sponsored wide-ranging research efforts in the field of tropical medicine, agriculture, and engineering. A number of special SEATO professorships, post- and under-graduate scholarships, research fellowships and travelling lectureships have been established. The SEATO Graduate School of Engineering, established in Bangkok in September 1959, has now developed into an independent institution known as the Asian Institute of Technology. A programme to provide for a SEATO agricultural survey ofthe farming problems of the South-east Asian member governments has recently been initiated; New Zealand has contributed one expert to this programme. Seminars and study groups have been organised to consider particular problems. Cultural exchanges have been promoted. The New Zealand Government funded $20,000 a year from which to contribute to SEATO aid programmes.

Commonwealth Arrangements—Throughout the past two decades a defence arrangement known as ANZAM provided a further basis for New Zealand's co-operation in defence matters with Britain and Australia. In November 1971, following changes in Britain's role east of Suez, ANZAM was succeeded by an arrangement known as ANZUK. Unlike SEATO and ANZUS, ANZAM and ANZUK are not organisations established by formal treaty but have gradually evolved from the practice of close defence co-ordination among the three countries. ANZUK provides an important forum for consultation on defence matters of common concern to Australia, New Zealand, and the United Kingdom. The three Governments, however, retain full control over their individual defence policies. ANZUK meetings are usually held in Canberra.

In 1955, New Zealand transferred its wartime commitment from the Middle East to South-east Asia and agreed to contribute with Britain and Australia to a Commonwealth Strategic Reserve to be established in Malaya and Singapore.

Upon its accession to independence in 1957, the Federation of Malaya concluded the Anglo-Malayan Defence Agreement, which was subsequently extended to Malaysia on its formation in September 1963 and renamed the Anglo-Malaysian Defence Agreement (AMDA). Under its provisions, the United Kingdom undertook to assist in the defence of Malaysia and was accorded the right to maintain such forces in Malaysia, including a Commonwealth Strategic Reserve, as were agreed to be necessary for the defence of Malaysia and for the fulfilment of Commonwealth and international obligations. The agreement was accepted as applying generally to Singapore when it acceded to independence in 1965. In 1959 New Zealand, together with Australia, was associated with AMDA by an exchange of letters, placing on record that the provisions of the agreement applicable to the Commonwealth Strategic Reserve, in particular the provisions dealing with the status of forces, applied in respect of New Zealand forces in the reserve.

In January 1968 the British Government announced that its forces in South-east Asia would be withdrawn by the end of 1971. In February 1969 the New Zealand Prime Minister announced that the Government had decided to retain, in conjunction with Australia, a military presence in Malaysia and Singapore after the British withdrawal. A series of five-power meetings were held at official and ministerial level to discuss defence questions arising from the British decision to withdraw. During these meetings Malaysia and Singapore declared that the defence of the two countries was indivisible and Britain outlined the form its continuing interest would take, including its capability to assist in the event of a threat to peace and its intention to continue exercises and training in the area.

With the change of government in Britain in June 1970 the decision was taken to retain a British ground presence in Malaysia and Singapore. This presence was, however, to be on a smaller scale than previously and, in view of the nature of the continuing arrangement, the British upheld the earlier decision that AMDA should be revoked in 1971.

In place of AMDA, a new five-power defence arrangement for Malaysia and Singapore came into being on 1 November 1971. The new arrangement is less formal than AMDA and is based on the concept of partnership of the five participating countries. The basis of the five-power defence arrangement is not a formal treaty or agreement but a statement incorporated in the communique of the meeting of ministers of the five-power countries held in London in April 1971. At that meeting the ministers declared, in relation to the external defence of Malaysia and Singapore, “that in the event of any form of armed attack externally organised or supported or the threat of such attack against Malaysia or Singapore, their governments would immediately consult together for the purpose of deciding what measures should be taken jointly or separately in relation to such attack or threat”. The Ministers agreed to establish an Air Defence Council to provide direction to the Commander of an Integrated Air Defence System for Malaysia and Singapore which was established on 1 September 1971; they also decided to set up a Joint Consultative Council to provide a forum for regular consultation at senior official level on matters relating to the defence arrangement.

New Zealand's military contribution to the five-power defence arrangement includes one battalion, a frigate regularly stationed at Singapore, medium-range transport aircraft and helicopters; and strike aircraft periodically deployed to the area from New Zealand. Underlying New Zealand's participation in the five-power defence arrangement is the belief that defence co-operation of thiskind contributes significantly to the maintenance of stability and the continuation of development in the region as a whole. The five-power defence arrangement contributes to the security of Malaysia and Singapore. ANZUK forces are helping Malaysia and Singapore to build up their own defence establishments by supplementing their capabilities in the field of sophisticated equipment and by providing training assistance. It has always been made clear that the New Zealand presence will be maintained only as long as it has the consent and encouragement of the Governments of Malaysia and Singapore. New Zealand forces will not be involved in internal security problems and their deployment on active operations will require the express consent of the New Zealand Government.

New Zealand Aid—New Zealand's aid to developing countries takes many forms—capital aid (cash grants and equipment), technical assistance (the provision of experts and student training), food aid, and loans. It is channelled through a number of diverse programmes; multilateral, bilateral, and non-Governmental.

New Zealand has for many years played an active role in multilateral schemes initiated by the United Nations and its specialised agencies, e.g., the United Nations Development Programme, the World Food Programme, the United Nations Children's Fund and the programmes of aid to refugees.

The largest individual bilateral programme is the Colombo Plan, the main vehicle for the New Zealand Government's civil aid to South and South-east Asia. Other bilateral programmes undertaken by New Zealand include those involving the Cook Islands, Niue Island, the Tokelau Islands, and Western Samoa. Bilateral aid to Asia under the Colombo Plan amounted to $4,621,741 in the 1970-71 financial year, while aid to the islands of the south-west Pacific totalled $4,317,838.

Contributions to the Asian Development Bank amounted to $1,007,143 in the 1970-71 financial year and formed an important adjunct to New Zealand's bilateral aid to Asia.

Other programmes in which the New Zealand Government participates include the Special Commonwealth African Assistance Plan under which African students are brought to New Zealand for higher education and special training courses; the Commonwealth Education Scheme under which students and scholars from developing countries study in New Zealand; the Commonwealth Medical Scheme and the Commonwealth Programme for Technical Co-operation.

New Zealand and the Colombo Plan—New Zealand was a foundation member of the Colombo Plan which had its origin in and takes its name from a meeting of Commonwealth foreign ministers held in January 1950 in Colombo to exchange views on world problems, particularly on the economic needs of the countries of South and South-east Asia. The Colombo Plan is not a single plan but rather an aggregation of a series of separate plans drawn up and administered by each country in the region: the external assistance required and made available to help implement these plans is negotiated on a bilateral basis. What was once a Commonwealth idea has grown into a truly international co-operative effort with 24 member countries.

Up to 31 March 1971, New Zealand has made available under the Colombo Plan capital aid and technical assistance amounting to $43,114,362.

The major capital aid projects with which New Zealand has been associated in 1970-71 include dairy schemes in India, a road building programme in north-east Thailand, aviation assistance to Indonesia and Thailand, the Indus Basin Development Scheme in Pakistan and provision of equipment to trade training schools in Burma. Total expenditure on capital aid has amounted to $25,495,378 including $2,033,864 in the 1970-71 financial year.

Up to 31 March 1971 New Zealand has spent a total of $10,851,213 on student training and $6,767,711 on the provision of experts, advisers, and consultants. The number of students and trainees brought to New Zealand under Colombo Plan awards had reached 3,218, of whom 578 were in New Zealand on 31 March 1971. Experts who have served in Asia under the Colombo Plan had reached 513 by the same date. Major technical assistance projects overseas include the provision of a road construction team in north-east Thailand, a civilian surgical team in Vietnam, and teachers for Malaysia. Consultants from the private sector have also been engaged under the Colombo Plan on a wide range of technical assistance projects of a substantial nature. These include forestry, water reticulation, road design, beef cattle development, port surveys, architectural design, and prefabricated buildings.

Volunteer Service Abroad—The Council for Volunteer Service Abroad, although a non-governmental organisation, receives Government assistance in carrying out its programme of dispatching volunteer workers for assignments in many Asian and Pacific countries. At 31 March 1971 there were 120 volunteers in the field. The Government grant to VSA during the 1970-71 year was $71,665.

Distribution of New Zealand Aid—The distribution of New Zealand Government aid to overseas countries during the two latest financial years is set out in the following table. The aid is shown as bilateral where the arrangements were concluded directly between the New Zealand Government and the government of the recipient country or countries and multilateral where the aid was contributed to an international agency or fund. The table lists only Government aid. It does not take into account the substantial aid given in cash and kind through CORSO and other private organisations.

Item1969-701970-71
Bilateral Assistance—NZ$(000)NZ$(000)
    South Pacific—  
        Cook Islands—  
            Grants2,0792,165
            Loans180210
        Niue—  
            Grants881912
            Loans6060
        Tokelau Islands—Grants197156
        Western Samoa—  
            Grants250250
            Loans150150
        Training Scheme—Cook, Niue, Tokelau Islands105134
        Other South Pacific technical assistance1231
        South Pacific airports (excluding Rarotonga)131167
        General2883
 4,0734,318
    South and South-east Asia—  
        Colombo Plan3,6464,622
        SEATO Aid Fund2013
        Ministry of Defence Contributions—  
            Road Construction Team, Thailand11085
            Services Medical Team, Vietnam11598
            Indonesian Trade Credit disbursement-500
 3,8915,318
    Commonwealth—  
        SCAAP188102
        Commonwealth Education Scheme105147
        Commonwealth Medical Scheme3955
        Commonwealth Programme for Technical Co-operation510
 337314
    Other—  
        Volunteer Service Abroad6572
        Disaster Relief286
        CORSO-20
        Developing countries, other-2
 67180
            Total bilateral assistance8,36810,130
Multilateral Assistance—  
    Voluntary Programmes—  
        United Nations Development Programme450450
        United Nations Children's Fund120130
        United Nations High Commissioner for Refugees2020
        United Nations Relief and Works Agency for Palestine Refugees6060
        World Food Programme224191
        South Pacific Commission142142
        International Red Cross66
        Asian Development Bank technical fund-75
    Bank Subscriptions—  
        Convertible currency subscription to Asian Development Bank1,0071,007
            Total multilateral assistance2,0292,081
            Total development assistance10,39712,211
Other Official Flows—  
    World Bank Bonds4,465-
    Peruvian trade credit-5,152
    Total other official flows4,4655,152
Total aid14,86217,363

General Aims—New Zealand's foreign policy has changed in emphasis and scope. It has been modified and extended to meet the demands of an international situation greatly changed from that of 1939. As a country of predominantly European settlement, New Zealand retains its traditional loyalties to the United Kingdom and a sense of identity with Europe and of involvement in its destiny.

New Zealand has accepted a growing involvement in the problems of the South Pacific region because of its close ties with the island people. New Zealand is in a unique position to encourage the growth of a regional consciousness in the South Pacific which is essential if the problems of the area are to be seen and tackled as a whole. At the same time it has recognised the importance of regional developments in Asia and the future security of that region, and has sought to develop its associations with Asian countries.

As a Pacific power, New Zealand has sought security in friendship and formal defensive arrangements with Australia and the United States. As a country concerned with the preservation of world peace and the organisation of defence against aggression it has placed prime importance upon development of the United Nations as an agency for peaceful settlement of international disputes and for the achievement of collective security. Pending the establishment of a broadly based United Nations security system, however, New Zealand has been prepared, in respect of South-east Asia, to participate in a protective grouping concerned with the defence of a single area. The limits of what it is able to do are those imposed by its size and capacity; its disposition is towards peaceful and friendly relations with all nations and (whatever the modifications which the needs of national security may impose) it is to that ultimate goal that its foreign policy is directed.

CONSTITUTION OF NEW ZEALAND: General—New Zealand is a monarchial State; it is also a constituent member of the Commonwealth, sharing with other members in “their recognition of the Crown as the Symbol of their free association and of the Sovereign as the Head of the Commonwealth...” (Preamble to Royal Titles Act 1953.)

THE MONARCH—The New Zealand Parliament in the Royal Titles Act 1953 gave its assent to the use of the Royal style and titles as follows: Elizabeth the Second, by the Grace of God of the United Kingdom, New Zealand, and Her Other Realms and Territories Queen, Head of the Commonwealth, Defender of the Faith.

While the seat of the Monarch is normally in the United Kingdom, the Queen is represented in New Zealand by the Governor-General appointed by the Crown on the advice of her New Zealand Ministers.

Many powers held by the Monarch (or her representative) comprise but the means of giving effect to the public will. In New Zealand the Governor-General acts on the advice of the Ministers, which cannot constitutionally be ignored. Despite the long-term trend for powers to be assigned directly to Ministers without any necessity for vice-regal consultation, there are still many phases of Government which require Royal participation.

The Queen (in her stead the Governor-General) gives consent or approval prior to a Minister taking office or the formation of a Ministry; summons, prorogues, and dissolves Parliament; delivers the Speech from the Throne at the opening of a session; gives the Royal Assent to measures which have passed all stages in the House of Representatives, without which they have not the force of laws; makes appointments to most important State offices; confers knighthoods and other honours, etc.; and also provides that background of stability, continuity, and experience in many facets of government which is so desirable whenever there are sweeping changes in the dominance of political parties.

Besides those duties associated with the constitutional role, the Royal personage or representative makes an important contribution to the ceremonial life of the nation. This was particularly well illustrated during the sojourn of the Royal visitors in New Zealand in 1953-54, in 1963 and in 1970. Both as the symbol of the nation and in virtue of her identification with the life and interests of her people, the Queen becomes the focus for all State occasions, as does the Governor-General in her absence.

LEGISLATIVE AUTHORITY—The supreme law-making body with power to legislate for the whole country is the General Assembly, which now consists of the Governor-General and the House of Representatives, the former Legislative Council having been abolished since the close of 1950.

The powers of Parliament to make laws are legally untrammelled. This was not always so, for prior to the adoption by New Zealand of the Statute of Westminster in 1947 laws could not be made on certain matters which conflicted with United Kingdom statutes extending to New Zealand. There was also some doubt as to New Zealand's power to make laws possessing extra-territorial effect.

The Electoral Act 1956 provides that certain of its sections may not be repealed except by a 75 percent majority of the House of Representatives or following a referendum. These sections are those relating to:

  1. The constitution and order of reference of the Representation Commission.

  2. The number of European electoral districts and the basing of their boundaries on the total population.

  3. The fixing of the tolerance within which the commission must work at 5 percent.

  4. The age of voting.

  5. The secret ballot.

  6. The duration of Parliament.

These reservations have become a formal convention associated with the fundamental character of the system of government.

While the law-making function is the prerogative of Parliament, it must be remembered that, as in most democracies, laws are passed because of their acceptability to the majority party in Parliament—i.e., the Government party. Furthermore the initial acceptance will have probably been made in the deliberations of Cabinet and caucus.

With the increasing range and complexity of the statutory field, there has been a growth in delegated legislation with detailed procedural steps and other amplifying matter becoming the subject of regulations made by Order in Council under the authority of a particular statute, rather than being incorporated in the statute itself. The power to make such regulations lies with the Executive Councilwhich comprises all the members of Parliament who have been appointed Ministers, together with the Governor-General, who presides over the Council. Regulations, though originating in Cabinet and becoming effective in the formal proceedings of the Executive Council, rest fundamentally on the will of Parliament as a whole and are now subject to its supervisory jurisdiction. A general provision contained in the Regulations Amendment Act 1962 requires all such regulations to be laid before Parliament. The Standing Orders of the House of Representatives, enable the House or any member thereof to refer any regulation to the Statutes Revision Committee, a Select Committee of the House, which is empowered to consider the regulation and to determine whether the special attention of the House should be drawn to it on any of the following grounds: (a) that it trespasses unduly on personal rights and liberties; (b) that it appears to make some unusual or unexpected use of the powers conferred by the statute under which it is made; (c) that for any special reason its form or purport calls for elucidation.

Meeting of Parliament—Parliament is summoned, prorogued, or dissolved by Proclamation issued by the Governor-General. A session is that period between the summoning of Parliament and its prorogation. Its length varies, but it has traditionally covered the months from June to November. When Parliament is prorogued all the business on hand lapses, and if this is to be proceeded with in the next session it must be re-introduced.

The course of a session may be interrupted by adjournments.

In session parliamentary privileges include freedom of speech and freedom from arrest in civil cases, and also the right to engage in secret debate, if required, etc.

The Party System—The two main political parties represented in Parliament are National and Labour. A third party—Social Credit—obtained a seat for the first time at the 1966 General Election but lost it at the 1969 election. At any general election these parties, together with any other political parties and also those candidates standing as independents, state their respective policies before the electors. Each main party normally puts forward one candidate for each of the electorates into which the country is divided. The party which wins the majority of seats, although not necessarily the majority of votes, at the general election forms the Government. The leader of the elected members of the majority party becomes the Prime Minister, who makes ministerial appointments from elected members of his party. The leader of the minority party in Parliament becomes the Leader of the Opposition. The effectiveness of the party system relies largely on the general agreement that the majority party has a mandate to govern and the minority party has a responsibility to challenge Government measures in debate and to demonstrate to the electors that it can provide a viable alternative government.

Parliamentary Procedure—The House of Representatives has its Standing Orders, which govern its procedure and which are administered by Mr Speaker in the exercise of his control of the House. The election of the Speaker is the first business of a new House after the members have been sworn. A Chairman of Committees is elected as soon afterwards as is convenient. Twenty members, inclusive of the Speaker, constitute a quorum.

Parliamentary Functions and Control—The Parliament controls the Government in power in the last resort by the possibility of the Opposition mustering sufficient support to pass a resolution of no-confidence in the Government on a vital issue, thus forcing it to resign. With only two main disciplined political parties contending for office, changes of government are now rare except at the time of general elections. In the representation and formation of public opinion the major general debates are of principal importance. Special inquiries by select committees also provide a useful forum in which interests and opinions can make themselves heard. The major general debates are the address in reply to the speech from the Throne at the opening of Parliament, the debate on the Budget or financial statement, and the various debates on Imprest Supply Bills.

The first two of these give ordinary members an opportunity to air their views freely on any subject they choose from the national interest to the special aspirations of their constituents. Imprest supply debates are more specialised. On such Bills, the British principle of raising grievances before granting supply has been applied by allowing the Opposition to choose the subject for debate.

Financial control is exercised by the fact that expenditure of public money must be authorised by the House of Representatives in the form of an Appropriation Act, which authorises or grants money to the Government for the purposes approved. The authority for the raising of revenue by taxation or borrowing must also be given by Parliament.

Legislation can be initiated by any member of Parliament, but in practice almost all Bills are introduced by the Government in power as a result of policy decisions taken in Cabinet. The process of passing a public Bill is as follows: it receives a formal first reading on introduction, is then printed, and after some time it is given a second reading which is a debate on its general principles, followed by a clause-by-clause consideration of the Bill which may be by the whole House sitting in Committee. The Bill is then reported to the House, and later read a third time. The final stage is to send the Bill to the Governor-General for the Royal Assent and, unless provision is made for commencement on another date, it then becomes law as an Act of Parliament. To facilitate detailed informal discussion, and so that evidence from experts and interested parties may be heard by the House on legislation which is before it, a number of select committees are appointed regularly each year. Their terms of reference indicate areas of legislative interest corresponding to the various ministries. There are normally 10 members on each committee and party strength roughly reflects party strength in the House. Bills which are to go to select committees are given only a pro forma second reading before being referred. Committees have power only to report their opinions to the House. They cannot amend, though they can recommend amendments. The House as a whole thus retains its responsibility for approving legislation or rejecting it.

Apart from legislation, select committees deal with petitions, and, from time to time, ad hoc select committees are set up with some specific matter referred to them.

There are special procedures for dealing with local Bills and private Bills. Local Bills are those affecting a particular locality only, normally introduced at the request of a local authority. All such Bills stand referred to a select committee, the Local Bills Committee, after their first reading. The committee holds hearings at which interested parties appear, and it reports to the House on the merits of the Bill. The committee's report is often the decisive factor in local government legislation and always carries considerable weight with the Government and the House. Private Bills are those which apply specifically to a person or group of persons. They are initiated, after public notice, by a petition presented to the House by a member.

Duration of Parliaments—Quinquennial Parliaments, instituted under the Constitution Act, were abolished by the Triennial Parliaments Act 1879, which fixed the term at 3 years. General elections have been held at 3-yearly intervals since 1881, with a few exceptions. The term of the nineteenth Parliament was during the First World War extended to 5 years by special legislation, and that of the twenty-fourth (1931-35) to 4 years under the Electoral Amendment Act 1934. By the Electoral Amendment Act 1937 the 3-year term was restored, but on account of war conditions the term of the twenty-sixth Parliament was extended to nearly 5 years before dissolution on 30 August 1943. Since then the duration of Parliament has been of 3 years, with the exception that the twenty-ninth Parliament was dissolved in 1951 after the expiration of approximately 20 months. The 3-year limit was re-enacted in the Electoral Act 1956, this being one of the reserved provisions referred to earlier. A referendum on 23 September 1967 favoured the continuation of terms of 3 years.

Number of Representatives—In 1969 84 electorates (80 European and four Maori) returned members to the House of Representatives. The number was originally fixed by the Constitution Act as not more than 42 and not less than 24, and the first Parliament called together in 1854 consisted of 37 members. Legislation passed in 1858 fixed the number of European members at 41; in 1860, at 53; in 1862, at 57; in 1865, at 70; in 1867, at 72; 870, at 74; in 1875, at 84; in 1881, at 91; in 1887, at 70; in 1900, at 76; and in 1969 at 80. Since 1867 there have been four Maori representatives, and provision for this number was retained in the Electoral Act 1956. In 1954 the boundaries of the Maori electoral districts, which had remained unaltered since 1867, were changed by Proclamation so as to give a greater degree of equality of population among the four districts (in effect the Southern Maori Electoral District now includes a considerable area of the North Island). The Electoral Amendment Act 1965 fixed the number of European electorates in the South Island at 25 (an increase of one) and provided that the number of European electorates in the North Island shall be ascertained by the Representation Commission after each quinquennial census of population on the basis of thequota fixed for the South Island. In 1967 the Commission considered the results of the 1966 census and fixed the number of electorates in the North Island at 55 (an increase of three). Thus there were 84 electorates for the general election in 1969, and the number was increased to 87 for the 1972 election.

Qualifications of Members—Under the Electoral Act 1956 every registered elector of either sex is qualified to be a parliamentary candidate. If a public servant is elected to Parliament he must vacate his office forthwith and he cannot resume employment in the Public Service within 12 months of ceasing to be a member of Parliament unless he had previously been a public servant for at least 5 years.

Salaries, etc.—Section 27 of the Civil List Act 1950 provides that on the recommendation of a Royal Commission the Governor-General may from time to time, by Order in Council, fix the salaries and allowances to be paid to the Prime Minister and other Ministers of the Crown or members of the Executive Council, to Parliamentary Under-Secretaries, and to the Speaker and Chairman of Committees and other members of the House of Representatives, and that a Royal Commission shall be appointed for this purpose within 3 months after the date of every general election of members of Parliament. At April in the intervening years adjustments are made on a basis matching that for the State Services Remuneration and Conditions of Employment Act 1969; the Government Statistician provides the Prime Minister with a certificate specifying the percentage movements in average weekly ordinary time earnings outside the State Services (as ascertained from the April half-yearly survey of industries in the private sector conducted by the Department of Labour) and adjustments may be made by Order-in-Council to the salaries of Ministers and members.

The following table sets out the salaries and allowances payable from 1 April 1971 in accordance with the recommendations of the Royal Commission upon Parliamentary Salaries and Allowances 1970, as amended by the 1971 review conducted in accordance with the procedure outlined in the preceding paragraph.

OfficeSalaryExpense Allowance

*Where the ministerial office of Minister of Foreign Affairs is held by a Minister other than the Prime Minister an additional allowance would be paid.

†Additional to normal allowances as member.

 $$
Prime Minister19,0404,000
Deputy Prime Minister14,0001,625
Minister with Portfolio12,6001,500*
Minister without Portfolio9,6881,275
Parliamentary Under-Secretaries8,3441,275
Speaker11,2001,300
Chairman of Committees8,680700
Leader of the Opposition11,7601,500
Deputy Leader of the Opposition7,672575
Chief Whips7,3921,250
Junior Whips7,1681,250
Members6,8321,250

There is an additional allowance depending on classification of electorates: (a) electorates which are wholly urban, $90; (b) electorates which are substantially urban, $230; (c) electorates which are partially urban and partially rural, $250, (d) electorates which are ordinary rural, $920; (e) electorates which are predominantly rural, $1,150. The special additional allowance for Southern Maori electorate is $350 and for each of the other Maori electorates is $175. The daily sessional allowance is $3 and the night allowance for members entitled thereto is $8. In addition to the salary and allowances, members are entitled to certain travel concessions and a stamp allowance.

Former Prime Ministers receive an annual payment of $400 for each full year in office, with a maximum of $2,000 a year, after retirement, defeat at the polls, or when a member only. This is subject to a two-year minimum period having been served as Prime Minister.

Under the Superannuation Act 1956 there is a compulsory contributory superannuation scheme for members of the House of Representatives. The scheme provides that a retiring allowance shall be payable to a member after 9 years' service and the attainment of 50 years of age, and shall be calculated at the rate of one thirty-second of the basic salary for a member as at the date of his ceasing to be a member, for each year of service with a maximum of two-thirds of that basic salary, or alternatively the member may elect to take a variable retiring allowance so as to secure a level income or he may elect to receive a refund of his contributions. The annual contribution is 11 percent of an ordinary member's salary, and the Government subsidises the fund. The rate of contribution was increased by 1 percent from 1 April 1970 to provide for cost-of-living adjustments to be made to retiring allowances. In the case of a male member dying and leaving a widow surviving she becomes entitled during her widowhood to receive an annuity of half of the retiring allowance to which her husband would have been entitled had he retired aged 60 years at the time of his death, or $260 a year, whichever is the greater.

ADMINISTRATION AND EXECUTIVE RESPONSIBILITY—After the election of a new Parliament, it is the responsibility of the leader of the party, which is most likely to secure and retain the support of the majority of members in the House, to form a Government. Although procedures for the selection of new Ministers have varied between the two principal parties, the Prime Minister has the final responsibility for allocating portfolios. A portfolio comprises a specific field of Government activity—for instance all matters relating to education will be allocated to one Minister who is henceforth known as the Minister of Education.

A Minister may have more than one portfolio and in addition responsibility for the supervision of one or more Government departments in which the activities carried out, though important, do not rank as portfolios. Occasionally a Minister is appointed without portfolio, as in 1969 when the Associate Minister of Finance had no portfolio responsibility.

Executive Council—In the legal sense those members of Parliament who have been appointed Ministers comprise the Executive Council. The Governor-General normally presides over meetings of the Council. The powers, duties, and responsibilities of the Governor-General and the Executive Council under the present system of responsible government are set out in Royal Letters Patent and Instructions thereunder of 11 May 1917, published in the New Zealand Gazette of 24 April 1919. The Royal Powers Act 1953 provides that the statutory powers conferred on the Governor-General may be exercised either by Her Majesty the Queen in person or by the Governor-General. In the execution of the powers and authorities vested in him the Governor-General must be guided by the advice of the Executive Council; but, if in any case he sees sufficient cause to dissent from the opinion of the Council, he may act in the exercise of his powers and authorities in opposition to the opinion of the Council, reporting the matter to Her Majesty without delay, with the reasons for his so acting.

In any such case any member of the Executive Council may require that there be recorded in the minutes of the Council the grounds of any advice or opinion that he may give upon the question.

The Civil List Act 1950, in section 6, provided that no person shall be appointed a Minister or a member of the Executive Council unless he is a member of Parliament and that a person who ceases to be a member of Parliament cannot continue to be a Minister or a member of the Executive Council for more than 21 days. This gave statutory recognition for the first time to what had long been the convention.

At January 1972 the Executive Council consisted of 18 members. Two members, exclusive of His Excellency or the presiding member, constitute a quorum.

His Excellency the Governor-General receives a salary and an allowance which are determined from time to time by the Civil List Act 1950 for the salaries and expenses of his personal establishment, plus all expenditure incurred in respect of the transport to and from New Zealand and the travel within or outside New Zealand of the Governor-General and his family and staff.

Cabinet—The membership of the Executive Council and Cabinet is identical but Cabinet, unlike the Executive Council, is not a body created by any legal document. The existence of Cabinet was not recognised by statute until a passing reference was made in the Parliamentary Commissioner (Ombudsman) Act 1962.

The fact that the Juridical Acts to give legal force to certain of the decisions of Cabinet are taken by others—the Crown, the Executive Council, a Minister of the Crown or a Statutory Commission—does not diminish the power and authority of Cabinet. Cabinet is the top committee of the administrative system, with responsibility for co-ordinating the work of the various Ministers and taking those decisions which largely determine the nature of the legislation put before Parliament and the regulations which the Executive Council is asked to approve.

Cabinet discussions are informal and confidential, anonymity being maintained as to the individual advocacy or opposition to particular proposals. The Cabinet system enables general agreement to be reached on any line of action proposed by either an individual Minister or by the Government as a whole. In Parliament a Minister can be confident that his legislative or other proposals will have the unqualified support of the Government no matter what divergences of opinion may have been apparent before general agreement was reached in Cabinet. A consistent and agreed course of action on any particular issue can be determined. The work of Cabinet thus exemplifies the concept of the collective responsibility of the Government.

Certain questions are considered by committees of Cabinet, the membership of which includes those Ministers primarily concerned with the subject matters. Authority to determine some issues may be delegated to a Cabinet committee by Cabinet. In other cases a committee may be called upon to study a particular question and submit its recommendations to Cabinet for determination. Some Cabinet committees are established on a permanent basis for the consideration of matters arising in broad fields of Government policy. Examples are the Cabinet Economic Committee and the Cabinet Works Committee. Several of these committees are supported by inter-departmental committees of officials. Other committees are of a temporary nature; they are established to consider particular problems and after having studied the question in detail, normally with appropriate officials advising, the committee reports back to Cabinet with its recommendations; and after the final decision has been made by Cabinet, the committee's work is completed.

The Cabinet Secretariat is responsible for the servicing of Cabinet and its committees to ensure their smooth functioning.

Government Departments—The Minister as the political head of a department of State may in fact have several departments under his control. There are, however, some 40 different departments with separate functions in New Zealand. Each of these have a permanent head who is responsible for the work and administration of the department. He is of course responsible to the Minister in charge of the department, while he also acts as adviser to the Minister on all matters within his appointed competence. Besides ensuring that the ministerial policy and directions communicated to him are effectively put into practice, his functions as the adviser include assessing the consequences of any executive action resulting from his departmental activity, evaluating the merits and demerits, whether political, social, or financial, of various modes of action, and making suggestions for improvements and for new policy measures as derived from departmental experience in the day-to-day execution of policy.

Departments can be broadly classified according to the administrative or regulatory, developmental, or social nature of their activities. Within the first group are the servicing subgroup, such as the Legislative, Prime Minister's, Ministry of Foreign Affairs, Printing Office, Law Drafting, Valuation, Statistics, and Audit; the finance subgroup—Treasury, Customs, Inland Revenue; the regulatory subgroup—State Services Commission, Internal Affairs, Labour, Marine; the defence and law and order subgroup—Ministry of Defence, Justice, Crown Law, and Police; the publicity and research subgroup—Tourist and Publicity, Scientific and Industrial Research.

In the second group are the transport and communications subgroup, such as Ministry of Transport, Post Office, and Railways; the developmental—Ministry of Works, Agriculture, Lands and Survey, Forest Service, Mines, Electricity, Maori and Island Affairs, and Industries and Commerce; the commercial—Public Trust, Government Life Insurance, State Advances Corporation, and State Insurance.

The third group comprises the Education, Health, and Social Welfare Departments.

This broad division serves merely to indicate the field of the dominant activity or purpose of the particular department. Most departments have servicing, informative, and regulatory functions, and many are equally regulatory and developmental in nature.

In addition to the system of direct administration in the form of Government departments, there are other activities over which the State exercises some ultimate measure of control or ownership, though divorced in varying degrees from immediate supervision. The Reserve Bank of New Zealand (the central bank), and one trading bank, are entirely State-owned, although the actual administration is quite independent, subject in the case of the Reserve Bank to the proviso that it must give effect to the monetary policy of the Government, as communicated to the bank by the Minister of Finance, and to any resolution of Parliament in respect of Government monetary policy.

Further instances of this principle are shown by the National Airways Corporation, which, although owned by the State, is administratively self-contained, and by the Tourist Hotel Corporation. In certain other avenues the type of administration is in between the normal departmental form and that evident in the corporation type; of such is the National Roads Board, which, though determining policy to a large degree, yet makes use of departmental administrative structures for implementation of policy.

Some administrative organisations have also quasi-judicial functions. Examples of this class are the Price Tribunal, Transport Charges Authority, Licensing Control Commission, and Local Government Commission.

OMBUDSMAN—The Parliamentary Commissioner (Ombudsman) Act 1962 has become an important addition to the parliamentary checks on departmental administration. The Act created the office of Ombudsman, who is able to investigate, on complaint or on his own initiative, any administrative decision, recommendation, act, or omission of a Government department or related organisation as it affects any individual. Local authorities are outside his jurisdiction. The Ombudsman does not have power to reverse departmental decisions, but he may make his recommendations to the department and to the Minister, and if, in his opinion, no appropriate action is taken he may report to the Prime Minister and then to Parliament. He has very wide powers to call for documents and files. The Government cannot refuse information, except in matters relating to the security of the State or to Cabinet proceedings.

JUDICIARY—The hierarchy of courts in New Zealand comprises the Court of Appeal, the Supreme Court, and the Magistrate's Court. Apart from these courts of general jurisdiction there are other courts dealing with specific fields. In the latter category are the Court of Arbitration concerned with awards and general orders governing wage determination and conditions of employment in industry; the Compensation Court dealing with workers' compensation. For further details refer to Section 8 (Justice) of this issue.

PARLIAMENTARY ELECTIONS—The law on elections is contained in the Electoral Act 1956 Following each population census, which is normally taken every 5 years, the boundaries of European electorates are revised. In addition, there are four Maori electoral districts, three in the North Island and one covering a portion of the North Island together with the whole of the South Island, where the Maori population is comparatively small. The Governor-General may at any time by Proclamation alter the boundaries of the Maori electoral districts, and, as in the case of European electoral districts, any alterations are to come into force at the expiry of the Parliament existing when the Proclamation is issued.

The Government Statistician is required to supply population figures to the Surveyor-General as soon as possible after the census. The population used as the basis in obtaining the quota for each European electoral district is defined in section 2 (1) of the Electoral Act 1956.

The term “European population” means total population with the following exceptions:

  1. Maoris:

  2. Persons residing on board ship, whether as passengers or members of the crew or otherwise:

  3. Persons residing temporarily as guests in any licensed hotel:

  4. Persons residing temporarily in any naval, military, or air force camp, station, or establishment:

  5. Persons residing as patients and inmates in any hospital:

  6. Persons in respect of whom reception orders, under the Mental Health Act 1969 are in force:

  7. Persons detained pursuant to convictions in any penal institution.

After the population figures are supplied by the Government Statistician it is then the responsibility of the Representation Commission to define new electoral districts for Europeans. The commission is constituted by virtue of section 15 of the Electoral Act 1956 and comprises seven members. Four of these, the Surveyor-General, the Government Statistician, the Chief Electoral Officer, and the Director-General of the Post Office, are official members. Two are unofficial members, being persons nominated by the House of Representatives, one nominated to represent the Government, and one to represent the Opposition. The seventh member is appointed, on the nomination of the official and unofficial members of the commission or a majority of them, to be the chairman of the commission. The chairman and unofficial members cease to be members on the date on which the first periodical census is taken after the date of their appointment.

The European population of the South Island is divided by 25 and the quotient so obtained is the quota for the South Island. Then the European population of the North Island is divided by the quota for the South Island, and the quotient so obtained is the number of European electoral districts in the North Island. In applying the quota the commission may make an allowance by way of addition or subtraction of 5 percent of the quota to enable districts to be adjusted to meet considerations of topography, community of interest, communications, and existing electoral boundaries.

When the boundaries have been provisionally determined, maps are prepared illustrating the proposed electoral districts, and descriptions of each electoral district are published in the New Zealand Gazette. A time limit of 1 month is given during which objections to the proposed boundaries may be lodged. These objections are then considered by the Representation Commission and a final decision reached on boundaries which then define the new electoral districts.

All general elections and by-elections are held on a Saturday. Polling hours in all electorates are from 9 a.m. to 7 p.m.

Any serviceman aged 20 years or over serving overseas is qualified to vote as an elector of the electoral district in which he last resided before he left New Zealand.

Franchise—Since 1969, persons 20 years of age and over have had the right to vote in the election of members of the House of Representatives. (From 1893 onwards all persons aged 21 years had voting rights.)

Registration of Electors—Registration as an elector is compulsory, although it is not compulsory to vote. To be qualified for registration as a parliamentary elector in New Zealand a person must have attained the age of 20 years and must (a) be a British subject or Irish citizen, (b) be ordinarily resident in New Zealand, (c) at some period have resided continuously in New Zealand for at least a year, and (d) except in special cases have resided continuously for 3 months or more in the electoral district in respect of which application for registration is made, and not have subsequently resided for 3 months or more in any other electoral district. Broadly speaking the qualifications restrict the right to vote to permanent residents. Persons of more than half Maori ancestry register in one of the four Maori electoral districts and persons of half Maori ancestry have the option of registering on either a European or Maori roll.

Voting at parliamentary elections is by secret ballot. In general, only those persons whose names are lawfully on the main and supplementary rolls of electors compiled prior to an election may vote at that election.

A vote is normally cast by the elector at a polling booth within his district. An elector may, however, vote as a “special voter”, either at a polling booth outside his district or by post for reasons of distant travel on polling day, sickness, etc.

LOCAL GOVERNMENT—In 1876 territorial local government assumed the form it still basically retains. The Counties Act 1876 divided the country into 63 counties, with provision for administration by elective councils. In the same year the Municipal Corporations Act provided for the incorporation of the 36 boroughs then in existence and for the creation of new boroughs.

Boroughs—Dealing with the needs of concentrated urban populations, boroughs are concerned with a wide range of functions. With the growth and urbanisation of population the number of boroughs, despite numerous amalgamations of adjacent boroughs, steadily increased until 1955 when the total was 146. In April 1971 the total was 137.

Under the Municipal Corporations Act 1954 for the constitution of a borough there must be a population of at least 1,500 with an average density of population of at least one person per acre. A borough containing a population of 20,000 or more may be proclaimed a city, although the corporation remains unaltered.

Counties—Counties are now governed under the Counties Act 1956. With increasing settlement the original 63 counties were gradually subdivided until they reached 129 in 1920, although the number of councils formed and actively functioning never exceeded 126. The number of counties has since been reduced by amalgamations and mergers by the Local Government Commission. At April 1971 there were 109 counties constituted, of which 108 were actively functioning, Fiord being a sparsely populated county in which the Counties Act is not wholly in force.

County Towns and County Boroughs—County councils may, under the provisions of the Counties Act 1956, declare areas within counties to be county towns. To qualify, the areas concerned must have a population of at least 200, with an average density of not less than one person to the acre or not less than 60 houses with an average density of not less than one house to 3 acres. After the constitution of a county town the county council is required to appoint a county town committee of not less than three nor more than seven members, to advise it on the administration of the county town. The county council may conduct a poll in the county town to ascertain the wishes of the electors of the county town in respect of the persons to be appointed to this committee. There was a total of 100 county towns at April 1971. Twenty-nine of these had populations of over 1,000 the largest being Glenfield with a population of over 22,000. The Counties Amendment Act 1968 contains provisions for the constitution of county boroughs. This unit of local government can only be formed from an existing county town or borough or town district. It remains an integral part of the parent county, but the county borough council, which is a fully elected body, has a statutory right to exercise some, but not all, the powers of the county council within the district of the county borough. The minimum population required for a county borough is 1,500. At April 1971 there was only one county borough.

Town Districts—The town district represents a form of local government intermediate between the county and the borough. It implies a certain concentration of population. Where it remains subject to county control (mainly for roads) it is a dependent town district. Town districts on reaching a population of more than 500 may become independent. The constitution and powers of town districts have been brought into closer relationship to boroughs over the years, and independent town districts are now constituted under the Municipal Corporations Act 1954. The Act requires that the area be more than 2 square miles, within which no two points are more than 4 miles distant and with a density of population of not less than one person to the acre. The number of town districts in April 1971 was 16 (10 independent and 6 dependent).

Remuneration of Members—The remuneration of members of local authorities is governed by the statutes constituting the various types of local authorities. Most authorities may pay their chairman an annual allowance with a maximum fixed for each type of authority. The maximum payable to mayors and town council chairmen varies according to the population of the municipality. Ordinary members of territorial authorities may be paid for each meeting attended. All local authorities may reimburse members for expenses incurred whilst travelling on official business.

Special-purpose Authorities—Special-purpose authorities differ from territorial authorities in that each is charged with only one major function. The need for the most efficient and economic discharge of the major function being the prime consideration, their boundaries may either extend beyond or fall within those of territorial authorities in the same geographical area. Only rarely do the boundaries coincide. Sometimes, as is the case with a number of urban fire authorities, territorial authorities themselves are also constituted as and perform the functions of special-purpose authorities. The more important special-purpose authorities are those administering harbours, hospitals and the retail distribution of electricity. Others are engaged in fire fighting, water supply, urban drainage and transport, soil conservation and rivers control, pest destruction, nassella tussock control, land drainage, and underground water usage.

General Powers—Local authorities in New Zealand derive their powers from the Acts under which they are constituted, and also from special empowering Acts. In addition to legislation providing for particular types of local authority or for individual local authorities, there are several statutory measures which are more or less applicable to all local authorities, such as the Local Elections and Polls Act 1966 and the Local Authorities Loans Act 1956. For most harbour boards, there is in addition to the general Harbours Act a special Act for each board, which is subordinate to the general Act. Certain types of local authority—urban drainage boards, transport boards, the Auckland Regional Authority, the Auckland Harbour Bridge Authority, the Christchurch-Lyttelton Road Tunnel Authority, and the Waikato Valley Authority—derive their principal powers from special constituting Acts.

A local authority has no legislative powers beyond the authority to make bylaws within limits defined in its constituting Act, but it can promote legislation on matters which affect the government of the area under its jurisdiction and which it is not already empowered to deal with. If the subject is transient and not contentious and is approved by Government it is usually dealt with by the inclusion of an appropriate section in the annual Local Legislation Act passed by Parliament for this purpose. If, on the other hand, the local authority seeks powers of a permanent or major nature additional to those conferred on it by general Acts it must submit to Parliament a special local Bill. The extent to which the foregoing privileges are used may be gauged from the fact that the annual Local Legislation Act usually contains 40 to 45 sections, while about 15 local Acts are passed each year.

Number of Local Authorities—The number of local authorities actively functioning at 1 April 1971 was 640 made up as follows: county councils, 108; borough (including city) councils, 137; town councils (independent), 10; town councils (dependent), 6; catchment authority, 1; river boards (2 boards also have the power of land-drainage board), 8; catchment boards, 13; catchment commissions, 4; land-drainage boards, 37; electric power boards, 39; water-supply boards, 2; urban drainage boards, 4; transport board, 1; local railway board, 1; museum authority, 1; power and gas boards, 2; nassella tussock boards, 2; harbour bridge authority, 1; road tunnel authority, 1: valley authority, 1; plantation board 1; underground water authorities. 3; pest destruction boards (separately elected), 149; independent fire boards, 60; independent harbour boards, 17: and hospital boards, 31. Borough and county councils also function as fire authorities in 199 cases, as harbour boards in 9 cases, as underground water authorities in 2 cases and as county pest destruction boards in 40 cases. In addition, there were 22 district councils of the National Roads Board constituted under the National Roads Act 1954. Although these district roads councils are not local authorities in the strict sense of the term they are intimately connected with certain aspects of local government providing an advisory service to the National Roads Board concerning the roading needs and the allocation of national roading funds within their respective districts.

Administratively, boroughs and independent town districts, which are contained within the geographical boundaries of a county, are regarded as separate entities.

Franchise—Under the Local Election and Polls Act 1966, elections are held on the second Saturday in October every third year. Enrolment of residential electors is compulsory. On any proposal relating to loans or rates, a rate paying or a freehold qualification is necessary.

Apart from a few special-purpose authorities some of whose members are appointed by other local authorities, by Government, or, in the case of fire authorities, by insurance interests, members of local authorities are elected triennially, any qualified elector being eligible to seek election. In general the franchise extends to all persons aged 20 years or over who either possess a rating qualification or who, being British subjects, possess a residential qualification in the district of the local authority concerned. The right to vote for members of land drainage and river boards is, however, restricted to those who possess rating qualifications. Plural voting on the basis of the value of rateable property is permitted in elections for county councils and several types of special-purpose authorities. Where pest destruction boards rate on the basis of livestock or acreage, plural voting is also permitted.

Voting Procedures—Franchise could only be exercised by personal attendance at the polling booth, but the Local Elections and Polls Act 1966 was amended in 1970 to permit local authorities to use postal voting. (Authority to use postal voting is limited to county councils. Other local authorities are able to use this method only on approval being granted by Order in Council.)

Local Government Commission—The Local Government Commission Act 1967, which replaced the Local Government Commission Act 1961, set up a revised Local Government Commission which is a permanent institution deemed to be a Commission of Inquiry under the Commissions of Inquiry Act 1908.

The Act provides that the commission shall consist of a chairman with knowledge of local government, one member with a special knowledge of finance and economics, and another member with a special knowledge of administration.

The functions of the commission are to carry out investigations, prepare reorganisation schemes, and make recommendations and reports for the purpose of ensuring that the system of local government in any locality will best provide for the needs and continued development of the locality, that local authorities have such district boundaries and such functions and powers as will enable them to provide most effectively and economically essential or desirable local government services and facilities, that local authorities shall have such resources as will enable them to engage adequate services and to obtain and operate adequate technical facilities, plant, and equipment, and that districts shall be of such size and nature as will promote efficient local government and avoid the necessity of uneconomic expenditure.

The commission has a duty to prepare local government area schemes to cover the whole of New Zealand by 31 December 1972 or as soon as possible thereafter. These schemes are to come into force as final schemes after the hearing of objections to publicly notified provisional schemes. These schemes will have no immediate effect on the local authorities in the local government area, but will set the general pattern to which individual local schemes will be required to conform.

TOWN AND COUNTRY PLANNING—The Town and Country Planning Act 1953 provides for the making and enforcement of regional and district planning schemes, and the detailed procedure to be followed in each case is amplified by the Town and Country Planning Regulations 1960. The Government administers the Act through the Minister of Works who may delegate his authority to the Commissioner of Works.

Regional Planning—Regional Planning Authorities may be established under provisions of the Town and Country Planning Act 1953. As provided in the Act the authorities consist of representatives of the several councils whose districts are wholly or partly within the region. Every local authority within the region, other than the constituent councils, is entitled to be represented by at least one associate member. The Regional Planning Authority may also appoint any person who may be possessed of special knowledge, or representatives of any department of State, to be associate members. Authorities are now operating in the four main centres and in Northland and Marlborough.

Finance for administration purposes is provided for by way of a maximum rate of one-sixtieth of a cent in the dollar on the rateable capital value of those portions of the councils' territories inside the regional area. The Act also makes provision whereby any of the constituent councils may enter into and carry out agreements for the execution of combined works.

Regional planning schemes must be preceded by a comprehensive survey of the natural resources of the areas concerned, and of the present and potential uses and values of all lands in relation to public utilities or amenities. Regional schemes envisage the conservation and economic development of natural resources by classification of lands according to their best uses and by the co-ordination of all such public improvements, utilities, and amenities as are not limited to the territory of any one local authority. Every regional planning scheme is intended to be a guide to councils engaged in the preparation of district planning schemes and to public authorities and all persons in relation to conservation and development within the region. Regional schemes are required to be reviewed at intervals of not more than 10 years.

District Planning—Every district scheme is required to have for its general purpose the development of the area to which it relates (including where necessary the replanning and reconstruction of an area already built on) in such a way as will most effectively tend to promote and safeguard the health, safety and convenience, the economic and general welfare of its inhabitants, and the amenities of every part of the area. The council of every city, borough, county, and independent town district must provide and maintain a district scheme whether or not a regional planning scheme including its district has been prepared or become operative.

While a district scheme is being prepared a council may refuse its consent to the carrying out of any development that would be in contravention of the scheme and falls within the definition of a “detrimental work”, but the owner or occupier affected may appeal against such a decision to the Town and Country Planning Appeal Board. The Minister can require the council to exercise these powers where the development would or might adversely affect Government works or the public interest, and local authorities have similar rights in respect of their works. Any appeal proceedings lie against the Minister or the local authority concerned.

In the period before a district scheme becomes operative, any change of use of land that detracts or is likely to detract from the amenities of the neighbourhood is required to have the prior consent of the council. Where an application is made to the council for consent, the applicant and every person who claims to be affected by the proposed use has a right to be heard by the council and may appeal to the Appeal Board against the council's decision.

When completed and recommended by the council, copies of a district scheme are submitted to the Minister of Works and to adjoining councils and to local authorities within the area covered by the scheme for consideration, particularly in relation to their public works. When the Minister and each local authority is satisfied that all their respective public works have been properly provided for in the scheme and have certified accordingly, the district scheme is publicly notified for inspection for 3 months. Any owner or occupier of land affected may object to any provision of the scheme, and the Minister, other local authorities, professional, business, sporting or other such organisations, may also object to the scheme on grounds of public interest. In the event of an objection not being sustained by the council the objector may appeal to the Appeal Board whose decision is final.

When a district scheme has been finally approved and made operative the council and all local authorities having jurisdiction in the district are bound to observe, and enforce observance of, the requirements of the scheme. The provisions of an operative regional planning scheme are also obligatory, but a constituent council has a right of appeal to the Town and Country Planning Appeal Board where a provision of a proposed or operative district scheme conflicts with the regional scheme; the Minister has, incidentally, a similar right of appeal so far as the regional scheme conflicts with the public interest.

By 31 March 1971 there were 127 operative schemes with a further 70 schemes at the recommendation stage; although 59 councils had yet to submit schemes, more than 90 percent of the population are living in areas where councils have brought down recommended, proposed, or operative district schemes.

Operative district schemes may be changed at any time, and must be reviewed when any part of the scheme has been operative for a period of 5 years. In preparing, recommending, and approving a change or a review of a district scheme the proposed change or review is publicly notified for inspection by owners and occupiers of property and simultaneously submitted to the Minister, to the Regional Planning Authority, and to the local authorities within the district for their consideration and objection where necessary in the light of their respective public works and other responsibilities.

Chapter 3. Section 3 POPULATION

Table of Contents

POPULATION GROWTH—New Zealand's first million of population was recorded in 1908, 68 years after the signing of the Treaty of Waitangi. In 1952, 44 years later, the second million was reached, and the third million is expected to be reached in the mid-1970s.

Population has two sources of gain—natural increase (excess of births over deaths) and net migration (excess of arrivals over departures). In the early years in New Zealand, as in every young country, the bulk of the increase was through migration. From the late 1870s natural increase permanently displaced immigration as the chief contributor to population growth. At the census of 1881 the percentages of the total population born in New Zealand and born overseas were approximately equal (50.2 percent New Zealand born to 49.8 percent overseas born), and each succeeding census until 1961 recorded an increased proportion of the population as having been born in New Zealand. In 1966 it dropped from 86 to 85.2 percent, partly as a result of international travel and tourism; more New Zealanders were overseas and more tourists were in New Zealand.

During the present century, natural increase has accounted for over three-quarters of the growth of population.

The natural increase rate has, in the main, closely reflected the changes in the birth rate, with a low point of 8.68 per 1,000 in 1935 and high points of 18 per 1,000 in 1947 and 1961. The 1966 figure of 13.57 was the lowest since 1944. In more recent years it has been 13.98 in 1967, 13.72 in 1968, 13.79 in 1969 and 13.23 in 1970. Like the low birth rate of the thirties, the fall in the birth rate in recent years is a feature that New Zealand has shared with a number of other developed countries, and notably with Australia, Canada, and the United States.

Details are given in the following table.

PeriodMarch YearsCalendar Years
BirthsDeathsNatural IncreaseBirthsDeathsNatural Increase
Non-Maori population.
    (thousand)  
1901-1905*......109.440.768.7
1906-1910*......127.846.081.7
1911-1915*......138.049.089.0
1916-1920......142.566.176.4
1921-1925......148.359.089.4
1926-1930146.564.681.9146.364.382.0
1931-1935139.866.273.6138.466.372.1
1936-1940150.976.774.2159.478.680.8
1941-1945188.685.3103.3191.687.0104.6
1946-1950239.988.0151.9244.988.1156.8
1951-1955258.593.1165.4263.694.2169.4
1956-1960295.0101.5193.5300.4102.9197.5
1961-1965320.0110.5209.5317.9112.1205.8
1966-1970306.9118.6188.3308.4120.2188.2
197163.525.038.564.724.340.4
Totals 1916-1971......2,426.4963.11,463.4

Migration, however, has continued to add to the population quite substantially except during depression and war periods and the recession conditions of 1968-69. Gains from external migration are shown in the following table. Movements of the armed forces are not included.

PeriodMarch Years* Migration GainCalendar Years Migration Gain

*March years ended in years listed.

†Excess of departures.

 (000)(000)
1901-1905..45.4
1906-1910..41.0
1911-1915..35.6
1916-1920..14.9
1921-1925..50.1
1926-193027.424.6
1931-1935-2.1—9.9
1936-194011.912.4
1941-19451.32.1
1946-195027.432.6
1951-195566.669.1
1956-196049.244.3
1961-196563.970.7
1966-19706.06.5
19718.58.7
            Total 1901-1971..448.1

Most of the inward migration has been from the United Kingdom, Australia, and the Netherlands. In more recent years increasing numbers have come from the Pacific Islands, notably Western Samoa. A changed economic climate in the country brought a net migration loss to population for 1967, 1968, and 1969 calendar years.

CENSUS STATISTICS—Population statistics are based primarily on the five-yearly population census. Intercensal population estimates are based on the most recent census data available, adjusted in accordance with later figures of births, deaths, and migration. Estimates of the populations of particular localities, e.g., cities and boroughs, also take into account local economic developments, housing schemes, the numbers on school rolls, changes in boundaries, and any other factors leading to, or indicating, changes in population.

The basis adopted for the population census, and virtually throughout population statistics in New Zealand, is that of population physically present in the place of enumeration at the time of enumeration.

All references to New Zealand relate solely to geographic New Zealand, i.e., island territories are omitted except where their inclusion is specifically stated. Though Niue Island and Tokelau Islands are constitutionally part of New Zealand, for geographical reasons they are administered separately. The Cook Islands are self-governing but the islanders are New Zealand citizens.

PRESENT POPULATION—The following table gives a summary of population. A 50-year time series is given in the statistical summary towards the back of this Yearbook.

TerritoryDateMalesFemalesTotal

*Includes population of Kermadec Islands 9 (males) and Campbell Island 9 (males).

†Provisional.

New Zealand*23 March 19711,430,8561,431,7752,862,631
Island Territories—    
    Tokelau Islands25 September 19717718841,655
    Niue Island27 September 19712,5082,4804,988
Cook Islands1 December 197110,84010,38721,227
Ross Dependency23 March 1971190190

INCREASE OF POPULATION—The growth of population has been substantial in each intercensal period. The lowest rates are those of 1926-36, which included some years of economic depression, and of 1936-45, which included 6 years of international war, and of 1966-71 mainly attributable to a marked change in migration patterns.

Date of CensusTotal PopulationIntercensal Numerical IncreaseIntercensal Percentage IncreaseAverage Annual Percentage Increase

*Numbers overseas not available.

†Includes members of the New Zealand armed forces overseas at census date.

March 1901*815,85372,6469.81.9
April 1906936,304120,45114.82.8
April 19111,058,308122,00413.02.5
October 19161,149,22590,9178.61.5
April 19211,271,664122,43910.72.3
April 19261,408,139136,47510.72.1
March 19361,573,810165,67111.81.1
September 19451,702,298128,4888.20.8
September 19451,747,679173,86911.01.1
April 19511,939,472237,17413.92.4
April 19511,941,366193,68711.11.9
April 19562,174,062234,59012.12.3
April 19562,176,224234,85812.12.3
April 19612,414,984240,92211.12.1
April 19612,417,543241,31911.12.1
March 19662,676,919261,93510.82.1
March 19662,678,855261,31210.82.1
March 19712,862,631185,7126.91.4
March 19712,864,113185,2586.91.3

COMPARISON WITH OTHER COUNTRIES—The annual average percentage increases of population for the period 1963-68 are given in the following table for certain selected countries. (Source: United Nations Statistical Yearbook.)

CountryAverage Annual Percentage Increase
Australia1.9
Canada1.9
Denmark0.8
France0.9
Germany, West0.9
India2.5
Ireland, Republic0.4
Japan1.1
Netherlands1.3
New Zealand1.7
Norway0.8
Singapore2.3
South Africa2.4
Sweden0.8
Switzerland1.3
Thailand3.1
United Kingdom0.6
United States1.2
U.S.S.R.1.1
Western Samoa2.7

INTERCENSAL RECORDS—Intercensal estimates of total population are prepared from the records of vital statistics and of external migration. The figures in the tables following have been revised in line with 1971 Census results.

The figures exclude members of New Zealand armed forces who were overseas, and also members of the armed forces of other countries who were in New Zealand.

YearPopulation at End of YearIncrease During YearMean Population for Year
MalesFemalesTotalNumericalPercent
Years Ended 31 March
19661,343,7811,332,9972,676,77847,8781.82,647,196
19671,367,8741,358,0402,725,91449,1361.82,694,680
19681,377,0181,375,6442,752,66226,7481.02,735,207
19691,386,7701,390,4402,777,21024,5480.72,760,077
19701,407,0071,408,9802,815,98738,7771.42,788,839
19711,430,1081,430,7652,860,87344,8861.62,831,222
Years Ended 31 December
19661,360,2881,351,0302,711,31847,4751.82,682,604
19671,373,5731,371,3902,744,96333,6451.22,727,658
19681,385,3801,387,5532,772,93327,9701.02,753,512
19691,399,8391,404,2202,804,05931,1261.12,780,101
19701,425,4351,426,7022,852,13748,0781.72,819,602

The figures given in the preceding table are for total population inclusive of New Zealand Maoris.

The following table shows the New Zealand Maori population.

YearNew Zealand Maori Population at End of YearIncrease During YearMean Population for Year
MalesFemalesTotalNumericalPercent
Years Ended 31 March
1966102,17199,134201,3056,7043.4197,901
1967104,770101,707206,4775,1722.6203,757
1968107,440104,415211,8555,3782.6209,169
1969109,886107,083216,9695,1142.4214,377
1970112,322109,781222,1035,1342.4219,424
1971115,037112,537227,5745,4712.5224,718
Years Ended 31 December
1966104,127100,963205,0905,5162.8202,401
1967106,711103,684210,3955,3052.6207,834
1968109,239106,360215,5995,2042.5213,087
1969111,715109,039220,7545,1552.4218,138
1970114,340111,768226,1085,3542.4223,365

POPULATION PROJECTIONS—An indication of future population growth, including Maoris, in New Zealand is given by the detailed projections for the period to 2000.

Projections of future population involve an element of uncertainty owing to incomplete knowledge of the factors underlying changes in fertility, mortality, and migration levels, coupled with the difficulty of accurately forecasting the future course of the factors which are known to affect these components of population change. It should be understood, therefore, that these projections merely show the effect of the assumptions stated below the table on the future growth of the existing population. The assumptions, however, have been adopted only after careful studies of trends in the patterns of fertility, mortality, and migration and, in the light of available current information, are regarded as those most likely to produce realistic projections over the length of the projection period.

As at 31 DecemberProjected New Zealand Population* Assuming Net Annual Immigration of
5,00010,000
MalesFemalesTotalMalesFemalesTotal

*The base population for these projections is the estimated actual population at 31 December 1970. The assumptions on which these projections depend are as follows:

(1) That 1967 age-of-mother and marital status specific birth rates will continue.

(2) That age-specific mortality rates will continue in accordance with the New Zealand Life Tables, 1960-62.

 (thousand)
1970 (base)1,4301,4282,8581,4301,4282,858
19711,4541,4522,9061,4571,4552,912
19721,4791,4772,9561,4851,4822,967
19731,5061,5033,0091,5141,5113,025
19741,5331,5303,0631,5431,5403,083
19751,5611,5583,1191,5741,5703,144
19761,5891,5863,1751,6061,6013,207
19771,6191,6153,2341,6381,6333,271
19781,6501,6463,2961,6721,6663,338
19791,6811,6773,3581,7061,7003,406
19801,7131,7083,4211,7411,7343,475
19811,7461,7413,4871,7771,7693,546
19821,7801,7743,5541,8141,8063,620
19831,8141,8083,6221,8511,8423,693
19841,8491,8423,6911,8891,8793,768
19851,8841,8773,7611,9271,9173,844
19861,9201,9123,8321,9661,9553,921
19871,9551,9473,9022,0051,9943,999
19881,9911,9833,9742,0442,0324,076
19892,0282,0194,0472,0842,0714,155
19902,0642,0554,1192,1242,1104,234
19912,1012,0914,1922,1642,1504,314
19922,1392,1284,2672,2052,1904,395
19932,1772,1664,3432,2472,2314,478
19942,2152,2044,4192,2902,2734,563
19952,2552,2434,4982,3332,3154,648
19962,2952,2834,5782,3772,3594,736
19972,3372,3234,6602,4222,4034,825
19982,3792,3654,7442,4692,4484,917
19992,4232,4084,8312,5162,4955,011
2,0002,4682,4524,9202,5652,5425,107

The following diagram presented on a ratio scale shows the growth of actual population from 1880 to 1968 and projections through to 2000

DISTRIBUTION OF POPULATION—Detailed population statistics are compiled for each census and are published in Volume 1, Increase and Location of Population, of the Census of Population and Dwellings.

North and South Islands—In 1858 the North Island had a larger population than the South, but this position was reversed at the succeeding enumeration, and the South Island had the larger population (exclusive of NZ Maoris) at each census from 1861 to 1896. In 1901 the North Island was found to have slightly the larger total and since then has steadily increased its lead.

The following table gives the population, excluding NZ Maoris, of the North and South Islands as disclosed by each census since 1901.

Census YearPopulation (Excluding New Zealand Maoris)Percentages
North IslandSouth IslandTotalNorth IslandSouth Island
1901388,626381,678770,30450.549.5
1906474,605411,390885,99553.646.4
1911561,281444,3041,005,58555.844.2
1916648,439447,7891,096,22859.240.8
1921741,255477,6581,218,91360.839.2
1926831,813512,6561,344,46961.938.1
1936938,939552,5451,491,48463.037.0
19451,050,984552,5701,603,55465.534.5
19511,202,357621,4391,823,79665.934.1
19561,365,470671,4412,036,91167.033.0
19611,524,839723,0592,247,89867.832.2
19661,702,802772,9582,475,76068.831.2
19711,837,786797,4312,635,21769.730.3

The population of the North Island increased at a greater proportionate rate than that of the South Island between the 1966 and 1971 Censuses. At the 1971 Census the North Island population was 2,051,363, including 213,577 NZ Maoris, and the South Island population 811,268, inclusive of 13,837 NZ Maoris. The increase since the 1966 Census was 158,037 for the North Island and 27,675 for the South Island.

Between the 1966 and 1971 Censuses, births in the South Island numbered just over 82,000, and deaths almost 38,000, giving a net natural increase of just over 44,000. The fact that the total population increase is under 28,000 indicates a net migration outflow from the South Island during the intercensal period. This is in contrast to the 1961-66 intercensal period when a small net migration inflow of approximately 5,000 was recorded.

Statistical Areas—The boundaries of statistical areas are shown on the map inside the back cover.

In the following table are shown the approximate areas and the populations of the statistical areas as at the Censuses of March 1966 and March 1971.

Statistical AreaArea (Square Kilometres)Population Census 23 March 1966Population Census 23 March 1971
Northland12,63993,51496,191
Central Auckland5,569613,671698,400
South Auckland-Bay of Plenty36,744389,334422,299
East Coast10,87846,98847,342
Hawke's Bay11,033124,960133,250
Taranaki9,713101,104100,895
Wellington28,153523,755522,986
        Totals, North Island114,7291,893,3262,051,363
Marlborough29,93029,42831,642
Nelson17,89767,20868,838
Westland15,56624,35322,861
Canterbury43,431376,441398,830
Otago36,441183,477182,749
Southland29,681102,686106,348
        Totals, South Island153,946783,593811,268
        Totals, New Zealand268,6752,676,9192,862,631

Statistical Divisions and Urban Areas—Statistical divisions and urban areas are statistical conceptions and not administrative units. Their purpose is to provide definite, stable, and comparable boundaries for the larger centres of population. Statistical divisions are a new concept. The basic criterion for a statistical division is a population of 75,000 or more within the area of economic and social interests of a heavily populated centre. Seven statistical divisions have been established, namely, Auckland, Hamilton, Napier-Hastings, Palmerston North, Wellington (including Hutt), Christchurch, and Dunedin. The division, like the urban area, does not have any administrative functions, but embraces areas of unified community, economic, and social interests. In addition to the central city or borough, urban areas include neighbouring boroughs and town districts and parts of counties which are regarded as suburban to the centre of population. Maps of statistical boundaries are available at Government bookshops.

Previously there have been 18 statistically defined urban areas; there are now 24 urban areas. The additional areas result from splitting the Auckland, Wellington, and Hutt urban areas and adding Masterton. Adjustments of urban area boundaries have been made because of the peripheral growth of population in some of the urban centres.

In the following table the populations of statistical divisions and urban areas are given.

Statistical Division (S.Div) and Urban Area (U.A.)1961 Census1966 Census1971 CensusPercentage Increase
1961-19661966-1971
Auckland S. Div.     
    Northern Auckland U.A.64,27886,297107,96534.325.1
    Western Auckland U.A.55,21775,79289,94637.318.7
    Central Auckland U.A.269,315281,192286,7874.42.0
    Southern Auckland U.A.80,726124,886165,04854.732.2
    Remainder S. Div.44,97145,50448,6541.26.9
            Totals514,507613,671698,40019.313.8
Hamilton S. Div.     
    Hamilton U.A.55,27768,48580,81223.918.0
    Remainder S Div.54,67855,78655,1942.0-1.1
            Totals109,955124,271136,00613.09.4
Statistical Division (S.Div) and Urban Area (U.A.)1961 Census1966 Census1971 CensusPercentage Increase
1961-19661966-1971
Napier-Hastings S. Div.     
    Napier U.A.32,79338,38243,60117.013.6
    Hastings U.A.35,62240,65545,51214.111.9
    Remainder S. Div,7,5747,8747,8204.0-0.7
            Totals75.98986,91196,93314.411.5
Palmerston North S. Div.     
    Palmerston North U.A.46,00452,39357,06513.98.9
    Remainder S. Div.22,71523,55123,6673.70.3
            Totals68.71975,94480,73210.56.3
Wellington S. Div.     
    Upper Hutt Valley U.A.22,66627,39830,98620.913.1
    Lower Hutt Valley U.A.77,16888,33792,00314.54.2
    Porirua Basin U.A.27,72037,62447,85835.727.2
    Wellington U.A.124,398132,005136,7826.13.6
    Remainder S. Div.11,48813,56116,40318.021.0
            Totals263,440298,925324,03213.58.4
Christchurch S. Div.     
    Christchurch U.A.229,671257,505275,96812.17.2
    Remainder S. Div.23,34624,95426,6426.96.8
            Totals253,017282,459302,61011.67.1
Dunedin S. Div.     
    Dunedin U.A.105,038108,779111,0593.62.1
    Remainder S, Div.7,3007,0866,681-2.9-5.7
            Totals112,338115,865117,7403.11.6
Urban Areas Not in Any Statistical Division
Urban Area1961 Census1966 Census1971 CensusPercentage Increase
1961-19661966-1971
Whangarei23,45731,00134,02932.29.8
Tauranga26,58733,82240,34927.219.3
Rotorua25,56433,61339,75231.518.3
Gisborne25,28228,11630,16111.27.3
New Plymouth32,82235,68038,7808.78.7
Wanganui35,69438,17437,9826.90.5
Masterton16,94419,11620,14712.85.4
Nelson30,69234,45937,99412.310.3
Timaru26,42427,94628,9595.83.6
Invercargill41,90046,93950,68112.08.0
            Totals285,366328,866358,83415.29.1
            Totals, 24 urban areas1,511,2591,748,5961,930,22615.710.4
            Totals, 7 Statistical Divisions1,397,9651,598,0461,756,45314.39.9

Cities and Boroughs—The population of cities and boroughs is now given

City or BoroughPopulation 1971 CensusApproximate Area in Hectares 23 March 1971
North Island—  
    Kaitaia3,501526
    Kaikohe3,340544
    Whangarei (city)30,7464,354
    Dargaville4,1011,133
    Helensville1,290532
    East Coast Bays15,9291,558
    Takapuna (city)24,0331,328
    Devonport11,022445
    Northcote9,581540
    Birkenhead15,8191,266
    Henderson5,889517
    Glen Eden6,771503
    New Lynn10,029564
    Auckland (city)151,5807,490
    Newmarket1,22974
    Mt. Albert26,151983
    Mt. Eden20,084598
    Mt. Roskill33,8491,862
    Onehunga15,693760
    One Tree Hill12,961983
    Ellerslie5,062301
    Mt, Wellington20,1781,649
    Howick12,008621
    Otahuhu9,916558
    Papatoetoe (city)21,816907
    Manukau (city)104,02462,263
    Papakura17,2101,380
    Pukekohe7,5901,405
    Waiuku2,879593
    Tuakau1,814442
    Huntly5,310785
    Cambridge6,4351,071
    Ngaruawahia3,995450
    Hamilton (city)74,7845,555
    Te Awamutu6,929713
    Otorohanga1,964227
    Te Kuiti4,842675
    Taumarunui5,8411,309
    Thames5,7801,103
    Paeroa3,431574
    Waihi3,071539
    Te Aroha3,2001,126
    Morrinsville4,452476
    Matamata4,057378
    Putaruru4,585395
    Mt. Maunganui8,7711,411
    Tauranga (city)28,18883,803
    Te Puke3,406532
    Rotorua (city)31,2652,667
    Taupo10,5631,446
    Whakatane9,7481,123
    Kawerau6,687923
    Murupara2,760287
    Opotiki2,608299
    Gisborne (city)26,7261,649
    Wairoa5,418649
    Napier (city)40,1862,435
    Hastings (city)29,7531,709
    Havelock North7,284514
    Waipawa1,725692
    Waipukurau3,598420
    Dannevirke5,610526
    Woodville1,517427
    Waitara5,125652
    New Plymouth (city)34,3142,316
    Inglewood2,086284
    Stratford5,398816
    Eltham2,321647
    Hawera8,134514
    Patea1,950575
    Ohakune1,418841
    Raetihi1,359388
    Wanganui (city)35,7822,997
    Taihape2,793778
    Marton4,700573
    Feilding9,780856
    Foxton2,808306
    Palmerston N, (city)51,8934,302
    Levin13,051877
    Otaki3,774663
    Upper Hutt (city)20,001876
    Lower Hutt (city)58,5614,927
    Petone9,4641,044
    Eastbourne4,7271,273
    Porirua (city)30,3723,268
    Tawa11,244550
    Wellington (city)135,6777,434
    Pahiatua2,610291
    Eketahuna722384
    Masterton18,4941,433
    Carterton3,734512
    Greytown1,725442
    Featherston2,090307
    Martinborough1,390433
            Totals, North Island cities and boroughs1,458,081175,125
City or BoroughPopulation 1971 CensusApproximate Area in Hectares 23 March 1971
South Island—  
    Picton2.824426
    Blenheim14,8591,013
    Nelson (city)29,2824,762
    Richmond5,7071,052
    Motueka3,8741,021
    Westport4,985308
    Runanga1,449487
    Greymouth7,9361,068
    Hokitika3,332273
    Ross4291,538
    Rangiora4,854357
    Kaiapoi3,962318
    Riccarton7,136339
    Christchurch (city)165,63710,635
    Lyttelton3,2811,036
    Ashburton13,3121,054
    Geraldine1,937301
    Temuka3,316395
    Timaru (city)28,3262,262
    Waimate3,228312
    Oamaru13,0781,148
    Port Chalmers3,007410
    Dunedin (city)82,23516,560
    St, Kilda6,453249
    Green Island6,149736
    Mosgiel8,377652
    Milton2,164204
    Kaitangata1,099518
    Balclutha4,601509
    Tapanui854121
    Lawrence604249
    Roxburgh750208
    Naseby10976
    Alexandra3,551452
    Cromwell988321
    Arrowtown260134
    Queenstown2,159416
    Gore8,648946
    Mataura2,549515
    Winton2,055231
    Invercargill (city)47,0984,384
    Bluff3,241866
    Riverton1,311403
            Totals, South Island cities and boroughs511,00659,265
            Grand totals, all cities and boroughs1,969,087234,389

Town Districts—The population of independent town districts—i.e., those contained in section (a) of the following table—is not included with that of the county in which the town district is located, but the population of dependent town districts—section (b)—is included in that of the respective parent county.

Town DistrictPopulation 1971 CensusApproximate Area in Hectares 23 March 1971
(a) Town Districts not forming parts of Counties
North Island—  
    Kawakawa1,441229
    Hikurangi1,031389
    Warkworth1,425577
    Ohura558330
    Manunui851506
    Manaia921206
    Waverley1,085202
    Hunterville608320
Totals, North Island7,9202,759
South Island—  
    Wyndham735275
    Otautau934198
            Totals, South Island1,669473
            Grand totals9,5893,232
(b) Town Districts forming parts of Counties*
Town DistrictPopulation 1971 CensusApproximate Area in Hectares 23 March 1971
Parent county shown in parentheses.
North Island—  
    Russell (Bay of Islands)651431
    Ohaupo (Waipa)338518
    Kihikihi (Waipa)1,217212
    Patutahi (Cook)326516
    Kaponga (Eltham)496226
    Totals, North Island3,0281,903
South Island—  
    Edendale (South-land)610282
    Totals, South Island610282
            Grand totals3,6382,185

County Towns—The following table lists those county towns with populations of 1,000 or more at the time of the 1971 Census. The parent county is shown in parentheses. The populations of county towns are included in the administrative county populations given in the table following.

County TownPopulation 1971 CensusApproximate Area in Hectares 23 March 1971
North Island  
    Moerewa (Bay of Islands)1,29049
    Wellsford (Rodney)1,571554
    Glenfield (Waitemata)22,1381,860
    Kelston West (Waitemata)9,093656
    Green Bay (Waitemata)2,941191
    Titirangi (Waitemata)7,171930
    Orewa (Waitemata)2,191578
    Raglan (Raglan)1,058372
    Tokoroa (Matamata)15,169760
    Katikati (Tauranga)1,225828
    Ngongotaha (Rotorua)2,024503
    Mangakino (Taupo)1,756261
    Edgecumbe (Whakatane)1,206152
    Bulls (Rangitikei)1,937403
    Ashhurst (Oroua)1,226125
    Waikanae (Horowhenua)2,264979
    Paraparaumu (Hutt)9,3682,764
    Paekakariki (Hutt)2,0142,456
    Pukerua Bay (Hutt)1,336834
    Plimmerton-Paremata (Hutt)4,3361,073
    Wainuiomata (Hutt)16,65826,640
    Heretaunga-Pinehaven (Hutt)5,4765,511
South Island  
    Kaikoura (Kaikoura)1,605283
    Halswell (Paparua)3,567204
    Hornby (Paparua)8,110491
    Sockburn (Paparua)5,9791,082
    Fairfield (Taieri)1,267134
    Te Anau (Wallace)1,642395

Extra-county Islands and Shipboard Population—In addition to the populations quoted for administrative counties, cities and boroughs, and independent town districts, the New Zealand totals include shipboard population and persons located on islands not within the boundaries of any county. The two latter categories comprised a total of 5,317 people at 1971 Census (23 March).

Counties—The following table gives the population of individual counties at the 1971 Census of Population on 23 March, together with the approximate area of each. It should be noted that “Administrative counties” do not include boroughs or town districts independent of county control, but include town districts and county towns which form parts of counties.

Administrative CountyPopulation 1971Approximate Area, in Square Kilometres 23 March 1971
North Island—  
    Mangonui7,1162,481
    Whangaroa1,950622
    Hokianga4,3381,588
    Bay of Islands13,2472,132
    Whangarei13,4022,675
    Hobson5,3981,930
    Otamatea6,2021,093
    Rodney7,4021,256
    Waitemata103,7691,554
    Waiheke2,352155
    Great Barrier Is,267285
    Franklin17,0341,419
    Raglan9,3662,411
    Waikato15,5861,655
    Waipa15,0651,129
    Otorohanga8,0161,974
    Waitomo6,4193,375
    Taumarunui6,2464,851
    Coromandel3,3701,137
    Thames3,8521,039
    Hauraki Plains5,309603
    Ohinemuri4,072624
    Piako11,5111,168
    Matamata29,7502,556
    Tauranga15,6551,829
    Rotorua17,2442,681
    Taupo14,0547,244
    Whakatane14,7064,196
    Opotiki3,9483,124
    Waiapu4,9742,818
    Waikohu3,2472,650
    Cook9,9192,852
    Wairoa5,8694,128
    Hawke's Bay21,0564,846
    Waipawa3,5861,347
    Patangata3,0381,696
    Waipukurau1,200332
    Dannevirke3,8861,414
    Woodville1,497404
    Clifton2,0801,176
    Taranaki8,682488
    Inglewood2,962421
    Stratford5,2982,157
    Egmont5,748622
    Eltham3,065534
    Waimate West2,460215
    Hawera4,522495
    Patea2,9561,531
    Waimarino1,5832,147
    Waitotara2,8241,210
    Rangitikei14,5154,486
    Kiwitea1,872930
    Pohangina924671
    Oroua4,763492
    Manawatu6,470692
    Kairanga5,747461
    Horowhenua12,2371,404
    Hutt50,8691,357
    Pahiatua2,238741
    Akitio940831
    Eketahuna1,437824
    Masterton4,0922,391
    Wairarapa South2,5721,140
    Featherston3,0322,471
            Totals, North Island counties581,730112,543
South Island—  
    Marlborough9,3166,638
    Awatere1,6693,877
    Kaikoura3,0702,344
    Golden Bay3,3752,618
    Waimea15,8257,511
    Buller3,2595,035
    Inangahua2,2192,440
    Grey4,4373,958
    Westland5,24811,424
    Amuri2,7064,273
    Cheviot1,520875
    Waipara2,7242,476
    Ashley2,9131,412
    Rangiora4,020264
    Eyre2,524458
    Oxford1,561813
    Malvern6,4135,045
    Paparua27,147445
    Waimairi61,490114
    Heathcote7,58234
    Mt, Herbert683171
    Akaroa1,552438
    Chatham Islands716963
    Wairewa687438
    Ellesmere7,5121,202
    Ashburton11,2096,177
    Geraldine4,4691,997
    Levels4,804681
    Mackenzie5,1597,457
    Waimate5,3463,559
    Waitaki9,4256,250
    Waihemo1,714878
    Waikouaiti4,029829
    Taieri8,1402,331
    Bruce3,5741,344
    Clutha5,7132,717
    Tuapeka4,1303,585
    Maniototo2,6283,471
    Vincent3,9817,568
    Lake2,98510,026
    Southland26,8479,588
    Wallace12,0389,655
    Fiord1357,861
    Stewart Island4141,746
        Totals, South Island counties296,908152,815
        Grand totals, all counties878,638265,357

Urban Concentration of Population—The bulk of New Zealand's population is located in urban areas, where the most rapid growth rates are occurring. This is due largely to the development of both manufacturing and tertiary industries in urban areas, which provide employment for a growing labour force. Other factors, including better social, cultural, educational, and economic opportunities serve to attract persons to these areas, while the majority of immigrants tend to settle in the larger urban centres. These factors, combined with amalgamation of farms, centralisation of dairy factories, and increasing agricultural mechanisation (resulting in less labour required), combine to produce a noticeable rural-urban drift. Urban concentration features are common to “developed” countries at advanced stages of economic development.

In the circumstances the 1971 Census figures understandably show a continuing decline in the population of rural areas and in many cases also of small and intermediate-sized towns. Seventy-two counties recorded smaller populations than in 1966. Of 58 small towns (1,000 to 4,999 population) 22 declined in population compared with 7 which showed declines between 1961 and 1966. Six intermediate towns (5,000 to 9,999 population situated outside urban areas) showed decreases on this occasion as against only two in 1966.

The following table indicates the urban movement of the total population—the urban content has been taken as the population in the 24 urban areas, plus that of all boroughs, town districts, county towns, and townships with population of 1,000 or over.

CensusUrbanRural*
NumberPercentNumberPercent
Excludes shipping.
1926937,30466.9464,37033+1
19511,406,51672.7527,07827.3
19561,600,80873.8568,80626.2
19611,840,20276.4569,21723.6
19662,119,08579.3553,02320.7
19712,328,87681.5528,60918.5

The following table indicates the urban movement of the New Zealand Maori population.

CensusUrbanRural*
NumberPercentNumberPercent
*Excludes shipping.
19269.81515.453.80484.6
195133.52929.082.05471.0
195647.63034.789.45265.3
196176.79246.090.24054.0
1966122.94261.178.15338.9
1971159.49770.267.80129.8

In the process of urbanisation some cities and areas have grown more quickly than others. There is a tendency towards concentration of population in the largest centres and also a drift of population from the south to the north. Where the two tendencies reinforce each other, as they do in the case of Auckland, the rate of growth has been very rapid. Likewise the urban areas of Whangarei, Hamilton, Tauranga, and Rotorua, which had a combined population in 1926 of 40,164, in 1971 comprised 194,942 inhabitants.

The initial reason for the drift to the north lay in the change in emphasis of farming activities in which the development of dairying played an important part. The expansion of dairying in itself called for the development of factory processing facilities and service industries. These farming trends have been reinforced by the growth of forest processing industries in the North Island and com-pounded further by the general tendency for the large-scale manufacturing units to be located close to the biggest local markets.

In the larger cities a notable feature of the past 35 years has been a movement of population from the central or “inner” areas to the perimeter or “outer” areas as families in decayed areas have moved to State rental houses and as residential units in the city centres have been replaced by shops, offices, places of entertainment, and other commercial or industrial buildings. In recent years there has been an offsetting movement with the building of multi-storey flats in the inner areas.

The distribution of population by size of centres is shown in the following table.

Sizes of Centre (City, Borough, Town District, or County Town)Number of CentresPercentage of Population in These Centres
19261961196619711926196119661971
1,000- 2,499634544437.53.02.42.4
2,500- 4,999234641406.26.85.55.0
5,000- 9,999113534355.99.98.88.8
10,000-24,9991221232313.314.913.512.8
25,000 and over412192224.132.440.944.6
            Total11315916116357.067.071.173.6

In the South Island a higher proportion of the population is rural, that is, outside urban communities, than in the North Island.

Sex Proportions—The census of 23 March 1971 showed that females outnumbered males by 919 in the total population. Females per 1,000 males at the last six censuses have been:

CensusExcluding N.Z. Armed Forces OverseasIncluding N.Z. Armed Forces Overseas
19451,044991
1951991989
1956989987
1961990988
1966992991
19711,0011,000

There are marked differences in the sex proportions of the population of different parts of New Zealand, depending largely on educational and employment opportunities. The following figures give the number of females per 1,000 males at the Census of 1971.

Statistical areas 
    Hawke's Bay1,029
    Central Auckland1,021
    Otago1,019
    Canterbury1,014
    Nelson1,004
    East Coast1,000
    Wellington998
Urban areas 
    Timaru1,102
    Hastings1,077
    Wanganui1,074
    Gisborne1,070
    Dunedin1,067
    Central Auckland1,062
    Napier1,062
    New Plymouth1,055
    Nelson1,055
    Palmerston North1,048
    Hamilton1,047
    Christchurch1,045
    Taranaki988
    South Auckland - Bay of Plenty974
    Northland967
    Marlborough959
    Westland945
    Southland942
    Tauranga1,044
    Northern Auckland1,044
    Whangarei1,040
    Porirua Basin1,023
    Masterton1,021
    Wellington1,016
    Invercargill1,014
    Rotorua1,013
    Lower Hutt Valley1,009
    Southern Auckland1,002
    Western Auckland984
    Upper Hutt Valley915

DENSITY OF POPULATION—Generally speaking, a dense population must depend upon intensive land utilisation or industrialisation. In New Zealand there is a great area of high mountainous country, particularly in the South Island, and large areas of hilly country which cannot be closely settled, while the growth of mechanisation in farming tends to reduce the size of the labour force engaged in farming operations.

Nevertheless, economic development is providing employment for a growing labour force. More extensive mechanisation, further advances in science and technology, and increases in productivity, wealth, and consumption have paved the way for further specialisation of production and more concentrated urbanisation.

Within New Zealand there are wide variations in density of population. The following table provides comparative density figures on a statistical area basis from 1926 to 1971 censuses.

Statistical AreaArea in Square KilometresPersons Per Square Kilometre
192619451951196119661971
Northland12,6394.35.36.06.87.47.6
Central Auckland5,56942.459.668.692.4110.2125.4
South Auckland - Bay of Plenty36,7443.95.66.79.510.611.5
East Coast10,8783.13.53.84.34.34.4
Hawke's Bay11,0336.47.28.310.411.312.1
Taranaki9,7137.47.98.910.310.410.4
Wellington28,15310.012.413.916.818.619.6
            Totals, North Island114,7297.810.011.514.716.517.9
Marlborough10,9301.71.92.12.52.72.9
Nelson17,8972.32.63.23.53.83.8
Westland15,5661.41.51.61.61.61.5
Canterbury43,4315.05.86.57.98.79.2
Otago36,4414.14.04.44.85.05.0
Southland29,6812.22.42.63.23.53.6
            Totals, South Island153,9463.33.64.14.75.15.3
            Totals, New Zealand268,6755.26.37.29.010.010.7

NEW ZEALAND MAORI POPULATION—All persons of half or more Maori ancestry are defined as Maoris.

The growth rate of Maoris in the population approaches twice that of the population taken as a whole; an average annual increase in 1966-71 of 2.5 percent as compared with 1.4 percent for the total population. (Nevertheless the growth rate showed a slight fall when compared with the previous intercensal periods.)

The population growth rate among the Maoris is predominantly a result of natural increase, whereas in the total population natural increase is normally supplemented by sizeable increments from migration.

When studying growth rates of the Maori population, however, it should be noted that, as a result of intermarriage, there are increasing numbers of Maori children (half or more Maori) who have one parent not counted in the Maori population i.e., if a full Maori male marries a full European female or vice versa, the resulting progeny are all counted in the Maori population; this undoubtedly contributes to the high Maori percentage increase.

The decline in the number of Maoris during the early years of European settlement and throughout most of the nineteenth century is a matter of history. The present century has witnessed a resurgence of vitality among the Maori people which has been reflected in a strikingly high birth rate.

The increasing urbanisation of the Maori population as younger Maoris seek better job opportunities in the cities and boroughs is a population trend of considerable sociological significance.

A statement of N.Z. Maori population is now given for each census from 1901.

YearNew Zealand Maori PopulationIntercensal IncreaseIntercensal IncreaseAverage Annual Increase
*Includes members of New Zealand armed forces overseas at census date,
 number percent 
190145,5493,4358.21.6
190650,3094,76010.52.0
191152,7232,4144.81.0
191652,9972,2740.50.1
192156,9873,9907.51.6
192663,6706,68311.72.2
193682,32618,65629.32.6
194598,74416,41819.91.9
1945*100,04417,71821.52.1
1951115,67616,93217.12.9
1951 *115,74015,69615.72.7
1956137,15121,47518.63.5
1956*137,34121,60118.73.5
1961167,08629,93521.84.0
1961*167,39030,04921.94.0
1966201,15934,07320.43.8
1966*201,47934,08920.43.8
1971227,41426,25513.12.5
1971*227,74126,26213.02.5

Of the 227,414 Maoris at the 1971 Census, 213,472 were in the North Island. Most Maoris used to live in rural communities. A marked change has, however, taken place during and since the war as a result of employment conditions. As late as the 1936 Census only 8,249 Maoris (10 percent) dwelt in cities, boroughs, or independent town districts. By the 1971 Census the comparative figure was 132,970 (58.5 percent); the largest concentration is in Southern Auckland urban area, where 20,675 Maoris were enumerated in 1971.

The Maori population, which until recently was not greatly affected by external migration, is a much younger population than the non-Maori.

The following table for 1966 shows the high proportion (50.3 percent) of Maori children under 15 years compared with the total population (32.6 percent), and the low proportion of people in the older age groups.

Age Group (Years)Percentage in Age Groups (1966 Census)
New Zealand MaoriTotal Population
Under 1550.332.6
15 - 199.89.2
20 - 4429.231.1
45 - 597.515.1
60 and over3.212.0
            Totals100.0100.0

EXTERNAL MIGRATION—In recent years there has been a large increase in New Zealanders going overseas on business, on pleasure trips, and on working holidays, so that arrivals and departures have both been greatly swollen. The arrivals include many New Zealanders returning from travel overseas, as well as growing numbers of tourists from overseas countries.

The numbers of arrivals and departures during he last 11 years are given in the table following. Crews of vessels, through passengers, tourists on cruising liners, and members of the armed forces etc., have not been taken into account in this table.

Year Ended 31 MarchArrivalsDeparturesExcess of Arrivals Over Departures
MalesFemalesTotalMalesFemalesTotal
196157,30648,932106,23856,42348,195104,6181,620
196272,50060,156132,65661,36752,457113,82418,832
196378,61365,259143,87271,86358,370130,23313,639
196489,87074,776164,64681,95667,206149,16215,484
1965104,42185,870190,29198,14780,153178,30011,991
1966121,10698,833219,939114,00093,918207,91812,021
1967136,275114,131250,406128,228107,743235,97114,435
1968136,760122,621259,381143,259124,212267,471- 8,090
1969136,457119,279255,736142,653123,931266,584-10,848
1970156,645136,760293,405157,829137,636295,465- 2,060
1971190,437161,859352,297185,598158,853344,4517,846

From 1968 to 1970 there was an alteration in the net migration flow. This is illustrated in the following diagram which covers all passenger migration, excluding through passengers and crews.

Long-term Migration—The following table gives an analysis of long-term arrivals and departures for March years. (Short-term migration is analysed in Section 39: Travel and Tourism.)

YearLong-term (Including Permanent) ArrivalsLong-term (Including Permanent) Departures
New Permanent ArrivalsLong-termPermanent and Long-term Arrivals (Immigrants)Permanent Departures of New Zealand ResidentsLong-termPermanent and Long-term Departures (Emigrants)
AssistedSubsidisedTotal (includes others)N.Z. Residents Returning*Long-term Visitors*N.Z. Residents Departing*Long-term Visitors Departing*
*Arrivals: After absence of, or intending to stay, 12 months or more respectively. Departures: Persons intending to stay away for, or after stay in New Zealand of, 12 months or more respectively.
1965-664,047385......35,299......18,589
1966-674,097575......38,999......21,128
1967-682,764256......30,660......28,472
1968-69490198......23,225......29,802
1969-70382535......26,825......29,822
1970-715383,18217,73812,2369,40639,38011,23422,2354,69638,165

The countries of origin and destination of these long-term migrants are shown in the following table.

YearAustraliaCanadaIndiaUnited KingdomCook Islands and NiueFijiWestern SamoaNetherlandsSouth AfricaUnited StatesAll Other CountriesTotal
Immigrants by Country of Last Residence
1965-6610,32092820315,9377237653618412181,1933,81035,299
1966-6713,24376928416,7348577142467921711,3273,86238,999
1967-688,26969522614,9465685412086601989573,39230,660
1968-696,7588011749,3293934713174781421,3153,04723,225
1969-708,8541,0642109,3877554852815401871,7163,34626,825
1970-7113,8041,71819413,2761,0627956695333312,1614,83739,380
Emigrants by Country of Next Residence
1965-666,9666871005,9582234771593642701,1732,21218,589
1966-678,6168231026,5651595942564213551,1462,09121,128
1967-6814,0241,227917,3162675862713883201,5042,47828,472
1968-6916,8811,090845,9891685742033633971,2722,78129,802
1969-7015,268941846,8372526602563994081,4923,22529,822
1970-7118,8501,1021119,3095298483127534351,4434,47338,165

Ages—The following table gives the age-distribution of long-term arrivals and departures for the year ended 31 March 1970.

Age, in YearsPermanent ArrivalsPermanent DeparturesExcess of Arrivals Over Departures
MalesFemalesTotalsMalesFemalesTotals
0-143,0852,8075,8923,1893,0866,275— 383
15-243,5234,3717,8945,9355,84811,783—3,889
25-343,4993,0366,5353,7502,7946,544— 9
35-441,5421,1892,7311,5361,0782,614117
45-591,0841,1202,2049199001,819385
60 and over6299401,569342445787782
            Totals13,36213,46326,82515,67114,15129,822— 2,997

Origin—The following table shows for the latest 3 years the birthplaces of long-term migrants.

Country of BirthImmigrantsEmigrants
1967-681968-691969-701967-681968-691969-70
Commonwealth Countries      
United Kingdom—      
    England and Wales11,7326,9047,5694,4824,3734,134
    Scotland2,0829641,041835772747
    Northern Ireland233165201168140147
    Other or undefined24189183025
Australia4,0532,8483,5072,6582,2761,844
Canada325337502266197167
India262213173117111123
New Zealand7,0837,5888,71716,54918,95319,569
Pacific Islands—      
    Cook Islands and Niue4773176641407286
    Western Samoa134195210151100119
    Fiji185220167154128153
    Other Pacific19922726111297112
Other670567580343287335
            Totals, Commonwealth countries27,43720,58623,68125,99327,53627,561
Other Countries      
Austria574338604135
China948556403820
Denmark633147385832
Germany261169181124140119
Greece1016344637254
Hungary212832436336
Ireland, Republic of301155181161155134
Italy132921295572119
Indonesia5250125444449
Netherlands711493578451489402
Switzerland1197552775552
United States502659992657419615
Yugoslavia1519410011112184
Others658602589555499510
            Totals, other countries3,2232,6393,1442,4792,2662,261
            Grand totals30,66023,22526,82528,47229,80229,822

Assisted Immigration—Two assisted immigration schemes from Britain are in operation at present—the assisted passage scheme and the subsidy scheme. The contribution made by migrants under each scheme was reduced in 1970 to £10 sterling for single persons and £20 for married persons. Arrangements are made with the Department of Labour, Wellington, and the Chief Migration Officer, New Zealand House, London.

The assisted passage scheme is limited to 500 migrants a year and they must possess minimum skills (usually at tradesman level) in specific occupations approved by the Department of Labour. Single persons between the ages of 18 and 35 years are eligible and married couples up to age 40 years without children. Employers sponsor migrants by offering a job and arranging accommodation.

The subsidy scheme, as previously operating, was amended in February 1970. The quota (which had varied between 1,500 and 4,500 a year) was abolished; employers now have to pay only one-quarter of the air fare instead of half (the remainder being subsidised by the Government); travel by sea is subsidised at $200 a person; and the migrants no longer need to have specific skills to qualify for the scheme. Single men between the ages of 18 and 45 years may be sponsored and married men between 18 and 45 years without limit on the number of dependent children. Employers are obliged to provide employment, arrange suitable accommodation in advance for a married migrant and meet their share of the cost of fares to New Zealand.

In September 1970 the subsidy scheme was extended to the United States and to countries in Western Europe for the recruitment of skilled and semi-skilled workers. Migrants from these countries must possess the skill or experience to meet the employer's requirements and pay the same contribution as British migrants.

A system of matching skills of immigrants with specific vacancies in New Zealand has been developed by the Chief Migration Officer, New Zealand House, London, and a similar register has been established by the New Zealand Consul-General in Los Angeles. Employers interested in recruiting migrants with certain skills may file details of their vacancies through the Department of Labour in Wellington.

The numbers of assisted immigrants (excluding subsidy scheme migrants, displaced persons, and Hungarian and Czech refugees) arriving in the last 11 years are as follows.

Year Ended 31 MarchBritishDutchAustrianGermanDanishSwissGreekOtherTotal
19612.217122-----2.231
19623.4748414--10-23.584
19634.283423327--137104.532
19644.171-61651413054.347
19654.300-91251129344.400
19663.963-19782718-4.042
19674.020-9910361124.097
19682.732-245174-2.764
1969485--2-21-490
1970377---2-12382
1971532---43--539

Subsidy applications covering 4,205 migrants comprising 4,158 British, 12 Dutch, 5 other Western Europeans, and 30 Americans, were approved for embarkation during the year until 31 March 1971. In the previous year 895 subsidy migrants were approved.

In the preceding migration tables assisted and subsidy scheme immigrants are included in the totals of “immigrants”.

Refugees—Apart from displaced persons from Europe, of which New Zealand accepted 4,582 in the 3-year period 1949-52 as a member of the International Refugee Organisation, and the 1,117 Hungarian refugees accepted during 1956-58, New Zealand has accepted and continues to accept refugees from Europe and the mainland of China. In 1958 it was decided to offer resettlement opportunities to 20 “hard core” refugee families from Europe who, because of handicapped persons in each family unit, were unacceptable elsewhere. These families arrived during 1959. In 1959 it was decided to accept a further 100 “hard core” families. This figure was subsequently increased to 200. New Zealand has continued to accept a steady flow of refugees including families sponsored by the churches who also accepted responsibility for 50 orphan children from Hong Kong, Chinese, and Indonesian refugee families, and White Russians (including 80 Old Believers who arrived during 1965 and are now settled in the Southland area). From November 1968, 100 Czech refugees had arrived by 1969 and these were followed in 1970 by a further 25. In 1970-71, 42 Indonesian refugees arrived.

IMMIGRATION—The legislation respecting immigration into New Zealand is contained in the Immigration Act 1964, and the Undesirable Immigrants Exclusion Act 1919. The Immigration Act is administered by the Department of Labour, while the Undesirable Immigrants Exclusion Act is administered by the Department of Justice.

Under the Immigration Act all persons other than New Zealand citizens must be in possession of an entry permit before they may land in New Zealand.

To obtain permission to settle in New Zealand, intending immigrants should first write to or call on the nearest overseas representative of the New Zealand Government or write direct to the Secretary of Labour, P.O. Box 6310, Wellington, New Zealand. The application must be made in the prescribed form and must be supported by documents duly attested in the country of origin. Each application is considered individually on its own merits.

PASSPORTS—Authority for the issue of passports in New Zealand and by New Zealand representatives overseas is contained in the Passports Act 1946 and the Passport Regulations 1946.

New Zealand passports are issued and renewed within New Zealand by the Department of Internal Affairs at Wellington, Auckland, and Christchurch, at Rarotonga by the High Commissioner, at Niue by the Resident Commissioner, and overseas by the representatives of New Zealand at Apia, Athens, Bangkok, Bonn, Brisbane, Brussels, Canberra, Djakarta, Fiji, Geneva, The Hague, Kuala Lumpur, London, Los Angeles, Melbourne, New Delhi, New York, Ottawa, Paris, Rome, Saigon, San Francisco, Singapore, Sydney, Tokyo, and Washington. United Kingdom, Canadian, Australian, and Indian passports are issued and renewed in New Zealand by the respective High Commissioners for those countries.

Entry into New Zealand—Apart from British subjects and the wives of British subjects arriving from Australia, no person 16 years of age or over may land in New Zealand unless he is in possession of a valid passport or other recognised travel document. Exemption from the passport requirement (which is additional to the requirements of the Immigration Act and Undesirable Immigrants Exclusion Act) may be granted in exceptional circumstances by the Minister of Internal Affairs. A British subject who is a master or a member of the crew of the vessel in which he arrives does not need to produce a passport.

With the exception of nationals of those countries with which New Zealand has concluded agreements for the mutual abolition of visas, every alien landing in New Zealand requires a visa.

Persons born in the Cook Islands and the Tokelau Islands are British subjects and New Zealand citizens. They are required to obtain formal exit permission from the High Commissioner or Administrator respectively if they wish to proceed to New Zealand.

Departure from New Zealand—Every person leaving New Zealand, with the exception of a British subject travelling to Australia or making the round trip to New Zealand's island territories, should ibe n possession of a valid passport or other travel document.

NATIONALITY AND NATURALISATION—The basic nationality law is the British Nationality and New Zealand Citizenship Act 1948. Citizens of all Commonwealth countries are recognised as British subjects.

New Zealand citizenship may be acquired in the following ways: (a) by birth in New Zealand; (b) by descent; (c) by registration; and (d) by naturalisation. Citizens of other Commonwealth countries and the Republic of Ireland acquire New Zealand citizenship by registration, as do alien wives and children of New Zealand citizens. Other aliens acquire it by naturalisation. To be eligible for New Zealand citizenship, an alien or a citizen of another Commonwealth country (other than a woman married to a New Zealand citizen, or a minor) must—(a) have resided in New Zealand for the prescribed period; (b) be of full age and capacity; (c) be of good character; (d) have sufficient knowledge of the English language, and of the responsibilities and privileges of New Zealand citizenship; (e) intend to reside in New Zealand, or to enter or continue Crown service under the New Zealand Government. The residential qualification for naturalisation is 5 years, for registration it is generally 3 years but can be reduced to 1 year.

A person who acquires New Zealand citizenship by naturalisation must take the oath of allegiance, a person who acquires it by registration may be required to take the oath. Ceremonies are held at which applicants, in an atmosphere of dignity and solemnity, take the oath of allegiance and are presented with their certificates of naturalisation or registration as New Zealand citizens. During the 1969-70 year there were 124 such ceremonies, at which 1,224 persons took the oath of allegiance.

New Zealand citizens may be deprived of New Zealand citizenship if they voluntarily acquire a foreign nationality by any formal act other than marriage, or if they voluntarily exercise the privileges or perform any of the duties of a foreign nationality possessed by them. Citizenship obtained by fraud, false representation, or the concealment of any material fact may be withdrawn.

The following table shows the number of persons, by country of birth, who were granted citizenship in the latest 2 years ended 31 March. Of the total of 1,959 in 1969-70, 575 were wives of New Zealand citizens and 371 were children.

Country of Birth1969-701970-71
NaturalisationRegistrationTotalNaturalisationRegistrationTotal
Australia-2828 1616
Austria5712617
China5854112394584
Denmark971620525
Fiji-646414748
Germany162036111627
Greece18284612921
Hong Kong-121212021
Hungary36266212820
India3118121-100100
Indonesia10102015621
Ireland-1313-88
Italy109198917
Kenya-1616-99
Malaysia-1313-1010
Netherlands241208449129142271
Poland302555191635
Romania1021210818
South Africa92130153247
Switzerland23214411819
Tonga5914268
U.S.S.R6915415
United Kingdom-400400-379379
United States613194913
Western Samoa6555120553994
Yugoslavia403676282250
Other countries341011353491125
            Totals6341,3251,9594361,0621,498

REGISTRATION OF ALIENS—The registration of aliens in New Zealand is provided for by the Aliens Act 1948, which is administered by the Department of Internal Affairs.

The number of aliens on the New Zealand register at any particular date does not constitute the total number in New Zealand, as certain classes are not required to register, including the following: (a) children under 16 years of age; (b) persons holding diplomatic status, consuls, or employees of embassies, legations, and consulates who are resident in New Zealand solely for the purpose of performing official duties; (c) certain temporary visitors to New Zealand. Under the British Nationality and New Zealand Citizenship Act 1948 a citizen of the Republic of Ireland, though not possessing the status of British subject (or, in alternative phraseology, Commonwealth citizen), is nevertheless not classed as an alien and is not required to register.

The following table shows, by country of nationality, the number of males and females on the register.

Country of Nationality1 April 19701 April 1971
MalesFemalesTotalMalesFemalesTotal
Afghanistan1611715116
Albania11-1111-11
Austria353130483352134486
Belgium533790533992
Bulgaria6546965570
Burma4144545449
Chile1361910818
China1,0538461,8991,0268131,839
Czechoslovakia93521459456150
Denmark505285790493281774
Egypt96158412
Estonia181937181634
Finland88711598869157
France9211220490112202
Germany518447965522437959
Greece7247881,5127127491,461
Hungary321170491304165469
Indonesia803411411455169
Israel961512517
Italy435212647457214671
Japan8010618683109192
Korea2342734842
Latvia56551115553108
Lebanon222547242347
Lithuania182341172138
Nepal1211311516
Netherlands7,5575,57213,1297,4515,50112,952
Norway995215110357160
Philippines332255402363
Poland422316738402304706
Romania19113018927
South Africa9610620293107200
Spain401151391150
Sweden73661397671147
Switzerland519299818518304822
Thailand868917588124212
Turkey171431171532
United States1,6519742,6251,7721,0942,866
U.S.S.R.79851647780157
Vietnam79331129448142
Yugoslavia1,0455711,6161,0375721,609
Other countries4649955350103
Stateless1341718826
            Totals16,58211,71828,30016,60911,76428,373

Gains in numbers on the register for any nationality occur for several reasons—mainly, (a) immigrants of 16 years of age and over who arrive during the year, (b) registration (on reaching the age of 16) of children whose parents may have arrived in previous years but are still registered aliens.

Reductions in the numbers of registered aliens in the main come from naturalisations, deaths, or departure overseas.

Five years residence in New Zealand is necessary before an alien can qualify for naturalisation.

STATISTICS OF THE POPULATION CENSUS—Publications resulting from the Census of Population and Dwellings are listed towards the back of this Yearbook. Additional figures from the Census of Population of 23 March 1971 may be published in Latest Statistical Information at the end of this Yearbook.

MARITAL STATUS—The marital status of persons aged 16 years and over as returned at the Census of 1966 is summarised in the following tables.

Age (Years)Never MarriedMarriedLegally SeparatedWidowedDivorcedNot SpecifiedTotal
 Males
16-1997,8771,666101-15199,705
2018,9982,220131-6021,292
21-2447,43228,058285306023776,102
25-2922,65660,9836638930623084,927
30-3410,96063,93573617551920476,529
35-399,62973,05587631686716884,911
40-448,04770,4209655691,20318181,385
45-496,35962,6398649381,33214072,272
50-545,81959,2737371,4681,35212968,778
55-595,03052,2506282,1421,2899961,438
60-644,02740,7104642,8671,0108049,158
65-693,08528,7832583,5926906036,468
70-742,03518,0841463,7984033124,497
75-791,50611,6131024,5452552418,045
80-848575,626443,9511142410,616
85-893961,927232,17130144,561
90 and over1213185719521,170
            Totals, 1966244,834581,5606,81927,3729,4351,834871,854
            Totals, 1961212,976527,8425,78827,2918,5151,545783,957
 Females
16-1986,4219,149811234695,712
2013,1107,429811072420,661
21-2423,14548,5316491101283472,597
25-299,74670,7261,0493154622182,319
30-344,99565,7679555096202172,867
35-394,71271,2211,0709869711878,978
40-444,86469,4391,1702,0341,2612778,795
45-494,94162,3771,0433,6121,5202373,516
50-545,34655,4368325,9971,5882769,226
55-595,58144,0636138,5641,4583760,316
60-645,15131,94841011,3221,1006249,993
65-694,70422,43429714,7077744542,961
70-743,98013,67815715,6915152934,050
75-793,0817,1318714,8783022425,503
80-842,0222,8554010,6881061915,730
85-89963848135,3953297,260
90 and over33114011,747672,232
            Totals, 1966183,093583,1728,54896,57710,853473882,716
            Totals, 1961159,086526,9967,20287,6089,410282790,584

The percentage distribution of the population aged 16 years or over according to marital status is given in the following summary.

Marital Status195619611966
MalesFemalesMalesFemalesMalesFemales
Never married27.720.827.220.128.120.7
Married66.666.267.566.766.866.1
Legally separated0.80.90.70.90.81.0
Widowed3.810.93.511.13.211.0
Divorced1.11.21.11.21.11.2
            Totals100.0100.0100.0100.0100.0100.0

DEPENDENT CHILDREN—Married men, widowers, and widows were asked at the Census in 1966 to state the number of their living children under 16 years (including stepchildren and children adopted by them). Married women, divorced, and legally separated persons were not asked to supply the information as this would have created the risk of duplication of children counted.

The numbers of persons having dependent children, including Maoris, are now shown. The category “nil” includes those cases where members of the family were 16 years of age and over, as well as those cases where there were no children in the family.

Number of Dependent Children Under 16 Years1961 Census1966 Census
Of Married MenOf WidowersOf WidowsOf Married MenOf WidowersOf Widows
Nil204,73524,82380,574233,82024,89289,258
190,5241,1673,32393,2291,1123,322
299,9326011,790106,6696141,839
368,16632987073,9263411,015
435,45015545940,400169498
515,2478220317,40082247
66,935371148,03138114
73,16620503,8782355
81,60613211,9391035
9 and over1,3178151,5451415
Not specified7645618972377179
            Totals527,84227,29187,608581,56027,37296,577

The numbers of dependent children in each of the three groups in 1966 were: dependent on married men, 883,239; dependent on widowers, 5,058; and dependent on widows, 14,771, a total of 903,068 dependent children out of a 1966 Census total of 922,349 children under 16 years of age. The difference is accounted for mainly by the exclusion of children whose parents were legally separated; those whose parents were divorced and had not remarried; children who had lost both parents; and ex-nuptial children (the last two classes excluding cases of adoption). It should be noted also, that some children listed by married men, widowers, and widows were, in fact, not counted in the 922,349 at 1966 Census, in so far as they were domiciled outside New Zealand. These remarks also apply to earlier censuses.

Comparable numbers of dependent children in the three groups in 1961 were: dependent on married men, 802,711; dependent on widowers, 4,932; and dependent on widows, 13,716; a total of 821,359 out of a total of 840,443 children under 16 years.

Between the 1961 and 1966 Census the total number of dependent children of married men increased from 802,711 to 883,239, a rise of 10 percent. The number of married men increased by 53,718 or 10.2 percent. Those recording “nil” dependent children increased by 14.2 percent, while those with dependent children increased by 7.7 percent.

Married men with two children recorded the largest numerical increase, rising from 99.932 to 106,669, this representing a 6.7 percent increase. The greatest percentage increase, however, was recorded by married men with seven children, this group increasing from 3,166 in 1961 to 3,878 in 1966, a rise of 712 or 22 percent.

The next table shows within each group, the average number of dependent children, firstly for all persons within the group, and then for persons with dependent children in that group.

Average Number of Dependent Children1956 Census1961 Census1966 Census
Married men—   
    Per person1.421.521.52
    Per person with dependent children2.382.492.54
Widowers—   
    Per person0.180.180.18
    Per person with dependent children2.092.042.10
Widows—   
    Per person0.160.160.15
    Per person with dependent children2.012.002.07

HOUSEHOLDS—There were 716,104 households in permanent private dwellings at the Census in 1966. The following table analysis the type of household by the number of occupants. A one-family-only household consists of a husband and wife with or without unmarried children of any age.

Type of HouseholdTotal HouseholdNumber of Households with Occupants of
1234567 or more
*While not strictly an “extended family”, other groupings are included, mainly consisting of such relationships as a mother and widowed daughter.
One-family-only households—        
    Complete432,338-125,44478,93695,91867,85636,69327,491
    Incomplete with child absent24,700-5,0394,8235,1733,9322,3773,356
    Incomplete with one parent absent37,491-18,3009,5235,1242,5181,059967
            Totals494,529-148,78393,282106,21574,30640,12931,814
Family with related persons only present (e.g., married children, grandchildren, parents)31,272-1,345*7,2576,3166,2264,3215,807
Family plus related persons, but with non-related persons present58,268--11,56512,56612,3929,41812,327
One-person households89,38489,384------
Other households42,651-27,4029,1223,8621,363521381
            Grand Totals716,10489,384177,530121,226128,95994,28754,38950,329

Of the 716,104 households at the 1966 Census of Population and Dwellings, there were 432,338 complete one-family-only households, that is, a husband and wife with or without unmarried children of any age.

In the following table these households are analysed by distribution of the occupants and the occupational status of the head of the household.

Occupational Status of HeadTotal HouseholdsHusband and Wife OnlyHusband and Wife with
One ChildTwo ChildrenThree ChildrenFour ChildrenFive or More Children
*Including relative assisting heads and not specified but who are in the labour force.
Actively Engaged Head—       
    Employer41,0127,3297,23110,1278,2724,9203,133
    Own account39,9117,8936,6929,6217,8934,6093,203
    Wages or salary302,73271,38358,60774,21450,92926,81620,783
    Unemployed1,1243792022191438398
            Totals*385,07487,08472,77894,22867,27636,45827,250
Not Actively Engaged       
    Head—       
    Retired45,58437,3255,8981,541485174161
    Dependent on public or private support1,6801,035260149956180
            Totals47,26438,3606,1581,690580235241
            Totals, all heads432,338125,44478,93695,91867,85636,69327.491

The following table shows the composition of one-complete-family-only households in 1966 by the age group of the head of the household.

Age Group of Head (in Years)Husband and Wife OnlyHusband and Wife with
1 Child*2 Children*3 or More Children*
*Unmarried children of any age living at home.
Numbers
Under 219781,09617119
21-249,2706,8873,628991
25-4420,73728,21159,82197,020
45-6453,68936,35930,85033,283
65 and over40,7706,3831,448727
            Totals125,44478,93695,918132,040
Percentages
Under 2143.248.47.60.8
21-2444.633.117.54.8
25-4410.113.729.147.1
45-6434.823.620.021.6
65 and over82.712.92.91.5
All ages29.018.322.230.5

The following tables show, for one-complete-family-only households, the number of unmarried children of any age living with their parents on Census night 1966. The income given in the first table is the income of the head of the household, while in the second table the total household income is shown. In a considerable proportion of households, the total household income was substantially above the income of the head of the household, usually indicating at least one other income recipient in the family.

Income of HeadHusband and Wife OnlyHusband and Wife with
One ChildTwo ChildrenThree ChildrenFour ChildrenFive or More Children
$      
Under 60025,7184,4971,545767353420
600-1,3999,9262,7971,731970534604
1,400-2,19938,08225,71425,48116,4209,4778,696
2,200-2,99930,32027,23938,29926,90114,19710,324
3,000-3,99910,6079,50915,02411,4815,7883,576
4,000-7,9998,4437,24711,1038,9874,8752,933
8,000 and over1,7991,5922,3382,0491,302743
            Totals (including not specified)125,44478,93695,91867,85636,69327,491
Total Income of HouseholdHusband and Wife OnlyHusband and Wife with
One ChildTwo ChildrenThree ChildrenFour ChildrenFive or More Children
$      
Under 60023,9921,477854567314405
600-1,3998,6091,9251,100630345452
1,400-2,19923,51115,88916,02810,7706,3165,676
2,200-2,99923,98921,29429,81121,00311,3168,017
3,000-3,99920,54414,44618,41713,4886,8144,616
4,000-7,99922,25421,01025,55918,0089,4896,689
8,000 and over2,5452,8954,1493,3902,0991,436
            Totals (including not specified)125,44478,93695,91867,85636,69327,491

The following table shows persons living alone in 1966 by age and marital status; those not actively engaged in the labour force totalled 52,062.

Age Group (in Years)Marital StatusTotal*
Never MarriedMarried†Legally Separated or DivorcedWidowed
Males
Under 21878402-921
21-241,5423012431,873
25-445,4671,8451,0881688,582
45-645,2382,4712,0012,22811,971
65 and over2,2611,7046776,18810,866
            Totals15,3866,3613,7928,58734,213
Age Group (in Years)Marital StatusTotal*
Never MarriedMarriedLegally Separated or DivorcedWidowed

*Includes those who did not specify marital status.

†In some cases the partner was temporarily absent on census night.

Females
Under 214135231469
21-24466169263665
25-442,2695575151973,545
45-645,5961,9402,1698,99018,717
65 and over4,8421,58795824,35631,775
            Totals13,5864,3053,67133,54755,171

RELIGIOUS PROFESSIONS—The following summary presents the main religious professions returned at the 1961 and 1966 censuses.

Religious ProfessionNumber of AdherentsPercentage
1961 Census1966 Census191966
Anglican (Church of England)835,434901,70134.633.7
Presbyterian539,459582,97622.321.8
Roman Catholic (including Catholic undefined)364,098425,28015.115.9
Methodist173,838186,2607.27.0
Baptist40,88646,7481.71.7
Protestant (undefined)45,10046,0901.91.7
Ratana23,12627,5701.01.0
Latter Day Saints17,97825,5640.80.9
Brethren25,76423,1391.10.9
Christian (undefined)12,13021,5480.50.8
Salvation Army15,45417,7370.60.7
Congregational9,37712,1010.40.4
Church of Christ10,48510,3010.40.4
Seventh Day Adventist8,2209,5510.30.3
Jehovah's Witness5,9447,4550.20.3
Lutheran4,8175,7300.20.2
Ringatu5,3775,6050.20.2
Atheist3,3595,4740.10.2
Agnostic2,2884,9600.10.2
Hebrew4,0064,1040.20.2
Eastern Orthodox3,3283,6050.10.1
Hindu2,0743,5990.10.1
Undenominational1,5143,0690.10.1
Assemblies of God1,0602,028- -0.1
Undenominational Christian2,1701,9680.10.1
Apostolic Church1,3991,8410.10.1
Rationalist9561,696- -0.1
Christadelphian1,4981,6280.10.1
Christian Scientist3,7191,1610.2- -
No Religion (so returned)17,48632,7800.71.2
All other religious professions14,38623,4990.60.9
Object to state204,056210,8518.47.9
Not specified14,19819,3000.60.7
            Totals2,414,9842,676,919100.0100.0

The category recorded as “Object to state” represents those persons availing themselves of the special statutory right of objecting to answer a question on this subject. It is probable that the “Not specified” group includes a number of persons objecting to the question.

AGE DISTRIBUTION—Census age-group figures are shown in the following table. Estimates of age distribution for later years are published in the Monthly Abstract of Statistics.

Age (Years)1961 Census1966 CensusPercentage of Total Population
MalesFemalesTotalMalesFemalesTotal19611966
0-4149,032143,041292,073156,954149,689306,64312.111.5
5-9133,880127,821261,701152,816146,441299,25710.811.2
10-14125,339119,829245,168136,498130,001266,49910.210.0
1521,16820,33341,50125,62124,32949,9501.71.9
16-1974,15670,562144,71899,70595,712195,4176.07.3
2018,69118,01336,70421,29220,66141,9531.51.6
21-2461,35260,007121,35976,10272,597148,6995.05.6
25-2973,60070,173143,77384,92782,319167,2466.06.2
30-3481,92375,976157,89976,52972,867149,3966.55.6
35-3981,02477,846158,87084,91178,978163,8896.66.1
40-4471,23272,764143,99681,38578,795160,1806.06.0
45-4971,20370,290141,49372,27273,516145,7885.95.4
50-5464,30761,836126,14368,77869,226138,0045.25.1
55-5953,42451,258104,68261,43860,316121,7544.34.5
60-6441,57344,68286,25549,15849,99399,1513.63.7
65-6931,39639,41370,80936,46842,96179,4292.93.0
70-7425,92532,56558,49024,49734,05058,5472.42.2
75-7919,05423,85542,90918,04525,50343,5481.81.6
80-8410,33614,09224,42810,61615,73026,3461.01.0
85-893,7315,4229,1534,5617,26011,8210.40.4
90 and over1,0301,8302,8601,1702,2323,4020.10.1
            Totals1,213,3761,201,6082,414,9841,343,7431,333,1762,676,919100.0100.0
Under 15 years408,251390,691798,942446,268426,131872,39933.132.6
15-64 years713,653693,7401,407,393802,118779,3091,581,42758.359.1
65 years and over91,472117,177208,64995,357127,736223,0938.68.3
Minors (under 21 years)522,266499,5991,021,865592,886566,8331,159,71942.343.3
Adults (21 years and over)691,110702,0091,393,119750,857766,3431,517,20057.756.7

ETHNIC GROUPS—-The following table gives broad ethnic origins.

Ethnic GroupCensus
195619611966
Non-Maori2,016,2872,216,8862,426,352
Maori137,151167,086201,159
Other Origins—   
    Pacific Islanders   
        Cook Island Maori2,3204,4998,663
        Samoan3,7406,48111,842
        Niuean8481,7282,846
        Tongan9171,0431,389
        Other2785891,531
            Sub-totals, Pacific Islanders8,10314,34026,271
    Chinese6,6678,3339,982
    Indian3,0874,0276,655
    Syrian, Lebanese, and Arab1,0551,0571,049
    Fijian4797461,323
    Other races1,2332,5094,128
            Sub-totals, others12,52116,67223,137
            Totals2,174,0622,414,9842,676,919

COUNTRY OF BIRTH—From 1945 to 1961 the New Zealand-born population remained at about 86 percent of the total population; for 1966 the proportion dropped to 85 percent, partly as a result of the growth of travel and tourism internationally.

The following table classifies persons by country of birth.

Country of BirthCensus
195619611966
New Zealand (excluding Cook Islands and Niue)1,863,3442,074,5092,279,994
United Kingdom206,181218,649244,601
Australia35,91635,41243,374
Netherlands12,54417,84420,461
Ireland (excluding Northern Ireland)8,4238,8108,448
Pacific Islands—   
    Cook Islands and Niue2,7454,7887,852
    Fiji2,2733,0385,384
    Tonga7687771,005
    Western Samoa2,9954,4507,447
India4,4684,7535,368
China3,8834,1944,218
Other countries, and born at sea30,52237,76048,767
            Totals2,174,0622,414,9842,676,919

The next table shows the duration of residence in New Zealand of persons born overseas.

Years of Residence1956 Census1961 Census1966 Census
NumberPercentages Specified CasesNumberPercentages Specified CasesNumberPercentages Specified Cases
0-477,54525.672,68521.7103,06426.5
5-942,72214.164,46819.356,87714.6
10-148,8482.942,31312.761,35115.7
15-1910,8113.68,1472.438,95710.0
20-245,2361.710,3623.18,2122.1
25-2917,7905.94,3611.39,3802.4
30-3439,09412.918,3815.54,9871.3
35-3920,9286.932,8279.814,9363.8
40-4424,8688.220,5016.131,4568.1
45-4923,4107.719,3035.815,6554.0
50-5413,9344.620,5646.217,3114.4
55 and over18,0885.920,5916.127,3607.0
Not specified7,444...5,972...7,379...
            Totals310,718100.0340,475100.0396,925100.0

STATISTICS OF WORLD POPULATION—The area and estimated population of the continents and selected countries at 1 July 1970 are shown in the following table. (Source: United Nations Monthly Bulletin of Statistics and Demographic Yearbook.)

Continents and CountriesAreaPopulation
 Sq Km 
Continents (1969)(000)million
    Europe4,929460.0
    Asia27,5321,988.0
    U.S.S.R.22,402240.0
    Africa30,313345.0
    North America21,515314.0
    South America20,565186.0
    Oceania8,51118.9
            Totals, World135,7673,552.0
Selected Countries  
Europe—  
    Belgium319.7
    Czechoslovakia12814.5
    Denmark434.9
    France54750.8
    Germany, West24861.7
    Germany, East10817.2
    Ireland, Republic of702.9
    Italy30153.7
    Luxembourg20.3
    Netherlands3413.0
    Norway3243.9
    Spain50533.3
    Sweden4508.0
    Switzerland416.3
    United Kingdom24455.7
    Yugoslavia25620.5
Oceania—  
    Australia7,68712.6
    Fiji180.5
    New Caledonia190.1
    New Zealand2692.8
Asia—  
    Ceylon6612.5
    China, Mainland9,561759.6
    China (Taiwan)3614.0
    India3,268550.0
    Indonesia1,492121.2
    Japan370103.4
    Khmer Republic1816.7
    Korea, North12113.9
    Korea, South9831.8
    Malaysia33210.7
    Singapore0.52.1
    Thailand51435.8
    Vietnam, North15921.1
    Vietnam, South17418.3
Middle East—  
    United Arab Republic1,00033.3
    Iraq4359.4
    Israel212.9
    Lebanon102.8
    Jordan982.3
    Syria1856.1
Africa—  
    Congo2,34516.7
    Ghana2399.0
    Kenya58311.3
    Libya1,7601.9
    Malawi1184.5
    Nigeria92455.0
    Rhodesia3895.2
    South Africa1,22120.1
    Tanzania94013.3
    Zambia7534.3
North America—  
    United States9,363204.8
    Canada9,97621.4
South America—  
    Argentina2,77724.3
    Brazil8,51295.3
    Chile7579.8
    Peru1,28513.6

Chapter 4. Section 4 VITAL STATISTICS

4 A—NATURAL INCREASE

The rate of natural increase (excess of births over deaths) is important to national planning; along with net migration it is the major component of population growth. In recent years the rate of natural increase in New Zealand has been higher than for most other countries of predominantly European stock. The following table shows the numbers and rates of natural increase for the last 11 years, and emphasises the high rate for the Maori component of the population.

YearTotal PopulationMaorisNatural Increase Rates per 1,000 Mean Population
BirthsDeathsNatural IncreaseBirthsDeathsNatural IncreaseTotalMaori
196062,85020,89241,9587,4151,3686,04717.6537.85
196165,47621,78243,6947,7701,3856,38518.0138.12
196265,12722,08143,0467,6641,2246,44017.3236.74
196364,67522,41642,2598,1271,1986,92916.5538.01
196462,45922,86139,5987,9551,1686,78715.2935.85
196560,17822,97637,2027,8551,2176,63814.1133.83
196660,18823,77836,4107,8481,2916,55713.58x32.39x
196761,16923,00738,1628,0841,2226,86214.09x33.02x
196862,28424,46437,8208,1981,3246,87413.74x32.26x
196962,56424,16138,4038,3051,3306,97513.81x31.97x
197062,20724,84037,3678,2811,3996,88213.25x30.81

In the 10 years to 31 December 1970 New Zealand has gained by natural increase of population a total of 393,961.

COMPARISON WITH OTHER COUNTRIES—An international comparison of birth and natural increase rates for certain countries is made in the following table. The rates, which are for 1970 are taken from the United Nations Monthly Bulletin of Statistics.

CountryRate per 1,000 of Population
BirthsDeathsNatural Increase
Mexico41.30.232.1
Israel27.07.020.0
Singapore23.05.217.8
Hong Kong20.15.115.0
New Zealand22.18.812.3
Japan18.86.911.9
Australia20.59.011.5
Spain19.88.611.2
Canada17.67.310.3
Ireland, Republic21.811.510.3
Netherlands18.48.410.0
United States18.29.48.8
Italy16.89.77.1
Norway16.69.86.8
Switzerland15.89.16.7
France16.710.66.1
United Kingdom16.211.84.4
Sweden13.69.93.7
Belgium14.712.42.3
Germany, West13.311.61.7

4 B—BIRTHS

REGISTRATION—The law as to registration of births is contained in the Births and Deaths Registration Act 1951. A birth is normally registered at the office of the Registrar nearest the place of birth.

Births statistics are compiled by the Department of Statistics from the records of the Registrar-General. The births covered by a year's statistics are those registered during the year. The figures do not include still births, except where multiple births are discussed. A special classification of still births is given later in this subsection.

NUMBERS AND RATES—The following table shows the numbers of births and the rates for the last 11 years.

YearNumbersRates per 1,000 of Mean Population
TotalMaoriTotalMaori
196165,4767,77026.9946.39
196265,1277,66426.2143.72
196364,6758,12725.4944.58
196462,4597,95524.1242.02
196560,1787,85522.8340.03
196660,1887,84822.44x38.77x
196761,1698,08422.43x38.90x
196862,2848,19822.62x38.47x
196962,5648,30522.50x38.07x
197062,2078,28122.06x37.07x
197164,7048,52122.5937.19

REFINED BIRTH RATE—"Crude” rates of the number of births per 1,000 of the mean population, irrespective of sex or age, do not take account of variations in the proportion of women of the child-bearing ages. Refined rates are provided by computations of the legitimate birth rate per 1,000 married women of 16-44 years of age, or the total birth rate per 1,000 of all women of these ages. The following table gives both rates for census years (on the basis of the births registered in that year and the population as at the census) together with the “crude” rate for the year.

Census YearBirth Rate per 1,000 Women 16-44 Years
Married WomenTotal Women“Crude” Birth Rate
1926176.992.121.23
1936155.179.018.07
1945186.5106.524.58
1951190.8123.025.62
1956191.7130.225.93
1961199.3140.626.99
1966200.4112.222.43
1971149117 

The percentage of married women in the child-bearing ages was 68.2 in 1966 compared with 51.6 in 1926. A study of the figures for successive censuses reveals considerable changes in the age constitution of married women within the child-bearing ages; as the birth rate varies with age, the change in age constitution over the period is a factor which should be taken into account.

The following diagram shows birth and death rates and indicates the relatively high rate of natural increase in New Zealand.

The period since the Second World War was marked by a high birth rate until 1961, when the level dropped; this experience was also shared by Australia, Canada, and the United States, as is shown in the following table. In recent years the rates have been more stable at a lower level.

CountryBirth Rate per 1,000 Mean Population
19631964196519661967196819691970
(Source: United Nations Monthly Bulletin of Statistics and Statistical Yearbook.)
New Zealand25.524.122.822.422.422.622.522.1
Australia21.620.619.719.319.420.020.320.5
Canada24.623.521.419.318.117.717.617.6
United States21.721.019.418.417.817.417.718.2

The decline of the birth rates over the period from 1961 was the subject of discussion by demographers, notably at the World Population Conference in 1965. This change in fertility pattern has coincided in time with increasing use of oral contraceptives; their greater effectiveness in birth control appears to have a significant influence on fertility, on at least a short-term basis. Demographers have emphasised the need for further research, stating that it is important to study demographic variables involved in the recent decline in the birth rate, including changes in age distribution, timing of marriage and birth, past success in achieving the desired family size, and changes in the desired number of children. In New Zealand, changes in the proportion of women in the child-bearing groups were not of a nature to have any significant effect on the downward trend in the birth rate.

REPRODUCTION INDEX—The reproduction index is based on the fact that the future size of a population is related to the number of women in the reproductive age groups at any given time. The gross rate is based on the number of female children born, and the average number of girls that will be born to a woman during her reproductive period, while the net rate takes into account fertility rates at different ages and the percentages of female survivors at those ages, obtained from life tables. A net rate of 1.0 indicates a stationary population, and a higher rate a rising population.

Reproduction rates for the non-Maori population during the latest 11 years were as follows.

YearGross RateNet Rate
19601.9681.905
19612.0281.964
19621.9701.908
19631.8551.796
19641.7531.698
19651.6241.571
19661.5791.534
19671.5661.521
19681.5411.498
19691.5201.481
19701.4611.423

SEXES OF CHILDREN BORN—Statistics for the latest 6 years are given in the following table.

YearNumber of Births ofMale Births per 1,000 Female Births
MalesFemales
196630,87929,3091,054
196731,09730,0721,034
196831,95530,3291,054
196932,02830,5361,049
197031,92430,2831,054
197132,99631,4641,049

MULTIPLE BIRTHS—The number of cases of multiple births and the proportion per 1,000 of the total (live births only) during the latest 6 years are shown in the following table.

YearTotal BirthsTotal CasesCase of TwinsCase of TriplesMultiple Case per 1,000 of Total Case

*Includes one case of quadruplets.

† Includes one case of quintuplets.

196560,17859,5606008*10.21
196660,18859,58858959.97
196761,16960,56559079.86
196862,28461,603666810.94
196962,56461,921627810.26
197062,20761,548647610.61

There were 61,548 confinements in 1970 resulting in live births; of these, 653 produced multiple living births and in a further 21 cases 1 of the twins was still born. The ratio of multiple confinements with live births to total live confinements was 1.91. In five additional cases both twins were still born.

YearCases of TwinsCases of Triplets, Quads and QuinsTotal Multiple CasesRate per 1,000 Confinements
Both Born AliveOne Born Alive One Still BornBoth Still BornTotalAll Born AliveOne Born Alive Two Still BornTwo Born Alive One Still BornAll Still BornQuads, all AliveQuins, all AliveTotal
*The six cases of triplets in 1970 comprised one case where there were two females and one male; two cases all males; and three cases all females.
19665892466194---1-562410.4
19675901966155-1-1-762210.3
19686661866907-1---869811.3
19696271186468*-----865410.6
19706472156736-----667911.0
Average of 5 years6241966496-----765510.7

The likelihood of still births occurring is much greater in cases of multiple births than in single cases. This is exemplified in the following table. The figures in respect of multiple cases include all cases where one or more of the children were still born.

YearStill-birth Cases per 100 of Total Cases (Including Still Births)
Single CasesMultiple Cases
19661.064.81
19671.164.18
19681.173.58
19690.972.91
19701.043.83
Average of 5 years1.083.86

AGES OF PARENTS—Information as to the relative ages of parents of legitimate living children whose births were registered in 1970 is shown in the following table for the total population.

Age of Mother, in YearsAge of Father, in Years
Under 2121-2425-2930-3435-3940-4445-4950-5455-6465 and OverTotal Cases
*Including 6 cases of triplets and 18 cases where 1 of twins was still born.
 Single Births
Under 212,1934,2291,05217131144-1 7,695
21-243126,4328,4021,519299823644217,092
25-2916998,3375,9121,285362812512416,730
30-341436813,2372,362725168482437,292
35-39-6462991,263960300762752,982
40-44-16231123882447034-878
45 and over-1-151230114-64
            Totals2,51911,41118,52411,1625,3572,5438632341061452,733
 Multiple Births
Under 211630121------59
21-24269721441----162
25-29-1487692781-1-207
30-34--5403295---91
35-39-1452719611-64
40-44--1-135---10
45 and over-----------
            Totals1811418112991401712-593
            Grand Totals2,53711,52518,70511,2915,4482,5838802351081453,326*

PREVIOUS ISSUE OF PARENTS—The following table gives for 1970 the number of previous issue, i.e., children born alive, in conjunction with the age of mother.

Age of Mother in YearsNumber of Previous IssueTotal Legitimate Cases
0123456-910-1415 and Over
*This number represents 52,733 single cases and 593 multiple cases.
Under 215,6961,78924524-----7,754
21-247,8076,2932,3446091622910--17,254
25-293,9815,2584,4112,0027622972233-16,937
30-349121,2951,8211,49483346053236-7,383
35-393233464815334593035118553,046
40-44105838513211991213573888
45 and over4456105199264
            Totals18,82815,0689,3924,8002,3451,1851,5081901053,326*

In the following table the total issue and average issue are shown for mothers by age groups where a birth occurred in 1970.

Age of Mother in YearsTotal MothersTotal IssueAverage Issue
Under 204,7465,7541.21
20-2420,26235,4851.75
25-2916,93743,2422.55
30-347,38326,5293.60
35-393,04614,0214.60
40-448884,7215.32
45 and over644366.81
            Totals53,326130,1882.44

It should be stressed that the averages are no more than they purport to be—viz., the average number of children (including those registered in 1970) born up to the present time to those mothers of legitimate children whose births were registered during the year. They do not purport to represent, nor do they represent, the average issue of all women of the ages shown. Furthermore, they include issue born to the existing marriages only. The averages for recent years have been as follows: 1966, 2.61; 1967, 2.57; 1968, 2.53; 1969, 2.50; and 1970, 2.44.

FIRST BIRTHS—Statistics of nuptial first confinements show that in recent years there have been reduced proportions occurring within 1 year after marriage and within 2 years after marriage.

YearTotal Legitimate CasesTotal Legitimate First CasesProportion of First Cases to Total CasesFirst Cases Within 1 Year After MarriageFirst Cases Within 2 Years After Marriage
NumberProportion to Total First CasesNumberProportion to Total First Cases
   percent percent percent
196652,68117,22232.698,33948.4212,68373.64
196752,84517,56433.248,28747.1812,62171.86
196853,58017,96033.528,16045.4312,57370.01
196953,87418,33134.037,97543.5112,35767.41
197053,32618,82835.317,79141.3812,45566.15

The following table gives the duration-of-marriage factor in first confinements over a longer time-series. Prior to 1962 the statistics concern births of non-Maoris only.

Duration of Marriage in YearsPercentage of Total First Confinements
1934194419541964196819691970
Under 146.2538.4742.6449.8545.4343.5141.38
126.7926.3030.5626.4224.5823.9024.77
210.2411.2811.5611.4214.5915.4815.48
36.167.885.955.077.118.378.84
43.967.183.302.823.583.894.39
5-95.497.365.053.564.044.154.61
10 and over1.111.530.940.860.670.700.53
            Totals100.00100.00100.00100.00100.00100.00100.00

In the following table first confinements occurring to mothers in different age groups are expressed as a percentage of the total first confinements. Prior to 1962 the statistics concern confinements of non-Maoris only.

Age of Mother, in YearsPercentage of Total First Confinements
1934194419541964196819691970
Under 208.907.339.0819.6420.9820.5520.45
20-2440.3941.7947.7152.6751.2051.3351.27
25-2932.7929.5427.7918.2820.4921.0721.15
30-3413.1014.6110.396.004.824.794.84
35-393.795.363.922.571.901.641.71
40-440.991.341.020.810.580.570.56
45 and over0.040.030.090.030.030.050.02
            Totals100.00100.00100.00100.00100.00100.00100.00

The average ages of mothers at the birth of their first child were as follows: 1924, 26.39; 1934, 25.90; 1944, 25.18; 1954, 25.32; 1964, 23.65; 1968, 23.39 years; 1969, 23.42 years; and 1970, 23.46.

EX-NUPTIAL BIRTHS—The numbers of ex-nuptial births registered during each of the latest 10 years, with the percentages they bear to total births registered, are given in the following table. The percentages in recent years are higher than those for Australia, Canada, United Kingdom, and United States but lower than those for Sweden. Meaningful international comparisons can only be made with caution; some of the difficulties are discussed in a supplement to the January 1967 issue of the Monthly Abstract of Statistics.

YearNumberPercentage of Total Live Births
19625,2428.05
19635,6988.81
19646,1899.91
19656,55410.89
19666,96011.56
19677,78312.72
19688,09413.00
19698,12712.99
19708,30013.34
19719,12614.10

The long-term trend in the rate of ex-nuptial births is indicated by the movement in the proportion of ex-nuptial births per 1,000 unmarried women—i.e., spinsters, widows, and divorced women—at the reproductive ages. The figures for census years are as follows. Up to 1961 the statistics relate to non-Maoris only; from 1966 Maoris are included.

Census YearUnmarried Women 15-44 Years of AgeEx-nuptial BirthsEx-nuptial Birth Rate per 1,000 Unmarried Women
1911120,7781,0788.93
1916125,4611,1599.24
1921136,5391,2589.21
1926148,5511,4739.92
1936167,7811,1266.71
1945156,3261,82411.67
1951130,3431,93514.85
1956129,8772,31017.79
1961138,0183,33224.14
1966171,3226,96040.63

In 1970 the total number of ex-nuptial confinements was 8,222. Of these 8,141 cases were single births, 78 were twins, while there were 3 cases of twins in which 1 child was still born. The total number of ex-nuptial live births was 8,300. From the following table, it will be seen that of the 8,222 mothers, 4,246 or 51.64 percent, were under 21 years of age.

AgeNumber of Mothers
11-
122
1310
1444
15177
16448
17806
18959
19932
20868
21659
22558
23460
24-291,450
30-34516
35-39246
40-4477
45 and over10
            Total8,222

Legitimations—An ex-nuptial child whose parents have later married may be legitimated from birth by reason of such marriage. Applications for registration must be made within 3 months after the date of the marriage.

The numbers of legitimations registered in each of the latest 5 years were as follows: 1967, 1,387; 1968, 1,310; 1969, 1,386; 1970, 1,513; 1971, 1,749.

ADOPTIONS—The following table shows the number of adoptions which have been registered during the latest 5 years.

YearMalesFemalesTotal
19661,7471,7153,462
19671,8031,7103,513
19681,8541,9263,780
19691,9241,9643,888
19701,9721,8653,837

Of the 3,837 adoptions registered in 1970, 1,917 were children under the age of 1 year, 1,269 were aged 1 to 4 years, 389 were aged 5 to 9 years, and 262 were aged 10 years or over.

Of the 3,837 adoptions in 1970, there were 3,362 handled by the Social Welfare Department, and of these, 84 percent were of children of ex-nuptial birth. Of those born ex-nuptially, 94 percent were less than a year old at placement and 81 percent were placed with strangers; these proportions have remained fairly constant over a number of years. Only about one-third of children of ex-nuptial birth become available for adoption. This subject is discussed further in Section 6A; Social Welfare.

STILL BIRTHS—Although it is compulsory to effect a birth-registration entry for a still-born child, no entry is made in the register of deaths. Particulars of causes of still births will be found in Section 4c relating to deaths. A still-born child is defined as one “which has issued from its mother after the expiration of the twenty-eighth week of pregnancy and which was not alive at the time of such issue”. Still births are not included either as births or as deaths in the various numbers and rates shown in this subsection and in that relating to deaths. The rate was 1.07 per 100 births in 1970.

The registration of still births during each of the latest 5 years were as follows.

YearPercentage of Still Births to
Male Still BirthsFemale Still BirthsTotalMale Still Births per 1,000 Female Still BirthsLiving BirthsAll Births
19663543146681,1271.141.10
19673773587351,0531.201.19
19683793737521,0161.211.19
19693272986251,0971.000.99
19703543176711,1171.081.07

The rate of masculinity for still births in 1970 was 1,117 males per 1,000 females as compared with 1,054 for living births.

The percentage of ex-nuptial births among still-born infants was, in 1970, 14.16 and among infants born alive, 13.34.

Of the total of 671 still births in 1970, 576 were non-Maori and 95 Maori; of the Maori total 46 were males and 49 females.

4 C—DEATHS

NUMBERS AND RATES—The following table sets out the numbers of deaths and the crude death rates per 1,000 of mean population. (Maoris are defined as persons with half or more Maori ancestry and the term non-Maori covers all other persons.)

YearNumbersCrude Rate per 1,000 of Mean Population
Non-MaoriMaoriTotalNon-MaoriMaoriTotal
195016,7151,36918,0849.3112.099.47
195517,9531,27219,2258.959.568.99
196019,5241,36820,8928.818.568.79
196521,7591,21722,9768.926.208.72
196622,4871,29123,7789.076.378.86
196721,7851,22223,0078.655.848.43
196823,1401,32424,4649.116.138.88
196922,8311,33024,1618.995.998.68
197023,4411,39924,8409.036.268.81x
197122,8881,42124,3098.686.228.49

Crude death rates do not reflect the true levels of mortality which exist in populations which have different age structures. The Maori population has a very much higher proportion of those at younger ages who do not contribute many deaths to the total and conversely relatively few persons at older ages when the rate of dying is high. The effect of this is to produce a very deflated crude rate.

In the following table for 1966 adjustments made to effect a truer comparison show that mortality for Maoris is relatively higher; in addition, a comparison is supplied in age-specific rates for the two races in each sex.

RaceAll Ages Rates per 10,000 Mean PopulationAge-specific Rates per 10,000 of Population at Ages
Crude RateMaori Rate Adjusted to Non-Maori PopulationUnder 5 Years5-14 Years15-24 Years25-44 Years45-64 Years65 Years and Over
Males
Maori71.3144.182.410.122.536.3217.41,041.4
Non-Maori100.4..45.24.714.420.0131.4822.8
Females
Maori55.8140.466.48.18.034.2200.2814.4
Non-Maori80.9..33.03.14.912.469.9583.0
Both Sexes
Maori63.7144.474.59.115.335.2209.2935.2
Non-Maori90.7..39.23.99.816.3100.4685.0

For both Maoris and non-Maoris the death rate in males exceeds the death rate in females by a considerable margin. The following table sets out the respective crude rates for each sex separately for the latest 11 years in the total population.

YearDeaths per 1,000 of Mean PopulationMale Deaths to Every 100 Female Deaths
MalesFemalesTotal
19619.758.198.98120
19629.807.978.89124
19639.757.918.84124
19649.737.938.83124
19659.587.868.72123
19669.827.908.86125
19679.297.578.43123
19689.807.958.88123
19699.587.788.68123
19709.647.958.81121
19719.377.608.49123

DISTRIBUTION OF DEATHS OVER THE YEAR—An examination of the total number of deaths registered in each quarter of the last 12 years gives the following averages: March quarter, 4,875; June quarter, 5,742; September quarter, 6,661; and December quarter, 5,588.

A classification according to month of death shows that in 1970 the months during which the greatest number of deaths occurred were July, August, and June, with totals of 2,911, 2,412, and 2,316 respectively. Excluding December (a proportion of deaths occuring in that month not being registered till January) February had the least number of deaths, 1,628, followed by November with 1,792.

AGES AT DEATH—Deaths registered during the year 1970 are shown according to age in the following tables.

Age, in YearsMalesFemalesTotal
Under 15904501,040
1-413697233
5-99058148
10-148746133
15-1920074274
20-2418668254
25-2914756203
30-3414267209
35-39188127315
40-44309187496
45-49480302782
50-546064231,029
55-591,0375661,603
60-641,4247512,175
65-691,7791,0092,788
70-741,6691,3182,987
75-791,6641,6623,326
80-841,4311,7383,169
85-891,0091,4182,427
90-94354638992
95-9979151230
100 and over81927
            Totals13,61511,22524,840

The Maori population is a very young one compared with the non-Maori and as a result there is a considerable variation in the proportions of deaths of Maoris and non-Maoris which take place at various ages. The following table illustrates the position for the year 1970.

Age, in YearsNumber of DeathsPercentage of Total DeathsPercentage of Maori Deaths in Total Deaths per Age Group
Non-MaoriMaoriNon-MaoriMaori
Under 51,0072664.3019.0120.90
5-14229520.983.7218.51
15-24446821.905.8615.53
25-441,0022214.2715.8018.07
45-645,17741222.0929.457.37
65 and over15,58036666.4626.162.30
            Totals23,4411,399100.00100.005.63

In the following table is given a time series for rates of death per 1,000 of mean population by age groups. Health measures have achieved an immense saving of young life and a prolongation of life especially among elderly women.

YearUnder 1*1-45-1415-2425-3435-4445-5455-6465-7475 and Over

*Per 1,000 live births in this case.

†Non-Maori figures only as Maori deaths at ages not available for these years.

(Rates per 1,000 of mean population in each age group)
Males
190178.606.811.893.523.976.1611.9423.1250.59141.67
191163.485.361.912.423.876.2711.0220.8353.22130.58
192153.104.781.852.443.565.559.6119.9646.17128.60
193138.212.831.352.282.774.648.6918.2544.18130.57
194143.654.391.362.532.933.959.2021.1347.44140.27
195131.691.870.751.821.953.157.5720.4647.52121.66
196125.861.340.491.281.472.687.3919.6547.33126.31
196720.551.130.501.551.582.788.1020.3846.31129.17
196821.031.180.511.521.422.847.4720.5349.65143.53
196919.701.230.491.421.492.717.3720.1749.12141.57
Females
190163.875.501.643.584.726.7010.6219.4443.32127.98
191148.745.371.482.764.344.928.3817.8940.44119.60
192142.314.491.312.343.384.468.0014.8836.81120.23
193125.672.470.971.853.203.816.8415.3636.83122.87
194137.753.841.201.942.443.506.9015.0438.60118.92
195123.091.590.540.891.302.275.6713.8532.80109.79
196119.501.160.350.530.871.954.5911.2229.89104.74
196715.400.950.230.520.801.874.9611.2026.8798.21
196816.220.990.310.530.901.804.8410.8428.75103.55
196913.950.790.310.490.811.994.8310.7327.40102.58
Both Sexes
190171.406.171.773.554.336.4011.3721.6347.87135.71
191156.315.361.702.584.095.649.8219.5547.74126.13
192147.824.641.582.393.475.108.8517.5941.90124.84
193132.152.651.172.072.984.227.8016.8840.56126.87
194139.814.121.282.222.673.728.0218.1643.04129.15
195127.541.730.651.361.632.716.6717.0339.93115.26
196122.761.250.420.911.182.316.0015.4137.67114.01
196718.021.000.371.151.202.346.5215.7735.54110.45
196818.691.090.411.041.172.336.1415.6438.15119.08
196916.891.010.400.961.152.366.0915.3937.21117.43

The average (arithmetic mean) age at death of non-Maori persons of each sex is shown in the following table.

YearMalesFemales
 age (years)
190141.6437.68
191146.1742.37
192148.4546.97
193154.1455.48
194158.6559.60
195161.5865.25
196163.8067.32
196564.2469.28
196664.5769.89
196763.7569.40
196864.6269.63
196964.6570.10
197064.4070.19

The average age of death of Maoris in 1970 was 42.86 and 44.95 years for males and females respectively. The age composition of the Maori population is quite different as explained previously.

EXPECTATION OF LIFE—Life tables, depicting the pattern of mortality over the age span of life for particular calendar periods for the non-Maori component of New Zealand's population, have been constructed at regular intervals since 1880. The most recent tables prepared by the Department of Statistics are based on the 1966 population census, together with mortality statistics for 1965-67.

Life tables contain a measure of the degree of longevity of the population called the “expectation of life”. The expectation of life at any age is the average remaining lifetime for persons of this age, assuming that mortality rates at each age continue at the level shown by the life table. The life expectancy at selected ages at the present time, for the non-Maori population in New Zealand, is shown in the table below. The overall longer span of life enjoyed by females, compared with males, is evident, as is the improvement in life expectancy once the first year of life is survived. Further details concerning life table methodology and construction and trends in New Zealand life expectancies can be obtained from New Zealand Life Tables 1965-67 and Life Annuity Tables.

Exact Age (Years)Life Expectancy (Years)
MalesFemales
068.6774.84
169.0274.91
268.1474.00
367.2073.06
466.2572.11
565.2871.15
1060.4266.24
1555.5761.33
2050.8956.46
2546.2651.60
3041.5646.75
4032.2337.16
5023.4128.09
6015.8219.68
709.8112.39
805.636.70
903.053.32
1001.601.71

The long-term trend since 1880 for non-Maoris has been a steady improvement in life expectancy for both sexes. The improvement has been striking for the younger ages but relatively small for the advanced ages. Progress in medical science, coupled with improved social conditions, has resulted in substantial reductions in mortality for all ages up to middle age. However, over the 1960-62 to 1965-67 period higher rates of mortality have occurred for males for most ages beyond childhood, resulting from a higher prevalence of organic diseases (heart disease, cancer) and accidents. Thishas resulted in a marginal decrease of life expectancy at most ages, while for females, life expectancy has increased, though at a reduced rate. The next table displays the life expectancy for non-Maoris revealed by each life table compiled since 1880 for the three exact ages of 0, 20, and 60 years.

Life TableLife Expectancy (Years)
Males Aged ExactlyFemales Aged Exactly
0206002060
1880-9254.4444.5514.9557.2646.3916.39
1891-9555.2945.4715.0658.0947.1916.55
1896-190057.3746.3415.3359.9547.9116.54
1901-0558.0946.7415.4060.5548.2316.64
1906-1059.1747.2015.5161.7648.7716.77
1911-1560.9647.6115.5463.4849.1416.72
1921-2262.7648.6616.0365.4350.3617.29
1925-2763.9948.9315.7966.5750.9617.23
193165.0449.6116.2267.8851.2817.30
1934-3865.4649.8916.0668.4552.0217.49
1950-5268.2951.1516.1972.4354.6418.53
1955-5768.8851.4416.1973.8855.8719.16
1960-6269.1751.5316.0974.5156.3319.39
1965-6768.6750.8915.8274.8456.4619.68

The expectation of life at various ages for the Maori population is shown in the following table. These expectations are taken from New Zealand Life Tables 1965-67 and Life Annuity Tables.

Exact Age (Years)Life Expectancy (Years)
MalesFemales
061.4464.78
162.5665.41
261.8364.64
360.9663.77
460.0762.88
559.1661.95
1054.4357.10
2045.1347.48
3036.1538.12
4027.4929.10
5019.4321.03
6012.8915.09
708.3510.20
804.536.44

Life expectancy at birth for a Maori male increased by 2.39 years in the interval 1960-62 to 1965-67, with that for females increasing by 3.41 years. These increases are larger than those over the period 1955-57 to 1960-62, when they were 1.82 years for males and 2.69 for females. This shows the continuing improvement in Maori life expectancy.

The expectation of life of Maoris is shorter at all except the highest ages than that of the non-Maori population, but the differences are being gradually reduced. A comparison at age 0 shows that life expectancy is 7.23 years greater for non-Maori males and 10.06 years greater for non-Maori females. For the period 1960-62, the differences were 10.12 years and 13.14 years respectively.

4—Ybk.

The table below compares the life expectancy at birth for the total population of New Zealand with that for selected overseas countries. (Source: United Nations Demographic Yearbook 1967.)

CountryPeriodLife Expectancy at Birth (Years)
MalesFemales

*Excluding full-blooded Aborigines.

†Both sexes.

Australia*1960-6267.9274.18
Canada1960-6268.3574.17
Denmark1965-6670.174.7
England and Wales1965-6768.774.9
France1,96668.275.4
Netherlands1,96771.076.5
New Zealand1965-6768.1974.30
Norway1961-6571.0375.97
Scotland1,96866.9273.05
Sweden1,96771.8576.54
United States1,96767.074.2
U.S.S.R.1967-6870.070.0

REGISTRATION OF DEATH, BURIAL AND CREMATION—Deaths are required to be registered by the funeral director within 3 days after the day of burial. The law governing burial and cremation in New Zealand is found in the Burial and Cremation Act 1964. The registration by local authorities of funeral directors and mortuaries operated by them is provided for in the Health (Burial) Regulations 1946. Local authorities are charged with ensuring that adequate provision exists for the disposal of the dead. Cremation may be carried out if the deceased is not known to have left any written direction to the contrary.

In 1950 seven crematoria were in existence in New Zealand; by 1960 eight had been established and were situated at Auckland, Hastings, Wanganui, Palmerston North, Wellington, Nelson, Christchurch, and Dunedin. A further seven have been established since and in 1970 there was a second crematorium in Auckland and Christchurch and also crematoria in Hamilton, Tauranga, Rotorua, New Plymouth, and Timaru.

The rate of cremation for every 100 deaths registered has more than doubled since 1950. The following table relates cremations to the number of deaths since 1950. Prior to 1962 the statistics concern deaths of non-Maoris only.

YearDeaths RegisteredCremationsRate per 100 Deaths Registered
MalesFemalesTotal
195016,7151,7991,4543,25319.46
195517,9532,4212,0324,45324.80
196019,5242,9582,5825,54028.38
196522,9764,2053,4937,69833.50
196623,7784,5253,8408,36535.18
196723,0074,6523,7618,41336.57
196824,4645,0454,0779,12237.29
196924,1615,1034,2169,31938.57
197024,8405,4184,4749,89239.82

Numbers and rates of cremations for statistical areas in 1970 are shown in the following table.

Statistical AreaDeaths RegisteredCremationsRate per 100 Deaths Registered
MalesFemalesTotal
Northland67450297911.72
Central Auckland6,1361,7311,4283,15951.48
South Auckland - Bay of Plenty3,06247235382526.94
East Coast42229204911.61
Hawke's Bay1,24522617540132.21
Taranaki88217313430734.81
Wellington4,6411,1141,0202,13445.98
Marlborough27330245419.78
Nelson637726513721.51
Westland279129217.53
Canterbury3,8541,0478371,88448.88
Otago1,88543536680142.49
Southland8502714414.82
            Totals24,8405,4184,4749,89239.82

DEATHS BY CAUSES—The accuracy of death data even in medically certified deaths will be affected by two factors—the proportion of deaths in hospitals where diagnostic equipment is available and the proportion of deaths in which a post-mortem report is available for reference.

In recent years in approximately one-third of all deaths, a post-mortem was conducted. In the cases of deaths certified by doctors, 20 percent of non-Maori and 12 percent of Maori deaths were followed by an autopsy. In the cases certified by coroners almost all deaths are subject to autopsy.

The Eighth (1965) Revision of the International Classification of Diseases, Injuries, and Causes of Death replaced the Seventh (1955) Revision with effect from 1 January 1968. Where component diseases or conditions of certain categories were changed radically, there are no comparable categories under previous classifications. Where this is the case, figures for previous years have been omitted from some tables and replaced with an asterisk(*).

Total deaths and the rates per million of total population for the latest 3 years, classified according to the Abbreviated List of 50 Causes for Tabulation of Mortality, are contained in the following table. Certain diseases (cholera, plague, smallpox, typhus, and malaria) are not listed in the table as there were no deaths from these causes in the years shown.

Causes of DeathNumber of DeathsRate per Million of Mean Population
19671968196919701967196819691970
*No comparable category in earlier years.
Typhoid fever---1----
Bacillary dysentery and amoebiasis--7-----
Enteritis and other diarrhoeal diseases*484769*171725
Tuberculosis of respiratory system6278735523282620
Other tuberculosis, including late effects15272748510101
Diphtheria-1------
Whooping cough-1------
Streptococcal sore throat and scarlet fever--------
Meningococcal infection13107115434
Measles1427125134
Syphilis and its sequelae78893333
All other infective and parasitic diseases48671017118243725
Malignant neoplasms, including neoplasms of lymphatic and haematopoietic tissue3,8414,0964,4,4601,4111,4761,5161,588
Benign neoplasms and neoplasms of unspecified nature4242423815151514
Diabetes mellitus310335417366114122151130
Avitaminosis and other nutritional deficiency*101215*445
Anaemias6269744123252715
Meningitis3048343411171212
Active rheumatic fever66822231
Chronic rheumatic heart disease17430029229464109106105
Hypertensive disease*373402387*136145138
Ischaemic heart disease*6,9536,6996,788*2,5232,4242,417
Other forms of heart disease*1,1651,109905*423401322
Cerebrovascular disease2,8253,1103,0703,2131,0351,1281,1111,144
Influenza1739512146141876
Pneumonia1,0501,3701,3791,396385497499497
Bronchitis, emphysema and asthma*9209431,023*334341364
Peptic ulcer12213012111745474442
Appendicitis191514157655
Intestinal obstruction and hernia122116889045423232
Cirrhosis of liver73797910727292938
Nephritis and nephrosis146971129653354134
Hyperplasia of prostate7472646627262323
Abortion*211*1--
Other complications of pregnancy, childbirth and the puerperium, delivery without mention of complication*13319*557
Congenital anomalies31628649320116104126114
Birth injury, difficult labour and other anoxic and hypoxic conditions*253177148*926453
Other causes of perinatal mortality*318316327*115114116
Symptoms and ill-defined conditions10313412314638494552
All other diseases2,1912,1452,0192,020803778731719
Motor vehicle accidents620548582649227199211231
All other accidents820906778937300329282334
Suicide and self-inflicted injuries2742652782711009610196
All other external causes3834575914122121
            Totals23,00724,46424,16124,8408,4308,8768,7448,844

In a variety of conditions and in external causes of death the mortality rate for Maoris is very much higher than the non-Maori experience. Much of this disparity is concealed, however, by crude rates which are calculated by dividing the total population into the number of deaths from any particular disease or circumstance. With two populations so very dissimilar in age structure (at ages under 5 years non-Maoris are seven times more numerous than Maoris, but at ages 75 years and upward they are 85 times as numerous), it is necessary to resort to an adjustment of Maori rates so that the figures for any condition become directly comparable in any particular year. This has been done in the following table by firstly calculating age-specific rates for the Maori and then applying these to the non-Maori population, age group to age group. This computation provides an"expected” number of Maori deaths in each age group and these added together and then divided by the non-Maori population give an adjusted rate. In addition to the rates expressed per million of population the absolute numbers of deaths in the two races are furnished for the same 50 causes.

Causes of DeathNumber of DeathsRates per Million of Population (Non-Maori: Crude Rate—Maori: Adjusted Rate)
1969197019691970
Non-MaoriMaoriNon-MaoriMaoriNon-MaoriMaoriNon-MaoriMaori
Typhoid fever--------
Bacillary dysentery and amoebiasis--1-----
Enteritis and other diarrhoeal diseases3413541513602139
Tuberculosis of respiratory system482542131927116169
Other tuberculosis, including late effects198371176714153
Diphtheria--------
Whooping cough--------
Streptococcal sore throat and scarlet fever--------
Meningococcal infection439221035
Measles2557113229
Syphilis and its sequelae7172334323
All other infective and parasitic diseases841768833832476
Malignant neoplasms, including neoplasms of lymphatic and haematopoietic tissue4,0361524,2681921,5752,1051,6612,501
Benign neoplasms and neoplasms of unspecified nature39335315251430
Diabetes mellitus3863132937151422127624
Avitaminosis and other nutritional deficiency12-1415-53
Anaemias7044012762153
Meningitis22122311947945
Active rheumatic fever6211212-3
Chronic rheumatic heart disease256362425210032894522
Hypertensive disease3624035334141555137483
Ischaemic heart disease6,4902096,5832052,5333,5252,5483,276
Other forms of heart disease1,02485842634001,6103261,236
Cerebrovascular disease3,000703,130831,1711,1931,2121,
Influenza42919321168075353
Pneumonia1,297821,290106506956499994
Bronchitis, emphysema and asthma88558962613469633721,001
Peptic ulcer11651089459842134
Appendicitis113114425421
Intestinal obstruction and hernia82683732353233
Cirrhosis of liver73797910727292938
Nephritis and nephrosis971583133818632117
Hyperplasia of prostate63166-253426-
Abortion1--1---4
Other complications of pregnancy, childbirth and the puerperium, delivery without mention of complication103127414540
Congenital anomalies31534287331238911593
Birth injury, difficult labour and other anoxic and hypoxic conditions143341173156884580
Other causes of perinatal mortality2694727354105122106139
Symptoms and ill-defined conditions113101415442315548
All other diseases1,8871321,9071137371,6957291,210
Motor vehicle accidents4929056782192531210452
All other accidents6988084691273422328502
Suicide and self-inflicted injuries2717261101065110163
All other external causes44134019177315104
            Totals22,8101,35123,4361,4148,90416,1949,07316,242

Age-specific rates and Maori age-adjusted rates have been published for a comprehensive list of diseases in Maori-European Standards of Health, one of a series of special reports issued by the Department of Health.

The comparatively poor state of health of the Maori is shown by the excess in the Maori adjusted rates for most diseases. As can be seen in the table, the absolute numbers of Maoris dying from any cause of death is small. This is because the Maori population has a high proportion of young people, and most diseases which cause death develop at the older ages.

The susceptibility of the Maori to epidemic and communicable disease is well known. Again there is a Maori excess mortality in cancer and diabetes. The disparity is also very noticeable in acute rheumatic fever and chronic rheumatic heart disease; in certain other forms of degenerative heart disease and hypertension; in both acute and chronic chest conditions, and in gastro-intestinal andkidney infections. Recent health surveys have indicated that an inclination towards overnutrition, combined with a racial predisposition to excess weight, may underlie the early development of degenerative conditions and the high incidence of metabolic disorders.

In addition to the greater susceptibility to disease processes, the Maori shows a much higher accident rate. Especially accident prone is the Maori child and young adult, while proportionately many more Maoris are involved in road fatalities.

Cancer—Cancer is annually responsible for more deaths in New Zealand than any other cause except diseases of the heart. While it is most prevalent in middle and old age, cancer is a leading cause of death at all ages, even among children and adolescents.

A detailed report on cancer mortality and morbidity in New Zealand was issued in 1971 by the National Health Statistics Centre of the Department of Health. This report covers mortality from cancer from 1958 to 1969, and also surveys all cases reported to the National Cancer Registry by hospitals and by the various cancer clinics established in New Zealand under the auspices of the Cancer Society of New Zealand.

Attention is drawn to the transference, under the 1948 Revision of the International Classification, of Hodgkin's disease, leukaemia, etc., into the category of malignant disease. This classification was introduced in New Zealand in 1950, and all cancer figures quoted for that and subsequent years include these conditions*.

In 1970 there were 4,460 deaths from cancer, of which 192 were Maori. While the 1970 non-Maori crude cancer death rate of 165.2 was twice as high as the Maori crude rate of 85.5 (both per 100,000 of population), these figures are misleading as a measure of the incidence of malignant disease in the two groups. When allowance is made for the comparatively few persons in the Maori population at older ages where cancer is most frequently diagnosed, it is seen that Maori cancer mortality is markedly higher than non-Maori cancer mortality. This fact is no indication at all that in general the Maori is more prone to cancer (in cancers of the intestines in both sexes and in two sites in the Maori female, the cervix and the lung, the incidence appears to be higher), but that there is more delay in reporting the symptoms of cancer by Maoris and that more cancer in Maoris goes untreated.

*The 1965 Revision of the International Classification transferred Polycythaemia Vera and Myelofibrosis into the malignant categories but these are not included in cancer figures.

A summary of numbers, crude rates, and standardised mortality ratios is provided in the following table.

YearNumber of Deaths from CancerCrude Death Rate per 100,000Standardised Mortality Ratios*Number of Deaths from CancerCrude Death Rate per 100,000Standardised Mortality Ratios
  Males  Females 
19501,431148.2991,286134.697
19551,660151.31041,511142.2100
19601,724144.31011,566132.592
19652,034153.01121,783135.395
19662,067153.51121,774132.793
19672,037148.91091,815133.493
19682,225161.31171,844133.993
19692,282164.11191,875134.693
19702,436173.61282,024144.0101

The standardised mortality ratio shows the number of deaths registered in the year of experience expressed as a percentage of those which would have been expected in that year had there operated the sex-age mortality of a standard period (the 3 years 1950-52 were chosen). The standardised mortality ratio has been adopted to eliminate the distorting effect of the changes which take place over a period in the age structure of the population. The standardised mortality ratio for males has risen from 96.2 in the 5 years 1944-48, to 103.4 in 1954-58 and 121.3 in 1968-70. This would indicate that there has been a real increase in the death toll in the male sex and this, as discussed later, is mainly attributable to the rise in lung cancer. The mean standardised mortality ratio for females in 1944-48 was 98.0 compared with 95.2 in 1954-58 and 95.6 in 1968-70, (indicating that there has been a slight fall in death rates since 1944).

A classification of cancer deaths according to age subdivisions, ethnic origin, and sex is now given. Ninety-two percent of deaths from cancer during 1970 were at ages 45 and upwards, and 57 percent were at ages 65 years and upwards.

Age Group, in YearsRaceDeaths of MalesDeaths of Females
NumbersRate per 100,000 of Population at AgesPercentage of Total Deaths at AgesNumbersRate per 100,000 of Population at AgesPercentage of Total Deaths at Ages
*All ages crude rate.
Under 5Non-Maori1712.92.91310.33.1
 Maori15.10.7315.82.3
5-14Non-Maori207.314.3124.613.3
 Maori411.010.812.87.7
15-24Non-Maori219.46.3115.19.8
 Maori313.95.9314.39.7
25-44Non-Maori10935.416.611538.633.4
 Maori1978.214.81561.916.1
45-64Non-Maori788309.323.8698267.237.3
 Maori49482.320.534354.519.7
65 and overNon-Maori1,3711,391.317.61,093815.914.1
 Maori341,581.417.9261,300.014.6
All agesNon-Maori2,326180.5*18.11,942150.1*18.3
 Maori11096.4*13.98273.7*13.2

Cancer contributes substantially to the total of non-Maori deaths at all ages. In the non-Maori female from 25 to 64 years one death in three is a cancer death and for males the proportion is one death in five.

For Maoris the proportions of cancer deaths to total deaths are very much lower than the proportions for non-Maoris, by reason that the competing risks from other diseases are so very much higher. Whereas in the non-Maori easily the highest numbers of cancer deaths occur at ages upwards of 65 years, the highest numbers in the Maori are at ages from 45 to 64 years. This is partly because of the lower life expectancy which results in fewer Maoris coming through to old age.

A summary of all cancer deaths occurring in New Zealand during 1970 by location of the disease is shown in the following table. Figures by site for Maoris have not been separated as the numbers are so small for most sites. Rates for Maoris tend to be higher in cancers involving the digestive tract, the respiratory organs, and the female genital organs.

Site of DiseaseNumbersRates per Million of Mean Population
MalesFemalesTotalMalesFemalesTotal 
Buccal cavity and pharynx541468381024
Oesophagus6341104452937
Stomach24013637617197134
Intestine, except rectum244261505174186180
Rectum13683219975978
Larynx214251539
Lung bronchus and trachea680149829485106295
Bone and connective tissue262450191718
Skin474491333132
Breast14224231300151
Cervix, uteri-9090-6432
Other and unspecified parts of uterus-6363-4522
Prostate233-233166-83
All other and unspecified sites477521998340371355
Leukaemia and aleukaemia8368151594854
Lymphosarcoma and other neoplasms of lymphatic and haematopoietic tissue131104235937484
            Totals2,4362,0244,4601,7361,4401,588

There is considerable variation in the numbers and rates for different sites in both males and females. The site principally involved in the male is the lung and bronchus and one male cancer death in every four relates to this site. Cancer of the stomach is very much more common in the male than the female but the position is reversed in cancer involving the intestines. The leading site in the female is the breast, which contributes one-fifth to total female cancer deaths.

The world-wide phenomenal increase over the last 30 years in cancer of the lung and bronchus (excluding trachea and pleura) is accepted as being associated with cigarette smoking and atmospheric pollution. The following table shows the increase in deaths from cancer of this site in each group and in each sex over the latest 11 years.

YearNumber of Deaths from Cancer of Lung and BronchusCrude Rate per 100,000 of Mean Population
Non-MaoriMaoriNon-MaoriMaori
MaleFemaleMaleFemaleMaleFemaleMaleFemale
196032852141129.54.717.214.0
19613867018534.06.221.16.1
19624225817536.35.019.15.8
196344868181237.85.819.513.4
19644597119937.95.919.99.7
196546957201338.14.720.313.6
19665226924642.05.623.36.0
196749278171639.06.216.015.5
196859791311247.07.228.311.3
1969619104261348.48.123.111.9
1970650132301750.410.226.315.3

The crude rates for the Maori conceal the true relative incidence of lung cancer. Adjusted to the non-Maori population structure, the Maori rates exceed the non-Maori rates, the greatest margin being in the female.

While cancer is undoubtedly increasing in numerical incidence it is not doing so out of proportion to the population exposed to the cancer risk. The following table shows the movement in the standardised mortality ratio, the standard population employed being that of New Zealand 1950-52.

SiteMaleFemale
1962-641965-671968-701962-641965-671968-70
Buccal cavity and pharynx6563751027270
Oesophagus749488838589
Stomach706563656052
Large intestine, except rectum97107122978892
Rectum100107111898682
Biliary passages and liver1441351171058068
Pancreas118989610310996
Larynx578184232548
Lung, bronchus and trachea185197239155158233
Skin (including melanoma)100112140122132140
Breast78122229599103
Uterus, all parts---787868
Ovary, fallopian tube---10396107
Prostate108103110---
Kidney11799119628592
Bladder, urinary organs12310810710487102
Brain, nervous system129117130150135120
Lymphosarcoma and reticulo-sarcoma12298104135103113
Hodgkin's disease105135134102140127
Leukaemia and aleukaemia127110111129145128

The upward trend in the total male cancer death toll can be ascribed chiefly to the steep rise in lung and bronchus cancer, already commented upon. The total female rate has risen slightly in more recent years possibly attributable to the rise in female lung cancer.

Heart Disease—Diseases of the heart are the leading killer in New Zealand, accounting for 36 percent of all male deaths and 30 percent of all female deaths in 1970. In accordance with the increasing numbers of the population in the older age groups, the total numbers of deaths from heart disease have steadily increased. However, when allowance is made for the general ageing of the population by employing the standardised mortality ratio it is seen that, although a rise to 6 percent above the 1950-52 level occurred in males in 1968, there was a fall to the 1950-52 level again by 1970. The female rate in 1970 was 27 percent below the 1950-52 level used as the standard for the mortality ratio.

A disease phenomenon of recent years has been the rapid increase in deaths assigned to coronary heart disease, and in 1970 no less than 27 percent of all deaths were due to this single disease entity. During the 10 years from 1960 to 1970 there has been a rise of 26 percent for both males and females in this form of heart disease. It is a matter of conjecture as to whether the real incidence of coronary heart disease in the community has risen to this extent or whether it is due, in part at least, to increased recognition of the condition.

The numbers of deaths and standard mortality ratios for heart disease, excluding acute rheumatic forms and congenital malformations, for the last 11 years are shown in the following table, males and females separately.

YearAll Forms of Heart DiseaseCoronary Heart Disease
MalesFemalesMalesFemales
NumberStandardised Mortality Ratio*NumberStandardised Mortality Ratio*NumberStandardised Mortality Ratio*NumberStandardised Mortality Ratio*
*Base years 1950-52 = 100.
19604,172943,055802,9831351,681142
19614,289953,223823,1751421,785146
19624,396963,205793,1871411,828146
19634,6281003,302803,4951531,980156
19644,7371023,322793,6371572,082161
19654,7101003,394793,6191542,159163
19664,9411043,496793,8931642,275169
19674,8511003,446763,8451592,254164
19685,2171063,506764,3721782,581183
19694,9191003,500744,1501672,549178
19704,8861003,405734,2281702,560179

Coronary heart disease is predominantly a disease of old age in both sexes, although in the male sex there are appreciable numbers of deaths which occur in middle age. There are marked differences in the mortality from the disease both between the sexes and between the two ethnic groups at various age periods.

The following table averages both the numbers and the age-specific rates for coronary heart disease in both non-Maoris and Maoris over the latest 5 years 1966-1970.

RaceAges 35 to 44 YearsAges 45 to 54 YearsAges 55 to 64 YearsAges 65 Years and Over
Average Number of Deaths Each YearAverage Rate per 10,000 of Population at AgesAverage Number of Deaths Each YearAverage Rate per 10,000 of Population at AgesAverage Number of Deaths Each YearAverage Rate per 10,000 of Population at AgesAverage Number of Deaths Each YearAverage Rate per 10,000 of Population at Ages
Males
Non-Maori1066.941129.998188.22,468257.5
Maori1010.41830.23593.251238.5
    Females    
Non-Maori241.6956.832028.21,932148.9
Maori55.21322.31959.532167.6

For non-Maoris at ages 35 to 44 years male coronary heart disease rates exceed female rates by almost 5 to 1, the ratio decreasing as age advances to a ratio of under 2 to 1 at ages 65 years and upwards.

The absolute numbers of Maori deaths from the disease are small but when related to the population at risk produce fairly similar rates to the non-Maori population in the male sex.

Maori women have a very much greater chance of dying from a coronary condition than non-Maori women, the risk being three times greater at ages 35 to 44 years, almost four greater at ages 45 to 54 years and twice as great at ages 55 to 64 years. Hypertensive forms of heart disease are also very much more common in Maori women in middle age while both sexes in the Maori have a higher mortality from rheumatic valvular heart disease.

INFANT MORTALITY—Infant mortality concerns deaths of children under 1 year of age. Statistics for non-Maoris and Maoris are given in the following table.

YearNumbersRates per 1,000 of Live Births
Non-MaoriMaoriTotalNon-MaoriMaoriTotal
19451,0364131,44927.9988.9334.79
19501,0083561,36422.7569.7427.60
19551,0023631,36520.0962.5124.52
19601,0903301,42019.6644.5022.59
19659402341,17417.9729.7919.51
19668442201,06416.1328.0317.68
19678622401,10216.2429.6918.02
19689392251,16417.3627.4518.69
19698552021,05715.7624.3216.89
19708152251,04015.1127.1716.72

Male rates of infant loss are about 41 percent above female rates and this tends to counterbalance the male excess in births.

When international infant death rates are compared it is seen that Netherlands and the Scandinavian countries have the lowest rates in the world. The following table sets out the rates for a number of countries in 1969. It is pointed out, however, that definitions and practices are not precisely alike in all countries.

CountryDeaths Under 1 Year per 1,000 Live Births in 1969
Netherlands12.5
Sweden (1968)13.0
Norway13.8
Finland13.9
Denmark14.8
New Zealand16.9
Australia17.9
England and Wales18.0
France19.7
Germany, East20.0
Ireland20.6
United States20.7
Scotland21.1
Belgium21.7
Czechoslovakia22.9
Germany, West23.4
Austria25.4
Italy30.3
Bulgaria30.5

One out of every four infant deaths is a Maori infant death and the Maori rate of loss is nearly twice that of the non-Maori. The excess in the Maori rate is largely due to infants who die between the end of the fourth week of life and the first birthday. This is illustrated in the following table showing numbers and rates of infant deaths by race and age for the year 1970.

RaceUnder 1 Day1 Day and Under 1 Week1 Week and Under 28 DaysTotal Under 28 Days28 Days and Under 12 MonthsTotal Under 1 Year
Non-Maori25920662527288815
Maori583620114111225
All races317242826413991,040
Rates per 1,000 Live Births
Non-Maori4.803.821.159.775.3415.11
Maori7.004.352.4213.7713.4027.17
All races5.103.891.3210.306.4116.72

The explanation of the higher rate for Maoris between the twenty-eighth day and the end of the first year is the susceptibility of the Maori baby in its home environment to forms of infection such as gastro-enteritis and pneumonia.

The rates per 1,000 live births for the two sexes combined at different ages during the first year of life are now given for each of the last 11 years.

YearNon-MaoriMaori
Under 1 Day1 Day and Under 2 Days2 Days and Under 1 Week1 Week and Under 28 Days28 Days and Under 12 MonthsUnder 1 Day1 Day and Under 2 Days2 Days and Under 1 Week1 Week and Under 28 Days28 Days and Under 12 Months
19607.52.23.21.65.29.82.62.62.327.2
19616.92.03.31.65.39.83.14.23.129.5
19626.22.03.01.25.66.63.42.52.523.8
19635.82.43.01.35.36.33.43.02.517.5
19646.62.32.11.35.27.71.61.61.817.3
19655.82.02.81.46.05.72.52.22.317.1
19665.91.82.01.45.16.52.02.41.515.5
19675.91.52.31.45.24.62.82.82.217.2
19686.21.72.51.55.45.22.11.82.116.2
19695.31.52.41.35.25.71.64.41.011.7
19704.81.62.21.15.37.01.93.72.413.4

The following diagram illustrates infant mortality rates.

Causes of Infant Mortality—In the following table are shown the absolute numbers and the rate per 1,000 live births of the principal causes of infant mortality during 1969 and 1970, for non-Maoris, Maoris, and both groups combined.

Cause of DeathNumber of DeathsRate per 1,000 Live Births
1969197019691970
Non-MaoriMaoriTotalNon-MaoriMaoriTotal
Influenza, pneumonia, and bronchitis1411801.85.52.22.27.72.9
Congenital anomalies2532214.23.34.03.63.13.6
Birth injury, including asphyxia, anoxia or hypoxia46580.61.30.70.81.90.9
Complications of pregnancy and childbirth, including conditions of placenta and umbilical cord2282433.54.53.63.94.23.9
Anoxic and hypoxic conditions not elsewhere classified124901.92.42.01.41.81.4
Immaturity, unqualified37290.60.60.60.41.20.5
Other and undefined causes2282193.26.73.63.07.13.5
            Total causes1,0571,04015.824.316.915.127.216.7

PERINATAL MORTALITY—Perinatal deaths comprise still births and deaths in the first week of life. Numbers and rates are shown in the following table. The still births and the perinatal mortality rate are calculated per 1,000 total births (still births plus live births), while the death rate for the first week of life is calculated per 1,000 live births.

CauseNumberRates
19691970
19691970Non-MaoriMaoriTotalNon-MaoriMaoriTotal
Still births6256719.512.69.910.611.310.7
Deaths under 1 week5965599.211.89.58.511.28.9
            Perinatal deaths1,2211,23018.624.319.319.122.619.6

MATERNAL DEATHS—Improvements in the standard of antenatal care and obstetrical skill, as well as advances in medical science, have reduced the numbers of deaths from septic abortion, puerperal sepsis, and toxaemia, and deaths from complications of childbirth are few. Maternal deaths during the latest 3 years are given in the following table.

Cause196819691970
Pre-eclampsia, eclampsia and toxaemia unspecified-24
Abortion211
Complications of—   
    Pregnancy422
    Delivery426
    Puerperium477
Other1--
            Totals151420

DEATHS FROM EXTERNAL CAUSES—Deaths from external causes, apart from suicide, claim approximately 6 percent of the total deaths and again the Maori rate is higher than the non-Maori. The following table shows deaths from external causes for the 3 latest years classified according to the Intermediate List of the 1965 Revision of the International Classification which has made no changes in the categories listed. In this table falls on board ship and from horseback are included as transport fatalities.

Causes of DeathNumber of DeathsRate per Million of Mean Population
196819691970196819691970
*Includes drowning from water transport.
Motor-vehicle accidents548582649199209231
Other transport accidents423543151315
Accidental poisoning613754221319
Accidental falls364337440132121157
Accidents caused by machinery454840161714
Accidents caused by fire and explosion of combustible material313433111212
Accidents caused by hot substance, corrosive liquid, steam, and radiation864321
Accidents caused by firearms21919837
Accidental drowning and submersion*205123135754448
All other accidental causes129133128474846
Homicide and injury purposely inflicted by other persons (not in war)20313471112
            Totals1,4741,3751,579535494562

Drownings are a leading cause of accidental death in New Zealand. Included in the preceding table for 1970 are 35 deaths from drowning due to accidents in water transport.

Transport Accidents—The principal feature of transport accidents is the increasing toll of motor vehicles. The number of deaths from accidents on the railways has declined during the last 6 years to less than half what it had been. In recent years the wide use of aircraft in agricultural operations such as aerial topdressing has resulted in a number of deaths from aircraft accidents. Road accidents are further analysed in the section on Roads and Road Transport.

The number and rate of deaths resulting from railway, motor vehicle, and aircraft accidents during each of the last 11 years are as follows.

YearDeaths Due to AccidentRate per 10,000 of Mean Population
RailwayMotor VehicleAircraftRailwayMotor VehicleAircraft
196032340100.131.430.04
196126393130.111.620.05
196227408110.111.640.04
196316416200.061.640.08
196426428300.101.650.12
196514551260.052.080.10
196613567160.052.110.06
196715620120.052.270.04
196810548160.041.990.06
19695582170.022.090.06
197011649200.042.310.07

Non-transport Accidents—The 1965 Revision of the International List makes provision for non-transport accidents (excluding therapeutic misadventure in treatment, complications following vaccination or inoculation, and late, effects of injury and poisoning) to be grouped according to the place where the accident or poisoning occurred. The following table shows the deaths, both numbers and rates, for the latest 3 years, according to this classification.

Place of OccurrenceNumberRate per Million of Mean Population
196819691970196819691970
Home (including home premises and vicinity and any non-institutional place of residence)34726232812694117
Farm (including buildings and land under cultivation, but excluding farm and home premises)505153181819
Mine and quarry7711224
Industrial place and premises392729151010
Place for recreation and sport1326555920
Street and highway112518496
Public building (building used by the general public or a particular group of the public)121211444
Resident institution (homes, hospitals, etc.)125116143434251
Other specified places118114102454136
Place not specified25725692620
            Totals747712806271256287

Approximately 40 percent of fatal non-transport accidents occur in or about the home.

Falls are the chief cause of home fatalities, exacting a heavy toll of the aged and infirm. This is clearly illustrated in a special report on domestic accidents issued by the Department of Health in 1970. Another important cause of death in the home is asphyxia from regurgitation of food and inhalation of other objects, or mechanically from pillows and bedclothes; this is the principal hazard of the first 6 months of life, though a proportion of these deaths is probably due to some undisclosed respiratory infections. Almost all the home drowning fatalities are amongst toddlers between 1 and 2 years of age who fall into rivers, creeks, and ponds in the vicinity of the home.

Accidents with tractors are the main feature of fatalities on farms. Later sections deal with statistics of industrial and farm accidents.

Suicide—There were 261 suicidal deaths of non-Maoris in 1970—170 males and 91 females—the death rate per 100,000 of population being 13.2 for males and 7.0 for females. For Maoris there were 10 suicidal deaths—8 males and 2 females—the death rates per 100,000 population being 7.0 for males and 1.8 for females.

Rates per 100,000 of population showing the age distributions, averaged over the years 1968, 1969, and 1970, are shown next for the total population, by age groups.

Sex10/1415/1920/2425/2930/3435/3940/4445/4950/5455/5960/6465/6970/7475/7980+
Males1.46.214.712.214.217.725.227.322.226.622.636.827.035.231.6
Females-3.24.74.53.97.97.613.018.517.020.017.714.07.611 4

These figures show the typical increase in the suicide rates with increasing age and the fall in the rates after the age of 75.

The next table presents the average, over 3-yearly periods, of standardised mortality ratios of suicides, standardised on years 1950-52 = 100.

Annual Average DuringMalesFemales
1953-5593102
1956-5897120
1959-619999
1962-6483136
1965-6795142
1968-7098147

4 D—MARRIAGES

GENERAL—Marriage may be solemnised in New Zealand either by a person whose name is on the list of officiating ministers under the Marriage Act 1955, or before a duly appointed Registrar or Deputy Registrar of Marriages. A licence must be obtained from a Registrar of Marriages before a marriage by an officiating minister can be solemnised. Marriage by an officiating minister may be solemnised at any time between 6 o'clock in the morning and 8 o'clock in the evening. Marriage before a Registrar can be solemnised at any time during the hours the office of the Registrar is open for the transaction of public business; notice of intended marriage must be given to a Registrar of Marriages by one of the parties to the proposed marriage.

In the case of a person under 20 years of age, not being a widow or widower, the consent of parents or guardian is necessary. Consent of a Magistrate may also be given in cases of refusal by any person whose consent is required.

Since 1933 the minimum age for marriage has been 16 years of age. No marriage shall be deemed to be void, however, by reason only of an infringement of the minimum age.

Since 1 April 1952 it has been required under the Maori Purposes Act 1951 that every marriage to which a Maori is a party shall be solemnised in the same manner, and its validity shall be determined by the same law, as if each of the parties was a non-Maori.

Particulars regarding divorce will be found later in this subsection.

NUMBERS AND RATES—The numbers of marriages and rates during the last 21 years are now given.

YearNumberRate per 1,000 of Population
195116,9158.69
195217,0618.55
195317,2248.41
195417,5578.38
195517,7958.32
195617,5318.03
195717,6147.89
195818,3058.01
195918,3157.84
196018,9097.96
196119,4268.01
196219,5727.88
196319,8567.83
196420,7208.00
196521,7028.23
196622,9498.55
196723,5158.62
196824,0578.74x
196924,9718.98x
197025,9539.20x
197127,1999.50

Comparison with Other Countries—Marriage rates for certain countries for 1970 are given below. (Source: United Nations Monthly Bulletin of Statistics.)

CountryRate per 1,000 Mean Population
Australia9.2
Austria7.1
Belgium7.6
Canada8.6
Finland8.6
France7.7
Germany, East7.7
Germany, West7.2
Hungary9.4
Ireland, Republic7.0
Israel9.1
Italy7.4
Jamaica4.2
Japan10.0
Netherlands9.5
New Zealand9.2
Norway7.6
Spain7.4
Sweden5.3
Switzerland7.4
United Kingdom8.4
United States10.7
Yugoslavia8.9

MARITAL STATUS PRIOR TO MARRIAGE—The following table gives marital status prior to-marriage for the latest 5 years.

YearSingleWidowedDivorcedTotal Persons Married
BridegroomBrideBridegroomBrideBridegroomBride
196620,69020,6958879211,3721,33345,898
196721,23021,3698568621,4291,28447,030
196821,67521,8119058471,4771,39948,114
196922,16822,3399811,0231,8221,60949,942
197023,00323,1101,0021,0351,9481,80851,906

The nature of the marriage according to marital status of persons prior to marriage is given next.

YearMarriages Between Bachelors andMarriages Between Widowers andMarriages Between Divorced Men and
SpinstersWidowsDivorced WomenSpinstersWidowsDivorced WomenSpinstersWidowsDivorced Women
196619,751290649251434202693197482
196720,351242637257408191761212456
196820,764248663251413241796186495
196921,142270756231498252966255601
197021,8262619162615142271,023260665

During the years 1938-40 there were 95 male divorcees who remarried for every 100 female divorcees who remarried. In the period 1966-70 more male divorcees than female divorcees remarried.

The number of widows per 100 widowers who remarried was 67 in 1938-40, but with a changed social outlook the position in 1967-70 was that 100 widows remarried for every 100 widowers.

AGES OF PERSONS MARRIED—The proportion of minors among persons marrying has been increasing over a fairly long period. In the latest year 5 brides in every 11 were under 21 years of age, the proportion for grooms being one in six. Since 1 January 1971 the age of majority has been 20 years.

Of the persons married in 1970, 16,107 or 31.03 percent, were under 20 years of age; 20,894, or 40.25 percent, were returned as 21-24 years; 7,270, or 14.01 percent, as 25-29 years; 3,615, or 6.96 percent, as 30-39 years; and 4,020, or 7.75 percent, as 40 years of age or over.

The following table relates to the year of 1970.

Age of Bridegroom, in YearsAge of Bride, in YearsTotal Bridegrooms
16-2021-2425-2930-3435-3940-4445 and Over
Under 213,728488213---4,240
21-246,6485,00546246111212,175
25-291,2242,4361,02215028734,870
30-341945435272297126121,602
35-3948146200187905726754
40-441056991079710981559
45 and over154569921482131,1711,753
            Total brides11,8678,7192,4008144454131,29525,953

The following table shows since 1950 the proportions of men and women married at each age group to every 100 marriages.

PeriodUnder 2121-2425-2930-3435-3940-4445 and OverTotals
    Males    
1950-545.0535.4231.2110.955.863.567.95100.0
1955-597.1836.6829.4411.214.812.977.71100.0
1960-6410.9541.9923.499.044.502.627.41100.0
1965-6915.2344.7921.246.313.462.346.63100.0
197016.8446.9118.776.172.912.156.75100.0
    Females    
1950-5425.7838.6516.856.964.122.595.05100.0
1955-5932.9935.7113.766.113.652.495.29100.0
1960-6439.6335.1910.134.423.052.215.37100.0
1965-6945.3333.629.083.052.101.815.01100.0
197045.7233.609.253.141.711.594.99100.0

The average ages (arithmetic mean) at marriage for both males and females are shown in the following table.

YearAverage Age at Marriage
BridegroomsBrides
195928.7025.26
196028.5625.11
196128.2924.90
196227.9324.61
196327.9324.63
196427.7424.45
196527.4324.24
196626.7623.65
196726.5323.45
196826.3323.29
196926.4523.56
197026.3623.45

The average ages of bachelors and spinsters at marriage are considerably lower than those shown in the preceding table, which covers all parties and is naturally affected by the inclusion of remarriages of widowed and divorced persons. The average ages of grooms and brides for each of the latest 5 years according to marital status were as shown in the next table.

YearBridegroomsBrides
BachelorsDivorcedWidowersSpinstersDivorcedWidows
   Years   
196624.4642.2656.3021.5438.1549.93
196724.3041.6756.6721.5037.9050.20
196824.1540.5355.3621.4036.8149.64
196923.9041.0257.0621.3637.0350.45
197023.8540.3756.8521.2636.1350.07

The foregoing figures give the average age at marriage, but these do not correspond with the modal or popular age, if the age at which the most marriages are celebrated may be so termed. The modal age for brides in 1970 was 20 years. In the case of bridegrooms the most popular age has varied and for recent years it has been 21 to 24; the modal age for bridegrooms in 1970 was 22 years.

Marriage of Minors—Of every 1,000 men married in 1970, 163 were under 21 years of age, while 457 in every 1,000 brides were under 21. Since 1 January 1971 the age of majority has been 20 years.

In 3,728 marriages in 1970 both parties were given as under 21 years of age, in 8,139 marriages the bride was returned as a minor and the bridegroom as an adult, and in 512 marriages the bridegroom was a minor and the bride an adult.

The proportion of minors among persons marrying has been increasing over a fairly long period, and in the table below figures are given for the last 5 years.

YearAge in YearsTotals
1617181920NumberRate per 100 Marriages
   Bridegrooms    
1966241685651,0581,6213,43614.97
1967201645591,1111,8453,69915.73
1968141645311,0841,9313,72415.48
1969291976571,1751,9974,05516.24
1970271936791,2262,1154,24016.34
   Brides    
19665781,2462,1563,2303,23210,44245.50
19675451,1992,2483,2453,73210,96945.64
19685501,2392,2583,2953,69711,03945.89
19696241,3382,2873,3643,68611,29945.25
19706261,4392,4573,5203,82511,86745.72

MARRIAGES BY MINISTERS OF VARIOUS CHURCHES—Of the 25,953 marriages performed in 1970, Anglican clergymen officiated at 6,850, Presbyterians at 6,103, Roman Catholics at 3,955, Methodists at 1,996, and clergymen of other churches at 1,869, while 5,180 marriages were solemnised by Registrars.

The following table shows the proportions of marriages by ministers of the largest churches and before Registrars in each of the 7 latest years.

ChurchPercentage of Marriages
1964196519661967196819691970
Anglican25.0625.7125.8926.1426.6425.9526.39
Presbyterian23.6823.6223.5423.8123.4623.8523.52
Roman Catholic14.9515.4515.3315.4515.8315.3315.24
Methodist8.207.738.178.197.968.007.69
Others8.368.257.737.958.127.857.20
Before Registrars19.7519.2419.3418.4617.9919.0219.96
            Totals100.00100.00100.00100.00100.00100.00100.00

The foregoing figures must not be taken as an exact indication of the religious professions of the parties married, as it does not necessarily follow that both (or even one) of the parties are adherents of the church whose officiating minister performed the ceremony, and persons married before Registrars may belong, in greater or lesser proportion, to any or none of the churches. Of the total population at the general census of 1966, 33.7 percent were recorded as adherents of the Anglican Church, 21.8 percent Presbyterian, 15.9 percent Roman Catholic, 7.0 percent Methodist, and 21.6 percent were of other religion or of no religion, or objected to stating their religious profession.

NUMBER OF OFFICIATING MINISTERS—The number of names on the list of officiating ministers under the Marriage Act was 3,897 in January 1971 and the churches to which they belong are shown hereunder.

ChurchNumber
Roman Catholic Church859
Anglican (Church of England)684
Presbyterian Church of New Zealand643
Methodist Church of New Zealand351
Baptist198
Salvation Army196
Ratana Church of New Zealand139
Brethren127
Latter Day Saints104
Ringatu Church69
Assemblies of God41
Associated Churches of Christ39
Jehovah's Witness40
Seventh Day Adventist39
Apostolic Church32
Liberal Catholic Church23
Christian Revival Crusade15
Evangelical Lutheran Concordia Conference15
Absolute Reformed Maori Church of Aotearoa14
Congregational Union12
Church of Te Kooti Rikirangi12
Commonwealth Covenant Church10
Reformed Churches of New Zealand9
Evangelistic Church of Christ9
Elim Church7
Others210
            Total3,897

The Ratana Church of New Zealand, the Ringatu Church, the United Maori Mission, and the Church of Te Kooti Rikirangi are Maori organisations.

DIVORCE AND OTHER MATRIMONIAL PROCEEDINGS—From 1 January 1969, some important changes have applied in the principal legislation on grounds for divorce; the period of 3 years was reduced to 2 years for separation by agreement and decree of separation or separation order, and in cases living apart and unlikely to be reconciled the period of 7 years was reduced to 4 years. This amendment to the Matrimonial Proceedings Act 1963 has had an accelerating effect on divorce statistics in 1969 and 1970.

Divorce—A petition for divorce may be presented to the Supreme Court on one or more of several grounds, which include adultery, desertion, separation by agreement for not less than 2 years, separation by decree of separation or separation order for not less than 2 years, and the parties living apart for 4 years and not likely to be reconciled. Where the parties are separated or living apart one of the parties must have been resident in New Zealand for at least 2 years immediately preceding the filing of the petition. The Court is required to give consideration to the possibility of reconciliation of the parties to the marriage

Petitions filed and decrees granted by the Supreme Court in recent years are shown in the following table.

YearDissolution of Marriage*Judicial Separation
Petitions FiledDecrees NisiDecrees AbsolutePetitions FiledDecrees for Separation
*Includes nullity cases which are usually very few; they totalled only one in 1969 and two in 1970.
19602,0581,6271,64895
19612,2231,8241,733233
19622,1861,7901,755206
19632,1381,8421,905157
19642,2341,9161,894145
19652,4402,0501,81461
19662,3512,0992,064131
19672,5542,2632,047131
19682,6882,3812,172152
19694,1083,4962,99610-
19703,7873,2983,13621

The next table gives the grounds of petitions and decrees during the two latest years.

GroundsPetitions FiledDecrees Absolute Granted
Husbands' PetitionsWives' PetitionsHusbands' PetitionsWives' Petitions
19691970196919701969197019691970
Adultery432514334328380363273249
Desertion186163144109119143102117
Separation by agreement1,0629141,2481,033742744795811
Separation by Court order or decree32020x79182784102
Living apart316308312281233279217275
Non-consummation1571076577
Other99171536178
            Totals2,0231,9352,0851,8521,5011,5671,4951,569

The figures shown for decrees absolute cover all such granted during the year, whether the antecedent decree nisi was granted in the same or in a previous year. A decree nisi normally applies for at least 3 months before a decree absolute is granted.

In 749 of the 3,136 cases where decrees absolute were granted during 1970 there was no living issue of the marriage. The number of living issue was 1 in 649 cases, 2 in 782 cases, 3 in 476 cases, and 4 or more in 480 cases.

The table which follows shows the duration of marriage in all cases for which decrees absolute were granted in the latest 5 years.

Duration of Marriage, in yearsHusbands' Decrees Absolute GrantedWives' Decrees Absolute Granted
1966196719681969197019661967196819691970
Under 58293981281645357102138182
5-9265266295410427262264296462489
10-14218215217291191191236205303305
15-19162188167222219173156175216206
20-29244217223317332239224239278296
30 and over11882981331395749579891
            Totals1,0891,0611,0981,5011,5679759861,0741,4951,569

The number of living issue affected by the decrees absolute of their parents during each of the last 5 years were as follows: 1966, 3,984; 1967, 3,388; 1968, 4,099; 1969, 5,604; and 1970, 5,927.

The following table shows the duration of marriage by ages of husbands and wives at the time of marriage, for cases in which decrees absolute were granted in 1970.

Duration of Marriage (in Years)Age (in Years) at Marriage
Under 2020-2425-2930-3435-3940-4445 and over (Including not Stated)Total
    Husband    
Under 541174541619931344
5-914147313962351748915
10-145128113049411423589
15-19342041113621715428
20 and over423782989228913860
            Totals3091,510732255144561303,136
    Wife    
Under 5151124181210920344
5-94273195937262027915
10-14218230602923920589
15-19124198492712612428
20 and over2054421454215110860
            Totals1,1251,3133311478645893,136

Dissolution of a Voidable Marriage—A decree of dissolution of a voidable marriage puts an end to the marriage from the date of the decree. On average there are only about 40 such decrees in New Zealand each year and the principal ground is non-consummation.

CONCILIATION PROCESSES—Under the Domestic Proceedings Act 1968, the principle was introduced of having specialist magistrates to exercise jurisdiction in domestic matters. The Act aims to encourage by all practicable means the reconciliation of married couples who institute court proceedings. Domestic proceedings became a separate division from civil and criminal proceedings in Magistrates' courts. (See Section 8: Justice.)

There is a Court Conciliation Centre in Auckland providing a full-time conciliation service for cases referred by the Magistrates' Courts. A similar service on a part-time basis is provided in Wellington. In 15 other centres local marriage guidance councils make available to the courts in their areas their more experienced counsellors to provide trained help to those involved in domestic proceedings. Through these agencies it is possible to offer specialist help in over 80 percent of cases in this category.

MARRIAGE GUIDANCE—A National Marriage Guidance Council was established in 1950 as a voluntary agency to assist with social problems arising from unhappy or maladjusted marriages. In 1959 an adviser in marriage guidance was appointed to the staff of the Justice Department. At the same time an advisory committee was set up to keep Government informed and to organise, with the assistance of appropriate professional groups, a programme for the selection, training, and accrediting of voluntary marriage counsellors.

There are now 24 councils affiliated with the National Marriage Guidance Council and these provide counselling centres staffed by over 100 accredited counsellors and some 50 counsellors in training. Accredited counsellors, in many centres, assist the courts by serving as conciliators under the Domestic Proceedings Act. (See also Section 8, Justice.)

The National Marriage Guidance Council employs a full-time director to organise and co-ordinate the work of affiliated councils. There are also seven directors employed by the larger of the local councils. These appointments, made over the last 3 years, were necessary because of the rapid development of the Marriage Guidance Service.

Educational work includes the conducting of courses for young couples in preparation for marriage. Secondary schools have been assisted by local marriage guidance councils with the arranging of courses in personal relationships. In many cases tutors are recruited and trained by local councils.

The marriage guidance service is readily available to those whose marriages are in difficulty. There is a growing acceptance by the public of the importance of this service and a greater readiness of people in trouble to make use of it.

Chapter 5. Section 5 HEALTH AND HOSPITALS

5 A—PUBLIC HEALTH

GENERAL—Responsibility for the nation's health is undertaken by a partnership of central and local government, private medical practitioners, para-medical workers, charitable and religious organisations and private citizens, with Central Government providing encouragement, financial assistance and incentives, and assuming final responsibility. This has been a deliberate policy of successive Governments, although emphases have varied from time to time according to political and economic conditions and demands for specific services. Growing urbanisation and industrialisation, with consequent intensification of the problems of pollution of water, air, and land, are imposing a current emphasis nationally and locally on environmental health.

Public health services have to do with environmental health, communicable diseases and quarantine, occupational health, and toxicology, food and nutrition, health education, family health, dental services and certain aspects of nursing. In the case of environmental health the concern of the Department of Health and local authorities is with matters such as the provision and protection of public water supplies, sewage treatment and disposal, food hygiene and housing standards. Its objectives are the maintenance of a healthy environment by the application of the principles of preventive medicine.

The functions of local authorities are defined by statute and regulation. Elected local authorities must, under the Health Inspectors Qualifications Regulations 1958, appoint a sufficient number of qualified health inspectors. Where a local authority is too small to need a separate, full-time inspector, the Act permits two or more to combine to share the cost. In some smaller sparsely-populated districts where a local authority does not employ its own inspector, the departmental inspectors of health do the work and the authority pays for it. Only 25 percent of inspectors are employed by the department.

In each of the 18 health districts, the medical officer of health, who is a medical practitioner with special qualifications in sanitary science, is the adviser to all local authorities in his district; in some cases his approval is required before action can be taken by a local authority, and in others he is the first line of appeal against its decisions. He is required to keep the Director-General of Health and the Board of Health informed of local authority deficiencies in their responsibilities under the Health Act.

Scheduled communicable diseases must be notified by doctors and hospitals to the medical officer of health who is responsible for control measures; within this area the local authority health inspector is subject to his direct supervision and control. New programmes of immunisation are undertaken by the department and, when established, vaccines are provided free and the general practitioner encouraged in this work. Quarantine arrangements for both aircraft and ships comply with obligations under the International Sanitary Regulations. Medical officers of health administer this service. The broad objective is the control of communicable and chronic diseases in man and the keeping of New Zealand free of quarantinable diseases.

The health of industrial and agricultural workers is the care of the Department of Health in conjunction with the Department of Labour, including co-operation in accident prevention. The aim is to prevent occupational disease, control toxic hazards, and raise standards of first-aid services. Agricultural health includes attention to the safe use of agricultural chemicals.

Food and drug administration aims to protect the consumer. There is an extensive programme, backed by legislation, to govern packing, labelling, storage, and sale of poisons. Appropriate legislation also ensures satisfactory standards in the composition and description of drugs, proprietary medicines and treatments, restraint on quackery in advertising of proprietary medicines and treatments and restraints on some drugs to prevent drug dependency. Special environmental problems, including radiation protection, industrial hygiene, and atmospheric pollution, are also the responsibility of the Department of Health.

The objectives of health education programmes are to increase understanding of the value of health, to inform people of health services available, and to equip them with knowledge and skills they can use to solve health problems.

Maternal and child health responsibilities include licensing and supervision of maternity hospitals; medical and nursing supervision of infant, pre-school, and school children; inspection of schools and child care centres; immunisation of infants against poliomyelitis, etc.; and the administration of regulations bearing on home safety.

A dental service, directed by dental officers and staffed by dental nurses, provides regular dental treatment for all pre-school, primary, and intermediate school children. Arrangements with private dental practitioners ensure similar treatment for adolescents up to the age of 16 years. Dental health education is also undertaken.

Within its public health nursing service, the department employs over 300 well-qualified nurses. Infant welfare occupies a high proportion of their time, but other work includes child health programmes in schools.

Scientific support for State health activities comes from the National Health Institute, the Medical Research Council, the Department of Scientific and Industrial Research and the research institutes of the Department of Agriculture. Standards of professional education are established by the appropriate professional councils or boards on which the department is represented, while training is conducted by universities (doctors, dentists, engineers, etc.); hospital boards or the department (nurses, midwives, physiotherapists, health educators, laboratory technicians, radiographers, dietitians); and polytechnics (health inspectors, pharmacists).

The Department of Health works closely with and seeks the advice and help of boards, committees, and councils such as the Board of Health Medical, Medical Research, Dental, Hospitals Advisory, Pharmacy, Nursing, and Radiological Advisory Councils, the Hospital Works, Medical Services Advisory Committees, and the Dietitians, Physiotherapy, Occupational Therapy, Opticians, and Plumbers and Gasfitters Boards. In all, officers of the department serve on over 100 boards, committees, and other organisations concerned with health.

In addition, there are very close working relationships with professional and other associations, voluntary health and welfare agencies, the universities and other Government departments.

In addition to the Health Act 1956, the following Acts are administered by the department:

Burial and Cremation Act 1964
Dental Act 1963
Dietitians Act 1950
Food and Drug Act 1969
Hospitals Act 1957
Human Tissue Act 1964
King George the Fifth Memorial
Children's Health Camps Act 1953
Maternal Mortality Research Act 1968
Medical and Dental Auxiliaries Act 1966
Medical Practitioners Act 1968
Medical Research Council Act 1950
Mental Health Act 1969
Narcotics Act 1965
Nurses and Midwives Act 1945
Occupational therapy Act 1949
Opticians Act 1928
Physiotherapy Act 1949
Plumbers and Gasfitters Registration Act 1964
Poisons Act 1960
Radioactive Substances Act 1949
Social Security Act 1964 (Part II)
Tuberculosis Act 1948

A detailed report of the activities of the Department of Health is given in the annual report of the Director-General of Health (parliamentary paper H. 31).

A general history of public health services may be found in Challenge for Health, by F. S. Maclean (Government Printer, 1964), while philosophy and policy are discussed in Health Administration in New Zealand (Institute of Public Administration, 1969).

The net expenditure of the Department of Health in the two latest years is given in the following table.

Activity Programmes1969-701970-71
 $(000)$(000)
Administrative services1,6412,354
Dental services7,5648,592
Hospital services141,158168,436
Family health services3,8304,922
Medical research6101,186
Medical services42,83749,705
Public health services2,5193,976
Welfare services2,5312,779
            Totals202,690241,950
            Less departmental receipts9801,103
            Net expenditure201,710240,847
Expenditure as percentage of national income4.24.4

Information on medical care services and hospitals is given in Sections 5b and 5c, while information on medical, hospitals, and other related benefits which are administered by the Department of Health, is given in Section 6a (Social Welfare and Child Welfare).

DISEASE CONTROL: Notifiable Diseases—The control of disease is based on a system of notification which has long been in force. Infective hepatitis is the most common disease notified, with an average of over 4,000 cases a year.

Immunisation Programme—The protection of three doses of the oral vaccine for poliomyelitis is available to all infants and to all new settlers who have not received it in their countries of origin. Vaccination is available through general practitioners and departmental clinics. Protection against diphtheria, whooping cough, and tetanus is a routine procedure and a triple vaccine is used. It is preferable that immunisation be done by the family doctor, and the course of injections should be commenced as soon as possible after babies are 3 months old. Arrangements can be made for mothers who are unable to have the immunisation done privately to attend with the infant at a departmental clinic. If necessary in country areas the public health nurse will visit the home to immunise the child. Booster doses (against diphtheria and tetanus) are given at 18 months and after the child's fourth birthday or as soon as possible after the child commences school. Further booster doses (against tetanus only) are recommended at 10-yearly intervals and on injury. Measles vaccination is available from family doctors for infants from 10 months of age onwards. Rubella vaccination is available from family doctors for pre-school children. For girls and women prior consultation with a medical practitioner is essential.

Tuberculosis Control—The department's programme for control of tuberculosis is based on adequate case-finding and notification procedures, the proper treatment and surveillance of notified cases, investigation and control of contacts. This calls for close co-ordination of the staff and services of hospital boards (which are responsible for the diagnosis and treatment of tuberculosis) and officers of the Department of Health who deal with the social and epidemiological aspects of the disease. The latter involves supervision of tuberculosis families, tracing of contacts, and the maintenance of tuberculosis statistics.

Mass miniature radiography is an established feature of the department's case-finding programme. At 31 December 1970 there were 6,043 persons on the tuberculosis registers in the health districts; new cases notified in 1970 totalled 769.

B.C.G. vaccination is also undertaken by the department and, in particular, is offered to the contacts of registered cases, secondary school children in the North Island and hospital workers possibly exposed to infection.

Over the past decade, there has been a steady decrease each year in new notifications particularly in the younger age groups together with a marked decrease in mortality.

Venereal Diseases—The Venereal Diseases Regulations 1964 give adequate powers for the examination and treatment of persons suspected of suffering from the diseases. Free treatment has been established in the larger cities and treatment is available to seamen at the main ports in accordance with the Brussels Agreement. Restrictions are also placed on the nature of the employment such persons may undertake if they are suffering from the diseases in a communicable form.

ENVIRONMENTAL HEALTH: Local Authorities Control—The provision and proper maintenance of public water supplies and sewerage systems, the disposal of refuse, the condition of dwellinghouses, the control of offensive trades, and the hygiene of premises in which food is manufactured and sold, including eating houses, are primarily the responsibility of the local authorities, but the Department of Health acts in a general advisory capacity. In the case of some of the smaller local authorities the necessary inspections are made by departmental inspectors on behalf of and by arrangement with the local authorities. The department undertakes the basic training of health inspectors and the running of specialist and refresher courses for health inspectors.

Air Pollution—The air pollution provisions of Part V of the Health Act have been enforced since 1958. The chief chemical inspector is resident in Wellington. He has deputies in Auckland and Christchurch.

There are 26 classes of process requiring registration and they include the control of odours, and the supervision of rendering processes. Most registrable processes are governed by the requirement to adopt the best practicable means to control noxious discharges and emissions, but there are limiting standards for lead and acid gases. All new installations or extensions of these registrable processes require approval by the Department of Health.

There are some 240 works registered and regularly inspected by air pollution control officers. Industries not registered are the responsibility of local authorities. New industrial plant being established in New Zealand is required to meet standards as rigorous as any in the world for industrial sources of air pollution.

The air pollution committee of the Board of Health surveyed, in 1969, the air pollution problems of New Zealand and, in August 1970, published its report.

The Smoke Restriction Regulations 1964 were enacted with a view to giving local authorities stricter control of industrial smoke emissions.

DRUGS—The definitions of “drug” in the Food and Drug Act 1969 establish groups to which differing provisions apply. Therapeutic drugs, that is those substances or mixtures whether used internally or externally for the diagnosis, prevention, or treatment of any illness or injury of the human body or for modifying any physiological process or desires or emotions, and chemical contraceptives are required, before being introduced commercially, to be “acceptable”, according to a procedure under the Food and Drug Act. No new therapeutic drug may be distributed in New Zealand without the consent of the Minister of Health, under sections 12 and 13 of the Act.

This Act also requires that any drug which has been changed in any way, in use, strength, or labelling must not be distributed until 90 days after notice of the change has been given to the Director-General of Health. He may consent to earlier distribution of a changed drug if he is satisfied of the drug's safety. If the Director-General considers the change to be of such character or degree that the drug ought not to be distributed without the consent of the Minister, the drug is referred to the Minister and may not be distributed until the Minister's specific consent has been obtained. A new therapeutic drug is also restricted to sale from pharmacies only, unless special authority is given for general distribution in a schedule to the Therapeutic Drugs (permitted sales) Regulations 1970. Drugs already on the market prior to 1 April 1970 are exempted from this provision until 31 March 1973.

A cosmetic, dentifrice, detergent, disinfectant, or antiseptic does not have to be “cleared” for marketing unless claims in labelling or advertising bring it within the definition of a “therapeutic drug”.

As in the case of food, the Food and Drug Act 1969 provides for the analysis of any drug, which may be sold, offered for sale, or exposed for sale, and for the inspection of any place where there is any drug intended for sale. Measures provide for the prevention of adulteration and for the inspection of places where drugs are manufactured or packed. Control over medical advertisements and publicity is also incorporated in this legislation.

Under the Poisons Act 1960 and the Poisons Regulations 1964, certain drugs may not be sold to the public except on the prescription of a doctor, a dentist, or a veterinary surgeon. This legislation also requires specific warning statements to be included in the labelling of certain drugs such as the antihistamines, aspirin, phenacetin, and paracetamol.

NARCOTICS—Under the Narcotics Act 1965, and the Narcotics Regulations 1966, the Director-General of Health is the competent authority for the purpose of the international conventions and for the oversight of the legitimate distribution and use of narcotics within the country. Written approval of the Minister of Health is required for the import or export of cannabis, desomorphine, heroin, ketobemidone, etorphine, and acetorphine, including their salts, and preparations containing them. The import, export, cultivation, production, possession, distribution, supply, and administration of narcotics is strictly controlled. Balanced quantitative records of transactions and stock are generally required to be kept. There is an extensive system of notification to medical officers of health of narcotics supplied and a system of control of habituated persons.

FOOD AND NUTRITION—The Food and Drug Act 1969 provides for the analysis, by analysts appointed under the Act, of any articles of food or drink which may be sold, offered for sale, or exposed for sale, and for the inspection of any place where there is any food intended for sale. Stringent measures are provided for the prevention of adulteration and for the inspection of places where food is manufactured or packed. Regulations lay down minimum standards for many classes of food, control additives of all kinds, and deal with labelling of food packages. Control is also established over all utensils and appliances coming into contact with food. Regular sampling of foods is undertaken by departmental inspectors and the samples are analysed in the Chemistry Division (DSIR) or its branch laboratories.

An important provision of the Act controls all kinds of publicity concerning any food whereby a purchaser would possibly be deceived in regard to the properties of such food, whether or not it is standardised by regulations.

The nutrition section of the Department of Health provides advisory services on nutrition and dietetics to dietary departments of hospitals, and food service departments of welfare and other institutions. It is responsible for nutrition education programmes and provides a nutrition information service for Government departments, organisations concerned with production and marketing of food, and the public. The section also carries out dietary research projects, generally in liaison with medical research teams concerned with nutrition research.

OCCUPATIONAL HEALTH AND TOXICOLOGY—The objective of the occupational health programme is to work with labour, management, the medical profession, and other groups to assist in improving the health of the worker.

The Department of Labour, which is responsible for accident prevention, hours of work, employment of women and children, etc., calls to the attention of the Department of Health any health problems which the factory inspectors may encounter. The Factories Act 1946 gives to medical officers of health or other authorised officers of the Department of Health the same powers and authorities as inspectors of factories with regard to the health and welfare sections of the Act. The suspension of workers on health grounds, approval of respirators and similar protective equipment, and the arrangements for medical examinations are undertaken by the Department of Health. A series of regulations deal with health hazards, many of them being administered by the two departments, each in its own sphere.

A similar understanding has been established with the Waterfront Industry Commission and New Zealand Railways, and illustrates the general pattern of arrangements between the Department of Health and other Government departments or agencies concerned with particular aspects of workers' health. An occupational health laboratory was established at Wellington in 1964.

Occupational Disease—The notifiable occupational diseases are scheduled in the Health Act 1956 and details of diseases notified are published annually in the report of the Director-General of Health.

Commercial, Household, and Agricultural Poisons—The advertising, distribution, use, labelling, and packing of all poisons and toxic substances is controlled under the Poisons Act 1960 and the Poisons Regulations 1964. A manufacturer or importer must notify the Registrar of Poisons before importing or putting on the market any new substance which might be toxic, be it a chemical, household preparation, cosmetic, or drug. Special safeguards are provided for certain hazardous chemicals used in agriculture or horticulture. It is an offence to pack poisons in bottles that are ordinarily used for food, drink, or medicine. Labels for “Restricted Poisons” must bear statements of the precautions to be taken in use, the symptoms of poisoning and the remedial treatment, and must be approved by the Registrar of Poisons.

Control of Health Hazards—An increasing number of specific health hazards are coming under formal control, namely, lead processes, electroplating, spray painting, sand blasting (siliceous blasting agents in factories are prohibited), fumigation, aerial application of poisons, where in conjuction with the Civil Aviation Division of Ministry of Transport a special rating is required by pilots, and agricultural chemicals. The organisation of radiation protection is dealt with by the National Radiation Laboratory, while a number of other specific hazards are currently receiving consideration.

Medical, Nursing, and First-aid Services—Minimal first-aid requirements have been laid down by the Department of Health, which generally endeavours to encourage both the development of medical and nursing services and the raising of first-aid standards throughout industry generally. While there are no statutory obligations on industry to provide medical and nursing services, an increasing number of factories do provide such services. To meet the needs of small plants the department is developing industrial health centres with financial support from the Waterfront Industry Commission in the case of harbour areas, and the Workers' Compensation Board in the case of general industry.

Pre-employment Examinations—Pre-employment medical examinations are required for young workers before entering factory employment.

FAMILY HEALTH—The health and well-being of the individual, whether a new-born infant, child, or parent, is increasingly being considered in relation to the family and home. This more comprehensive view is now receiving special emphasis.

Various medical specialists who are available to the department of Health on a consultative basis have made an important contribution to the work of family health.

Child Health—An effort is made to have every child examined in infancy and before school entry. The examination of pre-school children is carried out by medical officers in Plunket rooms (in conjunction with Plunket nurses) and at kindergartens, day nurseries, and other pre-school centres assisted by public health nurses.

Routine tests of vision and hearing are supplemented by consultations between parents, teachers, nurses, and medical staff. These consultations are based on pre-school records, questionnaires, and regular visits to the school by medical and nursing staff. The children found to be suffering from defects are kept under observation prior to treatment.

Mentally backward children are given special attention, arrangements being made in conjunction with the Department of Education for their entry into a special school or other institution as may be necessary. In addition, physically handicapped children enrolled with the Correspondence School are examined. A consultative service is available for secondary school children.

There are six permanent health camps in New Zealand maintained by the King George the Fifth Memorial Children's Health Camps Federation. They were originally established to cater for the needs of delicate and undernourished children and now admit children who are convalescent after illness, those whose health is generally unsatisfactory, and also those suffering from minor emotional and behaviour disorders. Medical officers select the children to attend and exercise general health supervision of the camps. In the relaxed but ordered routine of camp life with a satisfactory diet and a balance of activity, rest, and sleep, children benefit from this placement. Remedial teaching is provided by the Department of Education in the schools attached to the camps.

Child health clinics have been established in the larger centres and elsewhere for children with emotional or psychological disturbances and behaviour problems. They are staffed by a team consisting of a pediatrician, psychiatrist, psychologist, play therapist, and social worker. Children are referred to these clinics through the family doctor.

Maternal Welfare—Maternal and infant welfare work in New Zealand is based on co-operation between the Department of Health, hospital boards, the medical and nursing professions, and the Royal New Zealand Society for the Health of Women and Children (Plunket Society).

The medical officers of health, through their staff of nurse inspectors, exercise a general supervision over the work of private hospitals. All private hospitals are required to be licensed under the Hospitals Act 1957, and the Department of Health sees that standards regarding buildings, equipment, and staff are observed.

Approximately 99 percent of all confinements take place in a maternity annex to a public hospital or a private maternity hospital.

A review of the history and development of maternal and child health services in New Zealand is appended to the 1969 annual report of the Director-General of Health (parliamentary paper H.31).

HEALTH EDUCATION—Medical and dental officers, public health nurses, dental nurses, and inspectors of health all devote some of their time to health education. The health education officer acts as a co-ordinator and stimulates and extends health teaching and health programmes in the district. All the health education officers are women and several hold the diploma in health education issued by the Royal Society for the Promotion of Health. Daily newspapers and national periodicals carry regular advertisements on health subjects. Radio broadcasts are given at least twice a week and leaflets, pamphlets, and posters are available on many health topics.

The Department of Health's official bulletin Health has a circulation of over 78,000 and is issued free to the public 4 times a year. It gives health information and publishes various aspects of the department's work.

Officers are available for lectures and discussions on health with schools and community groups.

DENTAL HEALTH—There are 14 dental districts and 3 schools for the training of school dental nurses at Auckland, Wellington, and Christchurch.

The School Dental Service staffed by 1,354 trained school dental nurses provided systematic treatment for 590,885 pre-school and primary school children in the year ended 31 March 1971. A further 154,591 children under 16 years of age, received regular treatment from private dentists under the social security (dental benefits) scheme, and from a limited number of salaried dental officers.

School Dental Service—Briefly, the functions of the service are to improve the standard of dental health of school children (and of pre-school children) by regular and systematic treatment at 6-monthly intervals, commencing from the primer classes (or earlier when possible), and continuing through to the highest class of the primary (or intermediate) school. Thereafter they are eligible for enrolment in the adolescent service.

Two years are devoted to the theoretical and practical training of school dental nurses. Approximately 500 student dental nurses can be trained at the one time. The course is carefully graduated and is in the hands of a staff of dental surgeons and dental tutor sisters. During the period of training student dental nurses reside in hostels controlled by the Department of Health.

On completing her training, a school dental nurse is posted to a school dental clinic, where she becomes responsible to the principal dental officer of her district for the dental treatment of a group of approximately 500 patients. She is visited at regular intervals by the principal dental officer and by a dental nurse inspector who assist the dental nurse to maintain a high standard of performance in all aspects of work.

Dental treatment comprises fillings in both temporary teeth and permanent teeth, cleaning and scaling of the teeth, extractions when necessary, and sodium fluoride treatment. The aim of the service is to promote dental health by conserving the natural teeth and preventing dental decay. Only a small number of teeth have to be extracted as unsavable, less than 3 for every 100 saved by conservative treatment.

Adolescent Dental Service—Dental care for adolescents up to 16 years of age is provided by private dentists as a dental benefit under the Social Security Act, the dentist being reimbursed on a fee-for-service basis.

Eligibility for dental treatment as an adolescent is contingent upon a person's having undergone regular dental care up to within 3 months of the time of application, either at a school dental clinic or from a private dental practitioner.

Treatment is essentially of a nature designed to conserve the natural teeth. Dental supervision of adolescents is on a basis of examination and treatment at 6-monthly intervals. There is free choice of dentists, and dentists have the right to decline patients.

The treatment (other than treatment requiring special approval) which may be provided as dental benefits, and the fees payable, are indicated in the Schedule to the Social Security (Dental Benefits) Regulations 1960.

Dental Health Education—The dental health education activities of the department include the production of posters, pamphlets, sound films, filmstrips, radio talks, newspaper advertisements, and all other types of advertising media.

Officers of the service are kept in touch with health education and other matters by means of the School Dental Service Gazette, which is published bi-monthly.

Dental Research—Dental research is directed by the dental research committee of the Medical Research Council. The staff consisting of a director, three professional assistants, and three associated workers are primarily engaged in a long-term programme of research in dental problems.

Dental Bursaries—The Government grants bursaries each year to selected students to assist them to qualify as dentists. The bursaries are the equivalent of the bursary that would be payable under the University Bursary Regulations plus $200 a year. Students who are granted bursaries must enter into an agreement to pursue their studies diligently and, on graduating, to enter the service of the Crown or of a hospital board appointed by the Crown for a specified period not exceeding 3 years.

Fluoridation—Approximately half of all persons living in water-reticulated areas are drinking fluoridated water, which reduces the need for dental treatment.

RADIATION PROTECTION—The National Radiation Laboratory provides the administrative and technical services required for protection from radiation hazards, and, in addition, the educational programme. It is required to maintain the primary X-ray standard for New Zealand and also reference standards for the accurate measurement of radioactive substances used in clinical work. Control of radiation sources is effectively obtained by licensing operators at each place where ionising sources are used, and the Electrical (X-ray) Wiring Regulations 1944 provide for the compulsory registration of all X-ray plants in the country. The importation and use of radioactive materials is strictly controlled, and requests for such materials on overseas suppliers must be authorised by the laboratory, which acts as the procurement agency for most of the radioisotopes required.

The laboratory operates a field service whereby trained physicists regularly visit all places where ionising sources are used. During these visits measurements are taken, protection problems discussed, and everything possible is done to ensure that persons associated with the ionising sources adopt safe working habits. Apart from the obvious groups, e.g., medical and dental users, the laboratory is also concerned with specialised equipment, such as mass X-ray units, X-ray apparatus used in schools, radar and television equipment, X-ray diffraction units, electron microscopes, research accelerators, etc.

Air, rainwater, and soil are monitored for radioactive contamination from fall-out.

PHYSICAL MEDICINE—Physical medicine is concerned with potentially disabling conditions such as rheumatic diseases, cerebral palsy, and other disorders of the locomotor system.

The centre for the treatment of rheumatism is established at the Queen Elizabeth Hospital, Rotorua, which has approximately 100 beds set aside for diagnosis, research, and treatment of these diseases. Full physiotherapy and occupational therapy facilities are provided and active steps towards rehabilitation of patients are carried out. A large number of outpatients referred from all parts of New Zealand and a few from overseas are seen every year.

Physiotherapists and occupational therapists work together in preventing and controlling deformity, and teaching people how to live with their disabilities. Social workers assist in bridging the gap between rehabilitation and vocational and social resettlement.

A cerebral palsy unit is also situated at Queen Elizabeth Hospital providing residential accommodation for 20 children. At this unit the activities of a team of physiotherapists, occupational therapists, teachers, and speech therapists are co-ordinated by the supervisor of the unit working under a physician. Patients can be referred by their doctors to the physician in charge of the unit for advice only, or for admission and treatment. Cerebral palsy visiting therapist services are now operating under hospital boards. Post-graduate courses are given to physiotherapists, occupational therapists, teachers, and speech therapists.

Cerebral palsy day schools have been established in Auckland, Wellington, Christchurch, Dunedin, and Invercargill. Parents of cerebral palsy cases who seek their children's admission first apply to the appropriate medical officer of health or education board. The schools are administered by the education boards, but close liaison exists between the schools, the Rotorua unit, and the visiting cerebral palsy therapists.

REHABILITATION OF DISABLED CIVILIANS—The rehabilitation of disabled and handicapped civilians has received increasing emphasis over recent years in New Zealand. Basically, public hospitals are the hub for development of an adequate medical rehabilitation service, with co-operation from Government and voluntary agencies in furthering the medical, social, and vocational welfare of the disabled.

A civilian rehabilitation centre is established at Otara, under the Auckland Hospital Board's administration, for the treatment and overall restoration of those injured in employment or road accidents. For the rehabilitation of persons suffering from spinal injuries and paraplegia, specialist spinal injury centres are in course of development at Auckland and Christchurch. Rehabilitation activities are also being carried out at the Queen Elizabeth Hospital, the Palmerston North Hospital and in many of the psychiatric and psychopaedic hospitals.

The Disabled Re-establishment League is the principal agent of Government in vocational rehabilitation. The main function of the league is to provide facilities for work assessment and work experience for the disabled. Policy is decided by a central board of management and district committees administer the centres which are established in Auckland, Wellington, Christchurch, Dunedin, Napier, and Invercargill.

A national civilian rehabilitation committee, comprising representatives from the Departments of Labour, Social Welfare, and Health, advise Government on steps to co-ordinate and promote rehabilitation in New Zealand.

NURSING SERVICES—The Department of Health is responsible for the organisation and control of nursing service to the public in general, in hospitals (departmental, public or private); in homes for the aged, incapacitated, or infirm; or in any other places where the Department of Health has statutory responsibility. Considerable delegation has taken place mainly to hospital boards whose chief nursing officer is responsible to the chief medical officer for the day-to-day administration of the services provided. The department reviews nursing services in public and departmental hospitals, district nursing services, and public health nursing services.

Nursing education is provided in 55 schools of nursing in New Zealand. As at 31 March 1971 there were 6,993 students undertaking basic nursing programmes. The Department of Health organises and controls the School of Advanced Nursing Studies.

MEDICAL STATISTICS—The National Health Statistics Centre is responsible for the compilation of the statistics included in the Annual Report on the Medical Statistics of New Zealand. The centre also prepares special statistics for the various divisions of the department and for research workers in different fields both in New Zealand and overseas. A constant liaison is maintained with the World Health Organisation, which is supplied with statistical material giving a picture of health trends in New Zealand. In addition, from time to time special statistical investigations are made into important aspects of public health and diseases that warrant specific study. The centre publishes Trends— health and health services, an annual statistical survey.

NATIONAL HEALTH INSTITUTE—The National Health Institute is the Department of Health's centre for the study of public health problems. It contains an epidemiology section and public health laboratories.

The epidemiology section conducts field research into matters of public health interest.

The public health laboratories provide diagnostic and reference services in bacteriology and virology for medical officers of health and hospital laboratories as well as for the other sections of the institute. The institute is the national centre for those reference services which are organised on an international basis, such as salmonellosis, leptospirosis, toxoplasmosis, influenza and staphylococcal phage typing.

MEDICAL RESEARCH COUNCIL—The Medical Research Council of New Zealand has the following functions:

  1. To initiate, foster, and support medical research;

  2. To furnish information, advice, and assistance to persons and organisations concerned with medical research;

  3. To collect and disseminate scientific information, including the publication of reports.

At the end of 1970 research was in progress in many fields, including the following: dentistry; experimental endocrinology and metabolism; human genetics; hydatids; Island Territories research; toxicology; electron microscopy; renal physiology; cardiology; hypertension; environmental physiology; coronary disease; immunology and genetics of tissue transplantation; mechanisms of action of psychotropic drugs; diabetes; molecular biology of bacterial viruses; menrology; biology; pathology; rheumatic diseases; human nutrition; maternal and infant health; tumour virology; vector biology and control.

The council maintains liaison with the research work being carried out by the Cancer Society of New Zealand and medical research foundations established in Auckland, Wellington, Christchurch, Palmerston North, Hawke's Bay, Otago, and Southland.

The council administers the Medical Research Endowment Fund, from which an annual expenditure of $1.2 million is incurred in supporting research projects at the University of Otago, the University of Auckland, the Massey University, and the institutions of the Auckland, Wellington, North Canterbury, Palmerston North, Southland, and Otago Hospital Boards.

The council employs a staff of about 80 full-time workers. A further 135 workers are employed by other institutions under project grants from the council.

The council awards scholarships and fellowships to selected graduates and undergraduates who wish to engage in medical research.

The council is empowered to receive bequests and donations to the fund for furthering the objects of the council as set out in the Medical Research Council Act 1950.

MEDICAL COUNCIL—The Medical Council of New Zealand, constituted under the Medical Practitioners Act 1968, consists of the Director-General of Health, the deans of the faculties of medicine in the Universities of Otago and Auckland, and eight registered medical practitioners appointed on a representative basis.

The council deals with all applications for registration under the Act. Until an applicant is able to satisfy the council that he has obtained house officer experience, in a resident medical capacity, of not less than 12 months or has otherwise obtained comparable experience, registration is on a conditional basis. Persons registered conditionally may practise only in an approved hospital. A medical education committee responsible to the council exercises general supervision over the training of persons conditionally registered. The number of medical practitioners on the register at 30 June 1971 was 4,777.

The Medical Council is vested with certain disciplinary powers. Right of appeal to the Supreme Court is provided.

DOCTORS IN ACTIVE PRACTICE—A report made in 1970 by the Joint Committee on Medical Graduate Needs assessed that in 1968 the doctors in active practice in New Zealand totalled 3,182 and that they were engaged as follows:

Medical PractitionersNumbers

*Specialties.

†Non-specialist psychiatrist medical officers.

‡Includes preventive and social medicine and medically qualified teachers in non-clinical subjects.

§ Hospital boards, armed services, student health, trainees and industry, Government (other than Department of Health), family planning associations, research, etc.

General practice1,335
Surgery*303
Medicine*290
Registrars296
House surgeons247
Psychiatry90
Anaesthetics88
Pathology85
Radiology83
Obstetrics and gynaecology82
Ophthalmology50
Health administration— 
Department of Health36
Hospital boards22
Medical Officers in Department of Health— 
Mental hospitals48
Other35
Medical education not included elsewhere26
Other§66
 3,182

On this basis the doctor to population ratio in 1968 was 1:866. For Australia in 1966 the ratio was reported by the World Health Organisation as 1:840 and for selected other countries in 1965 as: Sweden 1:910; England and Wales 1:870; Canada 1:820; United States 1:700.

REGISTRATION COUNCILS AND BOARDS: Dentists—Under the Dental Act 1963 there is constituted a Dental Council, the functions of which are to examine and approve of the qualifications of applicants desiring registration as dentists and to exercise disciplinary control over registered dentists.

The number of private dentists holding annual practising certificates at 1 September 1970 was 901 and in addition there were 150 dentists in Government, hospital, research, and university employment.

Under provisions of the Dental Technicians Regulations 1968, a Registration Board for Dental Technicians has been constituted and 310 dental technicians are on the register.

Nurses—Under the Nurses Act 1971 is constituted the nursing council. The council controls nursing education programmes, conducts examinations and effects registrations.

Provision is made in Nurses Registration Regulations 1966 for 3-year programmes for registration as nurse and maternity nurse, male nurse, psychiatric nurse, and psychopaedic nurse. Provision is also made for 18-month programmes for registration as maternity nurse and community nurse, and 6-month programmes for registration as midwife and, where registration has already been obtained as nurse, as maternity nurse.

Physiotherapists—Under the Physiotherapy Act 1949 is constituted the New Zealand Physiotherapy Board. The board's functions are the training, examination, and registration of candidates for physiotherapy practice, the issuing of special licences, the approval of physiotherapy training schools, and the conduct of those registered under the Act.

The training period for physiotherapists is 3 years. Full-time training is conducted at the New Zealand School of Physiotherapy, Dunedin, administered by the Otago Hospital Board, and the final year is spent at one of the subsidiary training schools in various parts of New Zealand. All students are required to pass the State Examination in Physiotherapy to qualify for registration.

Occupational Therapists—Under the Occupational Therapy Act 1949 is constituted the Occupational Therapy Board. The board is concerned with the training, examination, registration, and conduct of persons engaged in the practice of occupational therapy.

The training period is 3 years, which is undertaken primarily at the Central Institute of Technology, Wellington. In the third year, clinical experience is gained at hospitals. Students who successfully complete the course are awarded a diploma in occupational therapy and then registered. There are some 140 occupational therapists in active practice.

Dietitians—Under the Dietitians Act 1950 is constituted the Dietitians Board, which is concerned with the training, examination, and registration of persons engaged in the practice of dietetics.

The training period for a dietitian is, in the case of the holder of a degree of bachelor of home science conferred by the University of Otago or of the holder of a diploma in home science of the University of Otago, 12 months in a hospital training school.

Opticians—The Opticians Act 1928 provides for the constitution of an Opticians Board, consisting of the Director-General of Health (the Registrar), three persons engaged in practice as opticians in New Zealand, and a registered medical practitioner with special knowledge of diseases of the eyes. The board deals with all applications for registration under the Act.

There are approximately 250 opticians registered, but not all are engaged in active practice.

Plumbers—The Plumbers and Gasfitters Board consists of 10 members—the Director-General of Health as chairman, and representatives of the Department of Education, the Municipal and Counties Association, the Gas Association, the Master Plumbers Society (2), the Plumbers, Gas-fitters, and Related Trades Industrial Union of Workers (2), and a nominee of a borough council or drainage board.

The Board is concerned with the registration of plumbers and gasfitters. It issues annual licences and limited certificates for plumbers and gasfitters. It has also authority and responsibility for disciplinary action against registered plumbers and gasfitters if it is established they have done unsatisfactory work.

In New Zealand, except in specially exempted areas, all sanitary plumbing as defined in the Plumbers and Gasfitters Registration Act 1964 can only be performed by registered plumbers and holders of limited certificates working in the employment or under the supervision of registered plumbers.

Specifications and standards of workmanship and materials in plumbing work are prescribed in the provisions of the Drainage and Plumbing Regulations enacted under the Health Act.

Pharmacists—There are now 2,336 names on the Pharmaceutical Register in New Zealand. All registered pharmacists, except those who notify the registrar that they have conscientious objection to membership, automatically become members of the Pharmaceutical Society of New Zealand, the society's affairs being managed by a council constituted by the Pharmacy Act 1970.

The council consists of 12 members, 11 being pharmacists, and 1 a barrister appointed by the Minister of Health. Seven members are elected on a district basis by registered pharmacists who are proprietors of pharmacies and four by members of the Pharmaceutical Society who are not in the previous category. The main function of the council of the Pharmaceutical Society is to administer the Pharmacy Act and generally to protect and promote the interests of the profession of pharmacy and the public interests.

It is a specific requirement of the Pharmacy Act that pharmacies in New Zealand be at all times maintained under the immediate supervision and control of a registered pharmacist.

The present system for pharmacy education requires a minimum of 3 years' attendance at the School of Pharmacy, Central Institute of Technology, Petone, at which the diploma in pharmacy is obtained. There is also a 4-year degree course in pharmacy at the University of Otago. Graduates from both courses are required to serve 12 months' practical training before becoming eligible for registration as pharmacists. Of this practical training, 6 months may be served prior to graduation in periods of not less than 2 months.

Any pharmacist or company in which not less than 75 percent of the share capital is owned by a pharmacist or pharmacists may establish one pharmacy. Unqualified persons or companies in which less than 75 percent of the share capital is pharmacist-owned must, however, secure the consent of the Pharmacy Authority, set up under the Act, before commencing business, and in all cases the establishment of more than one pharmacy under the same ownership is subject to the consent of the authority. All pharmacies must be registered with the society. There are about 1,155 pharmacies in New Zealand.

VOLUNTARY WELFARE ORGANISATIONS—Over the years voluntary welfare organisations have made valuable contributions to certain aspects of the field of public health. In many cases they are encouraged and assisted in their work by grants from the public funds. Among more important of these organisations are the Plunket Society, the King George the Fifth Memorial Children's

Health Camps Federation, St. John Ambulance (N.Z.), the New Zealand Red Cross Society, the Crippled Children Society, and the New Zealand Federation of Tuberculosis Associations, the New Zealand Foundation for the Blind, and the New Zealand Epilepsy Association.

The Plunket Society—the Royal New Zealand Society for the Health of Women and Children—is concerned with the welfare of all babies. The society trains its own infant-welfare nurses, conducts infant-welfare clinics, and maintains Karitane hospitals throughout the country for premature babies or difficult feeders. In rural areas where there is no Plunket clinic, public health nurses do infant-welfare work.

The King George the Fifth Memorial Children's Health Camps Federation maintains six health camps for children with physical health problems and minor emotional disorders. The federation works in close co-operation with the Department of Health. A portion of the finance for the federation's activities is derived from the proceeds of the annual health-stamp appeal.

The St. John Ambulance (N.Z.) has divisions throughout the country carrying out free ambulance and first-aid work and instruction in first aid and home nursing. It is a branch of the Venerable Order of the Hospital of Saint John of Jerusalem.

The New Zealand Red Cross Society, a part of the International Red Cross Committee, has centres and subcentres throughout the country. It gives training in first aid, home nursing, hygiene and sanitation, and emergency transportation of the injured. Graduates of these classes form voluntary-aid detachments that in peacetime are recruited as aids in hospitals, and in wartime may be recruited for service overseas as well.

The Crippled Children Society keeps a register of all crippled children, helps them to acquire all possible medical treatment, and undertakes vocational training and home education where these are required.

The New Zealand Federation of Tuberculosis Associations looks after the interests of patients suffering from tuberculosis. It assists the Department of Health with health education of the public regarding tuberculosis and concerns itself with after-care and vocational training and guidance of patients.

The New Zealand Epilepsy Association, with a Dominion Council and 11 branches, helps epileptics and their families in every possible way. It issues pamphlets, gives lectures, shows films, and fosters medical research. Social workers are employed by branches who can afford to do so. A residential hostel, Park Lodge, for young men and women who have regular employment or who require short-term accommodation for special reasons, is maintained in Auckland. The association is affiliated to the International Bureau for Epilepsy.

SPORT AND RECREATION—New Zealand is fortunate in having excellent natural facilities for outdoor pursuits and sports. The climate is temperate and equable.

The long coastline, the numerous rivers, lakes, and mountain ranges give full opportunity for yachting, boating, swimming, surfing, mountaineering, tramping, and ski-ing. Sea and freshwater fishing, both by rod and by line, scuba diving, hunting, and shooting are extremely popular and relatively inexpensive.

The cities and outlying districts are well provided with grounds for outdoor sport and recreation. Tennis, cricket, athletics, lawn bowls, softball, water sports, and rowing are the most popular summer games and sports.

Rugby football is the leading winter sport but many people play rugby league football, association football, outdoor and indoor basketball, hockey, indoor bowls, table tennis, and badminton.

Golf is a popular summer and winter sport. Boxing, wrestling, gymnastics, judo, and fencing have a small following.

While some sports, for instance rugby football, attract many spectators, the high proportion of persons who actually take an active part in various sports and games compared with those who merely watch, is a striking characteristic of New Zealand life. In many sports there is a close association between school and club activities.

The administration of various sports clubs is generally controlled by national bodies within New Zealand through their district associations. The various sports in New Zealand are amateur. Promising players or performers have ample and equal opportunity on merit to represent first their clubs, then the district, and ultimately New Zealand in competitive play.

In major sports each organisation administers its own affairs. However, competitors to represent New Zealand at Olympic and Commonwealth Games are selected by an Olympic Council made up of representatives of the various sports associations.

The National Mountain Safety Council, together with its member organisations, conducts a national campaign for safety on the mountains. Similarly, the National Water Safety Council, its member organisations, and swimming and lifesaving organisations, conduct a national water safety campaign, which includes general instruction in resuscitation procedures.

The Cobham Outward Bound School was established in Queen Charlotte Sound, Marlborough, in 1962, and several thousand boys aged 16 to 20 years have completed its short courses which use the challenges of the outdoors to promote self-confidence and self-discipline.

Within the schools greater emphasis is now placed on the encouragement of wider recreational interests which may be continued after leaving school and to the range of traditional team sports have been added activities such as golf, squash, surfing, yachting, fencing, tramping, flying, etc.

A system of school camps has been developed by the educational authorities. Permanent camp sites include Kaeo, Port Waikato, Kaitawa, Paraparaumu, and Rotoiti. These camps attempt to promote the value of social growth through the provision of opportunities to live and work together and develop qualities of initiative, self-confidence, and independence. Young people are encouraged to enjoy and make use of the natural environment by developing skills of campcraft, tramping, map and compass work, bushcraft, water safety, sailing and canoeing, and climbing, etc. Field work on the natural sciences and geography involves study of the land forms and local ecology of river, sea, and bush life.

In recent years some universities have established facilities and appointed staff to serve the physical recreation needs of the student body at large. Regular physical activity and its accompanying social recreation have been found to produce considerable improvements to health and application to studies.

Recreation involves the arts, including drama, ballet, music, art and craft, just as much as the more active physical sports, and their development is more fully described elsewhere in the Yearbook in the section Support of Cultural Activities.

The range of musical recreation, involving both participants and audiences, includes orchestras, pipe and brass bands, operatic societies, dance bands and pop groups. Music plays a large part in community recreation, especially among the youth. It is interesting to note how the change to later hotel hours has tended to shift the musical focus from the dance hall to the hotel where musical groups now entertain in the evenings.

Maori and Pacific Island cultural groups organise especially for their young people recreational activity, which provides not only a grounding in the richness of their cultural heritage but also helps to counter the stresses placed on those inexperienced in urban living.

Financial Assistance—Grants from Government to national youth organisations to assist their development and leadership training programmes are made to organisations such as the National Youth Council, the Young Men's Christian Association, the Young Women's Christian Association, and the Youth Hostels' Association. During 1970 these grants totalled $53,000.

Sporting and recreational organisations receive some financial assistance from lottery profits, but to qualify for assistance the organisation must show a substantial degree of self help.

The Department of Internal Affairs is responsible for a subsidy scheme to provide financial assistance to religious groups up to one-fifth of the total cost of a project of building or extending a hall or camp used for youth work. For 1970-71 a total of $130,786 was paid out.

The National Mountain Safety Council and National Water Safety Council received for 1970-71 allocations from lottery profits of $22,000 and $55,000 respectively. Fifteen mountain safety committees and five subcommittees organise courses on bushcraft, alpine instruction, map reading, and exposure prevention and firearm safety.

The Department of Internal Affairs has appointed 271 firearm instructors to tutor and test applicants for the firearm examination.

The department has a youth activities officer stationed at each of the main centres with the tasks of maintaining close liaison with local authorities, educational institutions, and youth and community associations in order to gain support and advice for schemes involving recreational activities and of keeping the community informed of the needs of young people.

5 B—HOSPITALS

GENERAL—The Hospitals Act 1957 requires the Minister of Health to ensure the provision and maintenance by hospital boards of hospitals and hospital services and to encourage the provision and maintenance of private hospitals. The Department of Health advises the Minister on or determines in respect of boards the extent and standard of hospital and allied services, the building requirements to provide these services, the numbers and levels of the main groups of professional staffs to be employed, the appropriate annual financial grants, the salaries and conditions of employment of about 60 percent of staff and the measure of financial assistance to be given to private hospitals, including loan finance. The department also licenses and supervises private hospitals, inspects the work of all hospitals and compiles financial and statistical data about them. There are 30 hospital boards and over 150 private hospitals.

Since 1 April 1958, the cost of hospital treatment in public hospitals has been borne entirely by the State. Private hospitals which provide about one-sixth of the available beds, receive payment from the Government for hospital treatment of patients; additional fees may be claimed from the patients.

Hospital and home nursing services involve the Department of Health in establishing and assisting to maintain minimum standards of nursing service in general hospitals, in homes for the aged, etc., in advising, inspecting and reporting on such services in hospitals; and generally advising the Minister on nursing.

Experience has been that, generally speaking, boards, committees and councils play a most valuable part in helping to formulate health policies and programmes, and, in certain cases, in administering policies or programmes laid down by Government. The setting-up of such agencies enables the Minister and the Department of Health to draw upon expert advice and wide experience and ensures that non-departmental people with up-to-date knowledge, day-to-day working experience and responsibility in particular areas of health play a worthwhile part in health administration. A partnership of this kind is particularly important in the case of public hospitals, which are run by democratically elected boards. Recognition of this is seen in the requirements of the Hospitals Act that the Minister of Health may not act in certain public hospital matters without a recommendation from the Hospitals Advisory Council.

The department's objectives in the case of physical medicine and rehabilitation are to stimulate interest and co-ordinate treatment of diseases such as chronic arthritis, poliomyelitis, and cerebral palsy; to promote and maintain a unified rehabilitation service and to maintain and develop physiotherapy and occupational therapy services. It supervises physiotherapy and occupational therapy training, licensing and services, and supervises the provision of rehabilitation services in public hospitals. (See Section 5a.)

The welfare services involving the department include the medical and social care and general welfare of the aged. The department advises the Minister on subsidies to be paid to local authorities and religious and welfare organisations which provide special housing, home and hospital beds for the elderly, and administers legislation governing the standards and oversight of old people's homes. (See Section 6a.)

HOSPITAL BOARDS—General and psychiatric hospitals are controlled by locally elected hospital boards. A hospital board of 8 to 14 members is elected every 3 years for each hospital district. It is the duty of every hospital board to provide, maintain and staff such institutions, hospital accommodation, and medical, nursing, and other services as the Minister of Health considers necessary.

In recent years there has been a pressure of activity, replanning, and development in all medical services for which hospital boards are responsible. This replanning of medical services has been undertaken against a background of sharp population increases in most urban areas. More rapid and comfortable transport is encouraging the build-up of specialist diagnostic and therapeutic resources in regional centres. The Health Services Unit, headed by a medical practitioner in the Department of Health, has the task of applying techniques such as operational research and work study to problems of management in the health services, particularly in hospitals, and ascertaining in what ways efficiency can be improved.

The Director-General of Health is authorised to visit and inspect hospitals and to appoint assistant inspectors, and is required to report to Parliament through the Minister on the administration of the Hospitals Act.

PATIENTS: Public Institutions—The number of beds in public institutions available at 31 March 1971 and the average number occupied during the year are set out in the following table. These statistics relate to patients and inmates in all institutions (general, maternity, special hospitals, and old people's homes) including institutions under the control of the Department of Health.

Type of BedBeds AvailableAverage Number of Occupied Beds per Day
NumberProportion per 1,000 of PopulationNumberProportion per 1,000 of Population
General13,8684.911,077.43.9
Maternity2,9641.01,886.70.7
Total hospital beds16,8325.912,964.14.6
Non-hospital beds1,1320.4978.30.3
            Totals17,9646.313,942.44.9

In addition to the 16,832 hospital beds in public institutions there were 3,740 (3,512 general and 228 maternity) in the 151 licensed private hospitals. If the beds in licensed private hospitals are included, the ratio of beds per 1,000 of population become 6.7 for general beds and 1.1 for maternity beds.

The average number of occupied hospital beds per 1,000 of population in hospital districts varies from 3.4 to 9.3. This variation can be accounted for in the main by the fact that many hospitals to a varying extent draw patients from other districts. Other factors which influence the figures are the availability of medical practitioners and their habits in sending patients to hospital or retaining them for home treatment, the availability of private-hospital beds, housing facilities, domestic assistance, private or district nursing assistance, and the efficiency of the outpatient departments.

The number of institutions coming under the heading of public institutions for the year ended 31 March 1971 was 199, comprising 76 general hospitals (3 of which were also old people's homes), 2 homes for cripples, 12 non-acute hospitals, 4 convalescent hospitals, 82 maternity hospitals, a hospital for physical disorders, 21 old people's homes, and 1 children's home.

The following statistics for the latest two March years relate to all public institutions including institutions under the control of the Department of Health.

Item1969-701970-71
Beds of all descriptions for patients or inmates17,87417,964
Beds per 1,000 of population6.46.3
Average beds occupied per 1,000 of population5.04.9
Persons who were inpatients or inmates331,460341,417
Number per 1,000 of population who were inpatients or inmates118.9119.6
Attendances by outpatients (including dental treatment)3,235,8903,491,910
Attendances per 1,000 of population1,160.41,223.1

The supplement to the annual report of the Director-General of Health on hospital statistics contains further detail on public institutions.

General Hospitals—In the following table the figures relate only to general hospitals under the control of hospital boards.

YearInpatients TreatedAverage Number of Occupied Beds per DayAverage Turnover of Patients Treated per Occupied BedAvailable BedsOutpatient Attendances (Including Dental)
NumberProportion per 1,000 of PopulationNumberProportion per 1,000 of PopulationNumberProportion per 1,000 of PopulationNumberProportion per 1,000 of Population
1965-66251,31693.99,928.83.724.312,7764.82,634,880984.3
1966-67256,58595.110,004.43.724.812,9894.82,711,1221,005.3
1967-68269,09898.210,243.93.725.413,0214.72,833,3771,033.5
1968-69276,248100.110,334.03.724.913,0454.72,923,5051,059.7
1969-70279,400100.010,438.53.725.813,4304.83,022,7821,082.2
1970-71287,112100.610,448.73.726.613,5064.73,266,8861,144.3

Private Hospitals—The total number of private hospitals licensed in New Zealand at 31 March 1971 was 151, providing 228 maternity, 33 psychiatric, and 3,479 beds for general cases.

STAFF—The numbers of staff employed in public hospitals and other institutions and activities controlled by hospital boards in the latest 4 years were as follows.

Category of StaffAt 31 March
19671968196919701971

*Includes duplication where persons provide medical services at more than one institution.

†This is the first year that all staff have been published as full time, equivalent previous years part-time staff was counted as full time, hence reduction in staff.

Institutional medical1,853*1,890*1,923*1,947*1,309*
Other professional and technical2,7422,8173,0843,3322,896
Nursing14,11214,37015,18515,74014,350
Other treatment staff496592631656873
Domestic and other institutional staff10,4949,76910,04610,1269,633
Administrative staff665645702712690
Domiciliary services1,0801,0181,0921,182561
Farm and garden2216186718
Other non-institutional201233193180117
            Totals31,66531,35032,87433,94230,447

MATERNITY SERVICES: Beds—At 31 March 1971 available hospital-bed accommodation for maternity cases was 3,192 made up as follows:

Public hospitals2,964
Private hospitals228
            Total3,192

The total number of confinements in maternity hospitals in 1969 was 61,891, of which 56,721 were in public maternity hospitals, 5,170 in private hospitals. There were 9,610 admissions for ante-natal treatment. All these figures are inclusive of Maoris.

Domiciliary Midwifery Services—Public health nurses and hospital board district nurses carry out some pre-natal work and a limited amount of obstetrical work in back-country areas. In general, however, most of the population is within reach of a maternity hospital, and home deliveries are not encouraged. There remain, however, a few midwives who contract with the Department of Health to give home maternity service under the Social Security Act.

Ante-natal Services—Medical practitioners give ante-natal, neo-natal, and post-natal attention under the Social Security Act. The doctor's attendance, if desired, is supplemented by that of the midwife in charge of an ante-natal clinic. These free ante-natal clinics are established in connection with the three St. Helens Hospitals, all public maternity hospitals or maternity wards, and a number of clinics conducted by the Plunket Society. Ante-natal classes to prepare mothers for the baby's arrival are also being developed, and doctors can refer patients to these to supplement their own ante-natal instructions. In the case of women living far away from the main centres of population, ante-natal work is supplemented by the public health nurses employed by the Department of Health, or by district nurses employed by hospital boards.

FINANCE: Institutional Operating Expenditure—The average operating expenditure per occupied bed, relating to hospitals of all types and to general hospitals, is shown in the following table.

YearTreatmentInstitutional AdministrationHeat Light, Power and waterHousehold ExpensesBuildings and GroundsMiscellaneousTotal
All Institutions
 $$$$$$$
1965-662,560.4360.4326.41,249.4205.64.64,706.8
1966-672,803.6399.8342.41,342.6209.43.85,101.6
1967-682,935.7399.7341.51,233.7186.03.15,099.7
1968-693,141.5423.8359.61,375.8195.04.75,400.4
1969-703,475.2486.7384.51,357.4212.65.35,930.7
1970-714,088.6609.8419.91,626.1266.67.07,018.0
General Hospitals
1965-662,799.2405.6342.81,304.2215.84.05,071.6
1966-673,069.0454.2362.81,409.8219.84.05,519.6
1967-683,226.9464.9362.71,293.0185.42.85,535.7
1968-693,481.5487.1381.81,338.3204.74.65,898.0
1969-703,857.6558.0411.11,409.1230.45.16,471.3
1970-714,561.0703.4454.61,703.3276.66.97,705.8

Each of these averages includes the direct expenditure on each activity for labour, materials, and incidental expenses, but excludes overheads such as depreciation and interest on capital.

For 1970-71 the average daily expenditure for individual inpatients treated in hospitals classed as general hospitals was $21.11 and the average total expenditure for each inpatient was $280.43.

Loans—Boards have been authorised by the Minister of Health to raise loans to cover a very extensive building programme. The position of loan liability is as under.

YearAmount UpliftedRepayment*Balance Owing
Includes payments from sinking funds.
  $(000) 
1965-6610,3767,63781,324
1966-679,0216,75483,591
1967-6813,5666,72490,433
1968-6923,5667,931106,070
1969-7019,1709,436115,797
1970-7119,20010,043124,878

Payments—Hospital board expenditure is subject to control by the Minister of Health. The sum provided by Government for public hospital maintenance expenditure is allocated to the individual hospital boards on the basis of allocations made in the previous year, adjusted to take account of known increases in commitments plus an allowance for normal growth. A portion of the total is, however, held in reserve, to enable special allocations to be made to boards having to meet the cost of commissioning major capital works reaching completion during the year. Additional grants are also made for general wage increases which may be approved after the basic allocation has been made. Grants for minor capital works and equipment are made to boards on the basis of population and average occupied beds. Major works over $20,000 are financed by loans raised by hospital boards, interest and principal repayments being met by Government grants.

Item of Expenditure1966-671967-681968-691969-701970-71
*Includes payments to sinking funds.
 $(thousand)
Institutional operating expenses75,04277,43483,09191,882109,610
Extramural relief11494118153295
Grants to private hospitals, etc.136134129124126
Other grants1918121613
Transport of patients8658269429201,190
Domiciliary services1,6871,7171,7622,0232,289
Administration1,9772,0422,1722,3422,776
Superannuation570606647718910
Other expenses1,8792,2321,0492,2113,722
Interest on loans4,0844,3014,9615,7946,182
Repayment of loans*6,3686,2467,0888,1079,251
Capital works other than “loan"2,9083,1083,4003,7824,395
            Totals, excluding loans95,64998,758105,371118,072140,669
Loan works11,35914,10915,17915,46515,639
            Totals107,008112,867120,550133,537156,308

PUBLIC HOSPITAL PATIENTS—Detailed statistical information is supplied to the Department of Health about every patient, except normal maternity cases, discharged from or dying in public hospitals in New Zealand. After tabulation in accordance with the International Classification of Diseases, this information is published annually in the Department of Health publication Hospital and Selected Morbidity Data. According to the census of non-psychiatric hospitals conducted by the Department of Health in 1966, patients in public hospitals comprised 81.1 percent of hospital patients, the provisional figure for the 1971 census is 80.4 percent.

Patients Treated—The following table shows the number of patients treated in public hospitals for the latest 6 years.

YearRemaining on 1 January from Previous YearAdmissionsDischargesDeathsTotal Number of Indoor PatientsRemaining on 31 December
*Excludes 51 patients shown as remaining in Buchanan Ward, Greytown, on 31 December 1965.
19648,527215,181204,15810,883223,7088,667
19658,667221,772210,39411,267230,4398,778
19668,727*228,087216,32211,626236,8148,866
19678,866234,521222,91011,299243,3879,178
19689,178242,713230,27612,254251,8919,361
19699,361244,347231,90712,026253,7089,372

Age and Sex of Patients—The age and sex of patients discharged from or dying in public hospitals during 1969 are shown below.

Age GroupsMalesFemalesTotal
Under 1 year6,9794,92111,900
1- 4 years11,0677,90618,973
5- 9 years10,9318,05218,983
10-14 years7,7525,71013,462
15-19 years9,1029,85818,960
20-24 years8,26411,04819,312
25-29 years5,1768,75213,928
30-34 years4,3366,88311,219
35-39 years4,6136,44511,058
40-44 years5,3166,63211,948
45-49 years5,8566,98812,844
50-54 years6,0756,43612,511
55-59 years7,2915,75713,048
60-64 years7,2165,46112,677
65-69 years6,9545,50612,460
70-74 years5,2545,10910,363
75-79 years4,3414,5658,906
80-84 years3,1513,6066,757
85 years and over2,1432,8845,027
            Totals121,817122,519244,336

Although there is little overall difference in the totals of males and females, there is a well-defined pattern when figures for each sex are compared, age group by age group. In all ages under 15 years there is a preponderance of males. This difference is common to most disease groups but is more marked in diseases of the digestive, genito-urinary, musculoskeletal, and respiratory systems, in congenital malformations, and in accidental injuries. For the ages between 15 and 54 years there are more females than males. This age group covers the child-bearing ages in women, and the higher proportion of female patients is a reflection of this fact. Apart from conditions associated with pregnancy, abortion, delivery, and the puerperium, female patients considerably outnumbered male patients in both malignant and non-malignant tumours, in diseases of the thyroid gland and the genito-urinary system and in symptomatic conditions. In the age groups from 55 years upwards the males once more predominate, except for 75 years and over, particularly in diseases of the circulatory, respiratory, and digestive systems.

Principal Diseases and Disabilities—The following summary shows the principal diseases and injuries treated, together with the number of deaths and the fatality rate percent of total cases treated, in public hospitals in 1969. The disease headings are the subtitles of the International Classification of Diseases. More detailed information is published annually in Part III—Hospital and Selected Morbidity Data, Medical Statistics Report. The International Classification of Diseases is revised every 10 years by the World Health Organisation. The eighth revision (1965) was introduced in New Zealand for morbidity statistical valuations with effect from 1 January 1969. Because of changes in disease groupings within the classification, the summary of diseases and injuries treated differs from those of earlier years both in the sequence reported and component conditions of certain disease groups.

It should be noted that the disease or condition for which a patient is admitted to hospital is not necessarily that which would rank as the cause of death in mortality statistics. Congestive heart failure, for instance, is comparatively highly ranked in hospital cases as the condition immediately affecting the patient, but is frequently only the consequence of some underlying disease, which would take precedence over congestive heart failure in the statistics of causes of death. Hospital returns show each disease for which the patient was treated while in hospital, but the classification for statistical purposes has been made on the basis of the principal disease for which the patient was admitted, regardless of what other unrelated diseases may have been present or developed during the stay in hospital. In mortality statistics, on the other hand, the underlying cause of death is of paramount importance. In the summary below a patient admitted on account of an injury is classified accordingto the nature of the injury. Should the patient die, however, the death would be classified in the mortality statistics according to the cause of the injury, e.g., motor-vehicle accident, accidental fall, etc.

DISEASES AND DISABILITIES TREATED IN PUBLIC HOSPITALS DURING 1969
Disease or DisabilityTotal Discharges and Deaths in Public HospitalsDeaths in Public HospitalsFatality Rate Percent
Intestinal infectious diseases2,177371.7
Tuberculosis1,317503.8
Zoonotic bacterial diseases3825.3
Other bacterial diseases399328.0
Poliomyelitis and other enterovirus diseases of central nervous system40220.5
Viral diseases accompanied by exanthem99780.8
Arthropod-borne viral diseases5435.6
Other viral diseases1,650181.1
Rickettsioses and other arthropod-borne diseases29--
Syphilis and other venereal diseases15521.3
Other spirochaetal diseases6911.4
Mycoses7211.4
Helminthiases12321.6
Other infective and parasitic diseases27431.1
Malignant neoplasm of buccal cavity and pharynx272279.9
Malignant neoplasm of digestive organs and peritoneum2,41470729.3
Malignant neoplasm of respiratory system1,70550729.7
Malignant neoplasm of bone, connective tissue, skin, and breast2,3381817.7
Malignant neoplasm of genito-urinary organs2,99938712.9
Malignant neoplasm of other and unspecified sites2,07760629.2
Neoplasms of lymphatic and haematopoietic tissue1,40429721.2
Benign neoplasms3,766170.5
Neoplasm of unspecified nature294165.4
Diseases of thyroid gland84960.7
Diseases of other endocrine glands2,6271726.5
Avitaminoses and other nutritional deficiency46161.4
Other metabolic diseases620233.7
Diseases of blood and blood-forming organs1,841693.7
Psychoses2,407743.1
Neuroses, personality disorders, and other non-psychotic mental disorders3,623150.4
Mental retardation18152.8
Inflammatory diseases of central nervous system3455014.5
Hereditary and familial diseases of nervous system1091211.0
Other diseases of central nervous system2,8391966.9
Diseases of nerves and peripheral ganglia87620.2
Inflammatory diseases of the eye91210.1
Other diseases and conditions of the eye4,146130.3
Diseases of the ear and mastoid process3,026--
Active rheumatic fever59061.0
Chronic rheumatic heart disease877799.0
Hypertensive disease1,3631118.1
Ischaemic heart disease8,2481,64920.0
Other forms of heart disease3,66074820.4
Cerebrovascular disease5,3881,97536.7
Diseases of arteries, arterioles and capillaries2,45446619.0
Diseases of veins and lymphatics, and other diseases of circulatory system5,9801292.2
Acute respiratory infections (except influenza)4,262280.7
Influenza42540.9
Pneumonia5,42659911.0
Bronchitis, emphysema and asthma5,2192574.9
Other diseases of upper respiratory tract11,8613-
Other diseases of respiratory system1,8121679.2
Diseases of oral cavity, salivary glands, and jaws2,0261-
Diseases of oesophagus, stomach, and duodenum2,4591014.1
Appendicitis5,729120.2
Hernia of abdominal cavity5,314380.7
Other diseases of intestine and peritoneum3,7751243.3
Diseases of liver, gall bladder, and pancreas4,1531212.9
Nephritis and nephrosis851738.6
Other diseases of urinary system3,6541103.0
Diseases of male genital organs3,189621.9
Diseases of breast, ovary, fallopian tube, and parametrium1,97420.1
Diseases of uterus and other female genital organs8,85550.1
Complications of pregnancy2,421--
Urinary infections and toxaemias of pregnancy and the puerperium1,08920.2
Abortion4,514--
Delivery1,55630.2
Complications of the puerperium55130.5
Infections of skin and subcutaneous tissue3,197100.3
Other inflammatory conditions of skin and subcutaneous tissue80291.1
Other diseases of skin and subcutaneous tissue1,62250.3
Arthritis and rheumatism, except rheumatic fever3,95298265
Osteomyelitis and other diseases of bone and joint4,473110.5
Other diseases of musculoskeletal system2,42890.4
Congenital anomalies5,8012043.5
Certain causes of perinatal morbidity and mortality2,5972328.9
Symptoms referable to systems or organs11,399420.4
Senility and ill-defined diseases2,1382119.9
Fracture of skull, spine, and trunk3,7981443.8
Fracture of upper limb4,059150.4
Fracture of lower limb5,7953506.0
Dislocation without fracture1,01970.7
Sprains and strains of joints and adjacent muscles1,15420.2
Intracranial injury (excluding those with skull fracture)8,510951.1
Internal injury of chest, abdomen, and pelvis538366.7
Laceration and open wound of head, neck, and trunk1,78120.1
Laceration and open wound of lower limb1,38810.1
Laceration and open wound of multiple location17431.7
Superficial injury418--
Contusion and crushing with intact skin surface2,168100.5
Effects of foreign body entering through orifice94410.1
Burn1,898241.3
Injury to nerves and spinal cord29931.0
Adverse effect of medicinal agenta3,199220.7
Toxic effect of substances chiefly non-medicinal as to source1,550120.8
Other adverse effects1,888281.5
Special admissions without sickness3,1861-
            All conditions244,33612,0264.9

Duration of Stay in Public Hospitals—The average duration of stay of patients in public hospitals in 1969 is shown in the following table.

Disease or DisabilityTotal Discharges and Deaths in Public HospitalsAverage Stay (Days)
Infective and parasitic diseases (except tuberculosis)6,43912.6
Tuberculosis1,31767.0
Malignant neoplasm and neoplasms of lymphatic and haematopoietic tissue13,20920.8
Benign neoplasms and neoplasms of unspecified nature4,0609.0
Diseases of thyroid gland84912.9
Diabetes mellitus2,22826.1
Other endocrine, nutritional and metabolic diseases1,48019.2
Diseases of blood and blood-forming organs1,84113.7
Psychoses2,40729.5
Other mental disorders3,80414.3
Diseases of the eye5,0588.5
Diseases of ear and mastoid process3,0267.8
Other diseases of the nervous system4,16940.5
Active rheumatic fever and chronic rheumatic heart disease1,46732.8
Ischaemic heart disease8,24821.7
Hypertensive disease and other forms of heart disease5,02325.8
Cerebrovascular disease5,38867.0
Diseases of arteries, arterioles and capillaries2,45438.2
Diseases of veins and lymphatics and other diseases of circulatory system5,98012.4
Acute respiratory infections and influenza4,6877.7
Pneumonia5,42617.3
Bronchitis, emphysema and asthma5,21915.4
Hypertrophy of tonsils and adenoids9,8313.5
Other diseases of respiratory system3,84212.6
Diseases of oral cavity, salivary glands and jaws2,0263.2
Diseases of oesophagus, stomach and duodenum2,45915.2
Appendicitis5,7298.7
Hernia of abdominal cavity5,3149.5
Other diseases of intestines and peritoneum3,77614.1
Diseases of liver, gall bladder and pancreas4,15314.9
Diseases of urinary system4,50514.6
Diseases of male genital organs3,18912.0
Diseases of breast, ovary, fallopian tube and parametrium1,9747.7
Diseases of uterus and other female genital organs8,8556.9
Delivery and complications of pregnancy and the puerperium (except abortion)5,61710.1
Abortion4,5143.9
Diseases of skin and subcutaneous tissues5,62111.3
Arthritis and rheumatism except rheumatic fever3,95239.1
Osteomyelitis and other diseases of bone and joint4,47320.9
Other diseases of musculoskeletal system2,42810.9
Congenital anomalies5,80116.7
Certain causes of perinatal morbidity and mortality2,59718.4
Symptoms and ill-defined conditions13,53719.3
Fractures13,65221.2
Intracranial injury (except skull fracture)8,5104.6
Lacerations and open wound5,9427.3
Burns1,89719.4
Toxic or adverse effects of medicinal and other substances4,7494.7
Other injuries and adverse effects8,4288.9
Special admissions without current complaints or reported diagnosis3,1867.4
            Total244,33616.1

Accident Cases—A summary is given below of accident cases treated as inpatients in public hospitals during 1969.

Type of AccidentTotal CasesPercentage of All Accident CasesAverage Stay (Days)Aggregate Stay (Days)Aggregate Stay as Percentage of Total
Transport—     
    Railway820.219.41,5900.3
    Motor-vehicle traffic9,58721.112.0114,86420.2
    Motor-vehicle non-traffic2040.511.12,2720.4
    Other road vehicles1,7623.96.711,7352.1
    Water1790.412.12,1570.4
    Aircraft330.116.75510.1
            Total transport11,84726.211.2133,16923.5
Non-transport—     
    Accidental poisoning2,6065.82.77,0021.2
    Accidental falls11,03824.419.0209,93237.0
    Other accidents12,61427.89.4118,14720.9
            Total non-transport26,25858.012.8335,08159.1
    Surgical and medical complications and misadventures2,7196.016.344,4457.8
    Late effects of accidental injury1,1382.524.928,3575.0
    Suicide and self-inflicted injury2,0514.58.417,1533.0
    Homicide and injury purposely inflicted by other persons1,0942.46.06,5981.2
    Legal intervention2--4.08--
    Injury undetermined whether accidentally or purposely inflicted1400.36.99620.2
    Injury resulting from operations of war410.121.48780.2
            Grand totals45,290100.012.5566,651100.0

Most cases come under the heading “Non-transport—Other accidents”, which includes accidents caused by cutting and piercing instruments, machinery, falling objects, fire and hot objects, and so on. Of these most occurred in the home.

The second largest group is “Accidental falls”, which has an aggregate stay greater than any other group. This is due to the long periods spent in hospital by elderly people who have sustained fractures of the femur in falls. Almost one in every four patients had been injured in a fall of some kind.

Motor-vehicle traffic accidents comprise the third largest group, and have the third largest aggregate stay. It is interesting to note that there were three times as many admissions to hospital and three times as many beds occupied by people injured in non-transport accidents as there were in motor-vehicle traffic accidents. Traffic accidents on roads are analysed in tables in Section 11c Roads and Road Transport.

Patients discharged from, or dying in public hospitals in 1969 after treatment for accidents sustained in the home are given in the following table.

Cause of AccidentTotal PatientsDays Stay
Accidental poisoning by—  
    Drugs and medicaments1,1493,468
    Petroleum products and other solvents400692
    Pesticides, fertilisers, and plant foods150455
    Noxious foodstuffs and poisonous plants176221
    Other solid and liquid substances433901
    Gases and vapours4895
Accidental falls4,867109,694
Blow from falling object106841
Accidents caused by cutting and piercing instruments1,4279,668
Accidental burns1,19625,062
Accidents caused by foreign bodies5411,396
Accidents caused by machinery5784,704
All other and unspecified accidents1,1259,619
            Totals12,196166,816

Deaths in Public Hospitals—The percentage of deaths in public hospitals to all deaths has increased over the last 11 years. Examination of the following table shows the trend.

YearDeaths in Public HospitalsTotal DeathsPercentage of Deaths in Public Hospitals to Total Deaths
195910,02021,12847.4
19609,76820,89246.8
196110,28921,78247.2
196210,43622,08147.3
196310,78422,41648.1
196410,88322,86147.6
196511,26522,97649.0
196611,62623,77848.9
196711,29923,00749.1
196812,25424,46450.1
196912,02624,16149.8

5 C—PSYCHIATRIC HEALTH

GENERAL—Free maintenance and treatment has been provided in all public mental hospitals since 1 April 1939.

Under the Mental Health Act 1969 the control of psychiatric hospitals (with the exception of Lake Alice Hospital, Marton, which will continue to make national provision for security patients) is being transferred from the Department of Health to local hospital boards from 1 April 1972.

A detailed report Mental Health Data is published annually by the National Health Statistics Centre of the Department of Health. The report contains administrative and clinical data about first admissions and readmissions (including replacements from leave), transfers, discharges, and deaths for all inpatients under psychiatric care. The report also presents information about psychiatric disorders in terms of age and sex, etiological factors, domicile, race, and length of stay.

In 1967 the statistical system was enlarged to include, in addition to people treated as inpatients in mental hospitals, people treated in psychiatric inpatient units in public hospitals. The system was further enlarged in 1969 with the inclusion of alcoholics treated at Rotoroa Sanatorium. These developments provide more comprehensive data about treatment of people with psychiatric disorders in the community, but the greater coverage prevents strict comparability with statistical data published for past years.

At the end of 1970 there were 11,039 people on the registers of mental hospitals of the Department of Health, 99 in psychiatric units of public hospitals, and 176 in Rotoroa Sanatorium, a total of 11,314. There were 11,646 registrations during the year (excluding transfers and changes of status), of which 9,546 or 82 percent were voluntary patients. The average number of occupied mental hospital beds was 10,169, which was 76 fewer than in 1969. The average number of resident patients per 100,000 mean population has declined steadily over the last 26 years.

The following table gives the annual averages and the rates per 100,000 mean population for those in mental hospitals and public hospitals.

YearResident in Mental HospitalsOn Leave from Mental HospitalsTotal for Mental HospitalsPatients in Public Hospitals
Average NumberRateAverage NumberRateAverage NumberRateAverage NumberRate
    All Patients    
19427,926483.445928.08,385511.4....
19478,439469.359132.99,030502.2....
19529,070454.380740.59,877494.8....
19579,850441.294542.310,795483.5....
196210,267413.21,23549.711,502462.9....
196710,415381.61,68161.612,096443.2....
196810,270372.61,93870.312,208442.91344.9
196910,245368.02,04973.612,294441.61585.7
197010,169360.01,66358.911,832418.91545.5

FIRST ADMISSIONS—In 1970 there were 3,340 first admissions (1,784 male and 1,556 female) to mental hospitals, 1,642 (582 male, 1,060 female) to psychiatric inpatient units, and 14 males to Rotoroa Sanatorium, a total of 4,996. The number of voluntary patients (4,127) exceeded the number of non-voluntary patients (869) by more than four to one.

The numbers and rates of first admissions, together with the percentage of first admissions in total admissions and the percentage of voluntary patients in first admissions, are shown in the next tables.

YearsVoluntary PatientsNon-voluntary PatientsAll Patients
MaleFemaleTotalMaleFemaleTotalMaleFemaleTotal
*Average over five years.
    Numbers     
1935-39*115972124814629435965591,155
1940-44*1101262364705269965806521,232
1945-49*2352675025446071,1517798741,653
1950-54*3493847336257461,3719741,1302,104
1955-59*4895771,0666697311,4001,1581,3082,466
1960-64*1,2281,3722,6006025221,1241,8301,8943,724
1965-69*1,6491,9783,6266123659762,2602,3424,603
19701,8132,3144,1275673028692,3802,6164,996
    Rates per 100,000 of Mean Population     
1935-39*14.212.413.359.558.959.273.771.372.5
1940-44*13.715.014.458.562.860.872.277.875.2
1945-49*26.229.627.961.167.564.587.397.192.4
1950-54*34.638.536.662.274.968.596.8113.4105.1
1955-59*43.451.747.559.665.862.7102.9117.5110.2
1960-64*97.6110.1103.848.442.645.5146.0152.7149.3
1965-69*121.0145.7133.344.926.935.9165.9172.6169.2
1970129.2164.6146.140.421.530.8169.6186.1176.9
YearsPercentage of First Admissions in Total AdmissionsPercentage of Voluntary Patients in First Admissions
*Average over five years.
1935-39*80.118.3
1940-44*76.719.0
1945-49*75.630.1
1950-54*74.034.7
1955-59*67.543.0
1960-64*61.169.8
1965-69*50.578.8
197042.982.6

NOTES—For 1962 and subsequent years, voluntary patient totals include informal patients. Since 1967 the figures include psychiatric inpatients in public hospitals. The figures from 1969 include patients in Rotoroa Sanatorium.

Diagnosis—The three leading diagnoses in 1970 were: depressive neurosis, 986 cases; other personality disorders, 567 cases; and schizophrenia and paranoid states, 565 cases. These three diagnoses accounted for 42.4 percent of first admissions.

The numbers of first admissions to each division of psychiatric care by short list diagnoses are shown for 1970.

DiagnosisAll HospitalsMental HospitalsPublic Hospital Psychiatric UnitsRotoroa Sanatorium
Senile and pre-senile dementia26424717-
Alcoholic psychosis754926-
Other organic psychoses27922059-
Schizophrenia and paranoid states565399166-
Depressive psychosis496304192-
Other functional psychoses19511877-
Depressive neurosis986407579-
Other neuroses and psychosomatic disorders31622393-
Alcoholism4574083514
Other personality disorders567328239-
Transient situational disturbances and behaviour disorders of children1468165-
Non-psychotic mental disorders associated with physical condition916922-
Mental retardation3253214-
No psychiatric diagnosis (includes observation)23416668-
            Totals4,9963,3401,64214

Numbers and rates of first admissions by diagnosis are shown in the following table.

DiagnosisNumbersRates per Million of Mean Population
196819691970196819691970
Senile and pre-senile dementia32531026411811193
Alcoholic psychosis856475312327
Other organic psychoses265183279966699
Schizophrenia and paranoid states592600565215216200
Depressive psychosis715654496259235176
Other functional psychoses190153195695569
Depressive neurosis774857986281308349
Other neuroses and psychosomatic disorders366339316133122112
Alcoholism319438457116157162
Other personality disorders501516567182185201
Transient situational disturbances and behaviour disorders of children96111146354052
Non-psychotic mental disorders associated with physical condition10011691364232
Mental retardation337401325122144115
No psychiatric diagnosis (includes observation)2323342348412083
            All cases4,8975,0764,9961,7771,8231,769

The first admission rates for senile and pre-senile dementia, for depressive psychosis, and for other neuroses and psychosomatic disorders decreased during the latest 3 years. In 1969 and 1970, the rates for alcoholism increased substantially, largely, but not solely, because of the admission of patients from the beginning of 1969 under the Alcoholism and Drug Addiction Act.

READMISSIONS—A readmission is a person admitted as an inpatient for psychiatric care who has previously received psychiatric care in a New Zealand hospital.

Diagnosis—In the following table the numbers and rates of readmissions are shown by short list diagnoses.

DiagnosisNumbersRates per Million of Mean Population
196819691970196819691970
Senile and pre-senile dementia123125115454541
Alcoholic psychosis134136125494944
Other organic psychoses247271275909797
Schizophrenia and paranoid states1,7781,7562,054645631727
Depressive psychosis942919897342330318
Other functional psychoses423492557153177197
Depressive neurosis640701853232252302
Other neuroses and psychosomatic disorders2762562661009294
Alcoholism6911,0011,162251360411
Other personality disorders604680760219244269
Transient situational disturbances and behaviour disorders of children354482131629
Non-psychotic mental disorders associated with physical condition131168152486054
Mental retardation649799899235287318
No psychiatric diagnosis (includes observation)153170141566150
            All cases6,8267,5188,3382,4772,7002,952

DISCHARGES—There are three principal ways of being discharged from mental hospital: (a) outright discharge, which means being formally discharged at the time of leaving hospital; (b) discharge on leave; and (c) discharged “not committed”, which means being discharged from a mental hospital on the grounds that the patient's mental condition does not warrant his being detained. All people discharged from a psychiatric unit of a public hospital are discharged outright.

There were 12,697 discharges in 1970. Of these 9,368 were outright discharges, 2,943 were discharges on leave, and 386 were discharged “not committed”.

The principal diagnoses were: schizophrenia and paranoid states, 2,646 cases; depressive neurosis, 1,836 cases; all forms of alcoholism, 1,710 cases; and depressive psychosis, 1,354 cases.

The following table shows the number of discharges for 1970 by short list diagnoses.

DiagnosisOutright DischargeLeaveNot CommittedTotal
Senile and pre-senile dementia117731191
Alcoholic psychosis123612186
Other organic psychoses3121197438
Schizophrenia and paranoid states1,5891,045122,646
Depressive psychosis1,20314831,354
Other functional psychoses5401887735
Depressive neurosis1,74478141,836
Other neuroses and psychosomatic disorders529552586
Alcoholism983524171,524
Other personality disorders1,0321821011,315
Transient situational disturbances and behaviour disorders of children186273216
Non-psychotic mental disorders associated with physical condition167416214
Mental retardation689389121,099
No psychiatric diagnosis (includes observation)15413199366
            Totals9,3682,94338612,697

Duration of stay—Over half (51.2 percent) of those discharged left hospital within a month of admission, 28.1 percent left in the next two months, and a further 14.4 percent were discharged in the subsequent three months. The average stay of all discharges was 31 weeks.

Deaths—In 1970 there were 687 deaths in mental hospitals, 8 in psychiatric units of public hospitals, and 1 in Rotoroa Sanatorium. In addition 67 people died while on leave.

The principal diagnosis was senile and pre-senile dementia, 247 cases. Next came other organic psychoses, 124 cases; and schizophrenia and paranoid states, 104 cases.

In 1970 119 people died during the first month in hospital, and a further 78 deaths occurred in people who had been in hospital for over 1 month but under 3 months.

EXPENDITURE, ETC.—The total expenditure on public mental hospitals (not including the cost of new buildings and additions) and particulars of receipts during the last 11 financial years are shown in the next table.

Year Ended 31 MarchTotal ExpenditureReceiptsNet ExpenditureAverage Cost per Occupied Bed
 $(000)$(000)$(000)$
19618,7822268,556859
19629,8802069,674965
196310,99920810,7911,059
196412,10921211,8971,143
196513,78368613,0971,258
196614,77869214,0861,353
196717,33069916,6311,610
196818,55955618,0031,743
196919,90136219,5391,919
197021,87348821,3852,106
197126,00658925,4172,521

As already stated, the expenditure included in the foregoing table does not include amounts spent on new buildings, additions, etc., the cost of which is met by the Ministry of Works. Expenditure for the last five financial years has amounted to $1,653,000 in 1966-67, $2,137,000 in 1967-68, $2,429,000 in 1968-69, $2,640,000 in 1969-70, and $3,261,000 in 1970-71.

5 D—HEIGHTS AND WEIGHTS OF POPULATION

GENERAL—Increasing interest is being shown in the heights and weights of New Zealanders—adults as well as children. Medical and health experts have formed the impression that the heights of persons in New Zealand have increased significantly over the past 50 years. It is likely that weights have also increased.

Most recent New Zealand figures certainly show that the above impression is justified, at least as far as school children are concerned. They also show that maturity judged by the development of secondary sex characteristics in both male and female children occurs on the average at an earlier age.

In the interests of continued medical research it is important that statistical material be made available on this and other aspects of growth and development. The statistics in this section have been assembled for future research purposes as much as for current interest and use by manufacturers and educational authorities.

CHILDREN—Surveys of heights and weights of primary school children in New Zealand have been made from time to time—namely in 1913, 1925, 1934, 1954 and now more recently in 1969. Each successive survey has shown general increases over the preceding survey in heights and weights at all ages, in some decades more marked than others. The 1969 survey shows that the very marked gain in both heights and weights which occurred between 1934 and 1954 now tends to be slowing down, especially at the lower age levels, although a significant gain in weights at the higher age levels still seems to be continuing.

In 1954 the survey covered 22,078 boys and 21,845 girls selected on a nation-wide sample basis. Compared with the 1934 survey it was found that for both boys and girls the average heights and weights had increased fairly uniformly on a geographic basis, that is, for main urban areas, minor urban areas and rural areas; they also applied to both non-Maoris and Maoris. (Other evidence indicated that the increases were primarily due to earlier maturity rather than to changes in racial characteristics.)

In the 1969 survey the total number of school children included in the sample was 24,852, taken from 19 health districts in proportion to the populations of the districts. Approximately equal numbers, about 2,000, were sampled from each age group from 5 to 15 years. Roughly one-sixth of the children were Maoris and five-sixths were, in the main, Europeans but included small numbers of Indians, Chinese, Samoans and other Pacific Islanders of the same Polynesian stock as the Maoris themselves. The number of Maoris was chosen again in relation to the total Maori population in each district.

As previous surveys had shown little significance in the difference of heights and weights between urban areas and rural districts no attempt was made during the 1969 survey to obtain separate figures for geographical groupings although, in selecting schools, allowance was made in the choice so as not to overload the figures in the direction of either urban, rural or socio-economic groups.

Information from the three latest surveys is related in the following table. It should be noted that in 1934 the age was related to the nearest birthday and is therefore overstated in relation to later surveys where the age is that of last birthday, that is, in 1934 some of the children at given ages were relatively younger than those at the given ages in 1954 and 1969, i.e., children whose average age was 6 years in 1934 are compared with children whose average age in later surveys was 6 1/2 years.

Age (Years)Survey YearAverage HeightAverage Weight
BoysGirlsBoysGirls
  in.in.lblb
51,93443434241
 1,95444.444.045.744.2
 1,96944.243.944.843.9
61,93445454645
 1,95446.746.450.549.6
 1,96946.646.349.949.2
71,93447475049
 1,95449.148.756.155.2
 1,96949.148.855.955.8
81,93449495554
 1,95451.350.862.061.3
 1,96951.250.762.261.1
91,93451516160
 1,95453.352.969.068.3
 1,96953.352.968.167.8
101,93453536665
 1,95455.355.276.077.1
 1,96955.255.174.976.3
111,93454557273
 1,95457.157.682.6586.8
 1,96957.258.183.589.3
121,93457577882
 1,95459.260.092.098.4
 1,96959.560.293.499.3
131,93459598894
 1,95461.761.8103.7109.9
 1,96962.062.2105.7111.7
141,934616197101
 1,95464.1562.8117.5119.8
 1,96964.863.2120.2120.3
151,9346262103108
 1,95466.163.45129.35124.9
 1,96966.663.9132.6128.2

In a comparison of Maoris and non-Maoris in 1954, the Maori boys and girls were found to be on average shorter than non-Maori boys and girls, the difference amounting to a little under an inch at most ages. In weight, however, Maoris were shown to be heavier than non-Maoris. At the younger ages the difference was negligible being less than half a pound, but from 9 years onwards the difference was marked—at 11 years it was 2 lb, at 12 years 3 lb for boys and 7 lb for girls, and at 15 years 6 lb for boys and nearly 11 lb for girls.

In the 1969 survey the weight increases for each year of age for both non-Maoris and Maoris of either sex show a growth spurt beginning at about 10 years of age in both races but reaching its peak slightly earlier in Maoris of both sexes.

Curves for the average increases in height showed a peak at ages 10-11 years for Maori and non-Maori females, a peak at ages 11-12 years for Maori males and a broader range of increase from 10-14 years for non-Maori males. In all cases a sharp decline was shown after the peak. Thus height, as with weight, showed a maximum increase at the onset of maturity, with the Maoris slightly in advance of non-Maoris and girls slightly ahead of boys.

There is no evidence at the moment that this forward movement in growth or maturation has ceased.

Maoris and non-Maoris—In a comparison between Maoris and non-Maoris it was shown by the 1969 survey that for males up to 11 years of age non-Maoris were consistently taller than Maoris—the maximum height difference of 0.63 in. occurring at age 8 years. From the age of 12 to 15 years Maoris were seen to be taller, the greatest difference of 0.50 in. being at 13 years of age so that by age 15 years Maoris were taller by only 0.01 in. This difference in Maori and non-Maori heights would seem to be mostly in the trunk measurements.

With girls in the 1969 survey non-Maoris were taller than Maori counterparts up to the age of 9 years—the maximum difference of 0.61 in. occurring at age 6 years. For ages 11 and 12 years Maoris were taller than non-Maoris, the greatest difference being 0.79 in. at age 12 years. At age 13 to 15 years non-Maori girls were again taller, the greatest difference being 0.71 in. occurring at age 15 years.

This difference in height patterns shows a slight change from the 1954 survey in which both Maori boys and girls tended to be shorter than non-Maoris at all ages. In all, however, these height differences between the races were small enough to suggest that Maoris and non-Maoris were approaching similar heights at each age.

In the case of weight, however, the picture is rather different. Both males and females, Maoris in each age group were heavier than non-Maoris, except at age 16 years where female non-Maoris were heavier by 0.07 lb and non-Maori males were minimally heavier than their Maori counterparts. For males at other ages, the difference showed a gradual increase from the age of 5 years to a maximum difference of 6.75 lb at the age of 15 years. With females, the same pattern was evident but the maximum difference of 11.86 lb occurred a year earlier at the age of 12 years decreasing to 5.95 lb at the age of 15 years.

Thus Maori children were seen to be consistently heavier than non-Maori children of the same age, more predominantly so for females in whom the maximum difference occurred a year earlier than in the males. From studying the ratio of average height to weight it can be postulated that at all ages Maoris were consistently heavier per inch of height than non-Maoris.

A detailed report on the 1969 survey has been published in the special report series of the Department of Health entitled Physical Development of New Zealand School Children 1969 which is available in Government bookshops.

International Comparison—In the following table New Zealand figures are set alongside those of other national surveys. The New Zealand figures are compiled by combining Maori and non-Maori figures using appropriate weighting factors. (11.5 percent of New Zealand children aged 5 to 15 in 1969 were Maori.)

In height New Zealand school children of 1969 compare very closely with Canadian children of the same year; the only marked difference is that New Zealand girls weighed consistently more than their Canadian counterparts. American children in 1963 do not appear to have differed greatly in height from New Zealand children in 1969, but were heavier, the difference being greater in boys. Comparison with the United Kingdom 1965 figures shows only slight differences in weight but New Zealand girls tended to be heavier.

The results of surveys will be affected to some extent by the time of the year at which they were made; growth in height is greater in the spring whereas weight tends to show a spurt in the autumn months.

Average AgeBoysGirls
U.S. 1963Canada 1969N.Z. 1969U.K. 1965U.S. 1963Canada 1969N.Z. 1969U.K. 1965

NOTE: New Zealand figures are interpolated median heights and weights.

Source: Department of Health

   Median Height (Inches)     
646.045.045.445.045.545.045.144.6
748.547.547.847.548.047.047.546.9
850.749.550.149.550.149.049.749.1
952.851.552.251.852.351.551.751.3
1054.654.054.253.754.553.553.853.6
1156.556.056.255.856.557.556.556.0
1258.558.058.358.059.058.559.258.5
1360.860.560.760.361.661.061.361.0
1463.663.563.562.963.062.562.762.8
1565.966.065.965.963.763.063.563.6
   Median Weight (Pounds)     
6494546.746464446.045
7545151.951524951.750
8615657.755585457.255
9676363.761656162.761
10746969.867736870.068
11817677.474827980.178
12908686.583928891.589
131019597.494104100103.8101
14115113111.2107115111114.2113
15128124124.5121122116121.4120

In a study made in 1966 for the School of Physical Education at the University of Otago, Miss. Kathryn McQuarrie showed that for Norwegian and Swedish children similar increases in heights and weights to those of New Zealand children had been recorded, and that for Japanese children the increases were relatively greater. It is of interest to note that for Norwegian and Swedish boys and girls over a period 50 years, there have been close correlations with the changes for New Zealand boys and girls, though in more recent years the New Zealand children have become relatively heavier.

ADULTS: RNZAF Survey 1960—In 1960 a survey was made of the height, weight (stripped), and age of the officers and men of the Royal New Zealand Air Force in New Zealand, Fiji, and Singapore. There were about 4,200 personnel involved; they had all been judged by the medical officers as fit, without any concern for apparent overweight. To an extent the RNZAF personnel would have constituted a select sample.

The average height was found to be 5 ft 8 in.; for those over 40 years of age the average was between 5 ft 7 in. and 5 ft 8 in.; for those under 30 years of age the average was between 5 ft 8 in. and 5 ft 9 in.

The average weight in pounds related to height and age of the officers and men is shown in the following table.

Height (in.)Age Group (Years)
17-1920-2425-2930-3435-3940-4445 +
Weight (lb)
63131132137139140141142
64135136141143144145147
65139140145147148149152
66142144149151152153156
67146149153155156157161
68150153157159160161165
69153157160163164165169
70157161164167168169174
71161165168171172173178
72164169172175176177183
73168173176178179180187

A detailed analysis of the 528 persons in the age group 20-24 years gave the following statistics.

Height (in.)Number of PersonsWeight (lb)Number of Persons
6321207
64712513
654413020
664813528
676714044
6810214551
697915083
708215548
714716637
723516548
73917036
74517526
75118023
  18519
  19012
  19533
  and over 
Totals528Totals528

As a guide to medical examiners on height-weight relationships the following table is used by the New Zealand Army; it reflects the rather heavier build of Maoris.

Height (in.)20-24 Years25-29 Years30-34 Years35-39 Years40-45 Years
Non-MaoriMaoriNon-MaoriMaoriNon-MaoriMaoriNon-MaoriMaoriNon-MaoriMaori
NOTE—All weights equal stripped weights, in pounds.
Weight (lb)
60128140132143137147141150145152
61132143137148141151145154148156
62136147141152145155148157151160
63140151145156148158151160154163
64143155148159151161155164157166
65146159151162155165158167160169
66150163155166158168160169163171
67154167158169161171163172166173
68158170161172164174166175168176
69162173165176168177169178170179
70165176168179171180172181173182
71168178172182174182175184176185
72172181176185178184179187180188
73176183179188181186182189183190
74179185182191183188184190185191
75182186184193185190186191186192

Likewise the following table used by the New Zealand Army sets out approximate height-weight relationships of New Zealand women; it does not provide any information on average height and average weight.

Height (in.)18-19 Years20-24 Years25-29 Years30-39 Years40-49 Years
NOTE—Clothing would add 6 lb to the above net weights.
Weight (lb)
60104120121129135
61107122123131137
62110124125133139
63114126127135143
64118128130137145
65121130133140146
66125132136143147
67130135140146148
68135139145149151
69140143148152153
70144146153157158
71149151157163164
72154157162170171

Other Surveys of Military Personnel—A study of the medical examination records of 10,742 compulsory military trainees in 1950-52 was made by H. C. A. Somerset and included in a thesis “Some Investigations into Dimensions of Physique and their Relationship to Rorschach Responses” submitted to the Victoria University of Wellington. These trainees, all youths and mostly aged 18 years, showed an average height of 68.38 inches and an average weight of 142.5 pounds.

In 1965 a study “The Physiques of Royal New Zealand Air Force Men” was made by J. E. Lindsay Carter and Maurice L. Rendle. The personnel measured were 458 regular servicemen of the RNZAF aged 16 to 52 years and constituting a haphazard sample from all trades and ranks up to and including wing commander. The typical RNZAF male was described as 68.6 inches tall and weighing 153.5 pounds. This sample would include some older men who tend to be heavier.

A study of Maori somatology was made by Sir Peter Buck using as his subjects the remnants of the Maori Battalion after the First World War. According to Buck, the weight and height of the men was fairly representative of the race as a whole, the average being, if anything, rather on the low side. The average height of 424 men was found to be 67.3 inches and the average weight of 384 men was 163.9 pounds. (Sir Peter Buck's study covered a wide range of other physical characteristics and was published in the Journals of the Polynesian Society in 1922 and 1923.)

Comparative Studies of Adults—Examinations of conscripts in Sweden have shown an increase in mean height of no less than 2.3 cm or nearly 1 inch (from 174.4 to 176.7 cm) from 1940 to 1960 (Official Statistics of Sweden).

In an article in the British Medical Journal of 24 October 1953 by E. M. B. Clements it is stated that there is no clear evidence to show that the mean height of men in Britain had increased since 1880.

Other studies by McCane, 1962, and Tanner, 1962, have led to the conclusion that during the past century the growth in height of the population of western Europe has increased by approximately 1 centimetre each decade, with no signs of ceasing. (2.54 centimetres equal 1 inch.)

A report in Newsweek of 29 July 1968 of studies at Vassar and Smith Colleges shows that between 1920 and 1968 the average height of 18-year-old boys increased from 69.0 in. to 70.2 in. and their average weight from 126.6 lb to 144.8 lb. For 18-year-old girls the average height increased from 62.4 in. to 64.4 in. and the average weight from 116.2 lb to 126.2 lb.

For purposes of comparison, some United States averages are given in the following table; they are based on a nationwide sample of 6,672 persons aged 17 to 79 years selected for the health examination survey conducted from October 1959 to December 1962 by the Department of Health, Education and Welfare. (Source: Statistical Abstract of the United States, 1966.)

ItemAge Group (Years)
17-1920-2425-3435-4445-5455-6465-7475-79
Men        
    Height in.68.268.769.168.568.267.466.965.9
    Weight lb168160171172172166160150
Women        
    Height in.63.063.863.763.562.962.461.561.1
    Weight lb142129136144147152146138

Chapter 6. Section 6 SOCIAL WELFARE

6 A—SOCIAL SECURITY AND CHILD WELFARE

GENERAL—Social services are continually evolving as a collective response to the changing needs of society. The operative basis for social security administration has been the acceptance by the community of responsibility for income maintenance and medical treatment of those who are handicapped or otherwise in need.

Social welfare policies and programmes have received increased emphasis at the personal level in New Zealand in recent years, and measures of co-ordination between Government and voluntary agencies have been strengthened. The social and cultural committee of the National Development Conference in 1969 recommended that the possibility of establishing one Government department responsible for all aspects of social welfare be given further consideration, as it would provide greater co-ordination and a more efficient service.

Following this an inter-departmental committee set up by the Minister of Social Security produced a plan for the merger of the Social Security Department and the Child Welfare Division of the Department of Education. The Department of Social Welfare Act 1971 established a new department on this basis from 1 April 1972. This provides, among other things, for a greater centralisation of social casework and sounder administration of supplementary and needy family assistance. Other purposes include research into social welfare and training of social workers, including those of voluntary welfare agencies.

Also involved in social welfare are the Departments of Health, Justice, Labour, and Maori and Island Affairs.

SOCIAL SECURITY DEVELOPMENT—Social security is a comprehensive plan of State assistance by a system of monetary benefits and free or subsidised medical and hospital provisions for the safeguarding of health. The principal objects of the legislation which came into operation on 1 April 1939 were: (a) to substitute a system of extended monetary benefits on a contributory basis for the system of non-contributory civil pensions, e.g., old age, widows', and other pensions; (b) the inauguration of a system of medical and hospital benefits and of other related benefits. The governing legislation is now the Social Security Act 1964.

Universal family benefits were introduced on 1 April 1946, since which date each mother has received a benefit in respect of each of her dependent children irrespective of the family income or property.

There is reciprocity of social security benefits with Australia, and with the United Kingdom and Northern Ireland. Under the Social Security (Reciprocity with Australia) Act 1948 the classes of benefits cover the following: age pensions and age benefits, invalid pensions (including wives' and children's allowances) and invalids' benefits, widows' pensions and widows' benefits, child endowment and family benefits, unemployment benefits, and sickness benefits. The Social Security (Reciprocity with the United Kingdom) Act 1969 provides for reciprocity between the United Kingdom and Northern Ireland and New Zealand to cover age, superannuation, widows', orphans', invalids', family, sickness, and unemployment benefits. A Royal Commission to inquire into social security began hearing submissions in December 1969. Its report was published in March 1972 as parliamentary paper H.53.

ADMINISTRATION—The Department of Social Welfare administers, under the direction of the Minister of Social Welfare, Part I of the Act dealing with monetary benefits, while matters concerning medical, hospital, and other related benefits, are administered by the Department of Health under the direction of the Minister of Health.

The War Pensions Act 1954 is also administered by the Department of Social Welfare, which also handles ex-servicemen's rehabilitation.

FINANCIAL PROVISIONS—Finance to enable the provisions of the Act to be carried out was originally provided for by the establishment within the Public Account of the Social Security Fund. The principal revenue of the fund was derived from a charge (collected by the Inland Revenue Department) on salaries, wages, and other income, including the income of companies, but the Act also made provision for the payment to the fund of such other moneys as might be appropriated by Parliament from time to time. Social security tax and income tax were combined in the tax deduction tables prepared for the operation of the PAYE system from 1 April 1958. (An assessment for accounting purposes of the social security proportion was made until 31 March 1969, when this calculation was discontinued.)

On 1 April 1964 the Social Security Fund was absorbed into the Consolidated Revenue Account in connection with a rearrangement of Government accounts.

From 1 April 1964 the payment of medical benefits has been made by the Department of Health from money appropriated by Parliament for this purpose. From 1 April 1958, the cost of public hospital administration has been borne directly by general taxation; treatment in public hospitals is free.

Payments—Particulars of payments under the Social Security Act during the last 5 financial years are contained in the following table.

Item1966-671967-681968-691969-701970-71
   $(thousand)  
Monetary benefits—     
    Superannuation70,19376,37480,60588,819101,009
    Age55,10257,49560,83367,00376,173
    Widows'11,31611,99512,62213,74215,936
    Orphans'122127137150179
    Family66,81671,45268,26672,31870,402
    Invalids'5,0715,2965,5146,0936,985
    Miners'1311181069995
    Unemployment1412,1763,3021,4651,004
    Sickness4,5595,1565,5896,0737,136
    Emergency1,9222,2373,0774,0255,948
    Supplementary assistance2,1082,5202,7642,7033,164
    Advances for repairs to homes8273695461
    Employment subsidy for disabled civilians76888
    Capitalisation of family benefit7,5767,2377,7907,48610,649
            Total, monetary benefits225,146242,262250,682270,038298,749
Medical benefits—     
    Medical8,6848,8488,7859,69511,756
    Hospital4,1334,4414,8495,4876,627
    Maternity1,9532,0472,0692,9563,133
    Pharmaceutical21,07222,27224,45827,30830,783
    Supplementary6,3926,8557,2417,6289,375
            Total, medical benefits42,23444,46247,40253,07461,674

During the year ended 31 March 1971 $171,505,407 or 59.5 percent of the total expenditure on monetary benefits (including supplementary assistance, advances for repairs to homes, and employment subsidy for disabled civilians) was paid without a means test.

Administration expenses for the year ended 31 March 1970 were $6,587,916 as compared with $5,260,700 the previous year.

The following table gives details of expenditure on the various classes of medical benefits during the last five financial years.

Item1966-671967-681968-691969-701970-71
*Mainly on account of hospital benefits.
   $(thousand)  
Maternity benefits—     
    Private hospital fees387379331341377
    Medical practitioners' fees1,5221,6301,6972,5422,670
    Mileage fees3334387282
    Obstetric nurses' fees43423
    Private hospital loans6----
            Totals1,9532,0472,0692,9563,133
Medical benefits—     
    Mileage fees248230209191181
    General medical services8,1018,2898,2109,0999,785
    Specialist medical services----1,256
    Special arrangements, purchase of sites and erection of residences for medical officers335329366406534
            Totals8,6848,8488,7859,69511,756
Hospital benefits—     
    Private hospitals3,7764,0274,1404,5905,291
    Approved institutions306355386421495
    Private hospital loans3231300446801
    Grants towards operating costs of Karitane hospitals1928232840
            Totals4,1324,4414,8495,4876,627
Pharmaceutical benefits—     
    Chemists20,65521,76523,96826,69730,154
    Medical practitioners178180205278168
    Institutions239327285332462
            Totals21,07222,27224,45827,30830,783
Supplementary benefits—     
    Radiological services646673677708787
    Laboratory services2,6893,1433,6304,1425,335
    Physiotherapy services222222237227234
    Dental services2,7412,6832,5132,3392,800
    Domestic assistance2935554953
    Intellectually handicapped1445468389
    Other5054838077
            Totals6,3926,8557,2417,6289,375
            Grand totals42,23444,46247,40253,07461,675
            Recoveries*1218161613
            Net totals42,22244,44447,38553,05861,661

The following table summarises social security expenditure according to type of benefit and per head of mean population, and also relates expenditure to national income.

Year Ended 31 MarchNet National Income at Factor CostExpenditure*
Medical BenefitsFamily BenefitsOther BenefitsTotalPer Head of Mean Population

*Excluding capitalised family benefits.

†Benefits no longer paid to public hospitals.

Amount $(million)$
19612,24242.461.8113.2217.491.00
19622,31545.966.9115.4228.293.47
19632,50447.564.6118.6230.792.34
19642,74248.468.5126.2243.195.32
19653,00236.565.9132.8235.390.46
19663,26139.670.2137.3247.093.31
19673,35642.266.8150.7259.796.35
19683,45944.471.4163.5279.3102.04
19693,67447.468.3174.5290.2105.03
19704,03153.172.3190.2315.6112.10
19714,63461.770.4217.6349.7123.52
Percentage of Expenditure to National Income
1961...1.92.85.09.7...
1962...2.02.95.09.9...
1963...1.92.64.79.2...
1964...1.82.54.68.9...
1965...1.22.24.47.9...
1966...1.22.24.37.6...
1967...1.32.04.57.7...
1968...1.32.14.78.1...
1969...1.31.84.78.0...
1970...1.31.84.77.8...
1971...1.31.54.77.5...

Benefits and Pensions in Force—The total number of persons in respect of whom social security cash benefits (including dependent wives and children) were payable at 31 March 1971 was 1,299,788, or 4,544 per 10,000 of population. For the previous year the corresponding figures were 1,280,147 and 4,538 respectively. Particulars of the various social security benefits in force at 31 March for the 3 latest years and the annual value at 31 March 1971 are as follows.

Class of BenefitNumber in Force at 31 MarchAnnual Value at 31 March 1971
196919701971
Superannuation139,041142,867146,299104,460
Age97,12598,905102,79780,500
Widows'15,54815,66315,89916,853
Orphans'310315319175
Family405,389408,397414,19569,724
Invalids'7,9898,3428,5577,528
Miners'112989196
Unemployment2,082983715...
Sickness5,9285,8766,306...
Emergency4,5585,2666,422...
Supplementary assistance12,85612,88713,9682,463
            Totals690,938699,599715,568...

In addition there were 1,072 pensions at 31 March 1971 classed as “sundry pensions and annuities”. This class covers ex-officers of the Legislative Department, ex-members of the defence forces, certain ex-members of the Legislature, and others, by way of compassionate allowance, etc.

MONETARY BENEFITS—A summarised account of the changes in monetary benefits from the inception of the social security scheme to 1957 was given on pages 205-206 of the 1958 issue of the Yearbook, and from 1957 to 1968 on page 176 of the 1969 issue. Since 1939 the original provisions have been considerably amended and enlarged to correct anomalies and to cover more comprehensively the needs of the people. In addition the rates of benefits have been increased from time to time, mainly as a result of the increased cost of living.

From 14 May 1969, age, invalids' widows' (and mothers' allowances), and miners' benefits were increased by $1.50 a week or $78 a year for married couples and by $1 a week or $52 a year for unmarried beneficiaries.

The income exemption for age, widows', and invalids' benefits was increased to $572 a year from 14 May 1969.

From 15 April 1970 maximum rates of benefits were increased by $1 a week for married couples and by 50c a week for unmarried beneficiaries.

From 2 September 1970 maximum rates of benefits were increased by $2 a week for married couples and by $1 a week for unmarried beneficiaries.

From 9 June 1971 maximum rates of benefits were increased $2 a week for married couples and by $1.25 a week for unmarried beneficiaries.

The income exemption for age, widows', and invalids' benefits was increased to $676 a year from 2 September 1970.

From 9 June 1971 the deduction from benefit on account of excess income was varied to $3 a year for every $4 of income in excess of $676 a year.

From 16 February 1972 maximum rates of benefits were increased by $2 a week for married couples and $1.10 a week for unmarried beneficiaries.

Age, invalid, sickness, and unemployment beneficiaries with dependent children may also receive family maintenance allowance which has applied from 7 August 1968.

Persons employed outside New Zealand are deemed to be resident in New Zealand, where they are liable for the payment of income tax on their earnings. In each case the wife and children are also included.

The receipt of a war disablement pension or a basic war widow's pension does not affect a person's eligibility to receive a social security benefit.

The Director-General may, in his discretion, refuse to grant any benefit or terminate any benefit or reduce any benefit on moral grounds, or where the applicant (or in the case of family benefit the father or mother of the child) is not ordinarily resident in New Zealand, or has defaulted in payment of income tax or has deprived himself of income or property to qualify for a higher rate of benefit than would otherwise have been the case.

SUMMARY OF RATES OF SOCIAL SECURITY BENEFITS—The list below gives a summary of the annual and weekly rates for monetary benefits.

BenefitAnnual RateWeekly Rate
9 June 197116 February 19729 June 197116 February 1972

*According to circumstances, but in general, standard rates will be increased by $2 a week for beneficiary, $1 a week for his wife. In addition an allowance of 50c a week for each dependent child, or the family maintenance allowance, may also be paid.

†Increased from 5 July 1972. See latest statistical information.

Superannuation—$$$$
    Unmarried person83288916.0017.10
    Married person75480614.5015.50
Age—    
    Unmarried person83288916.0017.10
    Married couple if both eligible (each)75480614.5015.50
    Married woman whose husband is not eligible75480614.5015.50
    Married man whose wife is not eligible1,5081,61229.0031.00
Widows'—    
    Widow83288916.0017.10
    Additional mother's allowance where widow has—    
        One dependent child67667613.0013.00
        Two dependent children75475414.5014.50
    Each additional dependent child78781.501.50
    Orphans' (each child)4684949.009.50
    Family (each child)78781.501.50
Invalids'—    
    Unmarried person, 20 years or over83288916.0017.10
    Unmarried person under 20 years72875414.0014.50
    Married man with wife included1,5081,61229.0031.00
    Married woman75480614.5015.50
Family maintenance allowances—    
    Sole parent—    
        One child67667613.0013.00
        Each additional child78781.501.50
    Married couple—    
        One child1561563.003.00
        Each additional child78781.501.50
Miners'—    
    Unmarried person83288916.0017.10
    Married man with wife included1,5081,61229.0031.00
    Miner's widow75480614.5015.50
Sickness or Unemployment—    
    Unmarried person under 20 years without dependants......13.0013.50
    Unmarried person 20 years and over......16.0017.10
    Married man with wife included......29.0031.00
    Married woman 20 years and over......14.5015.50
Supplementary AssistanceAccording to circumstances
EmergencyAccording to circumstances
Emergency—Sufferers from tuberculosis*............

Superannuation Benefits—Every person over the age of 65 years who satisfies the prescribed residential qualification is entitled to a superannuation benefit without regard to financial circumstances. The superannuation benefit is, however, regarded as assessable income for income-tax purposes but a special tax rebate is allowed for persons in receipt of superannuation benefit. The residential qualification is, in general, a period of residence in New Zealand of 20 years. Allowances are made for occasional absences and for special circumstances such as service overseas with the armed forces, on missionary work, and with Volunteer Service Abroad.

A superannuation benefit is not payable in addition to any other cash benefit except a family benefit. For example, a superannuation benefit and an invalid's benefit cannot be paid to the one person. Similarly, a superannuation benefit and an age benefit are not payable to the one person concurrently.

Since 1960 the amount of the superannuation benefit has been equal to the age benefit.

Age Benefits—Every person who has attained the age of 60 years is entitled to receive an age benefit, subject to residential qualifications.

Particulars of additions to and deductions from the basic rate are as follows:

Unmarried applicants: The basic rate is reduced by $3 for every $4 of income in excess of $676 a year.

Married applicants: Where husband and wife are both entitled to the benefit the basic rate of each benefit is reduced by $1.50 for every $4 of their combined incomes in excess of $676 a year. The basic rate for a male recipient is doubled when his wife is ineligible for any benefit, except family benefit, and the aggregate rate is reduced by $3 a year for every complete $4 of their combined income in excess of $676 a year. In the case where one party is receiving superannuation benefit the reduction is $3 a year for every complete $4 of their combined income (including superannuation benefit) in excess of $1,430 a year. In the case of a married woman whose husband is not receiving a superannuation benefit the benefit payable is not less than the aggregate of the rates of age benefit that would be payable to the beneficiary and the spouse of the beneficiary were both entitled to receive an age benefit.

Age benefits are payable, in the discretion of the Director-General, to unmarried women between 55 and 60 years of age who are unable to engage in regular employment.

Age beneficiaries may surrender their benefits while their earnings are excessive and apply for reinstatement immediately the employment ceases. The earnings received during the period that both husband and wife were not in receipt of age benefits are not taken into account.

Any deduction from the maximum rate of benefit because of excess income may be diminished by $13 for each year that an applicant, on having attained the age of 65 years, has deferred applying for a benefit between the ages of 60 and 65 years, provided that he was residentially qualified to receive the benefit during that period. During 1970-71, 597 existing beneficiaries and new applicants received additional benefit for the first time on account of the deferment concession. The periods of deferment were: 1 year, 45; 2 years, 58; 3 years, 78; 4 years, 93; and 5 years, 323.

At 31 March 1971, 7,609 husbands received benefits on account of dependent wives who were not eligible for benefits in their own right, and 12 males received the additional allowance of $52 a year paid to veterans of the South African War.

The following table shows the estimated age distribution of (a) persons who were granted age benefits during the calendar year 1970 (including transfer from widows' and invalids' benefits), and (b) total age beneficiaries at 31 December 1970.

Age in YearsPersons Granted Age Benefits During 1970Total Age Beneficiaries at December 1970
MalesFemalesTotalMalesFemalesTotal
601,8302,8204,6501,3501,8203,170
615808701,4501,6903,0404,730
623606009602,2103,9006,110
633403807202,3704,3306,700
643704408102,4404,4606,900
            Totals, 60-643,4805,1108,59010,06017,55027,610
65-691,1505601,71012,43015,80028,230
70-743202806007,15010,51017,660
75 and over1804206007,57021,73029,300
            Totals5,1306,37011,50037,21065,590102,800

Widows' Benefits—Subject to an income qualification every widow who is the mother of one or more dependent children under 16 years of age is entitled to a benefit in respect of widowhood. In addition, any widow not being the mother of a dependent child under 16 years of age who satisfies certain conditions is also entitled to the benefit. No widow under 50 years of age who has not had one or more children can qualify for the benefit. The term “children” may include (in the discretion of the Director-General) any child who is being maintained by the applicant and was at any time maintained by the husband of the applicant.

Other classes of women (not being widows) may receive benefits as if they were widows. Any married woman who satisfies the Director-General that she has been deserted by her husband and has taken proceedings against him for a maintenance order under the Domestic Proceedings Act 1969 may be granted a widow's benefit as though she were a widow, provided that she would have been able to qualify for widow's benefit if her husband had died on the date he deserted her. Any moneys paid by a husband, whether by way of a maintenance order or otherwise, are required to be paid to the department and any balance over and above the amount of the benefit is paid to the beneficiary. Benefits for deserted wives may be continued after divorce.

Where a widow's income exceeds $676 the annual rate of benefit is reduced by $3 for every $4 of such excess, but in the case of a widow supporting a dependent child or children the allowable income without reduction is $884 a year. The maximum is increased by $676 a year if there is one dependent child and further increased by $78 a year for each additional dependent child. A widow with dependent children will, of course, receive in addition the family benefit of $1.50 a week for each child.

Widows' benefits cease on remarriage.

“Special” benefits are paid to married women whose husbands have been patients in mental hospitals for at least 6 months.

The following table affords an analysis of widows' and “special” benefits in force at 31 March 1971.

StatusWith One Dependent ChildWith Two or More Dependent ChildrenWithout Dependent ChildrenTotal
Widows2,6933,0328,94714,672
Deserted wives2115283971,136
            Totals2,9043,5609,34415,808
“Special” benefits14304791
            Totals2,9183,5909,39115,899

Orphans' Benefits—A benefit in respect of complete orphanhood is payable in the case of a child under 16 years of age who was born in New Zealand or whose last surviving parent was ordinarily resident in New Zealand for a period of not less than 3 years preceding the date of his or her death. A stepchild or an adopted child comes within the definition of the term, and payment may be made to any person for the time being having the care and control of the child. No payment is made on account of any orphan maintained in a State institution, but payment may be made to the governing bodies of homes and orphanages of religious or other organisations. For the purpose of assisting in the further education of any child, the benefit may be continued until the end of the year in which the child reaches the age of 18 years.

The number of benefits in force at 31 March 1971 was 319 (in respect of 430 children).

Family Benefits—Family benefits are payable, irrespective of the income or property of the parents or children. Prior to 1 April 1946 family benefits were subject to a means test.

The rate of the benefit is $1.50 a week for each child, and is normally paid to the mother of the children.

The term “children” includes stepchildren and adopted children, but does not include—

  1. Any child who has attained the age of 16 years, unless such child is continuing its education as a full-time day pupil at a school or college, or is by reason of some physical or mental defect totally incapacitated from earning a living. In such cases the Director-General may grant or continue the benefit until the end of the year in which the child reaches the age of 18 years.

  2. Any child who is not in fact maintained as a member of the family of the applicant.

  3. Any child in respect of whom any other benefit or pension (other than a war pension or allowance in respect of his own disablement) is payable out of public moneys.

The Director-General may regard as a member of the applicant's family any child who, although not a child of the applicant, is being maintained as a member of the family.

In order to qualify for a family benefit at least one of the following conditions must be satisfied, namely—

  1. The child was born in New Zealand.

  2. The mother of the child was only temporarily absent from New Zealand at the time of its birth.

  3. The Director-General is satisfied that the child is likely to remain permanently in New Zealand.

  4. The child has resided continuously in New Zealand for not less than 12 months.

A benefit is not payable in respect of any child committed to the care of the Director-General nor in respect of any child residing in an institution under the care of the Division of Mental Health of the Department of Health.

A family benefit or portion of a family benefit may be paid in a lump sum in advance for a period not exceeding 52 weeks in respect of the first child of a marriage or a child who has commenced his first year of secondary education.

A family benefit may be paid in cash, or to the credit of the Post Office Savings Bank account of the mother. The number of family benefits being paid to Post Office Savings Bank accounts at 31 March 1971 was 146,873 and the amount lodged during the year was $23,410,278. The total number of benefits in force at 31 March 1971 was 414,195 covering 1,000,451 children, compared with corresponding figures of 408,397 and 990,030 at 31 March 1970. Included in the total were 3 incapacitated children over the age of 16 years; and at the end of 1969 school year there were 51,854 children over 16 at school in respect of whom benefits were being paid.

The following table gives the number of family benefits in force at 31 March 1966 classified according to the number of children for whom the benefit was paid. (This classification is available only at 5-yearly intervals.)

Number of Children in Each CaseNumber of Benefits at 31 March 1966
1107,602
2113,644
378,363
442,262
518,181
68,388
74,208
82,058
91,035
10 or over852
            Total376,593

The average number of children in respect of whom benefit was paid was 2.25 per family in 1950-51, 2.30 in 1952-53, 2.33 in 1954-55, 2.36 in 1956-57, 2.39 in 1958-59, 2.45 in 1960-61, and 2.51 in 1965-66.

Under the provisions of the Family Benefits (Home Ownership) Act 1964, family benefits may be capitalised and paid in advance to assist parents with the erection or purchase of house properties, whether previously occupied or not, additions or alterations to existing homes, or in certain circumstances the repayment of mortgages and other obligations on family homes. In outline, the measure provides for the capitalisation of the family benefit in respect of one or more children from the age of 1 year up to the age of 16 years, provided that the total of the advance or advances in the case of any one family is not less than $400 nor more than $2,000. The maximum income limit for eligibility is $75 a week for a family with one child, rising by $5 a week fore each addition child.

Details of family benefit capitalisation are shown in the following table.

Year Ended 31 MarchApplications for Capitalisation ApprovedNumber of Children ConcernedCapitalised Value of Benefits
   $(000)
19629,73916,98811,919
19638,88414,93110,503
19648,13713,6049,756
19658,28814,07410,162
19667,48512,9869,250
19676,62111,2838,238
19686,55310,8117,901
19697,70812,7449,212
19708,37314,88910,696
19717,89514,43510,370

Invalids' Benefits—Subject to certain residential and other qualifications, every person of the age of 16 years and upwards who is not qualified to receive an age benefit is entitled to an invalid's benefit if he—(a) is totally blind; or (b) is permanently incapacitated for work as the result of an accident or by reason of any congenital defect.

Provision is made for a medical examination, when necessary, to determine the extent of incapacity. An invalid's benefit may be paid in respect of a period of absence from New Zealand not exceeding 2 years in the aggregate, if the Director-General is satisfied that such absence was for the purpose of obtaining any special medical or surgical treatment, or in the case of blindness, for the purpose of undertaking vocational training or treatment of the eyes.

Dependent children are provided for by way of family maintenance allowance. In addition family benefit is payable at $1.50 a week for each child.

In computing the income of any blind person no account is taken of his personal earnings. In addition, the benefit of a totally blind person may be increased by up to 25 percent of his personal earnings.

Of 1,048 new benefits granted in 1970 the marital status was: single 531 (270 males, 261 females), married 307 (304 males, 3 females), widowed 53 (35 males, 18 females), and apart, separated, divorced 157 (72 males, 85 females). By far the greatest number, 535, were aged 50 years or over, the numbers for other age groups being as follows: under 20 years, 222; 20-39 years, 145; and 40-49 years, 146.

Miners' Benefits—Subject to the qualifications set out hereunder, a miner's benefit is payable to any person who, while engaged as a miner in New Zealand, contracted pneumoconiosis or any other occupational or heart disease and is thereby permanently and seriously incapacitated for work, provided that compensation under the Workers' Compensation Act in respect of the same disability is not being received.

There is no reduction in the benefit on account of the income or property of the applicant and/or his wife. If a person in receipt of a miner's benefit dies leaving a widow, such widow is entitled to a benefit during widowhood. This benefit is payable regardless of the circumstances of the widow.

Unemployment Benefits—An applicant for unemployment benefit is required to satisfy the Director-General: (a) that he is unemployed; (b) that he is capable of undertaking and is willing to undertake suitable work; (c) that he has taken reasonable steps to obtain suitable employment; (d) that he has resided continuously in New Zealand for not less than 12 months at any time.

An unemployment benefit is not payable in respect of the first 7 days of any period of unemployment, except in special circumstances. The Director-General may postpone, for a period not exceeding 6 weeks, the commencement of the benefit if the applicant: (a) has voluntarily become unemployed without good and sufficient reason; or (b) has lost his employment by reason of any misconduct as a worker. The benefit may be terminated if the beneficiary has refused or failed, without a good and sufficient reason, to accept any offer of suitable employment.

The benefit is payable so long as the beneficiary is unemployed or until he becomes eligible to receive another class of benefit, other than a family benefit—e.g., an age benefit.

A married woman is entitled to receive the benefit only if her husband is unable to maintain her. If a beneficiary is not receiving a benefit in respect of a wife, an allowance may be paid in respect of any person who has the care of his home.

The rates of benefit may be reduced, having regard to the income received by the applicant or his wife in excess of $13 a week.

The number of applications for unemployment benefits dealt with during the years ended 31 March 1970 and 1971 were 13,439 and 9,857 respectively, 8,924 persons being granted a benefit in 1969-70 and 6,132 in 1970-71. At the end of March 1971, 715 benefits were in force, compared with 983 at the end of the previous year. Payment of additional benefit for a dependent wife was included in 344 of the benefits granted during 1970-71 and in 242 of the benefits in force at 31 March 1971.

Sickness Benefits—A person over the age of 16 years who is temporarily incapacitated for work through sickness or accident, and as a result suffers a loss of salary, wages, or other earnings, may apply for a sickness benefit. The amount of the benefit is limited to the amount by which the weekly earnings of the applicant have been reduced by reason of his incapacity or to a maximum of $31 a week payable to a man and his wife. Where a person is engaged in business on his own account and by reason of sickness or accident is obliged to employ a substitute during the period of incapacity, the remuneration paid to the substitute is regarded as loss of earnings. Every application for a benefit must be supported by a medical certificate, and no benefit is payable for the first 7 days of incapacity except under special circumstances.

A married woman is entitled to receive a sickness benefit only if the department is satisfied that her husband is unable to maintain her.

Any applicant who is maintaining a home and who is not drawing a benefit in respect of a wife, may receive a benefit of up to $13.50 a week in respect of any person who has the care of his home.

The rate of benefit is reduced by 15c for every complete 20c of the total income, exclusive of war disablement or basic war-widows' pensions, of the applicant and of his wife or her husband, as the case may be, in excess of $13 a week.

The number of applications for sickness benefits dealt with during the years ended 31 March 1970 and 1971 were 35,757 and 39,108 respectively. The number of persons granted sickness benefits was 32,358 in 1969-70 and 35,528 in 1970-71.

In the following table sickness benefits which ceased during the calendar year 1970 are shown according to the duration of the sickness benefit.

Duration of Sickness Benefit (Weeks)Number of Benefits
MalesFemalesTotal
Up to 410,1203,31013,430
5-85,2702,1507,420
9-132,7101,7304,440
14-262,9003,6206,520
27-398506301,480
40-52400200600
53-78270120390
79-10417040210
105 and over14070210
            Totals22,83011,87034,700

The following table gives a classification of sickness benefits according to the disease suffered by the beneficiary. The data are obtained from an analysis of the benefits which ceased during the calendar year 1970.

Disease or InjuryMalesFemalesPercentage of Total
Infective and parasitic diseases1,1303904.4
Neoplasms5301602.0
Allergic, endocrine system, metabolic, and nutritional diseases250901.0
Diseases of the blood and blood-forming organs70300.3
Mental, psychoneurotic, and personality disorders1,5301,2207.9
Diseases of the nervous system and sense organs7402502.8
Diseases of the circulatory system2,2603707.6
Diseases of the respiratory system3,39073011.9
Diseases of the digestive system2,7906409.9
Diseases of the genito-urinary system6403502.9
Deliveries and complications of pregnancy4,78013.8
Diseases of the skin and cellular tissue6601702.4
Diseases of the bones and organs of movement1,3803304.9
Congenital malformations140500.5
Senility, and ill-defined conditions2,4701,19010.5
Accidents, poisonings and violence4,8501,12017.2
            Totals22,83011,870100.0

Emergency Benefits—An emergency benefit may be granted on the grounds of hardship to any person who by reason of age, physical or mental disability, or any other reason is unable to earn a sufficient livelihood for himself and those dependent on him and is ineligible for any other monetary benefit other than family benefit.

Emergency benefits are paid to separated women and women who lose the support of de facto husbands of long-standing unions, wives of prisoners, unmarried mothers, etc. In return, the department has the authority to recover maintenance from the husbands where this is legally possible.

Family Maintenance Allowance—The family maintenance allowance, which was introduced from 7 August 1968, is a supplement to certain basic social security benefits. It is payable, in the discretion of the Director-General, to beneficiaries who have dependent children and are receiving one of the following benefits—age, invalid, sickness, unemployment, or related emergency benefits.

The allowance is paid to a married couple at a rate not exceeding $3 a week for the first dependent child, increased by not more than $1.50 a week for each additional dependent child. A sole parent is paid at the rate of $13 a week for the first dependent child, increased by $1.50 a week for each additional dependent child. (This rate is the same as the mother's allowance paid in conjunction with widow's benefit to beneficiaries who have dependent children.) As at 31 March 1971, there were 6,818 allowances in force in respect of 17,298 children.

Supplementary Assistance—Supplementary assistance is available to social security beneficiaries and others who have special commitments which cannot be met out of current income, have insufficient other resources, and are unable to help themselves. Continuing grants are made where the applicant's continuing commitments, e.g., food, fuel, rent, are in excess of the income received by this applicant, and lump sum grants may be made to meet some non-recurring expense. An analysis of these grants showing purpose and amounts of grants, is given in the parliamentary paper H. 9.

In the 1970-71 year, 23,847 applications for assistance were granted, expenditure totalling $3,163,548, compared with 21,550 grants totalling $2,702,992 in 1969-70.

Reciprocity with Australia—The Social Security (Reciprocity with Australia) Act 1948, provided for reciprocity in relation to a wide range of benefits between New Zealand and the Commonwealth of Australia. The Act came into force on 1 July 1949. (A similar Act was passed in Australia and came into force on the same date.)

For the purpose of any application for a benefit (except the New Zealand non-means-test superannuation benefit) residence in Australia or birth in Australia is regarded as residence or birth in this country.

Applicants for age, invalids' or widows' benefits must be qualified on residential grounds to receive the corresponding pensions under the Social Services Act (Australia) as if their residence in New Zealand had been residence in Australia. No male person is entitled to receive an age benefit unless he has attained the age of 65 years. The Act also provides that the department shall treat blindness or permanent incapacity for work occurring in Australia as if it had occurred in New Zealand.

Part III of the Act deals with persons who, although ordinarily resident in New Zealand, are temporarily resident in Australia. Such residence is not a disqualification for a benefit. Benefits may be applied for and paid in Australia for a limited period, although the department may, in its discretion, postpone payment of the whole or any part of the benefit until the return of the beneficiary to New Zealand.

Reciprocal benefits in force in New Zealand at 31 March 1971 comprised 488 age benefits, 35 widows' benefits, 31 invalids' benefits, 5 sickness benefits, and 4 family benefits, a total of 563 compared with 531 a year earlier.

Reciprocity with United Kingdom—The Social Security (Reciprocity with United Kingdom) Act 1969 provides for reciprocity in a comprehensive range of benefits between New Zealand and the United Kingdom. The general principle of the agreement is that persons migrating from one country to the other will be taken into the social security scheme of the receiving country and paid benefits by the receiving country under the laws and conditions applicable to other residents of that country.

United Kingdom Residents in New Zealand—In New Zealand the agreement applies to former residents of England, Scotland, Wales, Northern Ireland, and the Isle of Man who claim age, superannuation, widows', orphans', family, invalids', sickness, and unemployment benefits under the Social Security Act. Permanent residence in New Zealand is a requirement for age, widows', superannuation, invalids', and orphans' benefits.

The agreement modifies the residential requirements of the Social Security Act and enables persons who formerly lived in the United Kingdom to be treated as if they resided in New Zealand during any period they lived in the United Kingdom. This does not, however, apply in respect of any period an applicant for age or superannuation benefit resided in the United Kingdom before reaching the age of 16. Though the normal qualifying age for a grant of age benefit in New Zealand is 60 years, no man claiming age benefit by virtue of the agreement is entitled to receive it till he reaches 65 years.

The United Kingdom continues to pay retirement pensions and widows' pensions to persons in New Zealand who are qualified under the national insurance scheme and, in such cases, New Zealand, where necessary, supplements the national insurance pensions to bring them up to the rate of the appropriate New Zealand benefit. There is no supplementation in cases where the national insurance retirement or widow's pension is equal to, or greater than, the corresponding New Zealand social security benefit. Reciprocal benefits in force in New Zealand at 31 March 1971 comprised 6,106 superannuation benefits, 3,913 age benefits, 259 widows' benefits, 3 family benefits, 92 invalids' benefits, 9 sickness benefits, and 2 unemployment benefits, a total of 10,384 compared with 9,752 a year earlier.

New Zealand Residents in the United Kingdom—In the United Kingdom the agreement applies to former residents of New Zealand who claim retirement pensions, widows' pensions, widowed mothers' and guardians' allowances, family allowances, sickness and employment benefits under the National Insurance Act.

The United Kingdom scheme is a contributory scheme, and payment of benefits is dependent upon the satisfaction of specified contributory conditions. Persons who formerly lived in New Zealand are treated as if they had paid contributions under the national insurance scheme for each week during which they were resident in New Zealand. The qualifying age for retirement pension under the National Insurance Act is 60 years for women and 65 years for men.

It is to be noted that, although a man may have been in receipt of age benefit when he left New Zealand, he is not entitled to retirement pension in the United Kingdom unless he is 65 years of age. Special provisions apply to married women arriving in the United Kingdom from New Zealand as far as entitlement to the United Kingdom retirement pension is concerned.

Persons in receipt of social security benefits in New Zealand otherwise than by virtue of the Reciprocal Agreement, who leave New Zealand wholly or mainly for a visit to the United Kingdom will normally have their benefits suspended on departure, but if they return to New Zealand within 12 months they will be paid arrears of their social security benefits for the period of their absence. If the absence exceeds 1 year but not 2 years, on return to New Zealand consideration is given to paying arrears of benefit for the first 6 months of the absence. If they apply for, and receive, national insurance pensions while in the United Kingdom, the amount paid by the United Kingdom will be deducted from the arrears of social security benefit payable on their return.

MEDICAL, HOSPITAL, AND OTHER RELATED BENEFITS—Part II of the Social Security Act 1964, administered by the Department of Health and dealing with medical and like benefits, is of general application to all persons ordinarily resident in New Zealand, and makes provision for medical, pharmaceutical, hospital, maternity, and other related benefits.

Medical Benefits—Medical benefits apply to such medical treatment as is ordinarily given by medical practitioners in the course of a general practice. Certain services are excluded, these being principally:

  1. Medical services in maternity cases. (These services are covered by maternity benefits and are described under a later heading.)

  2. Medical services involved in any medical examination of which the sole or primary purpose is the obtaining of a medical certificate.

  3. Medical services other than anaesthetic services, involved in or incidental to the extraction of teeth by a medical practitioner.

  4. Medical services in respect of which fees are payable under the Social Security (X-ray Diagnostic Services) Regulations 1941, Social Security (Physiotherapy Benefits) Regulations 1951, and Social Security (Laboratory Diagnostic Services) Regulations 1946—see later headings.

  5. Medical services afforded by means of advice given by telephone, telegram, or letter except under circumstances specifically approved by the Director-General of Health and medical services not rendered by a medical practitioner in person.

Every medical practitioner who renders any of the prescribed services is entitled, on behalf of the patient, to receive from the Department of Health a reasonable fee not exceeding 75c for every occasion on which any such service is provided. Mileage fees are also provided for in certain cases. Where the practitioner is called upon to provide, in response to an urgent request, services on a Sunday or holiday, or between the hours of 8 p.m. and 8 a.m., the appropriate fee shall be a reasonable one not exceeding $1.25. In the case of medical services afforded to certain beneficiaries and pensioners, and their dependent wives and children, the fee payable to the doctor by the Department of Health is $1.50 for attendance during normal hours, and $2 for night, Sunday, or holiday services. For consultations with a recognised specialist, the department pays a fee of $5 for an initial consultation with a recognised specialist physician, psychiatrist, neurologist, neurosurgeon, or paediatrician, and of $3.50 in the case of other recognised specialists. These rates apply only to the first occasion on which a patient is referred by a general practitioner to a specialist and, in the case of interspecialist referral, with the prior concurrence of the original doctor. For subsequent visits, the fee paid by the department reduces to 75c for each visit, except in the case of social security beneficiaries and pensioners and their dependants for whom the fee is $1.50. In designated rural areas, an incentive bonus is also payable. A doctor may claim directly from the Department of Health and require the patient to pay the balance of his fee, or may require the patient to pay the whole fee and himself claim a refund from the Department of Health. There has been a steady swing towards the direct-claim system by doctors, and 91 percent now follow this practice.

The number of doctors providing general and specialist medical services in March 1971 was 2,075 and the cost per head of population in the year ended 31 March 1971 was $3.99; the average population per active practitioner was 1,354.

Pharmaceutical Benefits—Persons receiving medical attention under the Act are entitled, generally without cost to themselves, to those medicines, drugs, approved appliances, and materials, prescribed for their use by medical practitioners and which are included in the Drug Tariff.

Prescriptions passed for payment in the year ended 31 March 1971 totalled 19,026,626, or 6.7 per head of population. The average cost per prescription was $1.52, the cost per head of population being $10.90.

Hospital Benefits—Treatment is provided free by public hospitals where a patient is entitled to hospital benefits under the Act. In the case of private hospitals and other approved institutions benefits paid are in partial satisfaction of claims against the patients. The rates from 1 October 1971 are as follows:

  1. For surgical treatment $9.00 a day, with a minimum of $18.00.

  2. For medical (including psychiatric) treatment $5.50 a day.

Free treatment is accorded outpatients at public hospitals; this also covers the supply of artificial aids, including contact lenses, hearing aids, artificial limbs, surgical footwear, ileostomy and colostomy appliances, and urinals. It does not include dental treatment or services in respect of which fees are payable under specific Social Security Regulations (X-ray diagnostic services, laboratory diagnostic services) referred to under later headings. In respect of surgical footwear, part payment by the patient is required.

Mental Hospitals—Treatment of patients in public mental hospitals is also free. A licensed (private) mental hospital may be recognised and approved by the Minister as a hospital for the purposes of the Act, and hospital benefits in respect of treatment are payable accordingly.

Maternity Benefits—Maternity benefits cover ante-natal and post-natal advice and treatment by medical practitioners, and the services of doctors and nurses at confinements in maternity hospitals or elsewhere. Licensed maternity hospitals are entitled to receive fees of $9.00 in respect of the day of birth of the child and for each of the succeeding 14 days. Approved midwives and maternity nurses who are in attendance in cases where confinement takes place other than in a maternity hospital are entitled to receive fees at the rate of $8 for the day or days of labour and $5.40 per day for each of the 14 days succeeding the birth of the child, or $1.60 per day if a visiting obstetric nurse only.

X-ray Diagnostic Services—Free X-ray diagnostic services comprise the following:

  1. The making of X-ray examinations with the aid of a fluorescent screen.

  2. The taking of X-ray photographs.

  3. The supply and administration of any drugs or other substances for the purposes of any such examination or photograph.

X-ray photographs or X-ray examinations made or taken for dental purposes or for the purposes of life assurance, visas, emigration permits, and examinations for the sole or primary purpose of obtaining medical certificates for production to some other person, are not included in the free services.

Laboratory Diagnostic Services—The benefits concerning laboratory diagnostic services comprise the supply of all materials or substances required for the purpose of providing laboratory diagnostic services, and associated medical services.

The following services are not included:

  1. Examination of specimens for public health.

  2. Post-mortem examinations.

  3. Laboratory services for dental purposes or for the purposes of life insurance.

  4. The preparation of sera and vaccines.

Physiotherapy Benefits—Physiotherapy treatment by private physiotherapists is covered by the Social Security (Physiotherapy Benefits) Regulations 1951. The general arrangement for these benefits consists of contracts with registered physiotherapists under which they are paid from the Department of Health a fee of 50c.

No physiotherapy treatment is recognised for the purpose of the benefits unless it is given on the recommendation of a medical practitioner, and not more than 6 weeks' treatment may be given on a single recommendation except in the case of certain specified diseases, illness, etc., approved by the Director-General of Health, when the period of treatment on any one recommendation may be extended up to 6 months.

Home-nursing Services—Home-nursing services are provided free of cost under the Social Security (District Nursing Services) Regulations 1944.

Domestic Assistance—Monetary assistance is given to approved incorporated associations formed for the purpose of providing domestic assistance in homes. Assistance in this connection is restricted to the following classes:

  1. Cases where there are one or more children under 12 years of age permanently residing in a home and the mother or other woman in charge of the home is wholly or partially incapacitated from undertaking her ordinary domestic duties by reason of pregnancy or maternity, or by reasons of accident, sickness, etc.

  2. Cases where there are three or more children under 12 years of age permanently residing in the home, and any member of the household requires special care and attention by reason of sickness or infirmity.

  3. Cases where all members of the household of an age or condition to help in the home are wholly or partially incapacitated from work by sickness or otherwise.

  4. Cases where lack of domestic assistance in the home is a cause of undue hardship.

Dental Services—The Social Security (Dental Benefits) Regulations 1960 provide for free dental treatment. These benefits are confined to persons who are under 16 years of age. Treatment may be provided in a State dental clinic or by a contracting dentist for whom there is a prescribed scale of fees.

Artificial Aids—The Social Security (Hospital Benefits for Outpatients) Regulations 1947 made provision for the supply of artificial aids, such as artificial limbs, hearing aids, and contact lenses.

Contact Lenses—These may be supplied in respect of the following optical disabilities: (a) conical cornea, (b) high myopia, where the degree of myopia present in the greatest axis of the better eye is not less than —10 diopters, (c) monocular aphakia, if the restoration of binocular vision is highly desirable by reason of the patient's occupation or other circumstances and binocular vision cannot be restored without the use of contact lenses. In each case the supply of such lenses must be recommended by an approved ophthalmologist.

Lenses may also be supplied in respect of any other ocular condition which cannot be corrected by ordinary spectacles; in these cases recommendation by two ophthalmologists is necessary.

Hearing Aids—Individual electrical hearing aids may be supplied subject to the following conditions:

  1. The patient possesses a hearing loss of at least 35 decibels in the better ear over the significant frequencies of speech or such other loss of a lesser degree as, in the opinion of an otologist employed or engaged by a hospital board, renders the use of an aid necessary.

  2. The patient's hearing loss is such that in the opinion of the otologist it is capable of correction or marked improvement by the use of the type of hearing aid supplied or approved for the purpose of the benefit.

It is provided that in respect of patients who satisfy these conditions but who do not wish to avail themselves of the hearing aid issued free of charge by hospital boards there may be paid a sum not exceeding $26 towards the purchase of any aid approved for the purposes of these benefits. If a patient has received a benefit for a hearing aid within the preceding 5 years, the hospital board may pay half (or up to a maximum of $13) of the cost of replacement, provided that the replacement aid will assist hearing more than the existing aid and that the patient is otherwise eligible.

Artificial Limbs—The free supply of artificial limbs is subject to the following conditions:

  1. The patient has not obtained or is not entitled to obtain a limb as an ex-serviceman under the provisions of the War Pensions Regulations 1956 or under the provisions of section 22 of the Workers' Compensation Act 1956.

  2. The supply of the limb is recommended by an approved orthopaedic surgeon.

  3. The limb is of an approved type and can, in the opinion of the supplier's orthopaedic adviser, be satisfactorily fitted.

For the purposes of the regulations “artificial limb” includes artificial arms, artificial hands, artificial legs, and artificial feet, and includes limb socks for such limbs and for female amputees, replacement understockings.

ACCOMMODATION SERVICES: (Old People's Flats, Homes, Hospitals, Youth Hostels, and Homes for Intellectually Handicapped Children)—Government assistance is offered to religious and voluntary organisations and local authorities in providing housing, accommodation, and services for elderly people and others whom it is considered are in special need. Under this partnership with Government, the social service agencies of all the major religious bodies, as well as other welfare organisations, have established additional accommodation for the aged, frail, and sick who need residential care in either an old people's home or a geriatric hospital. Where it is not possible to meet the need of elderly people through these agencies, the provision of residential care for the aged becomes a hospital board responsibility. At 31 March 1971 religious and welfare organisations provided 5,695 home and hospital beds for the elderly. Hospital boards maintain 1,037 old people's home beds, while approximately 4,300 of their hospital beds (38 percent) are required for care of the elderly sick, either on a short-stay or long-term basis.

For the elderly who are ambulant and able to care for themselves but have a housing need and whose resources are limited, local authorities are encouraged and assisted by Government to build specially designed flats. These flats enable many elderly people to retain their independence for longer than would otherwise be the case. Some 770 flats have also been provided by religious and voluntary organisations for this category of elderly persons, generally in conjunction with their residential accommodation.

Other measures which are of importance in assisting elderly people to remain in their homes as long as possible are receiving increased attention. Chief amongst these are the provision of district nursing services, home aid, meals-on-wheels, laundry services, and occupational therapy. In general the services are provided by hospital boards with voluntary organisations and old people's welfare councils assisting in various ways. The importance of old people's clubs and social centres, with an adequate range of services, is also receiving increasing recognition. Government lottery funds are being used to assist in providing suitable premises and assisting welfare councils with administrative costs.

Old People's Homes and Hospitals—Subject to maximum subsidies of $7,200 per bed for old people's homes and $8,600 for a geriatric hospital, capital cost limits per bed of $9,000 and $12,000 respectively, and certain other conditions, religious or welfare organisations may be granted 100 percent of the approved capital cost of providing accommodation for old people. In addition, since April 1966, the policy has been widened to provide a 50 percent subsidy towards the cost of approved improvements and the upgrading of existing accommodation, and 75 percent for fire protection work as required by the local authority. The administration of policy is a Department of Health responsibility.

During the year 1970-71, subsidies amounting to $1,841,175 were approved to assist in the provision of accommodation for 312 old people. From April 1950 to 31 March 1971, subsidies totalling $17,272,576 have been approved, and buildings erected as a result will accommodate 4,809 old people. In addition, subsidies totalling $324,676 have been approved towards upgrading old people's homes.

Pensioner Housing—Since 1950 the Government has offered subsidies and low-interest loan finance to local authorities, towards flats for age beneficiaries or elderly people in comparable circumstances. Pensioner flats erected by religious and welfare organisations are also eligible for subsidy. Since February 1971 the first $3,000 of the cost of construction of a flat is met by a State Advances loan of 3 1/2 percent, while the balance of the cost of construction, with a maximum of $3,000, is availableby subsidy. A subsidy of up to $1,000 a flat is now available for the cost and development of land The assets limitation for eligible applicants is $5,000. Up to 31 March 1971, a total of $10,880,802 had been approved on subsidies to provide suitable housing for 7,178 elderly persons.

There is also a growing awareness of the elderly with housing problems, but whose resources disqualify them for a flat under the subsidy policy. Some local authorities have already established flats for elderly folk in this category and others are interested in planning schemes. The flats are financed with a contribution from the owner-occupier and a measure of Government loan. This type of programme has been adopted by one welfare agency and others are known to be interested.

Hostels for Young People—Since 1951, religious and welfare organisations have been assisted to establish hostels for young people by subsidies of establishment costs. As from May 1971, the subsidy has been 80 percent, with a limit of $2,880 per young person accommodated. The purpose is to assist young men and women who are living away from their homes in order to study or undertake employment and find it difficult to obtain suitable living accommodation. Subsidies of 50 percent may also be granted for authorised improvements to existing hostels, and 75 percent for fire protection work as required by the local authority. The Department of Health is responsible for administering this policy.

Since the policy commenced, subsidies totalling $1,453,513 had been approved up to 31 March 1971, to assist in providing hostel accommodation for 1,322 young people, and for upgrading purposes.

Government also helps with substantial subsidies for university halls of residence established by religious and welfare agencies. Administration is handled by the University Grants Committee.

Services for the Intellectually Handicapped—Since 1954 there has been a subsidy of up to 50 percent on the capital cost of approved buildings and furnishings acquired for the purpose of providing short-stay homes for intellectually handicapped children. In 1963 Government also extended the capital subsidy to include hostels built by the Intellectually Handicapped Children's Society for children who are attending occupation groups run by the Department of Education. In 1966 the cost of land and professional fees (architect and quantity surveyor) were included in assessing subsidy on hostels and sheltered workshops with a maximum subsidy on hostels of $2,400 per bed. In addition, a maintenance subsidy of $1.60 per day is paid in respect of these children under 16 years of age. Since 1968 there has been a capital subsidy of $400 per place for day care centres. In 1969 Government approved subsidies of 50 percent of salaries of staff for day care centres, sheltered workshops, and of approved branch administrators. In 1970 the capital subsidy for hostels was increased to $2,880 per bed.

The administration of this policy is the responsibility of the Department of Health and Social Welfare Department. The administration of capital subsidies for sheltered workshops and day care centres for the intellectually handicapped was transferred to Social Welfare Department in 1970. That department also pays the salary subsidy for approved staff employed at day care centres and sheltered workshops.

The total amount expended on special subsidies for short-stay homes, hostels, sheltered workshops, and day care centres during the year ended 31 March 1971 was $308,885. In addition, $111,233 was paid by way of operating costs during the same period.

CHILD WELFARE—Child welfare increasingly means involvement with social problems. There is no specific statutory requirement that the Social Welfare Department should undertake preventive work, but it is clear that the earlier that assistance is given to prevent children becoming delinquent or suffering through neglect or ill-treatment, the more likelihood there is of it being successful. Welfare policy has developed along these lines and the department provides care, protection, and treatment for all kinds of children in need. There is a general realisation in the community that the whole of society is affected by the problems which social workers grapple with. Most of the children with whom social workers are involved suffer from disabilities other than those manifested in delinquency and, like children born out of wedlock, the majority of children are brought to notice through no fault of their own.

Previously a part of the Department of Education, the Child Welfare Division has been amalgamated with the Social Security Department to form the Department of Social Welfare. The Child Welfare Act 1925 provides for the maintenance, care, and control of children who are under the protection of the State, and to provide generally for the protection and training of indigent, neglected, and delinquent children. While this Act is the general statutory authority, the Infants Act 1908, the Adoption Act 1955, and the Child Care Centre Regulations 1960 provide the legislative basis for other particular aspects of the work.

Besides clerical officers, child welfare activities involve 290 social workers and 472 institution workers. Casework duties include preventive work; investigations and reporting for the Children's Court; supervision of children in their own homes; foster home, institution, and work placement; adoption and ex-nuptial birth inquiry work; the licensing of foster parents defined in the Infants Act 1908; reporting to courts on matrimonial proceedings affecting custody of children; registration of child care centres; inspection of children's homes run by voluntary organisations and examination of requests made by them for financial subsidies; the oversight of immigrant and refugee children. Social workers receive assistance in many of these duties from 140 honorary social workers, who are people of integrity and local standing in their communities.

Facilities for institutional care and training include short and long-term training centres for difficult and delinquent children and residential special schools for the deaf, mentally retarded, and emotionally disturbed children. There are also small hostels for girls and boys who have commenced work, but are not yet ready to live independently in the community.

Welfare of Children—Social workers undertake a wide variety of miscellaneous investigations and inquiries concerning the welfare of children. In the year ended 31 December 1970, 17,453 cases were handled. Cases may be referred by neighbours, police, teachers, employers, doctors, solicitors, etc., or by parents themselves who are seeking advice and guidance. Some of these cases will respond quickly to help. Others may need preventive oversight and guidance over several months or even 2 or 3 years. Financial help can be given in special cases. In a relatively small number of cases preventive help is not sufficient and court action is the outcome of inquiries.

Social workers, on receiving from the registrars notifications of ex-nuptial births, make confidential inquiries and assist the mother as necessary in making provision for her child. The higher number of such births in recent years has had its effect in the adoption situation. However, over half of these children born each year remain with their mothers or with both parents who are cohabiting or who subsequently marry, and not all the remainder are made available for adoption. In fact only 32 percent of children born out of wedlock in 1970 were available for adoption. Placements in adoption homes are made by social workers for those children (about three-fifths) for whom placements have not been made by private persons and other organisations.

The smaller proportion of children being offered for adoption is thought to reflect the beginnings of a changing pattern in society, with an increase both in de facto marriages and in the proportion of mothers willing to undertake the sole care of a child. It has also to be recognised that because speedy placements for adoption have been more difficult to effect over recent years some mothers may have been obliged to keep children they would otherwise have offered for adoption.

Under the Adoption Act 1955 a social worker must give prior approval to the placement for adoption of a child under 15 years, or alternatively, the applicants must apply for an interim order of adoption from the court. The court is required to obtain a social worker's report on such a placement before granting an order. A waiting period of at least 6 months is normally required, during which the placement is supervised by a social worker, before a final order can be made.

The department also has a measure of responsibility towards handicapped children generally, partly because of its role in assisting the Department of Education in the administration of residential schools for children who are deaf, mentally backward, or emotionally maladjusted. Social workers, more especially in country areas, also assist in locating children who require special education, in advising parents or teachers concerning the facilities available, and in ensuring that the circumstances become known to appropriate agencies.

Under Part V of the Infants Act 1908 any person who is not a close relative and who undertakes to care for a child under the age of 6 years apart from its mother for a period of more than 7 days for payment or reward must have her home licensed by a social worker. At 31 December 1970 social workers were visiting 457 children so placed.

Inspecting children's homes operated by private organisations and administering schemes of Government financial assistance to these homes is another important social welfare function. Financial assistance is given by payments of $2 per week for each child in care and subsidies of up to 50 percent on expenditure for extension or replacement of buildings or additions to facilities. A similar capital subsidy is available for private organisations to help in providing accommodation for unmarried mothers and their children.

Regulations for the registration and licensing of child care centres (e.g., day nurseries, creches, etc.) have been in force since 1961.

The Department of Social Welfare has built up a considerable body of knowledge on new trends and methods in the fields of both residential and day care for children. As a result, it has become an important point of reference for information and advice.

Children's Courts—Children's Courts are presided over by stipendiary magistrates who are authorised to exercise jurisdiction in these courts. Very wide discretionary powers are given to Children's Courts. Wherever practicable the hearings are conducted in premises apart from the Magistrate's Court, and no newspaper is permitted to publish either the names of children appearing before these courts or any particulars that are likely to identify a child.

A child for the purposes of the Act is a person up to 17 years of age.

Children's Courts deal with cases of children brought either (a) on a complaint under the Child Welfare Act that a child is neglected, indigent, delinquent, not under proper control, or living in a detrimental environment or (b) charged with an offence. After the court has heard the complaint or the charge and considered the social worker's report, the child—according to the needs of the case— may be committed to the care of the Director-General of Social Welfare, or placed under the supervision of a social worker for a period (usually 1 year or 2 years), or discharged with an admonition. Occasionally, orders for the payment of restitution may be made against either the child or parent, and fines also may be imposed. Alternatively, if the case warrants it, the child may be sent to borstal or to a detention centre or be placed on probation.

Appearances before the Children's Courts in the 3 latest calendar years and the rates per 10,000 children aged 10 to 17 years are given in the following table:

Reason for AppearanceNumberRate
196819691970196819691970
*The discrepancy between the totals of this and the “Decisions” table is owing to the exclusion from this table of two cases in 1968 of applications by the manager of a private children's home for an agreement to be enforced.
For offences against special Acts, regulations, or bylaws714694860161619
For more serious offences6,3286,3358,234144141179
            Subtotals7,0427,0299,094160157198
On “complaints” under the Child Welfare Act1,0691,3461,571.........
            Totals8,111*8,37510,665.........

The decisions made in Children's Courts are shown in the summary below for the three latest calendar years.

Decision196819691970
Committed to the care of the Director-General of Social Welfare8818391,045
Placed under supervision of social workers2,9363,0653,753
Admonished and discharged with or without costs, restitution, or fine3,0183,0644,021
All other decisions1,2781,4071,846
            Totals8,1138,37510,665

A new approach to the problem of delinquency was the establishment throughout New Zealand in 1959 of a youth aid section of the New Zealand Police. The aim is to detect delinquency at an early stage and, by close co-operation between social workers and specialist police officers, to deal with the less serious offenders without court action. The police, after consultation with social workers, decide whether or not there will be a prosecution. For those not being prosecuted appropriate action is taken, for example, in the form of a warning from the police or continuing informal supervision by social workers. During the year ended 31 December 1970, 8,707 cases were dealt with under this scheme without prosecution, an increase of 23 percent over the previous year's figures.

State Wards—Where a child's circumstances or behaviour causes such concern that it is in his best interests for him to be removed from his own home, a magistrate in a Children's Court may make an order committing the child to the care of the Director-General of Social Welfare. This means that the legal guardianship is transferred from the parents to the Director-General, and the child is taken from home. However, continuing efforts are made to keep the child in touch with his own family and, if possible, to return him home eventually. Many of the children who are committed to the care of the Director-General and who are thereby under his guardianship are placed immediately in foster homes and go to school or work. Those who require special care and training which cannot be provided in the ordinary life of the community are placed in institutions administered by the Director-General. Some few reside in private institutions and some are in boarding schools.

Of the total of 15,984 children under the control and supervision of the Director-General of Social Welfare and his officers at 31 December 1970, 5,205 were under the guardianship of the Director-General and were placed as shown in the following summary.

CategoryNumberPercentage of Total
Residing in individual private homes (foster homes, employers', or relatives' homes)3,72472
In institutions administered by the Social Welfare Department (including those temporarily admitted)87817
In psychiatric hospitals1583
In residential schools and colleges (including schools for handicapped children)2905
In hospitals, convalescent homes, etc.183
In children's homes (including orphanages, etc.)119
Attending university or teachers' training colleges18
            Totals5,205100

For the children requiring institutional care and training the Social Welfare Department administers several different types of institution. There are long-term training institutions for disturbed and delinquent adolescents. They are essentially open institutions providing full educational facilities with qualified and trained teachers and also a wide range of vocational training. Two other small institutions provide separately for girls and boys of primary school age who are so difficult or disturbed as to require special educational and social training. A small hostel for girls at Wellington provides for some who, while in ordinary employment, require for the time being the conditions of supervision and care obtainable in a hostel. There are 11 girls' homes and boys' homes in the larger centres and two reception centres (at Auckland and Hamilton) which provide remand facilities, temporary care, and observation. Children not requiring institutional care but presenting behaviour and personality problems beyond the capacity of most ordinary foster parents are provided for in “Family Homes”. These are private houses owned by the department and occupied rent-free by specially selected married couples who receive board payments and agree to care for children on a long-term basis as a condition of the tenancy. These homes are also used to provide transit accommodation in areas in which there is no receiving girls' home, or boys' home. Of the 65 homes in operation at 31 December 1970, 21 were used as hostels for working adolescents and for children being discharged from institutions.

Children Under Supervision—Children placed by the courts under supervision of social workers are supervised in their own homes, except that in a few cases, with the approval of the parents or guardians, the social worker arranges placement elsewhere—e.g., in employment. Magistrates have the authority to order that part or all of the period of supervision be spent in an institution. Most children placed under supervision respond well; where they do not they may appear before the court again and be committed to the care of the Director-General. There were 3,753 children under supervision at 31 December 1970.

Preventive cases, numbering 4,136 at 31 December 1970, consist of children who, without any court appearance, are being supervised and assisted by social workers under arrangements made voluntarily with the parents or guardians.

WELFARE OF MAORIS AND PACIFIC ISLANDERS—The legislative basis of the Maori welfare programme is the Maori Welfare Act 1962 and the aim is the social and economic advancement and the promotion and maintenance of the health and general well-being of the Maori community and the facilitation of full integration of the Maori race into the social and economic life of the country. An important feature of the programme is that it does not seek to impose standards from without; rather, it calls upon the Maori people to exercise control and direction of their own communities in the essentials of good citizenship and civic responsibility.

The Maori welfare organisations consist of two statutory groups and various voluntary groups. The statutory groups are:

  1. Maori associations comprising the New Zealand Maori Council, the district Maori councils, Maori executive committees, and the Maori committees. All are democratically elected and work independently of the department.

  2. The Maori and Island Affairs Department, which works closely with all Maori groups as it realises that its main objectives cannot be achieved without full acceptance and participation by the people themselves.

The main organisation in the non-statutory group is the Maori Women's Welfare League. It was formed in 1951 and has branches throughout the country. Its membership approximates 3,000. Special tribal groups, social, sports, and cultural clubs, church groups, women's and other organisations are some of the many other groups which have their own spheres of action promoting and furthering the physical, social, spiritual, and moral well-being of the people.

The primary function of the New Zealand Maori Council is to encourage Maoris as individuals and in groups to take the initiative in matters affecting their own welfare and that of their kinsfolk, to be a forum of discussion in which they can crystallise their ideas and gain the co-operation of others in actively pursuing mutually agreed objectives and eventually achieving progressive improvement in the various spheres of welfare. By its own request it is charged with the duty of maintaining and promoting harmony between Maori and non-Maori.

The Maori and Island Affairs Department, through the activities of its welfare division in particular, collaborates with and gives Maori associations and other groups such assistance and advice as may be necessary or helpful so that the members themselves may find and apply their own solutions to their problems and develop and achieve the utmost satisfaction from their own culture. The department also collaborates with appropriate social welfare agencies, State and voluntary, in helping individuals and families who are experiencing difficulties in adapting themselves to their social and economic environment, accepting the full responsibility where a need is not being met. The department actively encourages these State and voluntary organisations to understand and to communicate successfully with the Maori so that they can work more effectively with him.

The primary function of the Maori Women's Welfare League is to educate the mothers of the race to an appreciation of the higher standards of attainment on the home front. It also interests itself actively in education, particularly pre-school.

Maori wardens carry out special functions. They are appointed by the Minister at the initiative of Maori committees to whom they are responsible. Their function is to assist in the maintenance of order and in stamping out mischief before it becomes crime. Wardens to not usurp the duties of the police but are an influence among the people in maintaining law and order.

The Act provides for subsidies to be paid on moneys raised by the Maori people through their associations for the promotion of welfare. The subsidy granted in the financial year ended 31 March 1971 amounted to $36,512.

The Maori and Island Affairs Department, again primarily through its welfare division, assists Pacific Islanders of New Zealand nationality to adjust to the New Zealand situation and provides advisory services to individuals or groups facing difficulties. Special responsibilities are accepted for the housing, employment, educational, and welfare needs of Tokelau islanders arriving under the official resettlement scheme.

6 B—WAR PENSIONS AND REHABILITATION

GENERAL—The war pensions programme is largely the outcome of New Zealand participation in two world wars in which large numbers of citizens served as members of the forces. It applies also to service in Korea, South-east Asia, and in any emergency, including obligations undertaken under the charter of United Nations. The war pensions scheme gives a comprehensive coverage to those ex-servicemen who were disabled as a result of their service and for their dependants and for the dependants of those who have died as a result of service. The principles of the war pensions legislation since 1923 have been: (a) the provision of disablement pensions which are assessed in proportion to physical loss, being compensatory in character; (b) supplementary payments, in appropriate cases, depending on the means of the pensioner.

LEGISLATIVE AUTHORITY—All pensions payable to or on account of former members of the armed forces, the mercantile marine, and the Emergency Reserve Corps are governed by the War Pensions Act 1954.

ADMINISTRATION—The Secretary for War Pensions is charged with the administration of war pensions under the general direction and control of the Minister in Charge of War Pensions. The War Pensions Board decides on claims for pensions. Claimants have the right of appeal to a War Pensions Appeal Board.

It is laid down that the onus of proving that death or disablement was attributable to service, or that the condition which resulted in death or disablement was aggravated by such service, shall not be on the claimant and that the War Pensions Board and the War Pensions Appeal Board shall give claimants the full benefit of all presumptions in their favour. A member who was graded fit for service when he entered the forces is deemed to have been absolutely fit at that time unless any defects were noted then or within the first 2 months of service. This presumption does not operate if the member failed to disclose any material fact to the medical examiner. The boards are not bound by technicalities or legal forms or rules of evidence, but determine all claims in accordance with their merits.

RATES AND ALLOWANCES—The list below summarises the rates of war pensions and allowances.

PensionWeekly Rate
19 June 197116 February 1972
*Family maintenance allowance is payable in addition to these pensions and allowances.
 $$
Disablement pension  
    Total disablement15.4015.40
    Special additional pension for blindness or serious disablement9.209.20
Economic pension  
    Unmarried person16.5017.10
    Married person14.5015.50
Wife's pension14.5015.50
War widow's pension  
    Basic pension11.3511.35
    Economic pension16.0017.10
    Mother's allowance  
        One dependent child13.0013.00
        Each additional child1.501.50
Orphan's pension10.0510.55
Child's pension1.501.50
Widowed mother's pension (total dependent)  
    Basic pension11.3511.35
    Economic pension16.0017.10
Widowed mother's pension (partially dependent)  
    Basic pension4.004.00
    Economic pension*13.7514.85
War service pension and war veteran's allowance*  
    Unmarried16.0017.10
    Married male14.5015.50
    Married female14.5015.50
    Age supplement (each)1.501.50
Family maintenance allowance  
    Sole parent:  
        One dependent child13.0013.00
        Each additional child1.501.50
    Married couple:  
        One dependent child3.003.00
        Each additional child1.501.50

Economic pensions, war service pensions, and war veterans' allowances are subject to a means test on income and are reducible if income from other sources exceeds $13 a week or $676 a year. In the case of a widow supporting a dependent child or children the allowable income without reduction in pension is, however, $17 a week. In the computation of a wife's pension, the income of the husband only is taken into account.

Travel grants and other concessions may be made to severely disabled persons.

Pensions to Dependants (other than Wives or Children)—In addition to pensions for wives and children, a pension may be granted to any member of a deceased or disabled serviceman's family. The parents of a male member of the forces are included in the definition of dependant in every case, without proof of pre-service dependency.

Economic Pensions—An “economic pension” is defined as a supplementary pension granted on economic grounds and is in addition to any pension payable as of right in respect of death or disablement. In considering a claim for an economic pension a War Pensions Board is required to take into consideration the ability of the claimant to obtain and retain suitable employment, the personal income and ownership of any property, the cost of living, and other relevant matters.

Servicemen pensioned for minor disablement do not receive economic pensions.

Servicemen pensioned in respect of service on or after 3 September 1939 have not, from 1 April 1971, been eligible to receive an economic pension unless already in receipt of an economic pension at that date.

WAR VETERANS' ALLOWANCES—These make provision for ex-servicemen, mainly of the First World War, who have become unfit for permanent employment by reason of mental or physical incapacity.

WAR SERVICE PENSIONS—From 1 April 1971 the war service pension is payable in respect of overseas service in the Second World War or any subsequent war or emergency in which members of the New Zealand forces have served. Payable subject to an income test, the pension is designed for disabled or prematurely retired ex-servicemen who saw service overseas after 3 September 1939. Ex-servicemen of other Commonwealth countries may also qualify as applicants for the pension. Eventually, this will be the only war pension payable on economic grounds.

An applicant must also fulfil one of the following conditions: (a) be in receipt of a war disablement pension of not less than 70 percent of the maximum pension payable for total disablement; or, (b) being in receipt of a war disablement pension of less than 70 percent, unable by reasons of physical or mental infirmity to undertake permanent employment.

There are residential qualifications of 5 years for an ex-member of New Zealand forces, or an ex-member of other Commonwealth forces, who was a bona fide resident of New Zealand at the commencement of the war or emergency in which he served, and 20 years for other applicants.

No account is taken of the amount of war disablement pension in determination of the amount of the basic war service pension. A war service pension cannot be paid concurrently with a social security benefit other than a family benefit.

Where any war service pensioner and/or his wife has attained the age of 65 years, an age supplement of a maximum of $78 a year each is added to the basic war service pension.

Pensions for Dependants—From 1 April 1971 wives' pensions have not been payable in respect of service on or after 3 September 1939 unless such pension was already payable at that date. From 1 April 1971 the wife of a member of the forces pensioned for total blindness in respect of service on or after 3 September may receive a war service pension but not an age supplement.

EMERGENCY RESERVE CORPS PENSIONS—These pensions are payable where death or disablement was suffered by a member of the Emergency Reserve Corps in the course of service (including training), or was directly attributable to such service.

MERCANTILE MARINE PENSIONS—Pensions and allowances are paid in respect of death or disablement of members of the mercantile marine as a result of the Second World War.

FAMILY MAINTENANCE ALLOWANCE—The family maintenance allowance, which was introduced from 7 August 1968, is a supplement to certain war pensions. It is payable, in the discretion of the War Pensions Board, to pensioners who have dependent children and are receiving an economic pension, a wife's pension, a war veteran's allowance, or a war service pension. The allowance is paid to a married couple at a rate not exceeding $3 a week for the first dependent child, increased by not more than $1.50 a week for each additional dependent child. A sole parent is paid at the rate of $13 a week for the first dependent child, increased by $1.50 a week for each additional dependent child (this rate is the same as the mother's allowance paid in conjunction with a widow's pension paid to widows with dependent children).

SUPPLEMENTARY ASSISTANCE—Supplementary assistance is available on a similar basis to social security supplementary assistance. During the year ended 31 March 1971 there were 714 grants totalling $72,457, compared with 682 grants totalling $70,590 in the previous year.

WAR BURSARIES—Bursaries for educational purposes are available to children of ex-servicemen in receipt of war service pension or 70 percent disablement pension and of deceased ex-servicemen in respect of whose deaths war pensions are paid.

During 1970-71, 1,881 bursaries were granted, expenditure being $153,194 for the year. The 1969-70 figures were 2,162 bursaries and $178,440.

WAR PENSIONS MEDICAL RESEARCH TRUST BOARD—When a pensioner dies any unpaid pension money not paid to dependants in the normal way may be paid to the War Pensions Medical Research Trust Fund for research into mental disorders or other fields of medical research beneficial to former members of the forces. This Medical Research Trust Fund is administered by a trust board which ensures that the money is applied to research for the benefit of ex-servicemen and the community in general.

STATISTICAL REVIEW OF WAR PENSIONS, ALLOWANCES, ETC.—During the year ended 31 March 1971 the department dealt with 2,825 applications for war pensions. Of these, 653 applications were lodged by ex-servicemen in respect of their own disabilities, the balance being made up of claims by dependants, applications for economic pensions, and war veterans' allowances. The total for the previous year was 2,852. Of these, 758 were in respect of the applicant's own disability. In addition, there were 201 claims received during the year in respect of disablement arising from service with peacetime armed forces, of which 112 were granted and 89 declined.

The number of appeals to the War Pensions Board dealt with in 1970-71 was 203, of which 55 were upheld.

Summary of Disabilities for Which Pensions Granted 1939-71—The following is a summary of the disabilities attributed to war service from 1939 onwards and for which ex-service personnel had been granted pensions up to 31 March 1971.

Class of Disability or DiseaseType of ServiceTotalPercentage of Total
Overseas (1939-45)K ForceJ ForceNew Zealand
Infections and infestations2,0629271602,3213.7
Nervous system9,82844131,75511,64018.4
Eye, ear, and nose7,376106201,6159,11714.4
Circulatory and blood system2,7281021,0833,8236.0
Metabolism and endocrine system444211796261.0
Respiratory system3,82831541,2445,1578.1
Diseases of bones, joints, muscles, tendons, and ligaments5,54633101,9037,49211.8
Digestive system4,78239131,2406,0749.6
Generative system355111264830.8
Gunshot wounds and accidental injuries to bones, joints, and soft tissues8,379125302,17510,70916.9
Skin2,58931125573,1895.0
Areolar tissue502-29810.1
Tumours and neoplastic growth2292-572880.5
Malformations3081-1324410.7
Amputations (not including fingers and toes)5144-295470.9
Urinary tract651831648261.3
Debility445--1095540.9
            Totals50,11453116612,55763,368100.0

The following table shows for all classes of war pensions the number in force at the end of March in each year and the expenditure during the years given.

Year Ended 31 MarchFirst World War (1914-18)Second World War (1939-45)K ForceWar VeteransSouth AfricanMercantile MarineEmergency Reserve CorpsSupplementary AssistanceTotal
    Number in Force     
196114,33924,51819714,2511928916153,522
196213,84524,67620914,7491729817853,711
196313,10424,73720315,1851627817453,454
196412,55624,52118414,3501425821251,870
196511,94624,62916713,8941223829550,974
196611,38924,71619013,4881121837750,200
196710,67624,50820412,8451023538648,657
196810,16024,49723912,642720641947,990
19699,50724,37726112,366725944246,994
19708,83624,25425512,032625842345,839
19718,25024,04423011,7015261042344,689
    Expenditure $(000)     
19616,6395,7593511,41011841923,884
19626,5835,8762612,25011842224,780
19636,3786,4181812,72010841725,573
19646,7566,9672712,928101042926,731
19656,5867,1262213,3489943727,142
19666,5077,8292313,2999854827,728
19676,5718,0183313,6368955628,336
19686,3998,3104213,5218955828,352
19696,1258,5174613,58249410228,389
19706,3039,4345414,19541057130,077
19716,2099,8246015,10251277331,292

The foregoing figures of expenditure include the following: (a) travelling allowances of $1 a week paid to 1,032 pensioners at 31 March 1971; (b) clothing allowances, of which 1,152 were being paid at 31 March 1971 and the annual value of which for 1970-71 was $59,332; (c) gallantry awards of an annual value of $7,864. The following are not included: (a) costs of certain medical treatment not available under social security, amounting to $159,801 in 1970-71; (b) railway and bus concessions to pensioners with severe disablement and locomotive disabilities, costing $41,638 in 1970-71; (c) loadings on life-assurance policies where the loadings are due to war disabilities (there was no expenditure under this heading in 1970-71); (d) funeral grants which cost $57,694 in 1970-71; and (e) loans towards the purchase of motor vehicles by certain seriously disabled pensioners (31 loans in 1970-71 totalling $36,548).

Administration costs in connection with war pensions and allowances are included in the administration costs of the Social Welfare Department which are given in Section 6A.

The numbers of First and Second World War and K force pensions in force as at 31 March of each of the latest 6 years are given below.

At 31 MarchDisablement PensionsDependants of Disabled Ex-membersOn Account of DeathTotal
PermanentTemporaryWidowsParents and Other Dependants
   First World War, 1914-18   
19667,0661221,0233,1542411,389
19676,5201068953,1411410,676
19686,098887813,1761710,160
19695,569706633,193129,507
19705,041655823,135138,836
19714,633504983,06098,250
   Second World War, 1939-45   
196617,6353,7899611,86746424,716
196717,6723,5559531,89543324,508
196817,6923,4659372,00439924,497
196917,5633,4349652,04537024,377
197017,7843,0789532,09234724,254
197117,5183,0629562,19431424,044
   K Force   
1966116628-4190
1967131618-4204
1968139869-5239
196915490863261
1970169671054255
1971160541015230

The number of children for whom payments were made in 1970-71 but who were not included in the preceding table totalled 738, being 21 in respect of First World War pensions, 705 for Second World War pensions, and 12 for K force pensions.

REHABILITATION—The Rehabilitation Act 1941 and its amendments made provision for the re-establishment in civil life of discharged servicemen, and an extensive programme was promoted by the Rehabilitation Board, the National Rehabilitation Council, and the Rehabilitation Department. Under the Emergency Forces Rehabilitation Act 1953, regulations were made for the rehabilitation and protection of servicemen and dependants of servicemen who served overseas in connection with any emergency under the United Nations Charter or otherwise.

The Rehabilitation Board determines the nature and extent of the assistance that may be granted to any class of servicemen, and approves the granting of such assistance.

Rehabilitation Assistance—All forms of rehabilitation assistance available to ex-servicemen of the Second World War and K force ceased on 31 March 1965.

Resettlement assistance is available to ex-servicemen with minimum service of 6 months in the Southeast Asia area. Closing dates for housing and furniture loans have been set at 5 years from the date qualifying service ceased. Applications for subsidised trade training, and education assistance must be lodged within 2 years of return to New Zealand. Limited preferences in farm ballots are also available to ex-servicemen with a farming background.

Special provisions exist to ensure that rehabilitation assistance will continue to be available to all ex-servicemen whose rehabilitation may at any time be interrupted or become necessary as a result of disability arising from service.

Expenditure—Rehabilitation expenditure (including loan authorisations) for the 2 latest years ended 31 March was as follows.

ItemYear Ended 31 March 1969Year Ended 31 March 1970
 $(000)$(000)
Educational facilities, including books, tuition fees, and subsistence allowance2633
Trade training—  
    Payments to Disabled Servicemen's Re-establishment League, etc.2210
    Training of blinded ex-servicemen148
Farm training and settlement (excluding loans)2,7241,894
Loans—  
    Interest concessions1,2441,188
    Loans authorised2,8763,803
Reserve Fund contributions4253
Suspensory loans, etc.51
 6,9536,990

The next table shows the number of disability pensions in force at 31 March 1971, classified according to percentage of disablement.

Percentage of DisablementFirst World WarSecond World War 1939-45K ForceTotal
PermanentTemporaryPermanentTemporaryPermanentTemporary
*Includes “over 100 percent” disablement which is a special rate pension for total blindness or other serious disablement.
100*991131,5083621342,891
90-9949110027177
80-8918753251132632
70-794073714195521,326
60-69221845621727911
50-5947091,0133801331,888
40-4963321,2543241532,231
Under 401,675912,1481,4441103515,421
            Totals4,6335017,5183,0621605425,477

Details of economic pensions payable at 31 March 1971 are now given, together with the totals as at 31 March 1970.

Class of PensionFirst World War 1914-18Second World War 1939-45K Force
NumberAnnual ValueNumberAnnual ValueNumberAnnual Value
  $(000) $(000) $(000)
Ex-members with permanent pensions7975811,06076485.0
Ex-members with temporary pensions7524517421.4
Widows2,2661,7361,6081,24910.8
Widowed mothers2120813521.3
            Totals at 31 March 19713,0722,3233,1212,322138.5
            Totals at 31 March 19703,2052,6963,0782,243169.7

6 C—SUPERANNUATION

GENERAL—Superannuation for all Government employees is available under the authority of the Superannuation Act 1956.

Local Government employees, and employees of all statutory bodies are provided for under the National Provident Fund Act 1950 which also authorises certain schemes for members of the general public.

There are also a considerable number of private superannuation funds and some information about them is given at the end of this subsection.

GOVERNMENT SUPERANNUATION FUND—The Government Superannuation Fund in its present form was established on 1 April 1948. Its revenues consist of contributions, subsidies from the Consolidated Revenue Account and other funds, and interest earned on investments.

The fund is administered by a board consisting of the Minister of Finance as chairman, the Secretary to the Treasury, the Chairman of the State Services Commission, the General Manager of Railways, the Director-General of Education, the Director-General of the Post Office, the Commissioner of Police, five members appointed on the nomination of the various employee organisations, and one on the nomination of the Minister of Defence.

Membership—Membership of the Superannuation Fund is now available for all employees of the State. These include employees of departments of State under the control of the State Services Commission, and also those employed in the Education Service, the Railways Department, and the Post Office. Membership is compulsory for permanent members of the armed forces, the Police, and Prisons Service, also for members of the Judicature (judges of the Supreme Court and Court of Arbitration), Maori Land Court judges, magistrates, and members of Parliament. A contributor to the fund who enters the service of the Government of Western Samoa or of the Western Samoa Trust Estates Corporation may, if the board agrees, continue to contribute to the fund. In addition, the fund has continued to be the vehicle for the superannuation scheme for the Cook Islands and Niue Public Services.

Compulsory membership also applies to any person, other than a married woman, who has become permanently employed in the Government service after 1 January 1964, and who is at least 17 and less than 25 years of age.

Contributions—Those who decided not to join the adjustment scheme which commenced on 15 June 1969 (see under Benefits), pay contributions ranging from 5 percent to 10 percent of salary, depending on the age at which contributory service began. The rate of increase is in 1 percent steps for each 5 years of age, 5 percent being the percentage for those who join when under 30 years of age.

Those who have not opted out of the adjustment scheme and those who have begun their contributory service after 31 December 1969 pay 1 percent of salary additional to the above rates.

An alternative modified scheme, applicable to both situations, was introduced in 1955 under which contributors may elect to contribute only 60 percent of contribution rates and receive only 60 percent of the standard benefits.

Benefits—Upon retirement a contributor entitled to a retiring allowance may elect to accept a refund of his contributions, or an allowance. If he chooses the latter he may vary the normal allowance by electing to; (a) take an increased allowance to age 65, reducing thereafter, (b) surrender a portion of the allowance to provide after his death an annuity for his widow or other approved dependant, (c) surrender not more than one-quarter of his retiring allowance and to receive in lieu a lump sum payment equal to nine times the amount of the allowance surrendered.

Standard retiring allowances are computed at the rate of one hundred and twentieth part of the annual salary for each year of contributory service, to which is added an equal amount by way of employer subsidy. However, the latter is not permitted to exceed one-third of the annual salary. The annual salary for the purpose of this computation is taken to be the average of that received during the 5 years immediately preceding retirement, although in special cases (i.e., the first computed portion of the retiring allowance is less than $300) the average salary received during the last 3 years may be used if it results in a more favourable computation.

A scheme for adjusting retiring allowances in accordance with increases in the cost of living (as measured by the Consumers' Price Index) was introduced as from 15 June 1969. Annuitants qualify for these adjustments as from their sixtieth birthday or their date of retirement, whichever is the later (although there is provision for earlier qualification in the case of those who retire medically unfit). For those who had retired before 15 June 1969 their adjustments will be based on 60 percent of cost of living movement. For those who were contributing at that date and came into the adjustment scheme (see under Contributions) their adjustments will be based on 60 percent of cost of living increases plus a proportion of the additional 40 percent based on the relationship between the period during which they pay the additional contributions involved and their total period of contributory service. Those members with contributory service commencing after 15 June 1969 will receive adjustments based on 100 percent of cost of living changes.

Retiring allowances and other benefits are paid in advance in instalments every 28 days. No recovery is made should the beneficiary die during the benefit period.

When a married contributor dies, his widow may elect to receive a refund of his contributions or an allowance at half the rate of the allowance to which her husband would have been entitled had he retired on the date of his death. The widow of a superannuitant may elect to receive a refund of the amount of his contributions less any sums received by him during his lifetime, or to receive an annuity at one-half the rate of his retiring allowance, disregarding any election to take a variable allowance or to surrender part of the allowance for an approved dependant. Widows' annuities are included in the cost of living adjustment mentioned above, with the qualifying age reduced from 60 to 55 years.

The amount of the widow's annuity cannot be less than $260 ($156 in the modified scheme). In addition, $78 per annum $46.80 in the modified scheme) is paid for each child under 16 years of age (or 18 if still receiving full-time education) left by a deceased contributor or superannuitant. The widow's benefit is payable only during widowhood but is reinstated if after remarrying she again becomes a widow.

When a female contributor or superannuitant dies leaving a husband who can satisfy the board that he was totally or partially dependent on her immediately before her death, a widower's annuity, calculated on a similar basis to the widow's benefit, may be paid.

Variation of General Conditions—As stated above, membership of the fund is compulsory for the Police, members of the Prisons Service, and for the armed forces. Members of the Police and Prisons Service are obliged to retire at age 60 and, to enable late entrants to obtain the equivalent of 40 years' service for superannuation purposes, there are special provisions for the computation of their allowances. Where contributory service commenced after age 25, each year in the Police and Prison Service is deemed to be one year and one-seventh. Where contributory service commenced after age 20 but before age 25, a lesser proportion is added. An increased rate of contributions is payable by those whose service is scaled up. The standard benefits apply.

Contributions for members of the armed forces are the same percentage of salary as for the general State Services (i.e., excluding the Police and Prisons groups already mentioned) and their retiring allowances are computed in the normal manner. However, they may qualify for a retiring allowance after 20 year's service, irrespective of age, while for the general service, qualifications range from 40 years' service to 65 years of age, in accordance with date of entry into the fund.

Prior to the implementation in 1962 of equal pay for women in the State Services, female contributors could retire on completion of 30 years' service or on reaching 55 years of age. Those employed at 1 April 1962 may still do so but women who have joined the fund since then have to satisfy the same retiring allowance qualifications as do males.

Members of the Judicature contribute at the rate of 7 percent* of their salary. Their retiring allowances are based on a scale which varies according to length of service. The result of the formula is that after 10 years' service a pension equal to six twenty-fourths of the annual salary at date of retirement is payable, increasing by one twenty-fourth of that salary for each year over 10. The allowance, however, is not to exceed sixteen twenty-fourths of that salary. A widow of a judge is entitled to half her husband's retiring allowance subject to a minimum of 15 percent and a maximum of 25 percent of the husband's final salary.

Magistrates and judges of the Maori Land Court contribute 8 percent* of their salary. Their retiring allowances are based on one thirty-sixth of the annual salary at the date of retirement for each year of service, up to a maximum of two-thirds of that salary. The widow's benefit is calculated in the same way as for judges' widows.

Members of all the groups mentioned above are entitled to a retiring allowance at any stage if they become substantially unfit for further duty. The allowances are based on the period of contributory service completed and are computed in the normal manner.

Members of Parliament contribute 10 percent* of an ordinary member's salary. A member qualifies for a pension if he retires from Parliament having completed not less than 9 years service as a member, or not less than 8 years when he has served throughout the duration of not less than three sessions. The allowance is payable from age 50 onwards. The allowance is computed at the rate of one thirty-second part of an ordinary member's salary for each year of service, with a maximum of two-thirds of that salary. The standard provisions for widows', widowers', and children's benefits apply.

STATISTICS—At 31 March 1971 there were 107,857 contributors who paid $23,406,953 for the year into the fund. The pensioners at the same time numbered 28,235 and were entitled to $31,083,679 a year, made up as follows.

Class of PayeeMalesFemalesTotalAnnual Allowances
    $(000)
Retired for age or length of service14,5973,38317,98025,963
Retired for ill-health8922061,098801
Widows and dependent widowers7,7487,7484,210
Children7476621,409110
            Totals16,23611,99928,23531,084

Accumulated funds at 31 March 1971 amounted to $174,943,875. Total assets, which amounted to $175,926,042 included—investments $169,186,600; interest due and accrued, $2,012,972; contributions in course of transmission, etc., $852,325; and cash in hand and at bank $3,874,145.

The average effective interest earnings of the fund for the year ended 31 March 1971 was 5.18 percent.

The total revenue of the fund for the year ended 31 March 1971 was $61,909,281, including members' contributions $23,590,385, interest on investments and on contributions $8,255,441, other items $1,548, and subsidy $28,061,907. The total amount expended during the year was $38,897,453, including retiring and other allowances $33,635,108, and refunds of contributions $5,262,345.

In the Parliamentary Superannuation Account revenue was $119,196 including contributions $58,500, subsidy $56,367, and interest $4,329. Expenditure on retiring and other allowances was $88,616 while refunds of contributions totalled nil.

Year Ended 31 MarchNumber of ContributorsAnnual Contributions*Interest Received From InvestmentsSubsidy From Government Trading Departments, and OthersAnnual Value of AllowancesAccumulated Fund
*Includes transfers from National Provident Fund.
  $(000)$(000)$(000)$(000)$(000)
196795,77211,8435,17918,68923,161113,063
1968100,75313,7115,83119,53124,396125,776
1969103,45114,5106,57420,17325,405138,319
1970105,00017,5727,27722,74130,250151,901
1971107,85723,5908,25528,06231,084174,944

*The superannuation adjustment scheme has applied to parliamentary superannuation (and also to judges) since 1 April 1970, and to magistrates and judges of the Maori Land Court since 15 June 1969, with the rate of contribution increased by 1 percent of salary; contributors before 1 January 1971 were given the right to opt out before that date.

NATIONAL PROVIDENT FUND—The National Provident Fund was established on 1 March 1911 with the object of providing a superannuation scheme for the public. The present legislative authority is contained in the National Provident Fund Act 1950 and its amendments.

The fund is administered by a board comprising the Minister of Finance as chairman, the Secretary to the Treasury, the Director-General of Health, the Valuer-General, the Superintendent of the Fund, and up to three other members appointed by the Governor-General.

The board now provides five distinct services:

  1. Public Fund—It provides pension schemes for individual members of the general public and schemes for members of approved friendly societies, employees of firms, trade unions, etc.

  2. Local Authorities Superannuation—It administers superannuation schemes for employees of all local authorities, quasi-government organisations and other approved organisations.

  3. National Farm Workers Superannuation Scheme—It administers a superannuation scheme for farm employees.

  4. National Superannuation Scheme—It administers an employer subsidised superannuation scheme for employees of firms and companies.

  5. Local Authorities Investment Pool—It controls the investment pool into which local authorities may temporarily invest otherwise idle funds.

The State guarantees the benefits payable under the schemes and in most cases provides a subsidy to the extent of one-fourth of contributions. However, no State subsidy is payable in the National Farm Workers Superannuation Scheme and the National Superannuation Scheme. The Government guarantees minimum interest earnings instead. The trading quasi-government organisations in the local authorities schemes themselves meet the subsidy which is payable by the State in the case of the local authorities.

The State meets all administration expenses.

Public Fund—Membership of the public part of the National Provident Fund is open to any resident of New Zealand over the age of 15 years, and under the age of 60 years.

There are two schemes. The Level Premium Scheme, which is not at present available to new contributors, permits a contributor to purchase a predetermined amount of pension from age 60 years by the payment of fixed, regular contributions, with the first $20 per week of pension attracting the State subsidy of 25 percent of contributions. After 5 years' membership contributors qualify for ancillary benefits in the form of incapacity allowances and widows' and dependent children's allowances.

The Annual Single Premium Scheme, which is currently available, enables members to purchase a pension by making contributions of any amount as and when they like. At the end of each 12-monthly period the total contributions made during the periods are applied towards the purchase of a pension from age 60 years. Only the first $1,000 of contributions in any 12-monthly periods attracts State subsidy while, as in the Level Premium Scheme, the subsidy is limited to the first $20 per week of pension purchased. There is a widow's benefit provided.

In both the schemes the contributor, when he reaches 60 years of age, may defer uplifting the pension (but to not later than age 65) and the pension ultimately payable increases 10 percent for each year of deferment. At the same time he may elect to continue contributing and thus further increase the ultimate benefits.

When the pension becomes payable the following options are provided:

  1. Both schemes—Up to one-quarter of the pension may be surrendered in exchange for a lump sum equivalent to nine times the amount of annual pension forgone.

  2. Level Premium Scheme—The contributor may elect to receive a joint and survivorship pension with wife (husband). This means that the pension is immediately reduced but continues unchanged until the death of the surviving spouse.

  3. Annual Single Premium Scheme—The contributor may elect to surrender portion of his pension to provide an additional amount for his widow or an annuity for an approved dependant.

Local Authorities Superannuation—There are uniform superannuation conditions for the employees of all local authorities in New Zealand, although slight variations are made to suit the special needs of particular groups, e.g., nurses and firemen. The schemes embrace the staff of quasi-government organisations, e.g., producer boards, but again there are special variations when required (e.g., aircrew of the National Airways Corporation and of Air New Zealand). The schemes also cover teachers in private schools.

The standard benefits and contributions are substantially the same as those for the Government Superannuation Fund (see section on that fund). As there is provision for transfer to and from the Government superannuation scheme the result is that State and local authority employees have a wide range of transfer without loss of accrued superannuation rights.

A scheme for adjusting retiring allowances in accordance with increases in the cost of living (as measured by the Consumers' Price Index), similar to that introduced in June 1969 for current and retired State employees, was introduced on 1 April 1971 for employees and annuitants of local authorities and other approved contributing employers. The scheme is applicable to all contributing employees, and annuitants where their former employer has agreed to participate and meet the costs of the subsidies involved. In all other respects the scheme is similar to that introduced in the Government Superannuation Fund.

By inter-Government agreement the National Provident Fund salary/service scheme is also the vehicle for superannuation for the Western Samoa Public Service, the Western Samoa Trust Estates Corporation, and the Bank of Western Samoa.

National Scheme for Farm Employees—This scheme, which is employer-subsidised, was prepared with the co-operation of the Federated Farmers of New Zealand and is designed to meet the special needs of farm employees who are accustomed to serve more than one employer during their working lifetime. The basis of the scheme is contributions by the employees matched by the employer. They are accumulated with interest and bonus (with the State guaranteeing a minimum return of 4 percent) and used to purchase an annuity on retirement (normally between 60 and 65 years of age). At this stage the employee may take a quarter of the proceeds in a lump sum, or up to the whole proceeds if the money is needed for housing purposes. The scheme includes a benefit for widows while, unlike other schemes within the fund, a withdrawing contributor receives interest, at the rate of 3 percent, on his personal contributions as they are refunded. Interest on contributions to this scheme are currently accumulating at 6 percent a year. Pensions may be adjusted each year if the cost of living increases, subject to Reserve fund adequacy.

National Superannuation Scheme—This scheme was introduced in 1969. It is based on the same principle as the national farm workers superannuation scheme. It is divided into subschemes for each of 10 different occupational groups. The scheme permits an employee to vary his contribution rate from time to time as his financial circumstances change, to transfer his interest in the scheme from one employer to another or to cease contributions without loss of his accumulated superannuation rights.

Employers may subsidise staff into the national scheme without the usual requirements of a trust deed, but may still claim the subsidy as a cost for taxation purposes. Interest on contributions to this scheme are currently accumulating at 6 percent a year. Pensions may be adjusted each year if the cost of living increases, subject to Reserve fund adequacy.

Contributions to the National Provident Fund schemes may be claimed as a special exemption from income, for income tax purposes within the limits allowed by the Inland Revenue Department for superannuation contributions and life assurance premiums.

Investment Pool—Nearly 600 local authorities and other approved bodies are now paying money into the fund for investment. Since the inauguration of the pool in 1955 the total amount invested in the fund has been $1,068.7 million and the total amount withdrawn $959.5 million, leaving abalance of $109.2 million invested in the fund as at 31 March 1971. The following table shows the various terms for which the money is invested in the fund and the different classes of local authorities supporting the pool as at 31 March 1971.

Class of Local AuthorityAt Call3-6 months6-12 months1 and under 2 years2 and under 3 years3 and under 5 yearsSinking FundsTotal
 $(000)$(000)$(000)$(000)$(000)$(000)$(000)$(000)
Cities and boroughs13,7461,0511,8344,2741,0025,9203,82331,650
Counties3,3801275665064981,9649497,990
Electric power boards1,8863203733641765,5192,22410,862
Fire boards485-1063797122757
Harbour boards2,2880983,6463881,1244,58686612,996
Hospital boards5,5152,1095,5623,1121561,5436,57424,571
Sundry local authorities1,1381026198481351,9287955,565
Other approved bodies7,0211,341182992,7443,374-14,761
            Totals35,4595,14812,7929,5975,87224,93115,353109,152

About one-half of the pool is made up of short-term money which cannot be expected to be retained by the fund for very long and, as a result, a considerable portion must of necessity be invested in readily realisable short-term Government stocks. From the longer-term money has developed a “hard core” from which it has been possible for the fund to augment substantially its normal investable income for lending to local authorities.

Investment of Funds—The following table shows the details of investment of all funds, i.e., including pool moneys.

Class of SecurityInvestments at 31 March
196919701971
 $(thousand)
Government stock84,77684,77673,776
Local authority debentures131,124145,284169,618
Mortgages1,5711,5111,430
Company shares and debentures478478478
Western Samoan Government stock100224224
            Totals218,049232,273245,526

Other Statistical Information—The numbers of contributors at 31 March 1971 were as follows.

FundMalesFemalesTotal
Public fund23,5683,03826,606
Local authorities12,7543,66116,415
            Totals36,3226,69943,021

Summarised statistics are set out for the last 3 years.

ItemYear Ended 31 March
196919701971
New contributors5,3105,1355,492
Total contributors at end of year40,43741,84943,021
Pensioners and other beneficiaries7,4617,7328,003
Income—$(000)$(000)$(000)
    Contributions8,2908,89611,464
    Interest6,2237,6947,739
    State subsidy1,7541,8662,238
    Total income (including State subsidy)16,26718,45621,441
Outgo—   
    Pensions (includes capitalisation of retiring allowances)3,4983,9784,277
    Other benefits1,4851,6161,767
    Total outgo4,9835,5946,044
Funds at end of year113,718126,579141,976
Investment Pool at end of year111,700113,647109,152
 %%%
Effective earning rate of fund5.936.186.19

PRIVATE SUPERANNUATION FUNDS—A survey of almost all private superannuation funds in active operation in New Zealand during the 1967-68 financial year was conducted by the Department of Statistics. Of the 2,444 firms surveyed, 2,258 were operated through life insurance offices, 154 were separately constituted, and 32 were combined schemes. The membership of these private superannuation funds was as follows.

ItemSchemes Through Life Insurance OfficesSeparately Constituted SchemesTotal
Members at beginning of year65,80044,765110,565
New entrants during year9,3048,29817,602
Withdrawals during year—   
    (a) Death298256554
    (b) Retirement (age)6767551,431
    (c) Retirement (invalidity)87138225
    (d) Resignation, dismissal, etc.6,4575,63912,096
Members at end of year—   
            Total67,58646,275113,861
            Males62,98840,325103,313
            Females4,5985,95010,548
Persons receiving pensions at end of financial year—   
    (a) Former members8492,2663,115
    (b) Widows or children247581828
Withdrawing members to whom policies were assigned during year47954533

Contributions and payments—The following table shows the details of amounts contributed to and paid out of private superannuation funds during 1967-68.

ItemSchemes Through Life Insurance OfficesSeparately Constituted SchemesTotal
Amounts Contributed$(000)
By members6,8504,70811,558
By employers—   
    (a) regular contributions9,3216,95316,274
    (b) special (capital) contributions8125551,367
            Total contributions16,98312,21629,199
Benefits Paid   
Superannuation and pensions—   
    (a) to former members7572,6323,389
    (b) to widows or children140346486
Lump sum payments—   
    (a) to former members on retirement2,0242,4814,505
    (b) to widows or children1,0434511,494
Other Payments   
To members on resignation or dismissal1,4681,5152,983
            Total amounts paid5,4327,42512,857

The number of members of private superannuation funds in each industry group is now shown.

GroupNumber of Members
Agriculture and livestock production579
Forestry, hunting, and fishing48
Mining and quarrying225
Manufacturing— 
    Food, beverages, and tobacco10,341
    Textiles, footwear, and apparel3,930
    Woodwork and furniture1,703
    Paper and paper products5,683
    Printing, publishing, and allied industries6,571
    Rubber products1,742
    Chemical and chemical products2,800
    Metal products2,621
    Machinery6,711
    Transport equipment4,926
    Other3,529
Construction6,060
Commerce— 
    Wholesale and retail trade27,916
    Banks and other financial institutions7,647
    Insurance3,228
Transport, storage, and communication12,668
Services— 
    Community and business3,847
    Recreation393
    Personal369
Miscellaneous324
            Total113,861

Some organisations make direct payments of pension and retiring allowances instead of, or in addition to, operating a superannuation fund. The following payments were made during the 1967-68 financial year.

PaymentNumber of RecipientsAmount PaidAverage Payment Per Recipient
  $(000)$
Pensions1,445687475
Lump sum payments2873241,129

The majority of private superannuation funds are operated through life insurance companies and are therefore subject to the voluntary public sector investment requirement applying to these companies. In recent years there has, however, been a marked increase in the number of private superannuation funds being established quite independent of the life insurance offices. To bring these funds which are not covered by any form of public sector investment requirement within the compass of monetary control, all separately constituted private superannuation funds were required in 1970 to maintain a minimum percentage of their total assets in the form of Government and local authority securities in order to qualify for exemption from income tax. Initially the overall public security ratio was set at 30 percent as for life insurance companies. Existing schemes may be allowed up to 5 years to make any necessary adjustments to their assets, subject to agreed transitional arrangements. Any new scheme needs to comply with this requirement from the date it commences operations. The general exemption from income tax of trustees of a superannuation fund has been modified to make compliance with these requirements a condition of obtaining the exemption.

6 D—FRIENDLY SOCIETIES

GENERAL—Friendly societies are governed by the Friendly Societies Act 1909 and its amendments. All societies and branches must register with the Registrar of Friendly Societies, and also furnish annual statements of their finances.

Lodges and Members—The table following gives the number of registrations (i.e., of friendly societies proper, or lodges, together with benevolent societies, working-men's clubs, etc., registered under the Act) and of lodge members as at 31 December of the years shown.

Name of OrderRegistrationsLodge Members*
196819691970196819691970
*Membership figure relates to “actuarial” societies only.
Manchester Unity Independent Order of Oddfellows23023022729,85029,56928,887
Independent Order of Oddfellows1791781776,4016,3136,163
National Independent Order of Oddfellows111272321
Ancient Order of Foresters102100938,6688,5328,472
United Ancient Order of Druids13313313211,46411,09610,886
Independent Order of Rechabites4032302,0311,9591,901
Order of Sons of Temperance433300284267
Sons and Daughters of Temperance111494643
Hibernian-Australasian Catholic Benefit Society6868684,0254,3184,558
Protestant Alliance Friendly Society of Australia1099291276265
Isolated friendly societies757475.........
Working-men's clubs282828.........
Specially authorised societies7385107.........
            Totals94494295163,10662,41661,463

During the year 2,422 members were admitted by initation, etc., and 652 by clearance; 1,415 died, 674 left by clearance, and 1,938 by arrears, etc. Membership has dropped to half in the last 30 years.

The statistics given subsequently relate to the lodges (701 in 1970) for which returns were received and tabulated by the Treasury.

Mortality and Sickness—In the following statement of the mortality experience for the last 5 years no account has been taken of age incidence.

YearDeaths of MembersPer 1,000 Members at RiskDeaths of Members' WivesPer 1,000 Members at Risk
19661,51022.992904.42
19671,35120.802894.45
19681,34320.902684.17
19691,42022.372313.64
19701,41522.592503.99

The number of members sick during 1970 was 7,123 equal to 11.9 per 100 members at risk. The sickness experienced during 1970 was 188,458 weeks, equal to 26 weeks 2 days per sick member and 3 weeks 1 day for each member at risk.

Funds of Friendly Societies—The total funds of the societies and branches as at 31 December 1970 amounted to $33,592,231 made up as follows.

FundsAmount
 $(000)
Sick and funeral funds17,627
Surplus appropriation funds, etc.4,169
Management funds, goods, etc.1,159
Distress, loans fund, etc.10,637
            Total33,592
AssetsAmount
 $(000)
Investments at interest27,904
Value of land and buildings5,351
Cash not bearing interest6
Value of goods123
Other assets101
Owing by management funds107
            Total33,592

The net income from investments credited to the sick and funeral funds for 1970 amounted to $1,032,739 the average rate being $6.16 percent, as against $6.18 percent in 1969.

The following table shows the amount of accumulated funds standing to the credit of friendly societies.

YearTotal FundsAverage Capital per Member
 $(000)$
196019,980301.14
196120,985317.81
196221,964330.62
196323,045348.62
196423,759362.88
196627,133420.51
196728,642447.17
196830,309480.29
196931,623506.65
197033,592546.54

Specially Authorised Societies—The majority of new societies registered in recent years have been specially authorised societies in the form of credit unions, so that the number of such societies registered has more than doubled from 46 in 1965 to 107 in 1970.

The following statement shows the disposal of the funds of these societies in 1970.

FundsValue
 $(000)
Members shares and deposits11,927
Reserve funds870
Other333
            Total13,130
AssetsValue
 $(000)
Personal loans and mortgages9,959
Land and buildings527
Other investments236
Cash in hand148
Included in assets of societies subject to valuation2,259
            Total13,130

Medical Care Societies—Medical care societies are also registered under the Friendly Societies Act 1969; one large society has almost 150,000 members.

Chapter 7. Section 7 EDUCATION AND SCIENCE

7 A—EDUCATION

GROWTH OF EDUCATION—Since 1945 education has been marked by extensive growth. In 1945, school, college, and university enrolments combined were 328,000 or 19.3 percent of the population but by 1970 the combined enrolments had risen to 891,000 or 31.6 percent of the population. This growth is accounted for by increased births for the major part of the period; a marked tendency for more pupils to stay on longer at school and also to undertake further education after leaving school; and the development of new educational services. Examples of the extent of this growth are that between 1945 and 1970 the number of pupils in primary schools increased by 112 percent, and in secondary schools by 248 percent (with an eightfold increase in sixth and seventh forms), while the number of students in universities more than doubled and students receiving technical education quadrupled.

At the same time education has grown more intensive and education expenditure has expanded from 6 percent of total Government expenditure in 1945-46 to 14.3 percent in 1970-71.

The strongly egalitarian temper of New Zealand society—a product of historical, geographical, and economic factors—is reflected in education administration by the policy of making education at all levels freely available. In few other countries is there closer approximation to equality of educational opportunity—and few countries have a larger proportion of their populations in schools, colleges, and universities.

ADMINISTRATION—The Education Act 1964 provides for free and secular education in State primary and secondary schools, and compulsory education for all children between the ages of 6 and 15 years. University education is provided under the Universities Act 1961, and funds for universities are distributed by the University Grants Committee.

The original Education Act of 1877, which was mainly concerned with the provision of State primary education, created the Department of Education and prescribed the constitution and functions of education boards and school committees. As far as the structure is concerned, this still remains the pattern of the system of State primary school administration, but there have been, in the intervening years, great changes in the relative functions of the three authorities. The general tendency over the first 50 years of the national system of education was for final power and responsibility to shift from the school committees to the education boards and from the education boards to the department, but since 1930 this tendency has been arrested.

An Advisory Council on Educational Planning was set up in 1969 to advise the National Development Council and the Minister of Education on the implementation of the National Development Conference recommendations on education and on priorities in educational development.

The Department of Education determines educational policy, sees that standards are maintained throughout the country on an equitable basis, and is responsible for the curriculums in State primary and secondary schools. The curriculums are designed to meet the needs of New Zealand children growing up in their own country. Curriculum revision is a continuing process, originating with an expert team in the department, and evolving by consultation with practising teachers through curriculum committees, trial procedures, and discussion.

The control and management of State primary schools are the responsibility of the ten education boards, and local secondary school boards control State secondary schools.

The Department of Education directly administers the Correspondence School and State special schools. It controls the inspectorate, supervises the staffing of schools, and conducts the School Certificate Examination. All State and registered private schools are visited regularly by inspectors who give assistance and guidance to teachers in educational matters. The department also administers the capital expenditure voted for school buildings. Regional offices of the department are situated in Auckland, Wellington, and Christchurch.

There are a number of private primary and secondary schools in New Zealand conducted either by religious bodies or private individuals. These schools are required by the Education Act 1964 to comply with defined standards of accommodation and teaching as a pre-requisite for compulsory registration under the Education Act.

The Department of Education has official contacts with the National Council of Adult Education and the University Grants Committee but the universities are independent in their educational activities.

Education Boards and School Committees—Statutory boards (i.e., education boards administering State primary schools and governing bodies of secondary schools) are responsible for the schools in their area. They are the employing authorities of the teachers. They disburse the grants received from the Department of Education for maintenance of schools and building of new schools, and for equipment and teaching materials. No local rates are levied for education either by municipal or local education authorities.

Each State primary school controlled by an education board has its school committee, elected by the parents of pupils and adults resident in the school district. It is a statutory body charged with management of property and other matters on behalf of the board. The members of school committees form the electorates for electing education board members.

A school committee's essential function is the care of school buildings, grounds, and equipment, but, in addition to this, many interest themselves very keenly in the general activities of the school and provide, along with voluntary parent-teacher associations, a focusing point for local opinion on educational matters.

Secondary School Boards—Secondary schools are controlled and administered by their own boards of governors. The local boards controlling secondary schools (either singly, or several schools in the same town) are made up of representatives of the parents of pupils, of the education board of the district, and of other local groups and organisations. They are constituted by the Minister and published in the New Zealand Gazette. In some metropolitan areas, groups of secondary schools have been linked together for administrative purposes under secondary school councils but each school still retains its own board of governors which has a large measure of autonomy in the control and management of its own school.

Technical Institute Boards—Technical institutes, including the Technical Correspondence Institute, are controlled by boards of governors.

School Certificate—A School Certificate Examination conducted by the Department of Education is taken by the majority of pupils at the end of three years of secondary education. The course of each candidate must include English, history or geography or a foreign language, mathematics or science. A candidate may enter the examination in any number of subjects up to six and is credited with passes in the individual subjects in which he is successful.

Sixth Form Certificate—A new certificate was introduced in 1969 to replace the Endorsed School Certificate. Sixth Form Certificates are awarded to pupils who have satisfactorily completed an advanced course of one year in at least four subjects beyond the level of School Certificate.

University Entrance—Pupils attending certain approved schools may be accredited for matriculation purposes provided they have completed a four years' secondary school course. Pupils not accredited for entrance to university may qualify by passing the University Entrance Examination which is conducted by the Universities Entrance Board.

Higher School Certificate—Higher School Certificates are awarded after a 5-year course to pupils who have been accepted for entry to the Sixth Form and satisfactorily completed an advanced course of 2 years; and to pupils who have obtained a qualification recognised by the Universities Entrance Board for admission to a university in New Zealand and satisfactorily completed an advanced course of one year.

Private Schools—There are a number of private primary and secondary schools conducted by religious bodies or private individuals. Financial assistance is provided by the State subject to certain conditions. Academic bursaries, secondary school bursaries, and Maori scholarships may be tenable at private secondary schools. Assistance for transport by rail and road and a boarding allowance under certain conditions may also be given to pupils attending private schools, whether primary or secondary. School publications are supplied to private schools. From February 1970 Central Government has made grants to independent schools on the basis of teachers' salaries. For the first year the proportion was 20 percent and the estimated cost $2.5 million; the proportion is to rise to a maximum of 35 percent over 7 years. Associated government controls are approval before new independent schools can be built and the requirement that after a transitional period, new teacher entrants to independent schools must possess certain minimum qualifications.

Co-education—Co-education applies at all stages of the school system. All State primary schools and some private primary schools teach boys and girls together. At the secondary level all district high schools and three-quarters of the State secondary schools have both boys and girls on their rolls, whilst the remaining quarter of the State secondary schools and nearly all of the private secondary schools are single-sex schools. A comparison of the total enrolment of all secondary schools (State as well as private) shows that over the last two decades, there has been a trend toward the provision of more co-educational than single-sex schools.

SPECIAL EDUCATION—A comprehensive range of education services has been developed for handicapped children whose special needs cannot be met in an ordinary classroom.

Special classes for children who are backward (mildly mentally retarded), physically handicapped, deaf, visually handicapped, or maladjusted are established at ordinary primary schools, and are administered by the education boards. The boards also administer special schools for intellectually handicapped (moderately or severely mentally retarded) or severely physically handicapped children, classes in hospitals, schools in psychiatric hospitals, and speech clinics. Reading clinics have been established in some major centres to complement the help given in ordinary schools to those pupils who find learning to read particularly difficult.

Special classes for backward pupils are also provided in selected secondary schools, and classes for deaf pupils have been established in secondary schools in four cities. Most of these classes are administered by the boards of governors of the secondary schools concerned.

The Department of Education itself administers six residential schools—two for deaf children, two for backward children, and two for maladjusted children. The department also provides the teaching service in Social Welfare Department institutions for socially maladjusted children and the education service in adult penal institutions administered by the Department of Justice. The Department of Education also administers two important special education services—the advisers on deaf children provide guidance for the parents and teachers of deaf children, and the Psychological Service provides a comprehensive diagnostic, advisory, and counselling service for children whose scholastic or social progress is causing concern. Approximately 22,000 children were assisted by the staff of the Psychological or Visiting Teachers Services in 1970. The Psychological Service maintains close links with all other social and educational services for children, with the visiting teachers working with primary schools in city areas, and with the guidance counsellors on the staff of an increasing number of secondary schools.

In 1970, approximately 1,000 teachers were employed in the special education services, which enrolled some 8,000 children in special classes and schools at primary or secondary level and provided part-time tuition in speech and reading clinics for some 3,600 children.

The following table shows the number of pupils receiving special education at public primary schools (including intermediate, correspondence, and special schools) at 1 July 1969.

GroupBoysGirlsTotal
Blind and partially seeing7262134
Deaf and partially hearing274216490
Physically handicapped133109242
Health camp schools149121270
Hospital classes326242568
Speech clinics (part time)2,4601,1163,576
Intellectually handicapped7165191,235
Mentally backward1,7431,0082,751
Educationally retarded16832200
Maladjusted—   
    Adjustment classes and special schools8441125
    Social Welfare Department institutions10351154
            Totals6,2283,5179,745

The Department of Education co-ordinates the administration and development of the special education services for handicapped children through the district senior inspectors of primary and secondary schools.

PRE-SCHOOL EDUCATION—Children below the age of 5 years are not enrolled in the State primary schools. They may be enrolled, however, at free kindergartens controlled by local free kindergarten associations, which are voluntary bodies formed for the purpose, or at play centres controlled by play centre associations.

The Government makes grants available to kindergarten teachers in training, and accepts responsibility for the cost of sites and buildings for training centres and for their running costs. The salaries of kindergarten teachers and full-time training centre staff are paid by the Department of Education. Subsidies of $2 to $1 on voluntary contributions raised for the purchase of land, buildings, and initial equipment for free kindergartens are paid by the Government. In July 1970 there were 24,336 children enrolled at 305 free kindergartens.

Play centre associations receive from the Government annual maintenance and liaison grants in respect of play centres which meet a required standard of equipment, and a small establishment grant towards initial costs is paid to new centres. In July 1970 there were 576 recognised play centres for approximately 16,767 children.

PRIMARY EDUCATION—At the age of 5 years a child may enter, and at 6 years must enter, a primary school or, if living in an isolated area, must enrol with the primary department of the Department of Education's Correspondence School. The top 2 years of the primary course, Forms I and II, may be taken at an intermediate or a Form I-VII school. On completing instruction in Form II, after usually 8 years' school attendance, a child normally enters Form III of a secondary school, or alternatively the secondary department of a district high school. All children are required to attend school until they reach the age of 15 years.

The curriculum of the primary and intermediate schools, as set out in the syllabuses of instruction, covers character training, oral and written language (including reading and handwriting), mathematics, social studies, art and crafts, science, physical education (including swimming), health education, music, and, for some children in Form II, French. At the Forms I and II levels woodwork and metal-work instruction is given to boys, and girls are taught homecraft and sewing.

Teachers have the assistance of specialist teachers in a variety of fields, including science, physical education, art and crafts, reading, mathematics, and music. Itinerant specialists are also available to help teachers in small rural schools and teachers of infant classes. Specialist assistance in helping children with special needs is provided by the psychological service, speech therapists, visiting teachers and advisers on deaf children.

Textbooks are issued free to pupils in all schools, both State and private. A series of basic primer readers and a considerable amount of equipment for primer classes are also provided by the Government.

State Primary Schools—The figures set out in the following table refer to all pupils in State primary schools and intermediate schools and departments, including Chatham Islands schools.

YearSchools (Including Intermediate Schools and Departments)Pupils at End of YearPupils for First Four Weeks of Third Term
Average of Mean Weekly RollAverage AttendanceAverage Attendance as Percentage of Weekly Roll
19652,254441,581429,268400,76393.4
19662,265454,604442,665415,64793.8
19672,273468,021460,982432,03493.7
19682,294478,530465,818433,90693.2
19692,259481,847472,482444,44694.1
19702,257486,438475,213447,64694.2

The changes which have taken place in the size of schools in the latest 20 years may be seen from the following table. Twenty years ago over half the schools had rolls of 70 and under, but over the period many small rural schools have been consolidated.

Number of Public Schools195019601970
Roll 70 and under1,159880830
Roll 71 to 350505716743
Roll 351 and over244432638
Totals1,9082,0282,211

In each of the education districts districts are located inspectors of primary schools who form part of the staff of the Department of Education. The total number of primary school inspectors at 1 July 1970 was 98, allocated as follows: Auckland, 23; South Auckland, 16; Hawke's Bay, 7; Taranaki, 4; Wanganui, 7; Wellington, 13; Nelson, 3; Canterbury, 14; Otago, 7; Southland, 4. In addition, there were six inspectors in the Head Office, and three inspectors in the Auckland office of the department.

The following table relates to pupils on the rolls of the State primary schools, Chatham Islands schools, and Forms I and II at intermediate schools at 1 July in each of the years shown.

Age in Years19691970Percentage of Total Pupils
BoysGirlsTotalBoysGirlsTotal19691970
529,40628,01757,42328,10226,57454,67612.611.8
630,01228,48058,49229,58128,06857,64912.812.5
730,11228,73058,84229,75528,45958,21412.912.8
829,65828,12357,78130,27428,78359,05712.612.8
928,22027,07755,29729,31528,46157,77612.112.5
1028,05027,03955,08928,32226,77955,10112.011.9
1125,71624,45150,16727,57026,26853,83810.911.7
1224,82122,69047,51124,80522,85247,65710.410.3
139,5636,60316,1669,9016,75516,6563.53.6
147533811,1346744011,0750.20.2
1586871736857125- -- -
16 and over11396209103114217- -- -
            Totals236,510221,774458,284238,470223,571462,041100.0100.0

The next table gives the number of State primary schools in each education district as at 30 September 1970, classified according to roll numbers. The number of intermediate schools and departments is also shown.

Roll NumbersEducation DistrictTotal Schools
AucklandSouth AucklandTaranakiWanganuiHawke's BayWellingtonNelsonCanterburyOtagoSouthland

*Includes one normal intermediate school.

†Includes three normal intermediate schools.

1-8----11-4--6
9-24120102726277492515207
25-3037275643105584
31-70701014139562918854648533
71-1103765111921215291114233
111-15025298618975108125
151-19017186658-129384
191-2301615455831110986
231-270161323482155169
271-310221044914298688
311-35016942-8296258
351-3901792661511310483
391-4301412271015234271
431-47024172251935-582
471-5001213352223-33
501-5402022224112101276
541-58012131354-6*1146
581-62014612-4142-34
621-660621133-6-224
661-700101--21-7--21
701-74011-2-2-21-9
741-7804--1-3-5--13
781-82041---1-2--8
821-8602----1----3
861-9001------1--2
901-1020-----------
1021-10601---------1
Normal schools43-2-3-12-15
Intermediate schools and departments4320*47*715*310*5*3117
            Totals446390115154198236633151641302,211

In addition, there were 4 State primary schools in the Chatham Islands and 42 special schools for handicapped children.

Maori Pupils—At 1 July 1970 there were 69,118 Maori children attending State schools and 2,570 attending private schools. Staffing is more liberal in schools with a large proportion of Maori or other Polynesian children. A report by the National Advisory Committee on Maori Education was published in 1970.

Intermediate Schools—Pupils on the rolls of the 105 intermediate schools and 2 intermediate departments at the end of 1970 numbered 57,594. Of all children in Forms I and II of State primary schools at 1 July 1970, 56.2 percent were enrolled at the intermediate schools. The ages of pupils on the roll at 1 July of each of the latest three years were as follows.

Age, in Years196819691970
BoysGirlsTotalBoysGirlsTotalBoysGirlsTotal
10240415655291474765308440748
118,1508,82616,9768,2239,03017,2539,42410,45219,876
1212,11211,46123,57313,18512,13125,31613,91612,94326,859
134,8333,2258,0585,0393,4288,4675,5333,7259,258
14406219625382188570340192532
15332053262955181230
16 and over7512314112
            Totals25,78124,17149,95227,14925,28152,43029,54027,76557,305

The average roll at September 1970 was 57,551 and the average attendance for the month was 54,335.

Private Schools—The following table contains the principal statistics of private primary schools for each of the last 6 years. The figures include Maoris at private church schools.

YearNumber of SchoolsRoll at End of YearAverage Attendance*Teachers
BoysGirlsTotalMalesFemalesTotal
*Average attendance as at September.
196534028,96729,23258,19955,1722221,4321,654
196634028,31828,70457,02253,9482251,4461,671
196734227,88628,08855,97452,6572341,4271,661
196834427,30627,64654,95251,5602331,4051,638
196934426,70527,04553,75050,8332411,4181,659
197033826,05826,17452,23249,5902521,4041,656

The majority of the schools included in the preceding table are Roman Catholic Church schools, of which there were 272 at the end of 1970, with 44,631 pupils and 1,314 teachers (128 males and 1,186 females). The remaining private schools comprised 51 church schools of other denominations, with 271 teachers and 6,197 pupils, and 15 undenominational schools, with 71 teachers and 1,404 pupils.

SECONDARY EDUCATION—The secondary syllabus is based on a common core, consisting of English, social studies, general science, elementary mathematics, music, arts and crafts, and physical education, to be followed by a degree of specialisation within a wide range of subjects that may be taken to the School Certificate stage. All types of secondary schools are required to give all pupils during the first 2 years of their secondary course a minimum number of units of instruction in the common core subjects.

The following table shows the number of secondary schools in existence during each of the latest 6 years.

YearState Secondary SchoolsSecondary Departments of District High SchoolsPrivate Secondary SchoolsTotal
196518678112376
196619471115380
196719471115380
196819670116382
196920466116386
197021061115386

District high schools are State primary schools with a secondary “top” and the basic course is academic, as in the normal secondary school. Where staffing and equipment allow, special courses are provided in agriculture, commercial practice, and domestic science. Most State secondary schools are established under their own controlling authority, and district high schools are controlled by the education boards. Where a secondary school is established in place of a secondary department of a district high school, the education board of the district will usually control the new school for the first few years. Thereafter, the school will be placed under its own board.

The inspection of secondary schools is carried out by inspectors of secondary schools attached to the Department of Education. In 1970 there were 51 inspectors.

The number of secondary school pupils in Forms III to VII at the end of each of the latest 6 years is shown in the following table.

YearState Secondary SchoolsDistrict High SchoolsPrivate Secondary SchoolsCorrespondence SchoolsTotal
1965117,8735,93724,486419148,715
1966123,3425,29925,038450154,129
1967130,5645,22825,733367161,892
1968138,1205,48726,693519170,819
1969142,4094,82927,553562175,353
1970146,0484,57228,033535179,188

The numbers of each sex attending schools providing secondary education at the end of 1969 were: State secondary schools, 77,214 boys and 68,834 girls; secondary departments of district high schools, 2,239 and 233; private secondary schools, 14,081 and 13,952; and full-time pupils of Correspondence School, 172 and 383.

Maori Pupils—At 1 July 1970, 17,174 Maori pupils were receiving secondary education. This number comprised 15,361 pupils attending State secondary schools and 1,813 pupils attending private secondary schools.

Maori pupils receiving secondary education in private secondary schools at the end of 1970 included 893 pupils attending 8 Maori private secondary schools. Of this number, 195 pupils were holders of Maori post-primary scholarships, awarded by Government and tenable at a secondary school with approved boarding accommodation. A further 47 Maori post-primary scholarship holders were attending other private secondary schools and 131 were enrolled at State secondary schools.

Thirty State and private schools give instruction in Maori language. This includes the Correspondence School.

Academic Bursaries—Bursaries up to an annual value of $200 may be granted to pupils of above-average ability in order to obtain tuition in all of the subjects of their chosen course of study for the School Certificate Examination. The bursary, limited to 490 awards each year, is tenable for up to 3 years subject to satisfactory reports on the pupil's progress.

Secondary School Bursaries—Bursaries, of a maximum annual value of $200 and tenable for a period of up to 2 years, may be granted to pupils obliged to live away from home in order to take a sixth form course at a secondary school (State or private) which is approved for accrediting purposes. In order to qualify, applicants must be under 18 years of age and must either have been accepted for entry to the Sixth Form or have passed the University Entrance Examination or have been accredited for the latter.

Technical Bursaries—Bursaries up to an annual value of $200 may be awarded to pupils who have completed at any secondary school a 2-year course preparatory to a specialised course in agriculture, fine arts, engineering, building construction, commerce, or home science. The bursaries are tenable at secondary schools approved for that purpose and may be held for a maximum of 2 years. Applicants use be under the age of 17 years at the commencement of the specialised course.

Secondary School Hostels—In 1971 there were 37 State secondary school hostels.

Attainment Levels of State and Private Secondary Schools—The following table gives particulars of pupils who left schools providing secondary education in 1970, classified according to years of attendance and attainments.

Year of AttendanceAll SchoolsPercent
First1,6303.2
Second8,04215.5
Third16,29131.5
Fourth15,41929.8
Fifth9,69518.7
Sixth and over6521.3
            Total51,729100.0
AttainmentsTotalsPercents
University scholarship1400.3
University bursary2,8565.5
Higher School Certificate2,8865.6
University Entrance6,44812.5
Sixth Form Certificate5,27810.2
School Certificate (one or more subjects12,55124.2
Other21,57041.7
            Total51,729100.0

Probable Destination of State and Private Secondary Pupils—An indication of the vocations intended to be followed by pupils leaving secondary schools during 1970 is contained in the next table.

Probable DestinationBoysGirlsTotalBoysGirlsTotal
  number  percent 
Full-time education at university4,0121,9625,97415.117.7911.55
Further full-time education—      
    Teachers college3821,7272,1091.446.864.08
    Kindergarten T.C.-171171-0.680.33
    Technical training3992826811.501.121.31
    Commercial training1071,1921,2990.404.732.51
    Art65941590.250.370.31
Technical traineeships—      
    Draughting cadets374574311.410.230.83
    Technical trainees9803211,3013.691.282.52
Health services902,8942,9840.3411.495.77
Office—      
    Government6931,2691,9622.615.043.79
    Local authority1003154150.381.250.80
    Private enterprise1,5725,2496,8215.9220.8513.19
Shop and warehouse assistant1,4982,5714,0695.6410.217.87
Skilled trades—      
    Government8961281,0243.370.511.98
    Local authority178242020.670.100.39
    Private enterprise5,5841,0156,59921.034.0312.75
Farming2,9062273,13310.950.906.06
Factory and clothing workers1,0991,6282,7274.146.475.27
Domestic work and home1121,2711,3830.425.052.67
Armed forces587646512.210.251.26
Other4,9172,7177,63418.5210.7914.76
            Totals26,55125,17851,729100.00100.00100.00

RURAL EDUCATION: Consolidation of Schools—In order to give children in country districts the advantage of special equipment and more specialised teaching in larger schools, the consolidation of the smaller rural schools has been a feature of the last 20 years.

The first Form I-VII school was opened in 1962 and by 1970 there were 18 of these schools. This type of school usually developed from the translation of the secondary department of a district high school with the addition of Form I and II pupils from neighbouring primary schools. They receive improved staffing, accommodation, and equipment in the endeavour to promote equality of educational opportunity for country children.

The problem of full intermediate-type education has remained, however, for a large proportion of Form I and II children in smaller country districts. To provide for these children, another type of school—the area school—has been introduced. The first of this new type of school was opened in 1969 and was followed by a second in 1970. Area schools may be established in districts where there are no district high schools, or in other centres where there is a district high school which is too small to be replaced by a Form I-VII school. The area school is a unified school providing education from primers to Form V for all children in the immediate vicinity and from Form I-V from contributing schools in a wider area.

Transport and Boarding Allowance—In recent years school transport facilities have been steadily developed until now 17 percent of the total school population receive assistance in one form or another. Most of these pupils are conveyed by buses under contract to education boards or operated by the Department of Education. A refund of the cost of fares is given in some cases where a suitablepublic service is available. In addition, free passes on the railway to the nearest State or private school are granted to eligible children living near a railway line but at some distance from a primary school, and the same privilege is enjoyed by pupils having to travel to attend secondary schools, district high schools, and private secondary schools.

In areas where there is no organised transport, capitation payments are made to parents for the conveyance of their children to school by car.

The expenditure on transport of pupils for the financial year 1970-71 was $5,953,559 as compared with $5,574,340 in 1969-70.

In certain cases, boarding allowances are granted to pupils living in areas where there are no available or convenient transport services to enable them to attend school.

The expenditure on boarding allowances of pupils attending schools for the last 4 years is given in the table below.

Type of School1967-681968-691969-701970-71
*Now included in State school figures.
 $$$$
State primary and intermediate12,4088,39613,35211,039
Private primary17,01317,97315,71913,787
State secondary305,866285,336320,270300,281
Maori13,61011,095**
Private secondary168,386168,150199,198203,176
            Totals517,283490,950548,539528,283

The next table gives particulars of the number of children transported to school and the number in receipt of boarding allowances as at 1 July 1970, according to the type of school attended. Totals for the three preceding years are also shown.

Type of SchoolNumber of Pupils on RollTotal Pupils Transported to SchoolNumber Receiving Boarding Allowance
State primary schools461,83861,57193
State secondary schools (including district high schools)157,79739,3202,358
Private primary schools50,9042,69784
Private secondary schools28,4412,7461,485
            Totals, 1970698,980106,3344,020
            Totals, 1969694,294111,0574,229
            Totals, 1968685,800107,6944,247
            Totals, 1967666,818106,1374,306

Correspondence School—Correspondence classes are conducted for the education of children in very remote areas and of those unable to attend school because of lengthy illness or other causes. A corporate school spirit is developed through the school badge and uniform, daily radio lessons, club activities, the publication of a school magazine, periodical exhibitions of work, and by parents' and ex-pupils' associations. The personal link between the pupil and the school is strengthened by a number of teachers visiting pupils in their homes. At a district level, school day and school week gatherings are held in order to enable pupils to gain the opportunity of social education by working in the classroom.

Young persons in employment, including uncertificated teachers of small State primary schools, inmates of Department of Justice institutions, pupils of secondary schools who require examination subjects which their own schools cannot provide, officers of Government departments, and others who are unable to attend classes at secondary schools, also receive tuition as part-time students of the Correspondence School. In addition, the school enrolls teachers for the Diploma in Teaching courses.

In 1970 there were 7,346 pupils on the roll of the Correspondence School, 1,177 being in the primary division, 505 full-time and 3,946 part-time students in the secondary division, and 1,126 students taking the Diploma in Teaching course, and 314 students studying for Trained Teachers' Certificates. The staff of the school consists of the principal, deputy principal, 160 teachers, 26 tutors, and 44 clerical personnel.

Agricultural Clubs—More particularly in rural schools, practical interest in agriculture has been stimulated by the widespread formation of boys' and girls' agricultural clubs. The pupils undertake projects in livestock rearing and crop growing which are adjudged annually on the club field day, usually held at the school or local centre.

The agricultural instructors and advisers on school science employed by the education boards play an important part in the formation of the clubs, and by giving technical advice do much to assure the successful completion of the various projects. The clubs receive active support from parents, teachers, and the farmers' organisations.

HEALTH SERVICES—Information on the medical and dental inspection of school children and the dental-clinic system is given in Section 5A (Public Health) of this Yearbook.

EDUCATION BUILDINGS—The increases in school population coupled with the increasing urbanisation of the population and the development of new housing areas has led to a continued expansion of the school building programme. Figures for additional classrooms completed in recent years are shown below. The figures do not include classrooms to replace obsolete accommodation.

YearPrimarySecondary
1962602457
1963521330
1964501305
1965500266
1966479264
1967528304
1968559295
1969578302
1970603376

Since 1955 the “block” principle has been used in the planning of schools, giving improved teaching facilities and amenities at a lower cost. Development has continued with the design of new secondary schools in the light of changing needs.

Education boards are able to plan and build primary schools within specified limits or “white lines” defined on the one hand by a building code which lays down minimum requirements for each type of building, and on the other by the upper limit placed by the Government on the amount of money which it is prepared to allocate to any particular project. This provides for considerable flexibility in planning allied with cost control.

Further development has also taken place in the design and provision of relocatable classrooms.

In 1970-71 building expenditure was estimated at $14 million for primary schools and $14.1 million for secondary schools.

University Buildings—Building and other capital requirements of universities are handled through the University Works Committee. This committee prepares for the approval of the Government an annual programme of projected expenditure on university capital works—buildings, land purchase, furniture and equipment, and subsidies on halls of residence. Expenditure in recent March years has been: 1963-64, $3.9 million; 1964-65, $6.2 million; 1965-66, $7.6 million; 1966-67, $11.1 million; 1967-68, $13.8 million; 1968-69, $10 million; 1969-70, $9.9 million; 1970-71, $11.5 million.

A new scheme is being tested experimentally whereby, after agreement on a particular project, a university itself undertakes to plan, erect, furnish, and equip a building from a pre-determined grant for the project.

University buildings in use in 1965 had an area of 2 million sq ft; estimated requirements for 1980 are 8 million sq ft for teaching, library, administration, and student union buildings.

Technical Institute Buildings—There is a 5-year building programme for technical institutes which is kept under review by the Technical Institutes Works Committee. For the period 1970-75 expenditure is estimated to amount to $46.8 million. For 1970-71 provision was made for capital expenditure of $4.3 million for land, buildings, furniture, and equipment.

Teachers Colleges—The 5-year building programme for teachers colleges is estimated to cost $30.9 million for the period 1970-75.

SCHOLARS AND STUDENTS—The numbers of scholars and students receiving instruction in educational institutions are shown in the following summary. The table refers to roll numbers at 1 July.

Type of Institution196519661967196819691970
Pre-school      
    Play centres8,95010,14311,80213,43615,04216,767
    Kindergartens18,82919,96420,88622,05022,93324,336
            Totals, pre-school27,77930,10732,68835,48637,97541,103
Primary      
    State primary365,682376,502387,227393,445395,929394,597
    Intermediate42,21645,16948,64051,66454,74160,001
    Chatham Islands119125143170180203
    Correspondence9599399439401,0621,173
    Private primary57,24456,05054,91053,78252,40750,904
    Departmental special schools564471549565622634
    Foundation for the Blind957199938889
    Special classes6,9067,5788,3879,1829,7459,936
            Totals, primary473,785486,905500,898509,841514,774517,537
Secondary      
    State secondary125,569130,328136,431146,409150,562153,022
    District high schools6,5255,7765,4916,0135,3114,775
    Correspondence466449380480518505
    Private secondary25,07325,58526,23227,02027,91028,441
            Totals, secondary157,633162,138168,534179,922184,301186,743
Technical      
    Technical institutes—      
        (a) Part-time students12,01112,16112,58412,69213,56313,475
        (b) Full-time students9851,2111,3441,4851,6611,882
Technical Correspondence Institute11,25713,24712,63913,33414,16515,203
            Totals, technical24,25326,61926,56727,51129,38930,560
Type of Institution196519661967196819691970

*About half are adults attending hobby classes.

†Full-time 21,211; part-time 7,998.

‡ Includes 1,911 overseas students.

§Students for Diploma in Teaching not shown in other tables.

||Includes 24 technical institute trainees.

Miscellaneous Technical      
    Part-time students*56,40360,68260,31462,29569,23272,734
    Agricultural colleges—      
        Short courses399344493525356280
            Totals, miscellaneous technical56,80261,02660,80762,82069,59873,014
Universities      
    Internal students20,26922,37724,43126,79429,20931,908
    External students1,8761,9251,8822,0272,2852,538
            Total universities22,14524,30226,31328,82131,49434,446
Teacher Training      
    Teachers colleges4,7905,0225,1566,0966,9127,587
    Kindergarten training centres229229243273311321
    Correspondence school§7807119601,1871,2481,122
            Totals, teacher training6,165||5,9626,3597,5568,4719,030

The growth in school and university student population is illustrated by the diagram below, which is drawn on a logarithmic scale.

A projection of school rolls was made by the Education Committee of the National Development Conference in 1969 based on policies and trends at the time and is set out in the following table. Accelerated growth in students at tertiary institutions was forecast.

RollState PrimaryState SecondaryUniversitiesTechnical InstitutesTeacher Training

*1964-65 figure—1963-64 figures not available.

†Equivalent full-time students.

Annual Increase  Number  
    Actual—     
        1963-64393,100125,50017,0006,914*4,536
        1967-68446,000142,30024,4309,0905,156
    Projected—     
        1972-73479,500176,70034,80012,5009,560
        1978-79527,000216,30047,20016,00011,730
Annual Rate of Increase—  Percent  
    Actual—     
        1963-64 to 1967-683.23.29.57.13.3
    Projected—     
        1967-68 to 1972-731.54.47.36.613.2
    Projected—     
        1972-73 to 1978-791.63.45.24.23.5
    Projected—     
        1967-68 to 1978-791.53.96.25.37.8

ANNUAL EXAMINATIONS—Examination passes at other than university examinations are set out in the following table.

YearSchool Certificate*Other ExaminationsUniversity Entrance*University Entrance ScholarshipTechnician Certification AuthorityTrades Certification Board

*Includes Certificate of Attainment.

†Includes Teachers' Certificates, Technological, Engineers' and Surveyors' Assistants, Public Service Shorthand Typists Examinations.

196011,6601,4645,354256294,567
196112,6441,3195,791285404,588
196215,4521,3286,403318664,976
196317,1441,4767,6844231014,875
196418,3471,6288,3325901515,306
196519,1161,6549,2625441825,694
196619,4901,3719,2339582616,170
196721,7761,5619,7621,0663476,756
196838,9921,86910,9881,0964308,559
196940,8442,74712,6261,18648511,450
197042,5442,65413,2041,35659012,136

Of the candidates in 1970 for School Certificate, 42,544, or 75.4 percent, gained a pass in one or more subjects, while 8 persons were awarded Certificates of Attainment.

Comparative figures for the number of candidates for the University Entrance Examination and the number of passes by accrediting and by examination are given in the following table.

YearCandidatesPasses
AccreditedBy Examination
196514,5557,2461,317
196615,3157,6301,398
196716,6518,3071,455
196818,8039,4871,501
196921,58010,6981,953
197022,60210,8152,389

PUBLIC EXPENDITURE ON EDUCATION—The following table shows the expenditure (after recoveries have been deducted) from public funds on each branch or service of education for the latest four years.

Item of Education ExpenditureYear Ended 31 March
1968196919701971
*Expenditure previously shown under Maori schools now appears under the appropriate branch of the Education Service.
 $(000)
General9,0629,68910,42611,940
Buildings, land, furniture, and equipment40,03140,00042,33754,213
Primary education50,69055,03562,46480,163
Secondary education30,38333,27738,26246,177
Senior technical education4,5405,1606,0447,977
University education19,21221,86325,27632,141
Training of teachers9,91811,46113,33117,149
Maori schools1,3221,133**
Education of the blind610475527680
Special schools7497999301,171
Child welfare3,3523,8084,1365,221
Miscellaneous grants1,7141,7682,0056,775
National Library Service1,4661,5491,6041,947
            Totals173,049186,017207,342265,554

The foregoing figures do not include revenue received by universities, from endowments, fees, etc., which are available for educational purposes.

The following table gives Government expenditure on education and relates it to total Government expenditure. The share of public expenditure devoted to education has therefore increased significantly in relation to other forms of Government expenditure. Much of the increased spending has, of course, been a direct consequence of roll growth.

Year Ended 31 MarchEducation Expenditure*As Percentage of Total Government Expenditure
Current (Salaries, etc.)BuildingsTotalCurrent Education ExpenditureTotal Education Expenditure

*Including Child Welfare and National Library Service.

†About 78 percent of present current expenditure is on salaries of teachers and other staff.

  $(million)  percent
194613.62.416.05.16.0
195125.45.030.46.37.5
195644.812.857.66.98.8
196169.817.887.67.69.5
196276.418.094.47.89.7
196384.019.6103.68.610.7
196492.422.0114.48.610.6
1965103.027.0130.08.811.1
1966113.628.0141.68.911.1
1967126.432.0158.49.511.9
1968142.132.5174.610.412.7
1969157.130.9188.010.712.8
1970175.233.9209.110.812.9
1971223.244.4267.612.014.3

Over the years, 1965-71, spending on education was divided as follows: State primary education 40 percent; State secondary education, 24 percent; universities, technical institutes, teachers colleges, 27 percent; other spending 9 percent.

The average annual compound rates of growth for types of education are shown in the following table.

Type of EducationExpenditureAverage Annual Compound Rate of Increase
19511971
*For 1966 year, not previously costed.
 $(million) percent
State primary171029
State secondary76412
Universities24416
Teacher training22013
Technical5*1121
All State education3026812

The following figures relate Government expenditure on education to national income and mean population.

Year Ended 31 MarchExpenditure from Public FundsExpenditure as Percentage of National IncomeExpenditure per Head of Mean Population
*Provisional.
 $(000)percent$
196078,3363.733.40
196187,1063.936.47
196293,6584.038.34
1963102,8324.141.16
1964113,5744.144.54
1965128,9884.349.59
1966140,5094.453.08
1967157,2094.758.33
1968173,0495.063.22
1969186,0165.067.32
1970207,3425.174.23
1971265,5545.7*90.62*

An international comparison of public expenditure on education as a percentage of national income is given in the following table for selected countries. (Source: Organisation for Economic Co-operation and Development.) Educational expenditures in many countries have been rising twice as fast as national income.

CountryPublic Expenditure on Education as Percentage of National Income
19551965
Austria3.984.79
Belgium3.996.48
Canada3.507.63
Denmark4.006.98
France3.736.05
Germany, West2.803.84
Italy3.796.48
Netherlands4.417.53
Norway4.276.98
Switzerland3.584.31
United Kingdom3.325.21
United States4.076.28

Australia's figure for 1965-66 (4.36 percent) was very similar to that for New Zealand.

International comparisons need to be treated with reserve because of the differing education systems and expenditure measures.

Government Assistance for Independent Schools—From February 1970 Central Government has made grants to independent schools on the basis of teachers' salaries. For the first year the proportion was 20 percent and the estimated cost $2.5 million; the proportion is to rise to a maximum of 35 percent over 7 years. Associated Government controls are approval before new independent schools can be built and the requirement that after a transitional period, new teacher entrants to independent schools must possess certain minimum qualifications.

TEACHING PROFESSION: Training of Teachers—In 1970 there were nine teachers colleges (North Shore, Auckland Secondary, Ardmore, Hamilton, Palmerston North, Wellington, Christchurch, and Dunedin), catering for students who desired to enter the teaching profession. At 1 July 1970 there were 9,858 students in training. This number includes 1,680 holders of secondary teacher studentships (Division U) and 260 holders of primary teachers studentships (Division S) who were attached to teachers colleges while attending universities as full-time students as part of their training for teaching, and 564 Division C students undertook training for secondary teaching. From 1964, Endorsed School Certificate (now Sixth Form Certificate) has been the minimum academic qualification for admission to Division A. Division C students are university graduates or near graduates at the time of admission.

The following table shows the number of students in these two groups at 1 July.

YearDivision ADivision CTotals
MalesFemalesMalesFemales
19659513,0431802094,383
19669643,2271582044,553
19679323,2961832084,619
19681,1473,7672063345,454
19691,3244,2282323116,095
19701,3624,8172623026,743

The normal course of training for Division A students is a period of 3 years at a teachers college, followed by a further period of 1 year as a probationary assistant attached to a State primary school. The primary teachers' studentship scheme which was introduced in 1965 enables a number of selected students to attend university full time as part of the primary teacher training course. Specialist studentships are available to selected students who wish to become speech therapists or teachers of deaf children.

For students of Division C the course is for 1 year. These students are university graduates or near graduates who train for service in secondary schools. To enable students to qualify to teach home economics subjects, bursaries providing training at a teachers college and at a technical high school were instituted in 1943. There were 190 home economics students in the Auckland and Christchurch Teachers Colleges in 1970. Training is also provided for manual training instructors.

A concurrent secondary teacher training course (Division B) was introduced in 1966. The course provides for 3 years of concurrent training at a university or a technical institute and at a teachers college, and is available at Auckland Secondary Teachers College and at Christchurch Teachers College.

Secondary teachers' bursaries, although still awarded in some cases, have been largely replaced by secondary teacher studentships. To be eligible for one of these awards an applicant must have reached the age of 16 years on 31 December of the year of application, and must at the time of application have qualified for entrance to the university, or hold some equivalent or higher qualification approved by the Director-General of Education. Students are attached to the teachers college in the appropriate university centre, and a principal lecturer, appointed to each teachers college, supervises the work of the students and guides them during their university courses. Each student, on accepting the award, signs a bond that he will satisfy the stated conditions. One important condition is that if he does not achieve reasonable success in his university studies he will transfer to some other teacher training course at a teachers college and there complete his training as a teacher.

Students awarded a secondary teacher studentship are paid on the following scale: first year $610; second year $769; third year $929; fourth year $1,073. The students may also claim any university bursaries, boarding bursary, or supplementary allowances for which they are eligible under the University Bursaries Regulations 1966. The allowances for the year of post-graduate teacher-training are: with 3-year bachelor's degree or 3-year diploma, $2,627; with master's degree without honours, or bachelor's degree with third-class honours, $2,946; with honours degrees first and second class, $3,091.

In 1970, 635 secondary teacher studentships were taken up. In addition, 25 holders of secondary teachers' bursaries in 1969 qualified to transfer in 1970 to secondary teacher studentships.

There were 18 holders of secondary teachers' bursaries and 1,672 holders of secondary teacher studentships attending university institutions in 1970.

State Primary-school Teachers—The following table shows the number of teachers in State primary schools as at 30 September over the latest 5 years.

YearMaleFemaleTotal
19666,6589,16415,822
19676,6669,65616,322
19686,75010,16716,917
19696,68210,42817,110
19706,55010,58517,135

The average number of pupils per teacher (including probationary assistants) in all public primary schools was 31.4 in 1933, 30 in 1940, 29.5 in 1969, and 28 in 1970; but the basis for recent years was September rolls and not average yearly attendance.

Secondary-school Teachers—The following table indicates the number of full-time teachers employed in the State schools providing secondary education. Totals comprise all secondary teachers at State schools including principals and assistants at State secondary schools, assistants at district high schools, and manual training assistants at manual training centres.

YearMalesFemalesTotal
19654,1282,5146,642
19664,2522,5866,838
19674,3502,7827,132
19684,5093,0407,549
19694,7783,4738,251
19704,9773,6488,625

In 1970 there were also 1,307 teachers (665 male and 642 female) employed in private secondary schools.

FREE TEXTBOOKS IN SCHOOLS—Free textbooks are supplied to all primary and secondary pupils in both State and private schools. Under the free textbooks scheme, the books remain the property of the school controlling authorities and are issued on loan to pupils. The school authorities have a wide discretion in their choice of suitable books.

SCHOOL LIBRARY SERVICE—This service, which is financed by the Department of Education and administered by the National Library of New Zealand, aims at giving children access to the best literature. Regular exchanges of children's and young people's books are sent on a circulating basis to approximately 2,500 schools. The schools served are primary, both public and private, intermediate, and district high schools. Pupils of the Correspondence School also receive books regularly.

All schools, including secondary schools, receive additional books on request. Some 1,011,475 requests were filled during the year 31 March 1970.

AUDIO-VISUAL TEACHING AIDS—A varied series of programmes linked with the curriculum are broadcast each school day from all main national radio stations. Special lessons are also broadcast each day for Correspondence School pupils.

Audio-Visual Aids—The National Film Library, a branch of the Department of Education, lends films and gramophone records free of charge to schools. It also lends films free-of-charge to other organisations having some educational purpose. Films are also supplied to the education services in Western Samoa, and in the Tokelau, Niue, Pitcairn, Cook, and Chatham Islands. A branch of the library situated in Auckland supplies films to schools and organisations in the upper half of the North Island and another in Christchurch serves the South Island except Nelson and Marlborough. The rest of New Zealand is serviced from Wellington.

The library contains more than 32,000 films with over 8,000 titles. Up to 7,500 reels of film are issued each week, and of these 80 percent go to schools or colleges. Approximately 2 700 schools and 2,800 other organisations having some educational purposes benefit from this service.

A number of filmstrips are produced each year by the Visual Production Unit. These and selected productions from overseas are available to schools on free loan from filmstrip libraries in the offices of education boards. They can also be purchased by schools for a nominal sum from the Department of Education. More than 1,500 titles are available to primary and secondary schools. Up to 36,000 issues of filmstrips are made each year. Nearly all schools are equipped with filmstrip projectors.

A tape-copying service is also provided by the National Film Library for schools, teachers colleges, and universities. Tapes submitted are transcribed from master tapes held by the National Film Library. The catalogue includes more than 200 master tapes.

A gramophone record library of 2,854 titles and 6,280 records is available for use by schools and teachers colleges. Issues exceed 12,600 records a year.

Museums—To assist schools to make the fullest use of the museums, an education officer is attached jointly to the museum and the teachers training college in each of the four main centres. Cases of exhibits are circulated amongst schools where pupils are unable to make regular visits to a museum.

School PublicationsThe School Journal, an illustrated paper, is published in four separate parts suitable for pupils in the various standard classes. Parts 1 and 2 are published six times in the year while Parts 3 and 4 for the senior classes appear four times a year. Bulletins dealing with topics of New Zealand history, geography, and nature study, and family life in other countries, are published every year. These and other publications are prepared in the School Publications Branch of the Department of Education and issued free to all primary and intermediate schools, both State and private.

A wide range of syllabuses, textbooks, and handbooks is published for secondary and primary schools.

New mathematics textbooks have been issued to all primary pupils in standard one and above.

Secondary school bulletins are published five times a year and issued free to all State and private secondary schools. They provide background reading for subjects of the revised curriculum, particularly in social studies, science, and literature. Te Wharekura, a bulletin in the Maori language, is published three times a year and issued free to secondary pupils studying Maori language.

The Education Gazette is published by the department twice a month. It is a medium for the dissemination of official information and for the advertisement of vacancies. Copies are distributed to educational authorities and to State and private schools.

Education, a magazine for teachers, is published 10 times a year.

A number of publications are published for the New Zealand Broadcasting Corporation to accompany the broadcasts to schools.

VOCATIONAL GUIDANCE—There are vocational guidance centres at Auckland, Papatoetoe, Hamilton, Napier, Wellington, Lower Hutt, Christchurch, and Dunedin. Vocational guidance officers see young people, and often their parents, at the centres, as well as visiting the secondary schools throughout the country. In the secondary schools, careers advisers are appointed from among the teachers. They spend part of their time on careers work, in close contact with the vocational guidance officers who keep them informed, by means of careers leaflets and bulletins, with up-to-date particulars about qualifications, entry, and training for some 700 occupations.

Interviews are given to young people at the centres and further interviews are undertaken by vocational guidance officers in schools. Various 1-week courses are conducted, mostly for pupils, by all centres. These include careers courses (visits to and discussions on places of employment), “Living in the City” or citizenship courses for rural pupils, and two residential courses for newly-appointed careers advisers. Short seminars for careers advisers are currently conducted in Auckland and are to be extended to other districts.

UNIVERSITY EDUCATION—The system of university education in New Zealand has evolved in recent years from a federal university with constituent colleges to a system of separate universities and a university College of agriculture. These are the University of Auckland, the University of Waikato (at Hamilton), Massey University (at Palmerston North), the Victoria University of Wellington, the University of Canterbury (at Christchurch), and the University of Otago (at Dunedin), with Lincoln College a constituent agricultural college of the University of Canterbury.

At the centre there is the University Grants Committee which functions under the Universities Act 1961. The primary function of the University Grants Committee is to advise the Government of the needs of New Zealand for university education and research. It determines the allocation of grants of money which it recommends for appropriation by Parliament to meet these needs, and reviews the expenditure by the universities of money appropriated by Parliament. The University Grants Committee is also responsible for the award of scholarships, and through its statutory subcommittee, the Research Committee, for the distribution of a Government grant for research. Another statutory subcommittee of the University Grants Committee, the Curriculum Committee, has responsibility in respect of the development of courses for degrees and diplomas. In the performance of its duties it is required to have regard to the comparative equivalence of courses.

The Universities Entrance Board was established on 1 January 1962 to maintain a common educational standard for admission to the universities. The board prescribes the conditions of examinations for University Entrance, Entrance Scholarships, the University Bursaries Examination, and Fine Arts Preliminary.

The special problems of legal education are the province of the Council of Legal Education which prescribes the examination requirements of candidates as barristers and solicitors of the court.

The characteristics of university systems vary from country to country. They show marked differences in levels and sources of finance, public or private; in the constitution of the student population and the means adopted to support it; and in the relationships of the universities to other forms of tertiary education. The characteristics of the New Zealand university system arc distinguishable from those of other national systems and may be partly explained as reflecting the New Zealand point of view. Thus, in our welfare state, there has arisen a public expectation that most of the finance required for the capital and running needs of the universities, and for a contribution towards the support of students by bursaries, will come from the public purse.

The test which applies for entrance to university is not financial but achievement at secondary school. In a country where equality of opportunity for self-improvement still counts for much, the right to a university education is conferred by qualifying for University Entrance. It is true that the relatively open system of admission entails some uncertainties about student numbers and planning university facilities for them. It also leads to higher failure rates arising from the mixed quality of the first-year intake; but this situation is improving in some respects without depriving the universities of their characteristics of open entry. Seventh form work is now taken by the majority of entrants to the universities, and the fees charged and bursaries paid are now more closely geared to successful study after entry. It is likely, too, that the strengthening and diversifying of courses offered in the technical institutes will enable them to cater better for some students and improve the efficiency of tertiary education as a whole. In the meantime, however, relatively ready access to university education associated with flexible degree structures meets the national needs well and at a cost which is modest by overseas standards.

Apart from the income from students' fees and the relatively small amounts now available to some of the universities from endowments, the block grants from the Government determine the income of the universities to meet their running costs for each 5 years. Under the block grant system that has been in operation since 1950, grants have been calculated and approved 5 years in advance to enable the universities to plan their activities ahead in the knowledge of what their income from the Government will be. They are block grants in the sense that they are not itemised and their detailed calculation is not disclosed to the universities. This has the effect of making the governing

bodies—the university councils—not only responsible for arranging their budgets within their incomes, but also free to make their own decisions about the allocation of new expenditure among the many competing academic proposals which arise within the institutions. With these grants the university councils have an obligation to cater for substantially increased student numbers by expanding existing classes and, subject to the scrutiny of the Curriculum Committee, to offer such new courses as they see to be warranted by the demands put on them by the students and by the New Zealand community in which they exist.

The universities regard as their primary function the pursuit and dissemination of knowledge through study, teaching, and research. They have always endeavoured to perform this function with due regard to the specific needs of New Zealand, through their professional schools and through the general disciplines.

The universities in Auckland, Wellington, Canterbury, and Otago, besides offering courses in the faculties of arts, science, commerce, law, and music, specialise in certain fields. The University of Otago provides courses in medicine and dentistry, mineral technology, home science, and physical education; the University of Canterbury provides courses in engineering (mechanical, electrical, civil, agricultural, and chemical) and fine arts; the University of Auckland provides courses in architecture, fine arts, engineering (mechanical, chemical and materials, electrical, engineering science, and civil), and medicine; and the Victoria University of Wellington provides courses in public administration and social science. Massey University provides courses in agriculture, horticulture, food technology, and veterinary science, as well as courses in arts and science, and also provides extra-mural tuition in a number of subjects to students throughout New Zealand. The University of Waikato offers courses in the schools of humanities, social sciences, and science and, in association with the Hamilton Teachers College, offers courses in its School of Education leading to a Diploma in Education and the degree of Bachelor of Education.

Free University Education:Scholarships—The most important awards for those entering university are the University Junior Scholarships. These scholarships are tenable for 3 to 6 years, depending upon the minimum time in which the holder, studying full time, could complete the recognised course taken under the scholarship. The University Junior Scholarship provides a scholarship allowance of S220 a year and is tenable with a fees and allowances bursary (see Bursaries below). These scholarships, together with privately endowed scholarships, are awarded on the results of the Entrance Scholarships Examination conducted by the Universities Entrance Board.

Scholarships awarded during degree courses include Senior Scholarships awarded by the individual universities and Lincoln College (and of a value to be determined by them). The various university institutions also have private scholarships for which their own students may compete. The scholarships awarded at the end of the university course, which are listed in full in the university calendars, include the Rhodes Scholarships, the 1851 Exhibition Scholarships, post-graduate scholarships, and post-doctoral fellowships, the Macmillan Brown Agricultural Scholarships, the Shirtcliff Scholarships, the Gordon Watson Scholarship, the Shell Post-graduate Scholarship, the Michael Hiatt Baker Scholarship, the Rutherford Scholarships, and the National Research Scholarships. Most of the post-graduate scholarships and post-doctoral fellowships are tenable in New Zealand. The other awards are in general tenable overseas.

University Bursaries—The system of bursaries for students entering upon a university course is set out in the University Bursaries Regulations 1971.

Fees Bursaries are awarded to students following part-time or full-time courses who have qualified for entrance to the university either by examination or accrediting, been admitted ed eundum statum, or who, having been granted provisional admission, pass two units in any 1 year. These bursaries provide for payment of tuition fees during their term.

Fees and Allowances Bursaries are awarded to students who hold the Higher School Certificate and are tenable for any recognised course at a university provided that the bursar undertakes a full-time course of study in each year of the bursary. Also, a student who in any year is credited with passes in the subjects or units comprising a full-time course will qualify for a fees and allowances bursary.

A fees and allowances bursary entitles the holder to payment of tuition fees plus allowances of $120 in the first year of the bursary, and (subject to the attainment of a defined standard in his university work) $165 in the second year, $210 in the third year, $235 in the fourth year, $300 in the fifth year; and $345 in the sixth and later years.

Bursaries may be extended to assist students undertaking a second course of study, and further extended for study at the master's level.

The holder of a fees and allowances bursary who is obliged to live away from his home or his usual place of residence in order to attend a university affording tuition in the subjects appropriate to his course and year may also qualify for a boarding allowance of $250 a year.

Supplementary Allowances of $100 a year and $60 a year are awarded to students who gain the required grades in the university bursaries examination and who are holding a fees and allowances bursary. A supplementary allowance may also be awarded to a student who gains the requisite grade of pass in the subjects or units of a full-time university course.

All these bursaries are subject to strict rules as to suspension and cancellation. A student who in any year does not pass in a prescribed number of units or subjects will have his bursary suspended and it will not be reinstated unless in the following year he is credited with a prescribed number of passes. Only one such suspension is allowed and subsequent failure results in the termination of the bursary.

Further details of the amounts payable and other qualifying conditions for the various classes of bursaries are available from vocational guidance centres and from the Head Office of the Department of Education, Wellington.

The Government offers for competition annually four bursaries to students wishing to attend the School of Social Science at the Victoria University of Wellington. Preference is given to candidates nominated by church or other organisations engaged in social work. These bursaries provide for full fees, a bursary allowance of $160, and a boarding allowance of $250 where appropriate.

The total number of University National Entrance, Higher School Certificate, fees, and fees and allowances bursaries current in 1969 was 15,257.

Bursaries, scholarships, and fellowships are also awarded by other Government departments and include medical, dental, physiotherapy, and dietetic bursaries (Department of Health), national research scholarships and national research fellowships (Department of Scientific and Industrial Research), rehabilitation bursaries (Social Welfare Department), coal-mining bursaries (Mines Department). Study awards are made to selected public servants to enable them to undertake university study. The Department of Education has a system of studentships with generous allowances available for those intending ultimately to qualify as secondary teachers.

The following table gives the number of students, including those taking short courses at agricultural colleges, who received free university education during each of the latest 6 years.

YearJunior University, University National, and Taranaki ScholarshipsSenior University ScholarshipsUniversity National, Entrance, and H.S.C Bursaries*University and Teachers College StudentshipsOtherTotal
*Includes also fees, fees and allowances, and masters' bursaries awarded under University Bursaries Regulations.
1965266579,2601,8652,85014,298
19662966410,7191,9133,40916,401
19673437212,3191,9683,49318,195
19683697514,6402,0272,89920,010
19693878415,9991,9903,46721,927
19704359718,6201,9403,65224,744

Students—In 1969 there were 31,494 students actually in attendance at the seven universities; 2,800 were graduates, 26,861 undergraduates (452 were enrolled in more than one course). In addition, there were 2,285 students attached to the various universities, but exempt from lectures, and 404 students who were taking short courses. Comparable figures for the latest 5 years are given in the following table. Students now exceed 1 percent of the population.

YearStudents Attending LecturesExempt StudentsTotal
MalesFemalesMalesFemales
196616,3006,0771,27365224,302
196717,5716,8601,21966326,313
196819,1707,6241,27275528,821
196920,7328,4771,38590031,494
197022,3109,5981,4721,06634,466

The following table gives particulars of internal students who were taking definite courses at universities, including agricultural college, during the latest 3 years. Additional information is published in Education Statistics of New Zealand available from the Department of Education, Wellington.

Course196819691970
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Agricultural1,756841,8401,712831,7951,692941,786
Architectural512135254891450348824512
Arts and music5,0905,16210,2525,0805,51410,5945,4885,97611,464
Commerce2,7411662,9072,8961903,0863,2002533,453
Divinity311322252718422
Education2333555882433495924107841,194
Engineering1,975121,9872,213192,2322,387202,407
Fine Arts149147296133134267128134262
Food Technology429511172013711429143
Home Science-232232-236236-230230
Law1,7411341,8751,9071812,0881,9932132,206
Medical and Dental1,0272071,2341,0412121,2531,0282151,243
Physical Education7!1211927912019987120207
Science3,9129534,8654,2431,0735,3164,6931,2825,975
Surveying65-6565-65109-109
Veterinary Science936992703130130733340
Others1851173025823889707393951,134
            Totals19,6237,71927,34221,0928,56929,66122,8819,80632,687
Adjustment for students enrolled in more than one course4539554836092452571208779
            Totals19,1707,62426,79420,7328,47729,20922,3109,59831,908

The distribution of these students over the universities in 1970 was: University of Auckland, 9,331; University of Waikato, 1,042; Victoria University of Wellington, 5,808; University of Canterbury, 6,767; University of Otago, 5,234; Massey University, 2,672; Lincoln College, 1,054.

In addition, there were 2,538 extra-mural students, 2,017 taking courses at Massey University and 552 taking courses at their own university.

The examination performance of undergraduates in 1969 and 1970 is shown in the following table

Examination Performance19691970
Full-timePart-timeFull-timePart-time
*Or equivalent.
 percentpercent
Completed university degree or diploma17.08.818.37.6
Passed three degree units*46.82.348.01.4
Passed two degree units*14.217.412.917.6
Passed one degree unit*10.540.69.941.5
Passed none or half degree units*11.530.910.931.9
            Totals100.0100.0100.0100.0

There were 19,788 full-time and 6,557 part-time undergraduates at the seven universities in 1969, that is three-quarters were full-time. In 1970 there were 19,976 full-time and 6,910 part-time undergraduates.

It is relevant to the interpretation of these figures to note the following points:

  1. The student who passed all the work of a full-time course progressed at the rate required to gain a degree or diploma in the minimum time, for example, 3 years for the ordinary B.A., or B.Sc. degree.

  2. Although the students who passed two units or the equivalent were not fully successful, they nevertheless achieved a degree of success recognised as sufficient to justify the continuation of a bursary or its reinstatement after suspension.

  3. The figures are for all students who were enrolled on 1 April not only those who actually sat the final examinations. Those who drop out, and are therefore included in the group with no passes to their credit, are no doubt usually students with poor records, but this is not always so. Severe illness, for example, may interrupt the studies of the ablest of students.

Staff—The teaching staff of the universities and agricultural colleges in 1970 consisted of 2,174 persons on full-time appointment and 862 persons working part time. On full-time appointment there were 309 professors, 847 senior lecturers, 750 lecturers, 223 junior lecturers, and 45 instructors and demonstrators engaged in teaching. Non-teaching staff numbered 2,350 full-time and 324 part-time workers.

Graduates—The numbers of degree graduates from New Zealand universities in 1969 and 1970 are shown in the following table.

CourseFirst DegreePost GraduatePost-Graduate Honours
196919701969197019691970
Agriculture46----
Agricultural Engineering-3---
Agricultural Science8294452416
Horticulture-1----
Horticultural Science1611-112
Architecture2944231-
Arts1,1901,35990102310320
Commerce307354992831
Dental Surgery5053-136
Divinity- 1313-
Education-1812-
Engineering (Chemical)2132271329
Engineering (Civil)144134
Engineering (Electrical)7082
Engineering (Mechanical)3750
Engineering (Science)53
Food Technology15192-12
Home Science23141--2
Laws181261531412
Medical Science511----
Medicine and Surgery118110232-
Music20161--5
Pharmacy1020-1-1
Science7277324138117149
Veterinary Science2224-11-
            Totals3,0763,451198195503555

In addition, in 1969 doctorates were completed in science (7), medicine (10), and philosophy (89), literature (2), while in 1970 there were science (8), medicine (5), philosophy (79), dental surgery (1), and literature (1).

Of those graduating with first degrees in 1969, 42 percent completed their qualifications in the minimum time, 31 percent in the minimum time plus 1 year, 12 percent in the minimum time plus 2 years, and 15 percent took over 2 years beyond the minimum time.

Time Taken to Complete First Degrees—The following table shows the time taken to complete first degrees for the year ending with the graduation ceremonies in 1970.

DegreeMinimum TimeMinimum Time + One YearMinimum Time + Two YearsMinimum Time + Over Two YearsAll Students
TotalWomenTotalWomenTotalWomenTotalWomenTotalWomen
Bachelor Honours          
    Law2214-1-1-281
    Science9621711---10422
    Engineering103311-1---1153
    Other25151---2-2815
            Totals246402313-3-27541
Bachelor          
    Arts61335739120714357193751,340696
    Commerce11513103659270-34721
    Law116954228135223314
    Science27882226447312516628144
    Engineering101-79-32-22-234-
    Medicine and Surgery106184541814-17323
    Agriculture science6012714-3-942
    Other82373111915112750
            Totals1,47151795627536674383843,176950

TECHNICAL EDUCATION—In 1945, technical education was a variant form of secondary education. It was provided by separate technical high schools and technical departments in other secondary schools, and was avowedly vocational in purpose. During the past 10 to 15 years, technical education has been transferred from the secondary to the tertiary sector of the educational system. Technical high schools, as such, no longer exist. Vocational education and training is now provided by 11 technical institutes, supported by the technical departments of 43 high schools throughout the country.

This transformation is the result of a number of policy decisions which have had the effect of creating a demand for types of education and training that belonged not to the secondary but to the post-secondary school phase of a person's career. The Apprenticeship Act 1948, for example, made it compulsory for apprentices to undertake technical classes. At first, this requirement was met through attendance at evening classes, later by day-release classes and, increasingly in recent years, by block courses for which the apprentice is released by his employer to attend a technical institute as a full-time student (usually for 3 weeks). The establishment, in 1949, of the Trades Certification Board and of national trades examinations, gave point and direction to apprentice studies. At the present time, apprentice training accounts for 41 percent of the enrolment load of technical institutes.

To provide a teaching service for students for whom technical education was not readily available, the Department of Education established the Technical Correspondence School (now the Technical Correspondence Institute) in 1946 and from small beginnings, with a staff of half a dozen or so, this institute now employs some 250 full-time tutors.

The beginnings of technician training date from the early 1950s and were a result of the efforts of the engineering profession to specify a role for a highly trained person whose qualifications were derived, not from study in a university school of engineering, but from theoretical studies taken in conjunction with industrial experience.

The New Zealand Certificate of Engineering was introduced in 1954. Experience of this qualification led, in 1950, to the establishment of the Technicians Certification Authority and, during the last 10 years, there has been a spectacular increase in the range of technician courses and the number of students studying for New Zealand certificates. The number of New Zealand certificates awarded annually has increased from 29 in 1960 to 590 in 1970. At the present time, technician studies account for 42 percent of the enrolments of technical institutes.

Technical education is being developed through national, regional, and local institutes. Approval for the establishment of a Central Institute of Technology was given in 1957; the institute opened in 1960 and will move in 1972 to its permanent accommodation at Heretaunga—a building project costing $5.5 million. Included in this contract is a 500-bed hostel, which will provide living accommodation for the students who will come from all parts of the country to undertake full-time courses of 1 week to 4 years of instruction. Technical institutes have been established in the six main centres of population; and with the opening of Manukau Technical Institute in 1970, the first of a number of “satellite” institutes has been opened to serve the greater Auckland area. Following a recommendation of the National Development Conference, Government, in 1969, approved the establishment of technical institutes in centres where there was an assured teaching load for at least 10 full-time tutors. The first of the institutes to be set up under this policy—Southland and Nelson—opened in 1971. Since the 1966-67 financial year, more than $10 million has been spent on technical institute buildings alone.

In 1965, Government introduced technical institute bursaries for students attending approved full-time courses at technical institutes. The current rates are $130 boarding allowance and S30 for books.

In 1969 over 90 percent of apprentices received their practical instruction at block courses. This practical instruction is supplemented by instruction in theory at evening classes, where numbers arc sufficient to justify local classes, or else by correspondence tuition from the Technical Correspondence Institute. The examinations for apprentices are administered by the Trades Certification Board.

The term “technician” covers a wide field, but national New Zealand certificate courses have been devised for engineering, draughting, draughting (architectural), science, building, quantity surveying, and commerce. In addition, at a lower level, there is a certificate in garage management and courses leading to certificates for radio technicians, telegraph and telephone technicians, engineering technicians, survey technicians, automotive engineering technicians, and forest rangers. The courses for these qualifications, and other courses not on a certificate basis, are devised by the Technicians Certification Authority, which was established under the Technicians Certification Act 1958 to prescribe courses and syllabuses and conduct examinations appropriate to the needs of persons in occupational groups. The instruction for the New Zealand certificate courses is given at part-time classes, or on a sandwich basis (i.e., regular intermittent periods in full-time classes), or by correspondence tuition from the Technical Correspondence Institute supplemented in the case of science and workshop by short practical courses, usually of 1 week per subject at junior levels and 3 weeks at the senior levels. All these practical block courses are at the Central Institute of Technology. In a few cases the stages can be taken at full-time courses in the technical institute, but for the first 2 or 3 years only. All New Zealand certificates require students to be suitably employed during the last two stages of the courses.

In addition to the national trade and technician courses, there are a large number of courses available which have been organised regionally to meet local demands. These include commercial courses for girls, work study and electronic data processing courses, courses in journalism and inindustrial and commercial design. In addition, instruction is given on the examination syllabuses devised by independent organisations, e.g., the New Zealand Society of Accountants, Chartered Institute of Secretaries, New Zealand Institute of Valuers, etc.

Full-time Courses: As at 1 July 1970MenWomenTotal Students
N.Z.C.—   
    Architectural draughting24832
    Building12-12
    Quantity surveying11-11
    Science246
    Statistics11
N.Z.C.E.—   
    Engineering86288
    Other44
    Plastics11
Trade Certificates—   
    Automotive engineering5-5
    Other6-6
Other—   
    Computers and E.D.P. programming242246
    Diploma of fine arts20828
    Design9632128
    Fashion103444
    Graphic art233154
    Health inspector29-29
    Journalism223860
    Maori pre-apprentice252-252
    Pharmacy9353146
    Senior business-867867
    Other431962
            Totals7631,1191,882
Part-time Courses: As at 1 July 1970Day or Day and Evening CoursesEvening Courses OnlyMenWomenTotal Students
Apprentice trade classes2,93519,52921,85361122,464
Technician4,5187,44610,6901,27411,964
Professional2,2817,2598,9096319,540
Other vocational87014,6965,31510,25115,566
Non-vocational2,57839,58310,69431,46742,161
            Totals13,18288,51357,46144,234101,695
Other CoursesStudent-weeksMenWomenTotal Students
*Including 283 full-time secondary pupils.
Trade block courses44,89214,49515514,650
Technician block courses4,6371,866581,924
Sandwich courses8,1599331121,045
            Totals57,68817,29432517,619
            All students*...75,51845,678121,196

New Zealand Technical Correspondence Institute—Instruction is now given in 589 technical subjects and so far the institute has published 13 textbooks.

The main function of the institute is to provide technical education from apprentice up to advanced technician level for those who are unable to obtain such education through the usual institutions. In particular, the institute meets many demands for technical education in the building, electrical, and engineering occupations, and also provides courses in agriculture and horticulture, dairy manufactures, management and commerce, mining and fire engineering, surveying, textiles, and valuation. As all students are employed in an industry or profession, their correspondence studies are supported by practical experience.

The work of the Technical Correspondence Institute parallels the teaching given in the other senior technical institutes, and instruction is given in many subjects not taught elsewhere. The institute plays an important role in the education of many of the apprentices who sit the annual examinations of the Trades Certification Board. It also prepares a large percentage of candidates for the various examinations of the Technicians Certification Authority in engineering, building, commerce, draughting, and science as well as for other professional and industrial examinations.

The number of students on the roll at 1 July 1970 was 15,203. There is an establishment of 245 full-time tutors, besides the principal, and some 60 administrative staff.

Vocational Training Council—This council was established by the Vocational Training Act 1968. Its responsibilities and activities are set out in Section 32, Employment.

EDUCATIONAL QUALIFICATIONS OF LABOUR FORCE—The Census of Population and Dwellings 1966 included a question on the highest educational qualifications obtained. An analysis concerning persons in the labour force is set out in the following table; where persons have more than one qualification they have been included only once in the higher academic qualifications, for example, certificated teachers with a university degree are included in the university qualification group.

QualificationMalesFemalesTotal

*Includes electricians', plumbers', carpenters', joiners', radio and T.V. servicemen's, and motor mechanics'.

†Includes Intermediate grades of Technician Certification Authority examinations. Police, Fire Brigade, and Armed Forces examinations, overseas trade examinations, etc. ‡Mainly the Proficiency Certificate or Junior Free Place (43,029 males and 11,308 females) and other primary certificates including the Certificate of Competency (6,531 males and 1,370 females).

University—   
    Doctorate89769966
    Master's degree4,0148484,862
    Bachelor's degree14,8762,65217,528
    Diploma3,3886834,071
    Other3,419813,500
Teacher's Certificate7,1649,92517,089
Secondary—   
    Higher School Certificate or equivalent, University Entrance Scholarship Examination5,5382,0287,566
    University Entrance25,2599,96835,227
    School Certificate33,87922.53856,417
    Other22,3438,53230,875
    Professional and higher trade16,8959,13526,030
Trade certificate*8,13678,143
Other trade certificate7,4954987,993
Business college7959,37610,171
Other qualification‡50,47813,61264,090
No qualification541,019190,492731,511
            Totals745,595280,4441,026,039

NATIONAL DEVELOPMENT—In 1969 the National Development Conference adopted a number of recommendations on education in relation to national development. Background information to the recommendations is contained in the Report of the Education, Training, and Research Committee available in Government bookshops. An Advisory Council on Educational Planning has been set up as a continuation measure.

NEW ZEALAND COUNCIL FOR EDUCATIONAL RESEARCH—The Carnegie Corporation of New York was instrumental in founding the New Zealand Council for Educational Research in 1933 and supported it with grants for 10 years. Since 1945 the council has been supported by State funds, the remainder coming from contributions from educational bodies, philanthropic foundations, business organisations, and its own trading operations. It has remained however, under independent control as provided for in the New Zealand Council for Educational Research Act 1945.

In its research programme, the council has concentrated on New Zealand problems, and its main publications (48 research reports and 20 shorter studies in education) include critical surveys of major policy issues in New Zealand education and accounts of outstanding experiments in school practice. These have brought about or helped reshape major developments in such areas as secondary, university, and adult education, intermediate schools, consolidation of rural schools, and care of children with special needs.

Since the 1930s, the council has served as the main source of supply for overseas and locally standardised educational and psychological tests used by universities, Government agencies, hospitals, business firms, and schools. In 1965 the council established a special Test Development Division to produce achievement tests designed specifically to suit the curriculums of New Zealand schools. Known as the Progressive Achievement Tests, they are now used extensively in schools throughout the country.

The council employs its own permanent research staff as well as temporary research fellows or project assistants, and it also assists honorary research workers in other institutions such as universities, teachers colleges, and schools. Its current research programme includes major projects related to educational planning, the supply of qualified people in the community, teaching practices, Maori and pre-school education, and services for children with special needs. The council also acts as a clearing house for information on educational matters and maintains six local institutes for educational research in Auckland, Wellington, Christchurch, Dunedin, Palmerston North, and Hamilton.

MAORI EDUCATION FOUNDATION—The Maori Education Foundation Act 1961 established the Maori Education Foundation for the general purpose of promoting and encouraging the better education of Maoris and of providing financial assistance for that purpose. By the end of 1969 the capital resources of the foundation had risen to S2,050,000. Some of the principal purposes for which the Board of Trustees is empowered to apply the income of the foundation include the education and vocational training of Maoris; the granting of financial assistance or of equipment to schools and institutions at which Maoris are receiving education; the provision of bursaries to assist Maoris attending secondary schools or any New Zealand or overseas university, agricultural college, or institution of similar status; the provision of post-graduate scholarships for Maoris holding university degrees or diplomas; and the making of special research or study grants to Maoris undertaking special research or study projects. Although the bulk of the foundation's income is expended on grants to individuals, the major endeavours of the foundation are being concentrated on fostering the greater participation of Maori parents and children in play centres and kindergartens. During the 1971 academic year assistance was granted to 1,920 pupils and students. While 518 grants were of comparatively small amounts for school clothing or equipment, the bulk of the grants were towards the cost of board and tuition of secondary boarding school pupils. In a number of cases Foundation grants are a necessary supplement to other scholarships and awards. Financial assistance towards the cost of tertiary studies was offered to 144 students in 1971.

PACIFIC ISLANDS EDUCATION—The Department of Education, in liaison with the Ministry of Foreign Affairs and the Department of Maori and Island Affairs, assists other administrations, including those in the Cook Islands, Niue, Tokelau, Fiji, Tonga, Western Samoa, the Gilbert and Ellice Islands, Pitcairn Island, New Hebrides, and British Solomon Islands Protectorate with their educational problems.

As part of the assistance, the Department of Education assumes responsibility for filling about 200 teaching and administration positions in the Pacific. Officers and teachers are inspected and their service, grading, and superannuation rights protected while serving in island positions. Advisory visits are made to most of the islands and supplies of modern textbooks and apparatus are sent regularly to some territories. The Islands Education Division has also printed books in the vernacular for some areas, and has helped in the development of a system for teaching English as a second language.

In addition, a very important function of the Islands Education Division is to operate and supervise closely a scholarship system which in 1970 enabled 374 island students to obtain in New Zealand schools, trade centres, teachers colleges, universities, Government departments, and private firms more advanced education and training than would otherwise be available to them. During the term of their scholarship these students are fully maintained by the Department of Maori and Island Affairs and the Ministry of Foreign Affairs.

Each year officers from the Pacific come to New Zealand to undertake special training at in-service courses of 6 months to 1 year.

Increasing numbers of students in island schools are availing themselves of the facility to sit New Zealand examinations. In 1970, 59 schools offered candidates for New Zealand School Certificate, and 26 schools offered candidates for New Zealand University Entrance.

ADULT EDUCATION: National Council of Adult Education—The functions and powers of the National Council of Adult Education are set out in the Adult Education Act 1963. The council advises the University Grants Committee, the Director-General of Education and other bodies on adult education, co-ordinates and conducts pilot projects and experiments, maintains a national library and documentation centre on adult education, and publishes occasional papers and reports as well as a periodical entitled Continuing Education in New Zealand.

Although full responsibility and control of their adult education activities rests with the universities, they use various systems to ascertain the views and in some cases to seek advice from various community interests.

The typical extension department in each university has a director in charge and a staff of lecturers in a range of academic disciplines. In addition to teaching, the lecturers may be responsible for planning and developing sections of the department's programme or have special responsibility for a geographical area and its programme. Two of the North Island universities also have lecturers specialising in work among the Maori people. The six universities now carry out extension work, and show marked differences in their approaches and systems of organisation. A large number of part-time lecturers supplement the activity of the full-time staff (numbering approximately 60). The work is carried out by various methods—lecture courses, study conferences, seminars, schools of varying length (both residential and non-residential), and correspondence courses written for group study and discussion.

In addition to the adult education activities of the universities, a growing amount of adult education is being done by evening classes in secondary schools. This is now the largest sector of adult education. Since the revision of the School Certificate regulations to allow single-subject passes, there has been a marked increase in adult classes leading to the School Certificate Examination, though the bulk of the schools' evening classes remain of a practical hobby nature. There has also been an increase in the number of technical institutes which cater for a wide variety of adult education interests. The National Council is interested in the co-ordination of these wider developments and provides advice and assistance.

Voluntary Agencies—Many voluntary organisations make some provision for adult education. For most of them, such as the Play Centres Federation which is heavily involved in parent education, adult education is incidental to their other purposes. The following two organisations, however, have adult education as their primary purpose.

Workers' Educational Association—District councils of the Workers' Educational Association exist in Auckland, New Plymouth, Wellington, Canterbury, Otago, and Southland. Small administrative grants are received from the respective universities with which the councils are associated, together with payment of tutors' fees for a limited number of courses approved by them. Districtcouncils, in their own right, organise additional courses, summer schools, public forums and seminars. The co-ordinating body is the New Zealand Workers' Education Association which also publishes the WEA Review.

Countrywomen's Co-ordinating Committee—This is a national liaison committee of the Country-womens Institute and the Womens Division of Federated Farmers; it has regional committees at Auckland, Wellington, Christchurch, and Dunedin and over 50 district committees. The organisation co-operates with other adult education organisations and also arranges classes of special interest to women.

Community Centres—Community centres on an experimental basis were opened some 20 or more years ago at Feilding, Christchurch, Westport, Dunedin, and Hawera. These centres received some assistance, directly or indirectly, from public funds. There are, however, many other community schemes supported by voluntary effort and without professional staff. For whatever reasons, community centres in the overseas mould have not spread in New Zealand as was originally expected, and many which exist are merely sets of buildings available for community use.

SECTION 7 B—SCIENCE AND SCIENTIFIC SERVICES

The modern epoch is distinguished by application of science to problems of economic and human welfare it is distinguished by a climate of human opinion, by some dominant views on the relation of man to the universe that foster science and its application.

(Simon Kuznets in Modern Economic Growth, Yale University, 1966.)

GENERAL—Economic growth and higher living standards depend on increased productivity and full development of national resources. In an age of technological advancement, progress depends in a large part on the application of research. In past years production, in particular that in agriculture, has been promoted by scientific research.

More than three-quarters of the scientific research in New Zealand is financed from Government sources. The Government supports science as a cultural, educational, and intellectual activity through the schools, universities, museums, and other ways; and itself engages in scientific research for its social and economic values. Industry supports research which may be of short or long-term benefit to its business and, together with private individuals, supports research for philanthropic reasons.

The importance of the social sciences (e.g., economics, education, sociology, political science, demography) in a world increasingly dominated by science and technology is often overlooked. In a period marked by a rapid advance of scientific and technological progress, most evident in the development of industrialisation and the resulting changes in our culture and society, the social sciences have a vital role to play in making it possible to recognise, understand, and counteract the human and social problems brought about by these rapid changes. Public opinion now also expects that in development processes more attention be given to protecting the quality of the environment.

New developments in instruments and equipment, such as computers, facilitate the work of the scientist, but the analysis and solving of problems in the human interest derive essentially from the efforts of trained minds.

DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH—By far the greatest part of finance for research in the national interest is provided by the Government, and most of this is spent by the Department of Scientific and Industrial Research, through its 21 divisions and branches, in subsidies to nine grant-aided industrial research associations, and through special research grants to universities and other organisations.

Agricultural research still predominates, but expanding population and development of a broader-based economy have called for increasing industrial research, and there has been growing activity in the natural sciences and in scientific services for other Government departments and the general public. Further information is provided in the DSIR Information Series Bulletins on Research.

Agricultural and Related Research—Scientific research has strongly influenced the long-continued trend towards more intensive farming, and the drive for intensification has in turn brought increasing sophistication to research.

The Soil Bureau has advanced from fundamental studies of soil genesis and the preparation of soil maps to examination of the balance of plant nutrients and the effect on this balance of man's use of the land.

Pasture improvement studies of the Grasslands and Applied Biochemistry Divisions, and later of the Plant Physiology Division, at first concerned mainly with increasing plant yield per acre, are now seeking more knowledge of the plant substances that contribute to the successful performance of the grazing animal, so that future plant selection can be guided by the yield of these nutrient constituents.

Biological and ecological research into plant pests and diseases by the Entomology and Plant Diseases Divisions seeks for more effective control by biological as well as chemical means.

The current change in research emphasis is evident right through to the end product, of which an ever-increasing variety is being developed. In the breeding and selection of cereals and vegetables (Crop Research Division) and fruit (Plant Diseases Division), account must be taken of storage and processing quality as well as field performance. Research in tobacco and hops is carried out at two special stations in the Nelson district.

A wheat-testing service and technical advice to millers and bakers are provided by the Wheat Research Institute, which is partly financed by a levy on the flourmilling and baking industries.

Competition for pasturage of introduced noxious animals such as rabbits, hares, and deer with economic livestock and the effect on forests and vegetative cover, continue to be problems in intensive land use and conservation. As a basis for more effective control methods, the Ecology Division has intensified its study of these animals, and of bird species that damage farm and orchard crops. The division's work has recently been expanded to embrace environmental research on a broad basis, with the aim of enhancing the quality of living by protecting and improving the natural environment and ensuring that its management is to the benefit of man.

The Botany Division's study of all plant life provides basic information to several other divisions concerned with the role of plants in agricultural, pastoral, and horticultural production.

The increasing sophistication of research applied to agricultural production is nowhere more evident than in the extent to which the Applied Mathematics Division is now involved in the design of experiments so that they yield the maximum information, and interpretation of the results. The volume of research statistics being handled by the division's computer service is rapidly increasing.

Research associations closely associated with the department, and jointly financed by the department and the respective industries, are carrying out work of importance to agricultural production in the following fields: the production, distribution, and use of fertilisers; wool manufacture, the physical, chemical, and biological properties of wool, and its handling, storage, transport, and marketing; basic and applied investigations to improve the quality of export meat; the production of milk in relation to the feeding, breeding, and management of dairy animals and the manufacture of dairy products, and the building, design, and efficiency of dairy machinery.

Industrial and Related Research—Because of the small scale of many industries in New Zealand, it is even more necessary than in highly industrialised countries that Government should give some form of technical assistance. A number of branches of the Department of Scientific and Industrial Research carry out research and service work for industry. A science in industry unit co-ordinates and facilitates liaison with industry.

The Chemistry Division laboratories carry out materials and equipment testing for other Government departments and investigate the extraction and processing of natural products and minerals.

In the Geological Survey, emphasis on economic minerals has increased since the establishment several years ago of an economic geology unit, and commercial interest in the development of petroleum, natural gas, and other minerals has been encouraged and assisted.

Assistance to industry by the Physics and Engineering Laboratory is principally in providing servicing equipment beyond the resources of small private enterprises and designing and developing installations and techniques especially for the small-scale units that predominate in local industry. From chemical studies of indigenous timber and by-products of the pulp and paper and fruit industries, several products of potential economic importance in domestic and export markets have been developed.

Departmental geologists, engineering geologists, geophysicists, and chemists played a large part in the development of electrical power from geothermal steam in the volcanic centre of the North Island, and at Kawerau this work led to the direct use of geothermal steam in the pulp and paper industry. Continued geothermal exploration has revealed further extensive fields for geothermal power development.

The Auckland Industrial Development Division of DSIR is fully engaged in meeting an increasing demand from industry for scientific services. These include the application of the results of research and the use of precision measurement and data analysis, particularly in the fields of mechanical engineering, metallurgy, physics, and electronics.

Overseas-trained professional staff are available for research on metal cutting and for measurement at high degrees of accuracy of length, roundness, straightness, and concentricity. Excellent facilities for metal analysis and industrial lubricant evaluation have also been established.

A continuing study of the behaviour of fruit and vegetables in storage is proving beneficial to the development of our export markets.

Major contributions have been made in the field of medical instrumentation and equipment covered by world patents is currently being manufactured in Auckland for export.

Scientific Services—Continuous magnetic, ionospheric, and seismological observations are carried out by the Geophysics Division, as well as special projects on natural phenomena, and networks of geophysical and seismological stations are maintained from the Pacific to Antarctica. This division also operates the official New Zealand time service.

Physical, geological, and biological studies in the oceans round New Zealand are carried out by the Oceanographic Institute, with recent emphasis on work likely to help development of mineral resources and the fishing industry.

Chemical work in the investigation of crime and toxicology, and chemical and bacteriological examination of food, drugs, and water supplies form a large part of Chemistry Division's service to other departments.

Because of New Zealand's nearness to the Antarctic and its large dependency there, the work of the Antarctic Division as a co-ordinating agency for scientific studies and exploration in that area is of special importance. The International Geophysical Year 1957-58 had a considerable influence on research in the Ross Dependency, and since that time New Zealand has maintained a permanent scientific base in the Antarctic at Scott Base, with a temporary station at Vanda and a summer station at Cape Byrd.

Scientific and industrial research must become of increasing importance to the country's development, and for the natural scientist New Zealand must continue to offer a fertile field of study, because of the large range of interests and problems it offers in a relatively small area.

AGRICULTURE—In the nineteenth century the process of ploughing up additional areas of virgin soil and sowing it down in imported pastures enabled the number of stock to be increased continually. Very little was done to improve the grasslands once they were established. In the twentieth century, however, especially since 1920, there has also been a huge increase in stock carried—but with very little increase in the total area of land farmed. This achievement in the expansion of numbers of stock carried is fundamental to New Zealand's economy and this result Cockayne, the research pioneer, attributed to seven factors—the realisation that grass was a crop and that the grassland farmer was the most important crop-farmer in New Zealand; the development of agricultural instruction and research devoted mainly to grassland farming; the rise of topdressing to a major factor in grassland farming; research leading to the control of bush sickness; research leading to the development of superior strains of grasses and clovers and their use; better stock management; and drainage.

The general improvement in the productive capacity of the grass and clover plants, which form the basis of our swards, has been the work of the agrostologists and plant breeders, and if we add to their work that of a host of other research workers in closely related fields—animal and field husbandry, irrigation, drainage, plant chemistry, veterinary science, animal diseases, and so on—we have the answer to the phenomenal increase in stock carried over the past 30 years.

The establishment of the Grasslands Division at Palmerston North adjacent to Massey Agricultural College in 1929 marked a great step forward in the progress of grassland research. The seed certification scheme inaugurated in 1929-30 was an immediate result with far-reaching consequences. The extension of plant breeding was an associated development. Another broad field of research was that of fertility in relation to pasture growth and the grazing animal.

DEPARTMENT OF AGRICULTURE—Almost all research within the Department of Agriculture is now conducted by the Research Division, which has a staff of approximately 215 scientists and 340 technicians; the headquarters is at Ruakura Agricultural Research Centre, Hamilton.

A proportion of resources is devoted to servicing activities for farmers and advisory personnel. Chief among these are soil-testing services. In two soil-testing laboratories approximately 30,000 samples of soil from farms are analysed for pH and major elements to provide an estimate of the types and quantities of fertilisers required.

Research work is carried out at seven stations, at smaller experimental centres and areas, and on farmers' properties throughout the country. Of the seven stations, two undertake a range of experimental work embracing plant and animal research; three specialise in research on animal production and animal health, while the other two concentrate on soil fertility and horticultural problems respectively. In addition, there is a field research section whose function is to investigate local problems throughout the country and to test out, where possible, the findings of research stations in different environments. Such work is under the control of a number of research workers located in different parts of the country and is carried out on experimental areas and farms. A biometrics unit provides statistical services for research workers.

Major Agricultural Research Projects—Because of the vital importance of fertilisers to agricultural production, considerable work is being done on the fertiliser requirements of soils throughout New Zealand Most major soil groups are being studied in detail. There are very few, if any, soils or areas where it has not been possible to establish pastures satisfactorily with suitable fertilisers, seed, inoculants, and in some cases drainage. Problem areas such as sands, peats, gumlands, pakihi soils, and high country (up to about 3,000 ft) have been successfully and profitably improved, using specialised techniques and often specialised equipment.

From animal production research, targets have been set which are acting as a spur to producers. Six hundred pounds of butterfat or beef per acre; 300 1b of lamb and over 100 lb of wool—these are the levels of production which have been achieved from selectively-bred animals grazed on productive, well-utilised pastures. Studies of different classes of sheep in relation to beef cattle have provided valuable information on the most profitable type of stock to run.

Recently established projects are also examining the profitability and the problems involved in beef production from animals of dairy breed origin both as an integrated system with conventional dairying and as a separate specialist enterprise.

Animal health research is concerned with most of the important diseases which afflict sheep and cattle. Internal parasites, mastitis, salmonellosis, facial eczema, bloat, tuberculosis, brucellosis, and hypomagneasemia are all being investigated with the aim of finding more effective methods of prevention and control.

As farming becomes more intensive, diseases can have much greater effects, and science must continue to find answers to existing and changing problems.

OTHER SCIENTIFIC ORGANISATIONS—As may be seen from the tables which are included on the following pages these two departments (Department of Scientific and Industrial Research and Department of Agriculture) between them spend, directly, approximately 44 percent of the total national science expenditure, and if their grants to other scientific organisations are included they areresponsible for about 48 percent of the total national science expenditure. Another large expenditure is that of New Zealand Forest Service whose science functions are discussed in the section on forestry.

The Meteorological Service (Ministry of Transport), the Department of Health, other Government departments, the universities, the Medical Research Council, private industry, and research associations are the other major areas in which scientific activities are undertaken.

The only major endowed research organisation in New Zealand, the Cawthron Institute at Nelson, was established in 1920. The institute was founded in Nelson as a result of about $500,000 under the will of Thomas Cawthron. As the value of the investment of the bequest has declined the institute has received increasing grants from the Government through the Department of Scientific and Industrial Research. The grant now amounts to about half the annual income of the institute.

Among the other organisations undertaking research are the various museums, the Carter Observatory, and a number of amateur and near amateur groups, particularly in astronomy.

Medical Research—The organisation of medical research is discussed in Section 5A, Public Health, with particular reference to the Medical Research Council and the National Health Institute. The Medical Research Council funds various units (mainly in Dunedin associated with the University of Otago) and in addition research is carried on by the local medical research foundations and the Cancer Society and the Heart Foundation.

Social Sciences—Most of the research material published in the social sciences has been prepared by such organisations as the New Zealand Council for Educational Research, the New Zealand Institute of Economic Research, the Agricultural Economics Research Unit, the Monetary and Economic Council, and the universities. The National Research Advisory Council has compiled an index of current research in the social sciences.

Since 1945 the New Zealand Council for Educational Research has been supported in the main by State funds, supplemented by contributions from educational bodies and business organisations. The council, which is under independent control, has concentrated on New Zealand problems, and many of its publications consist of critical surveys on various aspects of New Zealand education and of accounts of outstanding experiments in school practice. There are local institutes for educational research in Auckland, Wellington, Palmerston North, Christchurch, and Dunedin.

The New Zealand Institute of Economic Research was founded in 1958 and is an independent non-profit making incorporated society. Its object is to increase knowledge of New Zealand's economic development through research, education, and the training of research workers. It conducts its research in co-operation with the universities and other agencies.

The Agricultural Economics Research Unit was established at Lincoln College in 1962 with an annual grant from the Department of Scientific and Industrial Research. It also receives grants for particular projects from other sources. The unit has a long-term programme of research in the fields of agricultural marketing and agricultural production and the relationship between agriculture and the general economy.

In addition to these three organisations and the universities a number of Government departments and agencies undertake research work for their own needs.

Government departments which undertake some research in the social sciences for their own requirements include: Education; Justice; Labour; Statistics; Social Welfare.

PRESENT ORGANISATION OF SCIENTIFIC RESEARCH—About 76 percent of the money spent on scientific research in New Zealand comes directly from Government sources.

The expenditure by the various organisation groups is approximately:

Government departments, 65 percent; universities, 12 percent; industry, 13 percent; research associations, 7 percent; other organisations, 3 percent.

The National Research Advisory Council was established on 1 April 1964 to advise the Minister of Science on—

  1. The promotion and development of scientific research in New Zealand.

  2. The planning and co-ordination of scientific research and services in New Zealand, including—

    1. The determination of priorities among research activities of Government departments having regard to research done by other organisations:

    2. The provision of scholarships and fellowships and the promotion of the training of research workers:

    3. The association of Government with industry in the promotion of fundamental and applied research, including the promotion of research associations:

    4. The collection and dissemination of scientific information including the publication of reports and journals:

    5. The promotion of co-operation with the governments of or organisations in other countries, or with international organisations, in scientific matters.

    6. Any other matters that are appropriate for the carrying out of any other above-mentioned functions, or that are referred to it by the Minister.

The council has nine members, six (including the chairman) appointed by the Governor-General together with the Director-General of Agriculture, Director-General of the Department of Scientific and Industrial Research, and the Secretary to the Treasury. The council is responsible to the Minister of Science who discusses reports or proposals with other Cabinet Ministers whose departments may be affected. This council replaced the Council of Scientific and Industrial Research established in 1926.

At present, government science activities are distributed amongst 15 Government departments—Agriculture, Defence, Education, Electricity, Forest Service, Internal Affairs, Justice, Labour, Lands and Survey, Marine, Scientific and Industrial Research, Social Security, State Services Commission, Transport, and Works.

Science Budget—A science budget for all Government expenditure on scientific activities, including social sciences, was introduced on 1 April 1970. The formation of a science budget was recommended by the National Research Advisory Council in their 1968 annual report and was approved by Cabinet in that year. The budget, which is both a financial and a manpower budget, contains a forward programme for science.

Research Expenditure—The introduction of the science budget, which incorporates a wider concept of science, has resulted in a revised compilation by the National Research Advisory Council for research expenditure. Because of the new method of compilation the following tables are not strictly comparable with those in previous Yearbooks.

ESTIMATED GOVERNMENT EXPENDITURE ON SCIENCE
Department or AgencyGross Expenditure on ScienceGrants
1968-691969-701970-711968-691969-701970-71
    $(000)  
Agriculture3,9174,4125,561119153149
Forest Service1,4021,5291,997131320
Marine7031,2581,032121014
Scientific and Industrial Research8,6649,73811,7041,0491,1911,352
Transport1,6491,8732,164141515
Works1,1581,2641,37098145110
Other departments2,0112,1923,3891,1241,1962,067
            Totals19,50422.26627,2172,4292,7233,727
Buildings (Government)4691,125922.........
            Totals (Government)19,97323,39128,1392,4292,7233,727
ESTIMATED NATIONAL EXPENDITURE ON SCIENCE
Department or AgencyNet Expenditure on SciencePercentage of Total Net Government Expenditure on Science
1968-691969-701970-711968-691969-701970-71
  $(000)  percent 
Agriculture3,7984,2595,41222.221.823.0
Forest Service1,3891,5161,9778.17.88.4
Marine6911,2481,0184.16.44.3
Scientific and Industrial Research7,6158,54710,35244.643.744.1
Transport1,6351,8582,1499.69.59.2
Works1,0601,1191,2606.25.75.4
Other departments8879961,3225.25.15.6
            Totals17,07519,54323,490100.0100.0100.0
Buildings4691,125922.........
            Totals17,54420,66824,412.........
Less recoveries1,1311,1211,053.........
            Totals (Government)16,41319,54723,359.........
Universities3,1113,2994,277.........
Research associations1,6222,0692,505.........
Industry3,5763,8484,650.........
Other organisations6899911,032.........
            Total expenditure25,41129,75435,823.........
ESTIMATED NATIONAL EXPENDITURE ON SCIENCE BY ACTIVITY GROUPS
Activity GroupNet ExpenditurePercentage of Total Net Expenditure
1968-691969-701970-711968-691969-701970-71
  $(000)  percent 
Agriculture9,69710,97113,07238.136.936.5
Forestry1,9402,1702,7537.67.37.7
Fisheries8281,2901,1073.34.33.1
Minerals1,1951,4701,7674.74.94.9
Manufacturing2,0742,6933,3108.29.19.2
Building and construction9081,1001,3003.63.73.6
Transport3033554171.21.21.2
Natural environment4,7975,2056,53318.917.518.2
Social sciences4046037061.62.02.0
Human health1,8132,2682,8417.17.67.9
Fundamental research4435106301.71.7118
Other scientific services1,0091,1191,3874.03.83.9
            Totals25,41129,75435,823100.00100.00100.00
GOVERNMENT RESEARCH EFFORT
Year Ended 31 MarchGross Expenditure on SciencePercentage of Total Government ExpenditurePercentage of Gross National ProductStaff Employed
ProfessionalTotal
 $(000)percentpercent  
196919,9731.740.461,0773,288
197023,3911.830.491,1803,525
197128,1391.800.521,2733,739

In a study by the Organisation for Economic Co-operation and Development (OECD) on reviews of national science policy, the following comparisons are made for 1967 of gross domestic research and development expenditure for economic and social purposes (in U.S. dollars per head of population): United States, $34.5; Netherlands, $25.8; United Kingdom, $24.0; Canada $23.7; Sweden, $22.1; West Germany, $20.4; France, $19.0; Belgium, $14.1; Norway, $10.0; Japan, $9.3; Italy, $5.4; Austria, $2.8.

NATIONAL DEVELOPMENT—In 1969 the National Development Conference adopted a number of recommendations on research in relation to national development. These recommendations have been referred to the National Research Advisory Council, which is a sector council of the National Development Council.

Bibliography—Further information on New Zealand scientific services may be obtained from:

Department of Scientific and Industrial Research: Annual Reports, Parliamentary Paper H.34.

Department of Agriculture: Annual Reports, Parliamentary Paper H.29.

Medical Research Council: Annual Reports, Parliamentary Paper H.31B.

National Research Advisory Council: Annual Reports, Parliamentary Paper H.41.

DSIR Research 1970: DSIR Information Series Bulletin No. 77.

National Research Advisory Council: Some Aspects of Technical Manpower in New Zealand, N.R.A.C. Publication 2, Wn, 1967.

Callaghan F. R. ed.: Science in New Zealand, Wn, Reed 1957.

Jansen, H. ed.: Directory of New Zealand Science, 4th Ed., 1962, Wn.

McBride, C. P. and de Joux, Christine: Scientific Research in New Zealand, Government

Expenditure and Manpower, 1926-66, N.R.A.C. Publication 1, Wn, 1966.

Otago University Science Students' Association: Science Record (this contains the only published

list of science research topics studied in all New Zealand universities).

Report of the Committee on Education, Training, and Research to the National Development Conference—May 1969.

Research in the Department of Agriculture: Annual Report of Research Division 1969-70.

R. E. Gibson and N. E. Harcourt: An Index of Current Research in the Social Sciences, N.R.A.C. Publication 3, Wn, 1971.

Chapter 8. Section 8 JUSTICE

Table of Contents

SOURCES OF LAW—The law of New Zealand consists of the common law, certain statutes of the United Kingdom Parliament, statutes of the New Zealand Parliament, and regulations, bylaws, and other forms of subordinate legislation made under statutory authority.

The common law, sometimes referred to as case law or judge-made law, has been built up over the centuries by the courts in England and, later, in New Zealand and other countries where it was introduced. Like any living law, the common law continues to develop.

In New Zealand the policy of the courts has been to preserve uniformity with the common law in England. This is partly for reasons of convenience and partly because of the assumption prevailing in New Zealand that there is a single common law, the law of England, and that there are not separate, though similar, common laws in different countries.

United Kingdom statutes in force in New Zealand comprise those passed before 1840 which were applicable to the circumstances of the colony at that date, and those passed between 1840 and 1947 which extended to New Zealand expressly or by necessary implication. Many of these statutes have, of course, since been repealed. In 1947 New Zealand adopted the Statute of Westminster, and our Parliament has since been the sole authority with inherent power to legislate for the country. There are no constitutional restrictions on the laws Parliament can pass.

LAW REFORM—In any progressive society the law requires alteration from time to time if it is to reflect the life of the community and adequately give effect to the needs of the people. As in other countries in modern times, legislation is by far the most important means by which the law of New Zealand is adapted to changing circumstances. The responsibility of bringing before Parliament proposals for the revision of the common law and that part of the statute law not administered by other departments of State is in the hands of the Minister of Justice. The Minister is assisted in carrying out his responsibility by the Law Revision Commission, an advisory body set up in 1965 as successor to the Law Revision Committee. The commission is a part-time body with the Attorney-General or Minister of Justice as chairman, and includes a judge of the Supreme Court, a representative of the Parliamentary Opposition, the heads of the three principal legal departments of State (Crown Law Office, Department of Justice, Law Drafting Office), and representatives of the practising legal profession and of the university law faculties. The principal functions of the commission are to prepare programmes for the reform of the law, to indicate the order in which topics should be examined, to allocate the work, to study particular topics from time to time, and to exercise a general oversight over law reform. In addition to the commission there are five standing committees each specialising in a particular area of the law. These committees consider topics referred to them by the commission or by the Minister and report thereon to the Minister of Justice. The chairman of each committee is a member of the commission.

Public Acts and regulations are drafted in the Law Drafting Office. The ordinances of the 1840s issued when New Zealand was a Crown colony, began a tradition of good drafting that has continued to the present. Allowing for the inescapable complexity of much modern legislation, New Zealand statutes are distinguished by a clarity, accuracy, and simplicity that have been equalled in few other countries.

COURTS—The hierarchy of courts in New Zealand comprises the Court of Appeal, the Supreme Court, and the Magistrates' Courts. All exercise both civil and criminal jurisdiction. Implementation of the Domestic Proceedings Act 1968 has resulted in this jurisdiction now being separated from that of the Magistrates' Courts. Children's Courts are part of the Magistrates' Courts.

As constituted by the Judicature Amendment Act 1957 the Court of Appeal consists of the Chief Justice by virtue of his office as head of the judiciary and of a president and two judges of the Court of Appeal appointed by the Governor-General. An additional judge or judges of the Supreme 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 Supreme Court, but have seniority over all other judges of that court except the Chief Justice or the acting Chief Justice.

The Court of Appeal may from time to time appoint ordinary or special sittings and may make rules in respect of places and times for sittings and similar matters. This court, unlike other courts, exercises an appellate jurisdiction only. In addition to ordinary appeals from the Supreme Court, certain other proceedings in inferior courts may, on an order from the Supreme Court, be removed into the Court of Appeal for argument. The Court of Appeal also determines criminal appeals under the Crimes Act 1961.

All decisions of the Court of Appeal are final except where an appeal lies to Her Majesty in Council (the Privy Council). In cases where the amount at issue exceeds $1,000 there is an appeal as of right. In other cases leave to appeal is required. This leave may in most cases be granted either by the Court of Appeal or by the Privy Council itself. The Privy Council thus remains the final court of appeal in almost all civil cases and may also occasionally hear appeals in special criminal cases.

The Supreme Court, which was first established by the Supreme Court Ordinance 1841, is now constituted under the Judicature Act 1908. The members of the court arc a Chief Justice and 16 other judges, the number being fixed by statute. An additional judge or judges may be appointed whenever the Governor-General deems it necessary by reason of absence or anticipated absence of any of the judges on leave prior to retirement, each appointment being a permanent one from the time when it is made. The fixing of the number of judges, together with the provision that the salary of a judge shall not be diminished during his term of office, is an important safeguard for the principle of judicial independence. Judges, who must retire at 72 years, are appointed to hold office during good behaviour and may be removed only by the Queen upon an Address by the House of Representatives.

In 1968 a separate Administrative Division of the Supreme Court was created. It consists of not more than four judges of the Supreme Court assigned to the Administrative Division by the Chief Justice. The Administrative Division determines disputes over the valuation of land and hears claims for compensation when land is taken for public purposes. It hears appeals from the Licensing Control Commission and licensing committees. It also hears appeals under the Broadcasting Authority Act 1968, and from decisions of the Animal Remedies Board, of certain tribunals established by the Cinematograph Films Act 1961, and of the War Pensions Board. Other classes of applications may be referred to it by the Chief Justice.

Magistrates' Courts are set up under the Magistrates' Courts Act 1947 and possess an extensive jurisdiction in both civil and criminal cases and domestic proceedings. The jurisdiction of the court is exercised by stipendiary magistrates, whose number is limited by statute to 45, there being 42 at present holding office. Justices of the peace can sit as a Magistrate's Court to hear a limited number of minor criminal charges.

Stipendiary magistrates must have been qualified as barristers and solicitors of the Supreme Court for at least 7 years. They are appointed by the Governor-General, and may be removed by the Governor-General for inability or misbehaviour only. They retire at 68 years of age.

Apart from these courts of general jurisdiction there are in New Zealand several courts with specialist functions. These include the Court of Arbitration, which makes awards governing pay and working conditions in industry, and also makes general wage orders; the Compensation Court, which determines claims under the Workers' Compensation Act; and the Maori Land Court and Maori Appellate Court, which have jurisdiction in respect of questions relating to Maori land.

There are also numerous administrative tribunals exercising functions of a judicial nature and performing an important and increasing role in the legal system (see Administrative Tribunals in Section 41, Official).

JURIES—The institution of the jury is regulated in New Zealand by the Juries Act 1908. Subject to certain exceptions, every British subject between 21 and 65 years of age and resident within 15 miles of a Supreme Court centre is liable to serve on a jury. Women have the right to exemption on request.

The list of exempted persons is contained in the Juries Amendment Act 1951. The following is a summary of the persons now exempted from jury service:

Members of the Executive Council and of the House of Representatives; judges of the Supreme Court and of the Compensation Court; judges and members of the Court of Arbitration; judges and commissioners of the Maori Land Court; magistrates; visiting prison justices and members of parole boards; coroners; the chairman of the Local Government Commission; the chairman and members of the Licensing Control Commission; officers of Parliament; clergymen; nuns; persons wholly engaged in teaching and school inspectors; barristers and solicitors; medical practitioners, nurses, ambulance drivers, and dentists; registered chemists; members of the armed forces; Police and traffic officers; pilots, masters, and crews of vessels; members of fire brigades; certain Civil Defence personnel; members of an Inland Revenue Board of Review and certain officers of the Department of Justice, including those engaged in court or prison work, and wives of prison officers.

Special juries are provided for in section 71 of the Juries Act. That section provides that in a civil action in the Supreme Court triable by jury either party may, by leave of the court or a judge thereof, procure trial by a special jury instead of a common jury. Except with the consent of all the parties, however, no action may be tried with a special jury unless in the opinion of the court or a judge difficult questions in relation to scientific, technical, business, or professional matters are likely to arise.

LEGAL PROFESSION—In June 1971 there were 2,730 members of the New Zealand Law Society holding practising certificates. These members included 39 women.

PENAL SYSTEM—The penal system exists to protect the community against those who would break the laws which are laid down so that citizens may live harmoniously together and the common good be promoted. This purpose is achieved principally through the processes of deterrence and reformation; in modern times in New Zealand as in other countries an increasing emphasis is being placed on the reformation and rehabilitation of the offender.

The paramount policy is to ensure first that those who, by reason of the nature of their offences or character of their offending, are a serious danger to society are removed from the community. Subject to that, the goal is to deal with offenders within the community wherever possible—that is, to impose sanctions that do not involve imprisonment. Where prison or other forms of detention are necessary the aim is to do as much as possible during the sentence to rehabilitate the offender and to bridge the gap between institution and free society. The interest of the community as well as of the offender is promoted by his reformation.

Treatment of Offenders Within the Community—The principal penalties available to the courts in dealing with offenders outside a prison are fines, probation, and periodic detention.

Fines—Fines are by far the most common sentence imposed by the courts in New Zealand, even if traffic offences are not taken into account. For very minor offences the imposition of a fine is the only sanction available to the courts, but even where there is power to sentence the offender to a term of imprisonment the courts often content themselves with fining him.

Probation—The legislation on probation is contained in Part I of the Criminal Justice Act 1954. The court may release on probation any offender guilty of an offence punishable by imprisonment either on indictment or summarily. Probation is a conditional suspension of imprisonment and provides the opportunity for an offender to rehabilitate himself in the community. An offender may be released on probation for a period of not less than 1 year or more than 3 years and during this time he must accept the supervision of a probation officer and observe conditions imposed regarding employment and residence, associates, and general behaviour. These conditions are automatic, but the courts have power to impose further conditions at their discretion on granting probation. This power makes probation a very flexible type of treatment and is coming to be more freely and imaginatively used. Where the offence consists of the destruction or damage of property, restitution of the whole or part of the loss is commonly required as a condition of probation. Some courts have in suitable cases made it a condition of probation that the offender do particular work of value to the community in his spare time. The probation method is widely used.

Periodic Detention—The Criminal Justice Amendment Act 1962 made provision for sentences of periodic detention. Pursuant to this legislation work centres have been set up in Auckland, Otahuhu, Hamilton, Lower Hutt, Wellington, Christchurch, Dunedin, and Invercargill, and further centres are proposed at Whangarei, New Plymouth, Palmerston North, Wanganui, Gisborne, and Napier. Some of these are available for offenders under 21 years, some for the 17-25 year age group and some for adults generally. Where the Act applies, any person of the ages specified who is convicted of an offence punishable by imprisonment or who wilfully refuses to pay a fine may be sentenced to periodic detention for any term up to 12 months. Under the sentence he is required to attend at a work centre on a certain number of occasions each week and while in custody must attend classes or groups, undergo physical training, or perform work either in the centre or outside it. Work outside a centre may be at a hospital or school, at the home of an elderly or infirm person, or on Crown or local authority property. Work centres for young people provide sleeping accommodation as well as other facilities, and in practice such offenders sentenced to periodic detention are usually required to attend during the whole of a weekend.

Other Powers of the Court—Although not sentences in the strict sense various other means are available to the courts in dealing with offenders whose offences are not serious. They include conviction and discharge, the effect of which is that the offender has a conviction recorded against him but no sanction is imposed, and conviction coupled with an order that the offender come up for sentence if called upon within a specified period. This is a suspension of punishment conditional upon good behaviour but is not subject to the positive conditions of a probation order.

Finally the court, although it may find an offender guilty, may discharge him without conviction if it considers the offence to be of a trivial or technical character.

Detention in Penal Institution—The sentences of detention which the courts may now impose are as follows—

  1. Borstal training, which means detention in a borstal institution for an indefinite period not exceeding 2 years. The offender must be at least 17 years (in special cases 15) but under 21 years. The time of his release is decided by the appropriate Borstal Parole Board, which must consider his case from time to time. After his release he is on probation for 12 months.

  2. Detention in a detention centre, the term fixed by statute being 3 months. The offender must be at least 16 but under 21 years of age, and he may earn up to 1 month's remission of his sentence by good conduct. After his release the offender is on probation for 12 months.

  3. Imprisonment for a stated number of years or for life. An offender sentenced to imprisonment for a fixed term may earn remission of up to one-quarter of his sentence, or, in exceptional circumstances, up to one-third.

  4. Preventive detention, which means detention in prison for an indefinite term to be decided by the Prisons Parole Board, but in any event not less than 7 years. This sentence may be imposed on conviction for certain sexual offences if the offender has been convicted for a sexual offence on at least one previous occasion. The offender must be 25 years of age or over. After serving 7 years of his sentence the offender may be released on probation on the recommendation of the Parole Board, provided the board is of opinion that he is not likely to resume his criminal career. The period of probation in each case extends for life. Preventive detention was restricted to sexual offenders by the Criminal Justice Amendment Act 1967. Hitherto, it had been available for persistent offenders in a number of other cases.

Restrictions on Imprisonment—The policy is to restrict detention of offenders in an institution as far as is practicable consistent with the protection of the community from dangerous criminals. In particular short-term imprisonment is usually open to objection on several counts. The Criminal Justice Amendment Act 1967 accordingly provides that no court is to sentence any person to imprisonment for a term of less than 6 months unless, having regard to the nature of the offence and all the circumstances of the case, the court is of opinion that no other punishment than imprisonment is appropriate.

CRIMINAL JURISDICTION: Court of Appeal—The law relating to criminal appeals from the Supreme Court is contained in the Crimes Act 1961.

If it allows an appeal, the Court of Appeal may quash the conviction, vary the sentence, or order the case to be retried in the Supreme Court.

Applications filed in criminal cases and the results of the appeals are shown in the following table.

YearApplications FiledSentence VariedAppeal Dismissed or Disallowed
1965841074
1966881276
1967821666
19681081494
1969861472
19701041886

Supreme Court—Criminal cases in the Supreme Court are of two classes—those in which the accused person has pleaded guilty in the Magistrate's Court and has been committed to the Supreme Court for sentence or has been committed for trial and subsequently changed his plea to guilty, and those actually tried in the Supreme Court.

The following table gives a summary of criminal cases dealt with in the Supreme Court during each of the latest 5 years. Frequently a series of charges is preferred against the one offender and this serves to explain the distinction between total cases and distinct persons.

YearTried in Supreme CourtSentences in Case of Committal for SentenceTotal SentencesTotal
Indictments and InformationsConvictions
MFMFMFMF
 (a) Total Cases
196696611352140304282542867
19671,00081487471911167858736
19681,468538573544341,300391,339
19691,112916032644091,043351,078
1970755178395123677291,0721521,224
 (b) Distinct Persons
1966371272071656126317280
1967410332462050229622318
1968432222671368333516351
1969390242411256529717314
19703353121816119733723360

Of the 366 distinct persons indicted during 1970, 234 were convicted and 87 acquitted, and the prosecution was not proceeded with in the remaining 45 cases.

The next table summarises the offences of persons convicted and sentenced in the Supreme Court during each of the latest 5 years.

YearTotal Convictions and SentencesDistinct Persons Convicted and Sentenced
Offences Against the PersonOffences Against Property and ForgeryOther OffencesTotalOffences Against the PersonOffences Against Property and ForgeryOther OffencesTotal
19661736504486710815319280
19672284525673613714338318
19682321,025821,33912618936351
1969219790691,07813015925314
1970269898571,22414017545360

The table which follows shows the number of distinct persons sentenced in the Supreme Court during each of the latest 5 years classified according to the principal types of offences.

Type of Offence19661967196819691970
*Includes persons charged with murder but convicted of manslaughter.
Murder53427
Attempted murder-4231
Manslaughter*1011496
Traffic offences involving death or injury86443
Assaults and wounding24x41x454858
Sexual offences4857586058
Other offences against the person13x15x947
Robbery, burglary, and breaking and entering66528067x64
Theft, receiving, and fraud66828578x84
Other offences against property1731011x20
Forgery and uttering461437
Other offences1938362545
            Totals280318351314360
Per 10,000 mean population1.041.171.271.131.28

Sentences imposed in the Supreme Court during each of the latest 5 years were as follows:

Sentence19661967196819691970
Probation (under Criminal Justice Act)3128383465
Ordered to come up for sentence815162313
Discharged14106-
Fined3566486236
Imprisoned188192210171233
Detention centre1-631
Borstal training14919139
Preventive detention24422
Detained in mental institution----1
            Totals280318351314360

In 1941 the death sentence for murder was abolished. It was restored in 1950 by the Capital Punishment Act but was again abolished by the Crimes Act 1961. The only crime for which the death penalty may be imposed is treason. On conviction for murder a mandatory sentence of life imprisonment is imposed.

Flogging and whipping were also abolished in 1941 and have not been restored.

Magistrates' Courts—Magistrates deal with the majority of indictable offences. They have jurisdiction over all crimes against property and all but the most grave of other crimes, such as treason, homicide, rape, and perjury. If the magistrate deals summarily with an indictable offence, he may impose a sentence of imprisonment of up to 3 years or a fine of up to $1,000, or both. A magistrate may, however, decline to deal with an offence summarily, in which case the accused is committed for trial in the Supreme Court in the ordinary way. The accused person has, moreover, the right to claim jury trial if he is charged with any offence, indictable or summary, punishable by imprisonment for more than 3 months.

The following table classifies the convictions in Magistrates' Courts into more common offences or groups of offences for the latest 5 years. The figures refer to total charges, with the corresponding number of distinct cases following the totals in each year. There were 20,363 charges against females in the 215,215 total charges and 17,748 females in the 176,851 distinct cases for 1970.

Type of Offence19661967196819691970

*Counting only the principal offence in cases where a person is charged simultaneously with two or more offences.

†Excludes offences of negligence or drunk in charge causing death or injury; conversion; drunk in charge; failing to stop after accident involving injury.

‡From 1 April 1969 excludes overparking offences handled by local authorities, and previously dealt with as court cases.

§Not offences; included only for administration purposes. Maintenance, separation and paternity orders are now being returned separately under the Domestic Proceedings Act 1968.

Common assault1,8362,0282,3412,3132,603
Sexual offences751677706600558
Other offences against the person1,0351,1991,1071,4481,607
Theft5,1715,5066,8306,6686,717
Wilful damage1,0851,1641,1791,2311,317
Other offences against property (including forgery)7,5149,31810,2119,53810,556
Drunkenness (including drunk in charge, etc,)4,7034,9154,9994,1724,143
Offensive conduct or language, and vagrancy4,4814,4424,7985,1685,847
Other offences against good order1,3161,1631,0733,1224,385
Breach of probation583631639737880
Offences relating to dangerous drugs8170183170235
Failing to pay maintenance1,9172,1172,0962,0641,228
Other offences relating to administration of justice, drugs, etc,4858509608741,064
Breach of price control orders195-13523
Failing to furnish return and making false return of land and income7371,1461,7211,9861,825
Unlawfully on licensed premises and other breaches of Licensing and Sale of Liquor Acts5,9077,0627,4787,0606,086
Deserting merchant ships203139134155173
Other offences4,3255,0595,8966,5696,313
            Sub-totals42,14947,49152,35154,01055,560
Minor traffic offences160,433187,681203,003171,440159,655
Application for prohibition order§703647651605595
Applications for maintenance, separation order, etc,§9691,0771,1771,301136
Application for paternity order§29236838940028
            Totals204,546237,264257,571227,756215,974
Distinct Cases*174,756201,961217,357189,326176,851
Rate per 10,000 mean population for convictions, excluding minor traffic offences and applications157,1174,1190,1194,3197,0

The text table classifies the result of hearing in all distinct cases heard in 1970.

Result of HearingOffences Against the PersonOffences Against Property, Forgery and CurrencyOffences Against Good OrderOffences Affecting Administration of Justice, etc.Other OffencesTotal

*Minor traffic offences accounted for 137,297 of the cases where fines were imposed.

†Mostly orders made.

Committed for trial or sentence12817112242337
Imprisonment4831,3456722431552,898
Detention in detention centre6422074332393
Periodic detention1082951321713565
Detention in borstal institution, etc.7449771843729
Released on probation4381,984502101443,069
Convicted and ordered to come up for sentence if required2703272288417926
Fined*2,4274,243144,54877010,507162,495
Convicted and discharged (or pay costs)1794223.2022553864,444
Suspended imprisonment (maintenance cases)---1,069-1,069
Miscellaneous7191573941263
Dismissed, withdrawn, or struck out6631,0899,5261,6581,33414,270
Discharged under section 42 of Criminal Justice Act213568850681751,874
            Total distinct cases5,05411,180159,9744,44512,679193,332

Traffic Offences—Traffic offences form a large proportion of summary convictions. The most frequent traffic offences dealt with are breaches of parking regulations and excessive speed. Since 1 April 1969 parking infringements which result merely from overstaying a time limit have been dealt with outside the criminal law.

The following table analyses all traffic convictions dealt with in Magistrates' Courts for the latest 5 years.

Offence19661967196819691970

*Excludes trailers.

†Drop from previous years is due to a change in legislation.

Reckless, dangerous, or careless use or driving of motor vehicle causing death87866281106
Reckless, dangerous, or careless use or driving of motor vehicle causing injury131135135144x166
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing death--215
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing injury52357
Failing to stop motor vehicle after accident involving bodily injury64909812289
Unlawfully converting vehicle to own use1,1251,3241,4981,2971,694
Driving, or in charge of, motor vehicle under the influence of drink or drug8991,1551,4222,211x4,271
Driving, or in charge of, other vehicle under the influence of drink or drug213422
Exceeding speed limits48,58654,03555,67150,86245,427
Reckless, dangerous, or careless use or driving, of motor vehicle26,62529,24229,83929,81728,606
Reckless, dangerous, or careless use or driving, of other vehicle231194238196196
Incorrect lighting of vehicles6,1306,1787,2536,3245,598
Offences relating to the registration, etc., of motor vehicles11,51914,85215,04911,987x7,832
Offences relating to driver's licence10,17712,09414,57615,97717,572
Breaches of parking regulations37,36049,39256,53331,686x26,006
Other traffic offences19,80521,69423,84425,02128,418
            Totals162,746190,486206,227175,733*165,995
Convictions per 1,000 of mean population60.6769.8474.9063.2158.87
Convictions per 1,000 motor vehicles*156.44176.38181.13152.98137.33

The previous table excludes the more serious cases involving death or injury, which are sent forward to the Supreme Court for trial or sentence. In 1969, four such cases were sent forward and there were four sentences, comprising two for careless, reckless, dangerous, or drunken driving causing death and two for careless, reckless, dangerous or drunken driving causing injury. In 1970 only one case concerning reckless, or dangerous driving of a motor vehicle was sent forward.

Disqualification of drivers by length of disqualification are shown in the following table.

Period for which Driver Disqualified19661967196819691970
*In addition there were 1,336 probationary licence holders disqualified.
Under 3 months2,6493,1922,4432,1862,661
3 months and under 6 months3,3764,1665,2305,9966,146
6 months and under 1 year1,2051,4671,3392,3303,323
1 year and under 2 years2,2462,4962,4283,2174,480
2 years and under 3 years413408494530969
3 years and under 4 years9051,0931,3089981,197
4 years and under 5 years3794975194
5 years and over88135141117122
            Total disqualifications10,91913,05113,48015,42518,992*

Drunkenness—The following table shows the number of convictions for all types of drunkenness, together with the rate per 1,000 of mean population, for each of the latest 5 years.

YearConvictions for DrunkennessPer 1,000 of Mean Population
MalesFemalesTotalMalesFemalesTotal
19664,5251784,7033.360.131.75
19674,7152004,9153.450.151.80
19684,8141854,9993.510.131.82
19694,0011714,1722.880.121.50
19703,9591844,1432.810.131.47

Repeated (or duplicate convictions) against the same person are included in the statistics shown in the preceding table, but the figures do not include cases of application for prohibition orders of which there were 595 in 1970, compared with 605 in 1969.

Offences by Women—Of the 238,815 criminal charges dealt with in the Magistrates' Courts in 1970, 22,503, or 9.4 percent, were preferred against females. This figure showed a slight decrease of 153 from the 1969 total of 22,656.

Most of the offences for which summary convictions are entered against women are of a relatively trivial nature, such as minor breaches of traffic regulations.

Convictions for more serious offences are set out in the following table.

Offence19661967196819691970
Common assault2643625565
Drunkenness158165149151184
Burglary, breaking and entering, etc.506029681106
Theft1,0311,2281,4461,3801,571
Fraud and false pretences243454406247386
Offensive conduct or language168158183197251
Vagrancy298260328262271

Women received into prison under sentence during 1970 numbered 259 compared with 174 in 1969. The principal offences concerned were (with the previous year's figures in parentheses): cruelty to children, 1 (;); burglary, breaking and entering, etc., 17 (9); theft, 47 (26); fraud and false pretences, 9 (16); vagrancy, 67 (42); failing to pay fine, 18 (19); breach of probation, 25 (20); assault, 9 (8).

Assessment of Crime—One important index of crime in the community is the number of those who are convicted of offences. This gives a useful guide to the amount of crime, providing the proportion of crime reported and the proportion of known crime whose perpetrators are detected remains more or less constant. This, of course, may not be a justified assumption. A greater number of court convictions might mean merely more efficiency by the police and a greater willingness on the part of the public to report offences that previously went unreported. Care should therefore be taken to avoid reading too much into figures for court convictions.

Over the latest 10 years 1961 to 1970 the number of convictions in the Magistrates' Courts (excluding traffic cases) did not significantly increase in relation to the population, but the trend over some categories of serious crime has been upwards. The rate in proportion to the population “at risk” for convictions against property in the Magistrates' Courts increased by 75.1 percent. For burglary, breaking and entering nearly half as many again were convicted in 1970 as in 1961. For offences against the person, of which common assault is the most important, the rate more than doubled. The phenomenon of increasing serious crime is not confined to New Zealand, and indeed the situation is worse in many overseas countries.

History and current experience alike testify that crime almost, invariably flourishes in large cities, particularly those that are growing rapidly, and drawing large numbers of young people from a less sophisticated environment. This is less a penal problem than a social one. In New Zealand it has occurred to a marked degree only recently.

The following table gives an annual comparison by ages of the persons sentenced to penal institutions. In 1960, 22 percent of persons sent to prison were 20 years of age or younger; in 1970 the proportion had risen to 41 percent. Similarly, 54 percent of those imprisoned in 1960 were under 30 years of age, in 1970 the proportion had risen to 75 percent.

Age in Years19601965196819691970
151928352556
1658117166165223
17115228312343380
18121267350378454
19178241329312427
20179238334287437
21-245517228397971,044
25-29437459571499600
30-34381313389335387
35-39305271288244253
40-44227227273224222
45-49199158176141196
50-541331261299595
55-599968805458
60-643938373016
65-69131215712
70 and over37241
            Totals3,0573,5204,3253,9404,861

PROBATION—The following figures show the numbers of persons placed on probation during each of the latest 11 years.

YearNumber Admitted to Probation
19601.979
19611.944
19621.978
19632.162
19642.024
19652.456
19662.773
19673.033
19683.345
19693.794
19704.062

The next table gives the number of offenders in each group placed on probation during 1970, together with the period of their probation.

Age in YearsPeriod of ProbationTotal
1 Year15 Months18 Months2 Years21/2-3 Years
M.F.M.F.M.F.M.F.M.F.M.F.
Under 206341625757091355057479131,984389
20-242986915-2465619327515803157
25-2979204-721773197-23556
30-3997131-5511561413122239
40-492872-2363231219717
50-59128--631142-3115
60-6992--3-2---142
70 and over1---------1-
            Totals1,1582817951,114228872141164203,387675

PRISONS AND PRISONERS—There are 16 institutions serving as prisons or borstals in New Zealand, and 9 police jails. Any person serving a sentence of not more than 8 days may be detained at any police station, which is deemed to be a prison for that period.

The prison population during the year 1970 is shown in the following table.

CategoryMalesFemalesTotal
Persons in prison at January 19701,960872,047
Receptions during the year (including multiple receptions of the same person, but excluding transfers)9,3606269,986
Discharges during the year (including multiple discharges of the same person, but excluding transfers)8,8766029,478
Persons in prison at 31 December 19702,2441212,365
Daily average number of prisoners2,1291072,236

Not all prisoners received were actually persons undergoing sentence on conviction for criminal offences. Many, for example, are in custody awaiting their trial. In 1970, 289 debtors were released after being detained or imprisoned for non-payment of debt following a court order; 52 were classed as mental defectives and transferred to mental hospitals, while 4,035 persons were not returned to prison after release for hearing of the charge, being acquitted, fined, placed on probation, etc.

The following table analyses the ages and offences of distinct persons received into prison under sentence during 1970.

Age, in YearsOffences Against the PersonBurglary, Theft, and FraudConversion, Wilful Damage, etc.Vagrancy and DrunkennessOther OffencesTotal
Sexual OffencesAssaultsOther
Under 214916630706325886131,977
21-24181101632292584281,044
25-292056161763540257600
30-393848141862659269640
40-4923143124755192418
50-599333732276153
60 and over1113-61729
            Totals158398831,5544883281,8524,861

The next table gives particulars of ages and length of sentence of distinct persons received into prison under sentence during 1970.

Age, in YearsLength of Sentence
Under 1 Month1 Month and Under 3 Months3 Months and Under 12 Months1 Year and Under 3 Years3 Years and Under 5 Years5 Years and OverOtherTotal

*Includes detention in a detention centre.

†Includes borstal detention.

‡Sentenced to life imprisonment.

Under 2125921063485417121,977
21-2420525437119121111,044
25-29134146189106196-600
30-391721391941062342640
40-4911998122631141418
50-59533938193-1153
60 and over146711--29
            Totals9568921,555*1,340951674,861

The special types of detention (or imprisonment) imposed during 1970 are included in the previous table. The following table gives these special types of detention by age of detainee at the time of conviction.

SentenceAge in Years
15161718192021-2421-3451-54Total
Borstal training—          
    Males48911491881236541-669
    Females42130191722--95
Detention centre-9413010471421--442
Preventive detention--------11

Of the total of distinct persons received into prison in 1970 more than 80 percent had been convicted for an offence on at least one previous occasion, and 42.5 percent of these had been convicted more than six times.

The number of prisoners received to serve sentence imposed during the year 1970 for criminal offences was 5,417 but deducting multiple receptions of the same prisoner, the number of distinct persons was 4,861 (4,602 males and 259 females). The corresponding total for 1969 was 4,375 and there were 3,940 distinct persons (3,766 males and 174 females).

An analysis is given below of distinct persons received into prison according to nature of sentence imposed for the 5 latest years.

Nature of Sentence19661967196819691970
Imprisonment3,0113,3813,3612,9323,654
Detention centre289319344397442
Borstal training589550616609764
Preventive detention23421
            Totals3,8914,2534,3253,9404,861
            Rate per 10,000 of mean population14.5015.5815.6914.1517.21

The next table shows the number of persons in prison at 31 December in each of the latest 11 years.

At 31 DecemberPersons in JailProportion per 10,000 of Population as at 31 December
Undergoing SentenceOn Remand and Awaiting Trial, etc.TotalUndergoing SentenceTotal in Prison
19601,770581,8287.457.69
19611,810561,8667.467.69
19621,704561,7606.857.07
19631,744601,8046.867.09
19641,685721,7576.496.76
19651,652501,7026.246.43
19661,897671,9647.077.32
19671,977762,0537.247.52
19682,021722,0937.337.59
19691,963842,0477.057.35
19702,282832,3658.088.37

PRISONS POLICY: Classification—The key to successful prison work lies in understanding the individual prisoner, and in order to assist the prisons administration to this end classification boards operate in the three main reception centres, Mt. Eden Prison, Wellington Prison, and Christchurch Prison, and in Wi Tako Prison, an institution for those in prison for the first time.

Every man sentenced to imprisonment for a term of 6 months or more (or in some cases for shorter terms) comes before the classification board which can call upon a chaplain, psychologist, psychiatrist, education officer, probation officer, or any other form of specialist service to assist in defining the offender's character and potential and advise upon the most hopeful form of treatment while he is in prison.

Measures Employed in Treatment: Vocational Training—Prisoners are put to work on some form of constructive employment, whether it be industrial production in a secure institution or food production on a prison farm. In addition, and particularly for the younger offender, an attempt is made to teach some trade skills.

Non-vocational Training—A variety of evening activities have been introduced into the prisons and training benefit is derived from these activities, whether they be recreational, educational, cultural, individual, or collective.

There are full-time teachers in Auckland Prison, Mt. Eden Prison, Christchurch Prison, Tongariro Prison Farm, Wi Tako Prison, Waikeria and Waipiata Youth Centres, Arohata and Invercargill Borstal Institutions, and part-time teachers in many other institutions. It is their task to seek to improve the general education of those prisoners who have been unable to reach the level of Form II, and also to assist those who are undertaking further education or technical courses through a Correspondence School. The interest shown in education is encouraging, since in many cases it fits a prisoner for better employment on his release and thereby helps to reduce the chances of his further offending.

All institutions receive at regular intervals a supply of well-chosen books from the National Library Service and, in addition, inmates are permitted a free use of the library's request service.

Group Therapy—Group discussions are part of the programme of institutions. These groups of about seven or eight inmates meet regularly with an officer under informal conditions to discuss their problems and attitudes.

The leadership of a group is not confined solely to professional psychologists. Many are led by selected custodial officers who receive subsequent help and guidance from professional staff.

The primary aim of a group discussion is to help inmates to come to a closer understanding of themselves and their problems. At the same time the groups also encourage inmates to form constructive relationships with officers.

Earnings—All prisoners are credited with modest earnings based on a system of marks assessed according to diligence and conduct. A portion of the earnings may be spent on tobacco, confectionery, and toilet necessities in a prison canteen, and this provides an incentive to good work and conduct. At the same time the loss of this privilege is a useful disciplinary measure.

Punishments—An inmate charged with one of the less serious offences against discipline appears before the superintendent, who may impose a penalty or in his discretion refer the case to a visiting justice or to the court. A visiting justice may deal with all cases of offences against discipline and must deal with those which are outside the jurisdiction of the superintendent, unless he thinks they should be brought before the court. His powers of punishment are wider than those of a superintendent. The provisions as to offences and punishments are the same for both prisons and borstals

Pre-release Hostels—The setting up in 1961 of the first pre-release hostel at Invercargill for male borstal inmates was an important step forward toward the goal of bridging the gap between the wholly controlled life of the penal institution and the responsibilities and temptations of free society. Further pre-release hostels have been established for male borstal inmates at Auckland, Hamilton, and Wellington, at Auckland and Christchurch for adult male inmates, and one in Wellington for female borstal inmates. Selected inmates are sent to these hostels during the last part of their sentence. They live at these hostels and spend their leisure time there under supervision while working in the community.

Release to Work—Under the Penal Institutions Amendment Act 1961, inmates may be released during the day to engage in private employment. The selection of inmates for this privilege is made on the recommendation of the superintendent of a penal institution, by a special committee chaired by a magistrate. The inmates are required to contribute part of their wages towards the cost of their maintenance in the institution and part may also be withheld in satisfaction of outstanding fines or debts. The balance is made available to their dependant or is held by the Department of Justice for payment upon final release.

Post-release Care—Offenders serving a sentence of borstal training, preventive detention, or imprisonment for 12 months or more are discharged on probation. For a period of time they must be under the supervision of a probation officer and, during any part of that period falling within the maximum period they could have been detained in an institution, are subject to recall if their behaviour on release is not satisfactory. Offenders sentenced to detention in a detention centre are also subject to probationary supervision for 12 months following release. The period of supervision has a dual purpose—it is the protection of the community against further offending and it is at the same time an aid to the prisoner to re-establish himself. The step from custody to freedom is a difficult one for prisoners, many of whom require assistance, advice, and discipline during this period.

An offender serving a sentence of imprisonment of less than 12 months is on probation after release if the sentencing court so orders.

Parole System—The introduction of types of sentences designed to encourage the rehabilitation of an offender or to protect society against the hardened criminal, rather than merely to inflict punishment for an offence which has been committed, has created the need for a procedure to enable a person serving one of these sentences to be released as soon as he shows that he is fit to be returned to society.

This need is filled by the parole boards which have the responsibility of reviewing the cases of all persons sentenced to borstal training, preventive detention, or life imprisonment, and of recommending, or in the case of borstal trainees directing, release on probation at the appropriate time.

There are at present five parole boards: the Prisons Parole Board, which deals with all offenders except those sentenced to borstal training, and four Borstal Parole Boards which between them have jurisdiction over all borstal trainees. The Prisons Parole Board is now required to consider the case of every offender sentenced to a finite term of imprisonment for 6 years or more (thus excluding those sentenced to preventive detention or to life imprisonment, whose cases are dealt with under separate provisions) after the offender has served 31/2 years of his sentence, and annually thereafter until the offender is released.

The Prisons Parole Board consists of a judge of the Supreme Court as chairman, the Secretary for Justice, and at least one but no more than five other members, all except the Secretary for Justice being appointed by the Governor-General for 3 years and being eligible for reappointment.

Each Borstal Parole Board consists of a magistrate as chairman, the Secretary for Justice, the superintendent of the local borstal institution in respect of which the board is appointed, and two residents of the locality in which the institution is situated. All the members except the Secretary for Justice and the superintendent are appointed by the Governor-General for 3 years and are eligible for reappointment.

Categories of persons whose cases were considered by the Prisons Parole Board and the Borstal Parole Boards during each of the latest 5 years were as follows:

YearBorstal Detention*ImprisonmentHabitual Criminals or Preventive DetentionPerson on ParoleTotal
*Under jurisdiction of the Borstal Parole Boards from November 1961.
19661,439187481,539
19671,641154191,706
19681,59242x49391,722x
19691,67338x35171,763x
19701,764442291,839

Of the cases coming before the boards in 1970, there were 679 recommendations made for release on probation and 8 persons on parole were favourably recommended for discharge.

JUVENILE OFFENDERS—Children's Courts were established in New Zealand under the Child Welfare Act 1925. All offences, except murder or manslaughter on the one hand, and certain traffic offences not punishable by imprisonment on the other, committed by children under 17 years are dealt with in Children's Courts, the procedure and rules of which differ widely from those of the ordinary courts. In addition, when an offender between 17 and 18 years comes before a regular court, the court may order his case to be heard in the Children's Court.

Unless no other suitable room is available, sittings of the Children's Court are not held in a courtroom and, where a Children's Court is in the same building as any other court, it does not sit when that other court is in session. Proceedings in Children's Courts are not open to the public, and no report of them may be published except with the consent of the presiding magistrate.

When a child is brought before a Children's Court and charged with any offence, it is not necessary to record a conviction even if the charge is proved. The court has power without recording a conviction to impose any penalty or make any order as if a conviction had been recorded.

The cases heard in the latest 3 years resulted as follows:

DecisionTotal ChargesDistinct Cases
196819691970196819691970
*Includes periodic detention.
Dismissed or withdrawn1,1341,1991,388676716870
Admonished and discharged2,8993,3084,1521,7651,9502,522
Committed to care of Child Welfare Division2,1312,2102,8311,0061,0121,210
Placed under supervision6,4526,5297,1192,9493,1163,657
Committed to an institution*1,0379861,412257264411
Fined1,8982,2252,7851,4331,6252,120
Otherwise dealt with1,3761,5311,815591648847
            Total cases16,91817,98821,5028,6779,33111,637

The following table shows the number of cases dealt with in Children's Courts during each of the latest 11 years. It is shown in two ways: i.e., total charges (meaning each offence counted once irrespective of the number with which a person is charged at the one time); and distinct cases (meaning only one charge, the most serious, is counted, irrespective of the number a person is charged with at the time). All the Children's Court tables are shown in this way.

YearTotal ChargesDistinct Cases
MalesFemalesTotalMalesFemalesTotal
19609,2971,06810,3654,8038065,609
19619,1041,35610,4604,6788675,545
19628,0921,3309,4223,7138974,610
19639,0001,41410,4144,1391,0475,186
19649,0991,66510,7644,5471,1955,742
19659,6542,00011,6544,7641,4536,217
196611,5122,45013,9625,5761,6567,232
196712,4762,63815,1145,9721,8417,813
196813,7783,14016,9186,6811,9968,677
196914,8353,15317,9887,2612,0709,331
197017,7853,71721,5029,1082,52911,637

Detailed statistics for Children's Court cases during each of the latest 5 years are as follows:

Type of Offence19661967196819691970

*Includes forgery and uttering.

NOTE—Distinct cases figures are included in those for total charges.

 Total Charges
Sexual offences180137148169144
Assaults216277342463534
Other offences against the person3723353863
Robbery, burglary, and breaking and entering3,3063,8644,3124,1184,687
Theft, receiving, and fraud4,1984,7075,3375,4316,392
Unlawful conversion of vehicles1,6521,6711,5622,1663,019
Wilful damage396415477471523
Other offences against property*11062126216925
Offences against good order1,2411,2931,2421,5531,899
Indigent or delinquent child1,7941,7521,9912,1092,300
Other offences8329131,3461,2541,016
            Totals13,96215,11416,91817,98821,502
 Distinct Cases
Sexual offences136107111128116
Assaults181232287386429
Other offences against the person3022323358
Robbery, burglary, and breaking and entering1,4031,5151,7441,711x1,975
Theft, receiving, and fraud1,7832,1202,3092,4003,027
Unlawful conversion of vehicles546537563733871
Wilful damage197222215200262
Other offences against property*26344785x382
Offences against good order8098498439891,249
Indigent or delinquent child1,5881,6001,6411,8492,026
Other offences5335758858171,242
            Totals7,2327,8138,6779,33111,637

CIVIL JURISDICTION: Supreme Court—The next table shows the number of actions commenced, cases tried, and judgments entered, together with the amounts for which judgments were recorded in the civil jurisdiction of the Supreme Court in the latest 11 years.

YearNumber of Actions CommencedCases TriedJudgments Recorded (Entered or in Cases Tried)
With JuryWithout JuryNumberAmount ClaimedAmount Recovered
     $(000)$(000)
19602,1621382484431,8621,010
19612,2011282784662,086871
19621,8911442864661,9021,037
19632,0081412564363,0351,865
19641,9671062413451,601889
19652,183982963192,1051,181
19662,555892963252,4191,370
19672,9521662734253,3731,850
19682,9761573405783,5651,850
19692,9351332794693,8652,171
19703,2731143625363,2461,712

Court of Appeal—During the 5 years 1966 to 1970 there were 213 civil appeals, of which 74 were allowed, and also 2 cases removed to the Appeal Court, resulting in 1 judgment for the plaintiff and 1 for the defendant.

Magistrates' Courts—Magistrates' Courts may now hear all claims up to $3,000, but if the parties agree in writing that the court shall hear their case it has jurisdiction whatever the amount claimed. In the exercise of this jurisdiction it may grant the same remedies, legal and equitable, as the Supreme Court.

The following table shows the number of plaints entered, cases disposed of, amounts sued for, and amounts for which judgment was recorded in the Magistrates' Courts during the latest 11 years.

YearPlaints EnteredCases Disposed of
NumberTotal Amount Sued forNumberTotal Amount ClaimedTotal Amount for which Judgment Entered
  $(000) $(000)$(000)
196081,1856,29649,4992,9522,556
196192,3837,39454,2663,8483,434
1962108,6988,92460,5374,6844,102
1963112,6929,52066,6635,1924,472
1964115,9029,44469,0165,1544,554
1965112,81311,52669,6905,2444,644
1966118,97610,99167,8055,4874,934
1967128,51812,35173,5086,2575,425
1968127,51713,78181,1557,5366,393
1969115,01812,70871,4356,9166,102
1970111,39312,93068,1606,8756,100

The average amount claimed in each plaint was $80 in 1961 and $116 in 1970.

COMPENSATION FOR VICTIMS OF CRIME—The Criminal Injuries Compensation Act 1963 introduced the first statutory scheme in the world for compensation by the State to persons injured by crimes of violence and to the dependants of persons killed by such acts. The scheme is administered by the Crimes Compensation Tribunal, consisting of a judge, or a person qualified to hold judicial office, as chairman and two other members. Compensation may be awarded in respect of any one or more of the following matters:

  1. Expenses actually and reasonably incurred as a result of the victim's injury or death.

  2. Pecuniary loss of the victim as a result of total or partial incapacity for work.

  3. Pecuniary loss to dependants as a result of the victim's death.

  4. Other pecuniary loss resulting from the victim injury and any expenses which in the opinion of the tribunal it is reasonable to incur.

  5. Pain and suffering of the victim.

The maximum amounts that may be paid in respect of (b) and (c) are the same as those payable under the Workers' Compensation Act. The maximum amount for other pecuniary loss and for expenses is $2,000 and the maximum for pain and suffering is $1,000.

In considering any application for compensation the tribunal may take into account any behaviour by the victim which may have contributed to his injury. It is not the policy of the Act to permit double compensation, and the tribunal is therefore directed to deduct any amount that may be received by the victim or his dependants in consequence of the injury, for example, social security benefits or worker's compensation. However, the proceeds of any accident insurance policy need not be taken into account.

The Act makes provision for recovery from the offender, where appropriate, of any compensation paid to his victim under the scheme. The Secretary for Justice has a discretion to apply to the tribunal for an order requiring the offender to pay to the State the whole or any part of the compensation awarded to the victim or his dependants.

The following table shows the trend of operations under the Act.

Action19661967196819691970
Applications filed2338344440
Cases in which an award made921253233
Amounts of awards$2,960$6,039$11,261$15,605$14,552

LEGAL AID—The Legal Aid Act 1969 introduced from 1 April 1970 a scheme of legal aid in civil proceedings for persons of small or moderate means, and gave effect to the principle that no persons should be prevented by lack of means from having his grievances heard and determined fairly by the courts of the land. The scheme applies to practically all civil proceedings other than divorce. In order to receive legal aid the applicant must have a sufficiently meritorious case. Except in special cases of hardship, every aided person is required to make a contribution of $30 towards the cost of proceedings, and he will be liable to make an additional contribution proportionate to his income and capital resources.

The 19 district legal aid committees during the year ended 31 March 1971 received a total of 3,973 applications for legal aid. Of this total, 2,753 applications were granted, 291 were refuse 1, 148 were withdrawn, 150 lapsed, and 744 were still pending at the end of the year. In the Supreme Court, domestic applications (numbering 215 out of a total of 734 applications) represented 29.3 percent of all applications made. In the Magistrates' Courts, domestic applications (numbering 3,103 out of a total of 3,229 applications) represented 96 percent of all applications made.

The amount paid out in legal aid in the year ended 31 March 1971 was $48,610; set off against this were contributions of $20,339 from legally aided persons and recoveries of costs of $7,404. The comparatively low net figure of $20,866 cost for legal aid was due to the fact that although a large number of applications were lodged and dealt with throughout the year, a comparatively small number had been finalised to the stage where bills of costs were paid. It is estimated that the cost may reach $180,000 in the 1971-72 year.

The introduction of legal aid proceeded smoothly and presented comparatively few problems to district legal aid committees. Such problems as did arise were referred to the Legal Aid Board which gave advice or made a ruling as required in the particular case.

The Social Welfare Department is responsible, in accordance with the Act, for investigating the resources of persons applying for legal aid; for assessing their “disposable income” and “disposable capital” within the statutory limits and reporting to district committees on the maximum contribution, if any, that applicants should be expected to pay towards the cost of the proceedings in respect of which legal aid is sought.

THE LAW AND THE FAMILY—The work of Magistrates' Courts used to be classified as civil and criminal. Domestic proceedings were procedurally and administratively an uneasy appendage of the criminal side. Following the passing of the Domestic Proceedings Act 1968, the domestic side of the work of Magistrates' Courts ranks as a separate division alongside the civil and criminal divisions. There is, for instance a separate domestic record book, separate domestic statistics, and, wherever practicable, special courtrooms designed for the hearing of domestic cases. The aim here is to achieve a procedure which, though informal, still preserves dignity.

Domestic Proceedings—The basic objects of the Domestic Proceedings Act 1968 are fourfold.

The first is to empower the court to ensure that a greater measure of justice is received by parties to domestic proceedings. The court is given much greater powers to ascertain the truth. It may call any person as a witness, and may require a lawyer to be provided—at public expense—to assist the court.

The Act introduced the principle of specialist magistrates who alone exercise jurisdiction in domestic matters. Since many centres have only one magistrate, this principle of necessity applies only to areas where there are several.

In proceedings where the paternity of ex-nuptial children is in question, the important new concept of blood or genetic tests has been introduced. Though such tests can conclusively prove only that the man in question is not a child's father, the court can nevertheless be greatly assisted in arriving at the truth of such matters.

The second major aim of the Act is to encourage by all practicable means the reconciliation of warring married couples. A duty is imposed on the court, and on the lawyers acting for each spouse, to give consideration to the possibility of reconciliation, and to take all proper steps towards assisting a reconciliation. It is now possible to institute special legal proceedings for conciliation, quite separately from other proceedings under the Act.

On the other hand, the Act acknowledges as a fact of life that reconciliation procedures may fail, or be obviously hopeless. In such circumstances, separation orders are made available on broad and untechnical grounds. Legal recognition (in the form of a separation order) is now given to the fact that a relationship has actually and permanently broken down.

Third, the Act seeks to ensure that parents have an equal legal responsibility to provide for all their children, whether born in or out of wedlock. As an extension of this principle, the Act for the first time places on the father of ex-nuptial children a limited legal responsibility to maintain their mother. He may be required to maintain her for up to 5 years after the birth of such a child—in other words, till the child reaches school age. Previously, such men were liable to maintain the children only, leaving the mother to fend for herself.

The last major object of the Act is to deal with the perennial problem of maintenance, in such a way that both husbands and wives are dealt with as fairly as possible, and also to ensure that the person liable to pay such maintenance does not escape that obligation.

The basis for the making of maintenance orders has been much simplified and the courts have been given clear guidelines on the principles to be followed when making them. Also, the procedure for enforcing maintenance orders has been considerably tightened up.

The following tables give statistics for the year ended 31 December 1970 of applications and orders made under the provisions of the Domestic Proceedings Act 1968.

Nature of OrderApplicationsOrders Made

*Custody, 390; guardianship, 131. In favour of mother, 511; in favour of father, 2; in favour of other persons, 8.

†Maintenance included in 226.

Separation781448
Maintenance908597
Custody or guardianship770521*
Non-molestation175118
Truancy6048
Matrimonial home15394
Paternity304245
Consent to marry5731
Minors' contracts101..
            Totals3,3092,102

The following were the grounds for the separation orders: serious disharmony, 330; defendant's conduct, 80; disharmony and conduct, 35; assault, 3. Only seven of the applicants were husbands.

Ages at time of marriage of parties separated in 1970 are given below.

Age of Wife (in Years) at MarriageAge of Husband (in Years) at Marriage
16-1920-2425-2930-3435-3940 and overNot KnownTotal
16-1937871531--143
20-2415893915641169
25-29-1425831-51
30-34-37385-26
35-39--1215-9
40 and over---335-11
Not known-2----3739
            Totals521958734222038448

The next table shows, in the case of separation orders for 1970, the age of wife at marriage and duration of marriage.

Duration of Marriage, in YearsAge of Wife (in Years) at Marriage
16-1920-2425-2930-3435-3940 and overNot KnownTotal
Under 1 year2211---6
14825-2223
221911---32
31181---323
42192-11236
56116-11-25
610732---22
71094211229
8772-12120
94121211122
10-14213110543882
15-191422103--352
20-2492053--138
25 and over21432--728
Not known1-----910
            Totals143169512691139448

The next table gives details as to the amounts of weekly maintenance ordered in 1970.

Amount OrderedOrders for Weekly Payments in support of—
Wife onlyChildren onlyWife and ChildrenTotal Orders
$    
Under 14-59
1 -4919129
5 -911412274
10 -149124162
15 -191096584
20 -247591103
25 -2921114117
30 -34--7070
35 -39--3232
40 -49--1414
50 and over--33
            Totals5287458597

Numbers of children involved in custody orders granted in 1970 are given next.

ItemNumber of Children InvolvedTotal
1234567
Number of orders12011874442473390
Total children1202362221761204221937

The amount of weekly payments ordered in 1970 in the case of paternity orders follows.

AmountNumber of Orders
$ 
Under 12
1 - 26
3 - 454
5 - 693
7 - 816
8 - 916
$ 
10-1425
15-1919
20-247
25-295
30-393
            Total orders234

POLICE—The Police in New Zealand are maintained wholly by the Central Government. The law relating to the establishment and regulation of the Police is contained in the Police Act 1958.

Organisation and Duties—A commissioner with headquarters at Wellington, subject to the directions of the Minister in Charge of Police, has the general direction and control of the Police. His senior assistants at the national headquarters are his deputy who holds the rank of assistant commissioner, the national head of the Criminal Investigation Branch, also an assistant commissioner, and the Secretary for Police. The latter officer is a member of the public service seconded to the Police.

For operational purposes the country is divided into 16 police districts, each under the control of an assistant commissioner (in the case of Auckland), a chief superintendent, superintendent or chief inspector. The Auckland and Wellington districts, which include the largest metropolitan centres in New Zealand, are again divided into five divisions each under the control of a superintendent or chief inspector.

Districts and divisions are divided into subdistricts under the charge of chief inspectors, inspectors, senior sergeants, sergeants, or constables, and cities and the larger towns, where regular beat duty is performed, are divided into beats, patrolled by constables under the supervision of sergeants, and supplemented by mobile patrols.

In addition to the enforcements of the criminal law and the Police Offences Acts, there are various statutes of a regulatory nature which the members of the Police are called upon to administer, wholly or partly, such as the Arms Act, Sale of Liquor Act, Gaming Act, Narcotics Act, Transit Act, Pawnbrokers Act, Secondhand Dealers Act. They also undertake certain inquiries and other duties on behalf of other departments of the Government service.

Police in country districts in some cases hold such additional appointments as registrars and bailiffs at Magistrates' Courts, probation officers, and honorary fishery officers.

Recruiting—Male recruits for the Police, for entry as constables, must be between the ages of 19 and 35 years. Cadets must be between the ages of 17 years and 18 years 3 months. Male recruits and cadets must, have a height of not less than 5 ft. 81/2 in. The term of cadetship at the Police Training School is 19 months and on successful completion of the course and on attaining the age of 19 years, cadets are appointed constables.

Female recruits, who enter as constables, must be between the ages of 20 and 33 years with a height of not less than 5 ft 5 in.

All candidates for entry into the Police must pass a departmental education pre-entry test and also a medical test. They must be of good character, smart, active, and intelligent. Selection is made only after exhaustive inquiries into the character, antecedents, and qualifications of the applicants. On appointment, male and female constable recruits undergo a 3 months' course of training at the Police Training School, Trentham, where they receive training in their powers and responsibilities as police officers, fitting them to deal with the situations which may be faced on duty.

Examinations are required to be passed for promotion to sergeant and senior sergeant and to commissioned rank. Promotion through the ranks of those qualified by examination is governed principally by merit, seniority being a deciding factor only when equality in merit exists.

Members who show an aptitude for detective duty are detailed for service in the Criminal Investigation Branch. Detectives are attached to each of the 16 district headquarters and to some of the larger outlying police stations, and they undertake duty, as required, in the investigation and detection of serious crime throughout the country.

Strength—The effective strength of the Police at 31 March 1971, inclusive of 77 women police, was 3,214 (2,814 Uniform Branch, 400 Criminal Investigation Branch). Details of the effective strength were—commissioner, 3 assistant commissioners, 10 chief superintendents, 20 superintendents, 31 chief inspectors, 62 inspectors, 168 senior sergeants, 456 sergeants, and 2,463 constables. In addition, there were 153 police cadets, 6 matrons, 1 district constable, and 256 public service employees.

Women Police—At 31 March 1971 the women police consisted of 3 sergeants and 74 constables, and these were stationed in cities throughout New Zealand.

Women police receive the same pay as the men, they are called upon to perform similar duties, and they are required to compete with the men for promotion.

Chapter 9. Section 9 DEFENCE

Table of Contents

DEFENCE POLICY—The maintenance of defence forces and a defence potential in New Zealand are related to support of broad national objectives. Some of these objectives are relatively fixed because they reflect unchanging basic factors, such as resources, geographical remoteness, and dependence on overseas trade. Others are the products of history or circumstances; the more substantial objectives in relation to national security involve preserving the security, national interests, and independence of New Zealand; helping to maintain the stability and security of New Zealand's allies; and providing material backing to political efforts to preserve peace and to make collective defence, whether through the United Nations or through regional arrangements, as effective as possible. Defence policy has been elaborated in parliamentary papers A.19 in 1961 and A.8 in 1966.

CONTROL AND CO-ORDINATION OF DEFENCE—The Governor-General as Commander-in-Chief is empowered to raise and maintain the New Zealand naval forces, the New Zealand Army, and the Royal New Zealand Air Force. These forces, together with public servants appointed under the State Services Act 1962, constitute the Ministry of Defence, which is responsible under the Minister for the central control of the whole field of national defence.

The Secretary of Defence is permanent head of the ministry and principal civilian adviser to the Minister, responsible in particular for co-ordinating the business of the ministry as a whole, including long-term financial planning as well as supervision of defence expenditure. In accordance with the State Services Remuneration and Conditions of Employment Act 1969, the Secretary of Defence prescribes the pay, allowances, expenses, and other conditions of employment of all servicemen and public servants in the ministry.

The Chief of Defence Staff is principal military adviser to the Minister; he is convener and chairman of the Chiefs of Staff Committee and conveys its advice to the Minister. Like the Secretary of Defence, he carries out inspections of the services and reports to the Minister.

Command and Administration—The Defence Council is responsible for the administration and, through the boards or officers appointed for the purpose, the command of the New Zealand armed forces. The Defence Council consists of the Minister as chairman, the Secretary of Defence and the Chief of Defence Staff as deputy chairmen, and the Chiefs of Staff of the three services. In addition, the council may from time to time co-opt officers of other departments of State. Without limiting the duties of the Secretary of Defence or the Chief of Defence Staff, the Defence Council is responsible for advising the Minister on important matters of defence policy. It is also specifically required constantly to examine the possibilities of integrating common functions in the services.

Roles of the New Zealand Armed Forces—The roles and missions of the New Zealand armed forces are related to the following tasks:

  1. To maintain an ability to deploy, in the area immediately around New Zealand and in the South Pacific, forces to deal with situations affecting New Zealand's interests for which our allies would expect New Zealand to assume primary responsibility.

  2. To contribute to the protection of sea and air communications vital to New Zealand.

  3. To maintain an ability to contribute in time of war to the fullest extent possible towards the collective defence of the friendly countries of the areas of primary strategic importance to New Zealand.

  4. To contribute forces as appropriate to assist the United Nations, our partners in defence arrangements, and other friendly countries in keeping the peace and/or preventing escalation.

Co-operation With Other Countries—To facilitate exchanges on military matters New Zealand defence liaison staffs are maintained in London, Canberra, Washington, Kuala Lumpur, and Singapore. In addition, the head and deputy heads of the New Zealand Defence Staff, Washington, are accredited to the Canadian service authorities as advisers to the New Zealand High Commissioner in Ottawa. New Zealand officers are also employed in the SEATO Military Planning Office, Bangkok. The United Kingdom, Australia and Malaysia have service representatives attached to their respective High Commissions in Wellington and there are service attaches on the staff of the United States Embassy in Wellington. Several other countries have service attaches accredited to, but not resident in, New Zealand.

DEFENCE SCIENCE—The Defence Scientific Establishment is at Auckland and is particularly concerned with research in fields of concern to the Royal New Zealand Navy and the Royal New Zealand Air Force. The establishment also carries out metallurgical and other specialised studies related to the adaption of equipment to the New Zealand environment.

Co-ordination of defence science policy is achieved through the Ministry of Defence, the Department of Scientific and Industrial Research, and the National Research Advisory Council. Commonwealth and allied co-ordination is achieved by membership of specialised bodies.

LEGISLATIVE AUTHORITY FOR THE ARMED SERVICES—The principal statutes governing the armed services are the Defence Act 1971 and the Armed Forces Discipline Act 1971.

Two other Acts of general application are the National Military Service Act 1961 and the Courts Martial Appeals Act 1953. The latter provides for the establishment of a special court of appeal for the Navy, Army, and Air Force, to which persons convicted by a court martial may appeal against conviction.

National Military Service Act 1961—This Act, as amended in 1968, provides that every male British subject ordinarily resident in New Zealand (normally one who has lived in New Zealand for a continuous period of not less than a year) becomes liable to serve in the Army upon reaching 19 years of age and must then register. Selection of those who will be called upon to serve is made by ballot based on birth dates in a given period. Those selected may then be required to serve in the Army for (a) a period of whole-time service in camp not exceeding 12 weeks; (b) 3 years' part-time service during which training may be required for a total of 60 days; (c) 3 years in the Reserve. The current annual intake averages 2,250 out of an estimated total number of some 15,000 persons fit and eligible for service. Provision is made in the Act for persons to apply for postponement of liability for service on grounds of hardship or for registration as conscientious objectors.

DEFENCE EXPENDITURE—Expenditure on defence in the 2 latest years ended 31 March was made up as follows.

Item1969-701970-71
 $(m)$(m)
Personnel52.3163.07
Travel, transport, and communications3.703.95
Maintenance, operation, upkeep, and rental5.485.70
Materials and supplies18.3320.84
Services2.372.58
Other operating expenditure0.680.69
Grants, contributions, subsidies0.170.04
Capital works2.752.86
Capital expenditure3.939.34
            Total89.72109.07

Defence expenditure is related to Government expenditure and gross national product in the following table.

Year Ended 31 MarchDefence ExpenditurePercentage of Government Expenditure*Percentage of Gross National Product
*Excludes repayment of public debt.
 $(m)percentpercent
196158.776.72.2
196255.566.22.0
196356.166.01.9
196458.205.91.8
196573.946.82.1
196681.206.92.1
196788.587.02.2
196887.116.82.1
196986.346.32.0
197089.726.11.9
1971109.076.32.0

STRENGTH OF DEFENCE SERVICES—The following table gives the strengths of the regular forces of the three services over the last 11 years.

At at 31 MarchNavyArmyAir ForceTotal
19612,8534,9054,39012,148
19622,8485,4344,50512,787
19632,8775,0494,05811,984
19643,0355,5594,33812,932
19652,9765,3744,39012,740
19662,9225,5494,38112,852
19672,9345,6204,37812,932
19682,9125,8404,48513,237
19692,9355,7304,49813,163
19702,9755,7824,53013,287
19712,9415,6384,41312,992

THE ROYAL NEW ZEALAND NAVY—The Government in New Zealand has since the earliest days made provision for naval forces in its defence measures. Royal naval vessels regularly visited New Zealand waters, but these were soon supplemented by a number of Government-owned vessels, the first of which was the Australia, a schooner purchased from India in 1842. In addition, in 1877 the New Zealand Government began regular financial contributions towards maintaining Royal naval ships in New Zealand waters. In 1921 the naval forces became the New Zealand Division of the Royal Navy, and in 1941 they became the Royal New Zealand Navy.

Command Administration—The Chief of Naval Staff exercises command and administration of the Royal New Zealand Navy assisted in the performance of his functions by the naval staff as well as the integrated staff of Defence Headquarters.

State of the Navy—Her Majesty's New Zealand ships, as at 30 September 1971 were:

†On loan from U.S. Navy.
Frigate (Leander class)WaikatoOne frigate maintained in the Malaysia/Singapore area as a contribution to the ANZUK force. The remaining ships in commission are normally employed on exercises in New Zealand and overseas and undertake visits to foreign ports and around New Zealand and the South Pacific.
Frigates (Otago class)Otago
 Taranaki
Survey shipLachlan 
Research shipTui* 
Ocean minesweepersKiamaTraining and fishery protection.
 Inverell
Motor launchesTwelveFishery protection, training, survey work, harbour duties, RNZNVR Divisions.

The naval base at Devonport, Auckland, consists of the office of the Commodore, Auckland, HMNZS Philomel (the naval barracks and training establishment), the Royal New Zealand Naval Hospital, and dockyard.

The dockyard (administered by a captain superintendent) includes the naval store depot and the RNZN Armament Depot at Kauri Point. The dockyard is capable of refitting ships up to light cruisers.

HMNZS Tamaki is the new entry training establishment for the Navy and is situated near HMNZS Philomel, Auckland. HMNZS Irirangi is the wireless station for the New Zealand naval station and is situated at Waiouru in the centre of the North Island.

HMNZS Wakefield is the Wellington shore establishment of the Royal New Zealand Navy.

Personnel—Entry into the Royal New Zealand Navy is open to young men through the following channels:

    Artificer apprentices .. Ages 15 years to 17 years 6 months on day of entry.

    Youth Adult entries .. Over 16 years and under 25 years on day of entry.

All new entries receive their basic training in Tamaki. Technical and specialist training is, as far as possible, carried out in New Zealand, but where no facilities exist, ratings attend courses in naval establishments in Australia and the United Kingdom.

There are two schemes for direct entry as officer cadets on the General List. Candidates between the ages of 15 years and 16 years 6 months are eligible for selection as cadet midshipmen; these cadets carry out training at the Royal Australian Naval College, Jervis Bay, New South Wales, before either proceeding to the United Kingdom for specialist technical training or returning to New Zealand to attend a university degree course at the University of Auckland, followed by technical specialist training. The degree course undertaken is dependent on the specialisations which are: B.A. or B.SC.—seamen specialisation; B.E. (electrical or marine engineering)—engineering specialisation; B.COM. or LL.B.—supply specialisation.

To cater for the older age group, young men between the ages of 17 years and 20 years on 1 January of year of entry are eligible for selection as midshipmen to attend a university degree course at the University of Auckland followed by professional technical training. On completion of their training they take up appointments as trained officers in the Royal New Zealand Navy.

Suitable ratings who qualify educationally and professionally are eligible for promotion to officer rank.

Women's Royal New Zealand Naval Service—The Women's Royal New Zealand Naval Service was first formed in 1942 as a wartime service. In 1949 the WRNZNS became a permanent part of the Royal New Zealand Navy. Employment of members of the WRNZNS is varied and includes duties as cooks, stewards, writers, shorthand typists, motor-transport drivers, and teleprinter operators.

Royal New Zealand Naval Volunteers Reserve—There is a division of the Royal New Zealand Naval Volunteer Reserve in each of the four main centres—Auckland, Wellington, Christchurch, and Dunedin—where reservists are given the basic elements of naval training.

Strength of the Navy—The strength of the Navy as at 31 March 1971 was as follows:

Regular Forces 
    Officers (male and female)328
    Ratings2,531
    WRNZNS ratings82
            Total2,941
Non-Regular Forces 
    Royal New Zealand Naval Reserve officers7
    Royal New Zealand Naval Volunteer Reserve all ranks299
    Royal New Zealand Naval Fleet Reserve ratings2,553

THE ARMY—The New Zealand Army is raised, maintained, and organised under the authority of the New Zealand Army Act 1950, the Defence Act 1964, and the policy outlined in the Defence White Paper 1966. It comprises a Regular Force, Territorial Force, and the Army Reserves.

Personnel are posted to one of the following corps:

    Royal Regiment of New Zealand Artillery.

    Royal New Zealand Armoured Corps.

    Corps of Royal New Zealand Engineers.

    Royal New Zealand Corps of Signals.

    Royal New Zealand Infantry Regiment.

    New Zealand Special Air Service.

    New, Zealand Army Air Corps.

    Royal New Zealand Army Service Corps.

    Royal New Zealand Army Medical Corps.

    Royal New Zealand Army Ordnance Corps.

    Corps of Royal New Zealand Electrical and Mechanical Engineers.

    Royal New Zealand Dental Corps.

    Royal New Zealand Chaplains Department.

    New Zealand Army Pay Corps.

    New Zealand Army Legal Service.

    Royal New Zealand Provost Corps.

    Royal New Zealand Army Education Corps.

    Royal New Zealand Nursing Corps.

    New Zealand Women's Royal Army Corps.

Command and Administration—The Chief of General Staff exercises command and administration of the Army assisted in the performance of his functions by the general staff as well as the integrated staff of Defence Headquarters.

Organisation—In New Zealand the Army is now organised into two commands, each of which has a functional responsibility nationwide, and is directly responsible to Defence Headquarters for the performance of its functions:

  1. Home Command—Provides the home support for the Army in New Zealand.

  2. Field Force Command—Commands and administers those elements of the Army in New Zealand which have an operational role in the event of mobilisation.

Units deployed to Singapore are under the command of Commander, ANZUK force.

Training—(a) Regular Force—Officers are commissioned on graduation from officer training colleges in England and Australia except in the cases of special entry and quartermaster officers who are commissioned from the ranks. Post-graduate and specialist training is received either in New Zealand or overseas.

Regular soldiers are trained at corps schools or depots and in Army units stationed within New Zealand and overseas. In certain cases specialist training is received at overseas training establishments in Australia, England, or the United States.

  1. Territorial Force—After completing a full-time basic course of 12 weeks, National Service officers and soldiers are required to carry out annually, for a period of 3 years, a minimum of 20 days' training of which not less than 14 days must be at an annual unit camp.

  2. Training Establishments—Units of the Army are responsible for the continuation training of all members of their units. Certain schools and depots are, however, provided to conduct basic soldier training and other formal courses in specialised fields. The majority of these training establishments are located in Waiouru Camp.

Manning—Manpower for the Army is provided from the following sources:

  1. Regular Force Enlistment

    1. Officers who volunteer to serve in the Regular Force for initial periods of from 5 to 12 years, depending on method of entry.

    2. Soldiers who volunteer for a minimum period of 3 years.

  2. National Servicemen who are selected by ballot, and after initial training are posted to units of the Field Force.

  3. Voluntary Enlistment for the Territorial Force. Males or females between the ages of 17 and 36 years who volunteer to serve in the Field Force for periods varying from 3 years to retiring age for rank.

Strength of the Army—The strength of the Army as at 31 March 1971 was as follows.

Regular Forces 
    Officers (male and female)741
    Other ranks4,734
    RNZNC and NZWRAC (other ranks)163
        Total5,638
Non-Regular Forces 
    Territorial Force (all ranks)11,527
    Officers Reserve913
    Class A Reserve5,270
    Class B Reserve Other ranks2,045

THE ROYAL NEW ZEALAND AIR FORCE—The Royal New Zealand Air Force was constituted as a separate armed service by the Air Force Act 1937 and its administration was vested in an Air Department which was responsible for military aviation and the regulation of civil aviation in New Zealand. With the passing of the 1964 Defence Act the Air Department was absorbed into the Ministry of Defence.

Command and Administration—The Chief of Air Staff exercises command and administration of the Royal New Zealand Air Force assisted in the performance of his functions by the air staff as well as the integrated staff of Defence Headquarters.

Organisation—The RNZAF consists of: (a) the Regular Air Force; (b) the Women's Royal New Zealand Air Force; (c) the Territorial Air Force; (d) the Air Force Reserve.

There are six RNZAF bases, all located in New Zealand. The RNZAF is divided into two groups, namely, Operations Group which has responsibility for the operational functions of the RNZAF, and Training Group which is responsible for all RNZAF training and certain support functions. Headquarters Operations Group is at RNZAF, Auckland, and Headquarters Training Group at RNZAF, Wigram. In addition, the RNZAF provides support for the search and rescue organisations in New Zealand and the South Pacific area.

The operational units of the RNZAF comprise: a medium short-range transport squadron based with the ANZUK force in Singapore; maritime, long-range transport and battlefield support squadrons based at RNZAF Auckland; and a ground attack squadron, a jet operation conversion squadron, and a communication transport squadron at RNZAF, Ohakea.

Technical Services—The technical branch of the RNZAF consists of aircraft, armament, and radio divisions. Technical direction of RNZAF engineering services is co-ordinated in Air Staff, Defence Headquarters. Specific levels of aircraft maintenance are assigned to bases and squadrons. A range of overhaul and repairs and some manufacture of aeronautical equipment is carried out at No. 1 Repair Depot, RNZAF Base, Woodbourne. A proportion of repair and overhaul work is contracted to civil industry in New Zealand and overseas.

Supply Support—Spares and equipment required by the RNZAF are provided through the support branch of Defence Headquarters, which is also responsible for the control and administration of catering and movements. Supply procedures and systems are patterned on the Royal Air Force and the United States services, which are also the main sources of supply for technical spares equipment.

Personnel: Regular Air Force, Officers—Candidates for commissions in the general duties (flying) branch are drawn mainly from civil life. Candidates for other officer branches are mostly selected from the ranks. After a probationary period of service, candidates are granted short-service commissions (with the opportunity of qualifying for a permanent commission later). Some personnel are enlisted as officer cadets and on completion of up to 4 years' military and university studies are granted permanent commissions in the general duties, technical, administrative, and supply branches.

Airmen and Airwomen—Service for airmen in the Regular Air Force is mainly through initial engagement of 8 years on the Active List with a Reserve liability of 4 years. Twelve-year engagements are granted to personnel who are selected for administrative and technical training under the New Zealand Certificate (NZC) Trainee Scheme. NZC trainees commence service at the Airman Cadet School, RNZAF, Woodbourne, and over a 4-year period are trained to an advanced level in their Air Force trade and at the same time qualify for the appropriate New Zealand Certificate. For airwomen, the initial term of engagement is normally 3 years with no Reserve obligation. Opportunities exist for both airmen and airwomen to extend their initial period of service.

Non-Regular Forces—The non-regular forces of the RNZAF consist of:

  1. Territorial Air Force.

  2. the Active Reserve.

  3. the General Reserve.

The Territorial Air Force is manned by specialist officer branches and the members of the band of the RNZAF. The Active Reserve comprises personnel who either have Reserve obligations following service in the Regular Air Force or who volunteer on the expiry of this obligation. The General Reserve has no training obligations in time of peace.

Training:Flying Training—The initial training of all RNZAF aircrew and the basic flying training of pilots, navigators, and air electronic operators is undertaken at the Flying Training Wing at RNZAF, Wigram. New Zealand Navy and Army pilots, and RNZAF flying and navigation instructors are also trained by the Wing.

Ground Training—Airmen complete two levels of training, specialist and advanced. Courses vary in length and advanced training follows approximately 2 to 3 years after specialist training. Both levels of training are conducted at trade training schools. Airman cadets take an education, general service, and basic training course for 12 months at the Airman Cadet School, RNZAF, Wood-bourne. Specialist courses in management and leadership for junior and senior non-commissioned officers are held. An increasing amount of training is now conducted at joint service schools and by civilian training establishments.

Officer Training—The RNZAF conducts formal courses of officer training in New Zealand at three levels: indoctrination of officer cadets; junior command and staff training for flight lieutenants and senior command; and staff training for squadron leader and wing commanders. In addition, selected RNZAF officers attend staff colleges in Australia, the United Kingdom, and the United States. Each year up to 10 officer cadets are recruited under a university cadetship scheme conducted in conjunction with the University of Canterbury where they study for bachelors' degrees. Officer cadet and university cadet training is carried out at RNZAF, Wigram, and the two levels of command and staff training are carried out at the Command and Staff College, RNZAF, Auckland.

Strength of the Air Force—The strength of the RNZAF as at 31 March 1971 was:

Regular Forces— 
    Officers (male and female)745
    Airmen (including airmen and aircrews)3,397
    WRNZAF—airwomen271
            Total4,413
Non-regular Forces— 
    Territorial Air Force115
    Active Reserve551
    General Reserve1,123

New Zealand Cadet Corps—A reorganisation of the non-regular forces was approved by the Defence Council on 11 March 1970. In general, the reorganisation was in line with the principles of the overall reorganisation of the ministry. By means of the centralised policy control, direction and management, the support of both open units (sea cadet units and air training corps squadrons) and school cadets are rationalised under an organisation known as the New Zealand Cadet Corps. The reorganisation was implemented on 11 May 1970.

The strength of the New Zealand Cadet Corps as at 31 March 1971 was 10,942 cadets with 28 schools, 15 sea cadet corps open units and 40 air training corps open units participating.

ARMED FORCES OVERSEAS—The following is a brief account of New Zealand's contributions to the Commonwealth Strategic Reserve, and of other elements of the New Zealand armed forces serving overseas since the end of 1967.

In 1968 the then British Government had proposed to withdraw British forces from South-east Asia by the end of 1971, disbanding the Commonwealth Strategic Reserve. The five powers concerned—Australia, Britain, Malaysia, New Zealand, and Singapore—accordingly examined the establishment of a new basis for defence co-operation. Ministerial meetings were held in Kuala Lumpur in June 1968 and in Canberra in June 1969 to carry forward this collaboration. The New Zealand and Australian Prime Ministers announced on 25 February 1969 that the two countries would maintain forces in the area, subject to the continuing consent of the Malaysian and Singaporean Governments.

The New Zealand Prime Minister said that in the future New Zealand forces in the area would, in general, comprise a battalion, a frigate, and probably medium-range transport aircraft, with the periodic deployment of strike aircraft. He noted that New Zealand military contributions to the area are designed to make a contribution to the security of South-east Asia as a whole. As with existing arrangements they would not be involved in internal security problems and would be deployed on active operations only with the express consent of the New Zealand Government.

Following the British general election in June 1970, however, the new Government announced that some British forces would be retained in the area after 1971. The other four powers, Malaysia, Singapore, Australia, and New Zealand, welcomed this announcement. The British Supplementary Statement on Defence Policy, issued in October 1970, announced the composition of the British forces to be maintained in the area.

Five Power Defence Arrangements—The Commonwealth Strategic Reserve was disbanded on 1 November 1971 and replaced by an Australia, New Zealand, and United Kingdom (ANZUK) force as the contribution by these countries to the new five power defence arrangements for Malaysia and Singapore which became effective from that date.

The force comprises a naval and air component, an Army brigade, and a logistic support group. It is designed to promote stability in the area and to assist in the development of the armed forces of Malaysia and Singapore. New Zealand's contribution to the combined force is outlined in general terms in the Prime Minister's statement referred to above.

Thailand: In January 1966 a specialist team of some 15 men of the Corps of Royal New Zealand Engineers went to Thailand to provide capital and technical assistance under the Colombo Plan in the building of a road in North-east Thailand, from Borabu towards Buriram, a distance of 170 kilometres. In addition to providing the supervisors and instructors for the project, New Zealand provided much of the equipment for the building of the road. In October 1967 the strength of the team was increased to 21, and the attachment of 2 Ministry of Works overseers to the project was also approved.

Periodic attachments of mechanical engineering staff have been made since the middle of 1969 and the Thai and New Zealand Governments have provided much additional equipment for the project, which was due for completion by the end of 1971.

South Vietnam: In June 1964, at the request of the Republic of South Vietnam, an Army engineer detachment was sent to South Vietnam to help in reconstruction and development projects. The team returned to New Zealand in June 1965. The following month, in response to a further request from the South Vietnamese Government, an artillery battery was sent to South Vietnam. In May 1967 thiswas joined by a reinforced infantry company drawn largely from the battalion in Malaysia. The company, which served with the Australian Task Force, was joined late in 1967 by a further reinforced infantry company from Malaysia, thus increasing the New Zealand forces in Vietnam to some 550 personnel. In May 1967 a joint services medical team was deployed to South Vietnam for operations with United States Agency for International Development.

The Prime Minister announced in August 1970 that as a first step in phasing out New Zealand forces an infantry company comprising 144 men would be withdrawn without replacement later in the year. This change was implemented in November. At the same time plans were made to provide assistance with the training of Vietnamese forces; five personnel were attached to the 1st Australian Army Training Team, Vietnam, in October 1970.

In January 1971 a 25-man Army training team arrived in South Vietnam to participate in a joint South Vietnamese - New Zealand training wing at Chi Lang National Training Centre in Chau Doc Province in the Delta. Courses began in March.

In May 1971, 161 Battery, one of the longest-serving allied units in South Vietnam, returned to New Zealand. On 18 August 1971 the Prime Minister announced that the Government had decided to complete the withdrawal of New Zealand combat units by about the end of 1971. The main elements involved were the remaining infantry company and personnel integrated into the ANZAC force. The services' medical team at Bong Son transferred responsibility to the South Vietnamese in November 1971. The New Zealand Army training team and personnel attached to the Australian Army training team continued to serve in South Vietnam.

United Nations Observers: At the request of the Secretary-General of the United Nations, New Zealand has provided military observers in United Nations truce supervisory operations in Kashmir since 1951 and in the Middle East since 1954. The number of observers in Kashmir has been four, except for the period of hostilities in mid-1965 when, for a short time, New Zealand provided nine officers. The number of observers in the Middle East has varied between two and seven with five being the strength in 1971.

Aid to Malaysia and Singapore—In addition to direct military help in maintaining security in the area, New Zealand has since early 1964 undertaken a programme of defence aid to Malaysia and Singapore.

Up to 31 March 1971 military equipment valued at approximately $923,720 had been given to Malaysia and $292,971 to Singapore, and a total of 785 Malaysians and 135 Singaporeans had trained or were training in New Zealand. In addition, New Zealand military personnel have been seconded to the Malaysian and Singaporean armed forces to assist with training. During 1970-71, 14 New Zealand servicemen were on loan to the Singapore armed forces and 3 to Malaysia.

Provision has been made for the extension of the defence aid programme to Malaysia and Singapore at an estimated cost of $450,000 up to 31 March 1975.

STRENGTHS OF ARMED SERVICES IN WAR: South African War—Approximately 6,500 troops from New Zealand served in the South African War.

First World War, 1914-18—A total of 124,211 persons (including 91,941 volunteers) were called up for overseas and home service prior to 12 November 1918. Of these, 100,444 went overseas. This total comprised 98,950 troops serving with the New Zealand Expeditionary Forces in the European, Mediterranean, or Samoan areas; 550 nurses; and 944 others (including 211 British Army reservists, 541 naval personnel, and 192 Royal Flying Corps personnel). In addition, it was known that 3,370 (not included above) left New Zealand and enlisted in British and Australian forces, while others (exact numbers unknown) are known to have joined Canadian and South African forces.

At Armistice date in November 1918 New Zealand had over 56,000 troops overseas, and a further 10,000 were ready to embark or in training.

The troops provided for overseas service represented nearly 10 percent of the total population of New Zealand in 1914 and over 40 percent of the male population between the ages of 20 and 45 years. These percentages do not take into account New Zealanders who served in the British or Australian naval or military forces.

Second World War, 1939-45—Approximately 60,000 men volunteered for service in the New Zealand forces in the Second World War before conscription was introduced in July 1940.

The net intake of men to the armed forces—i.e., exclusive of transfers between the services and of re-entries—was 194,000, equivalent to 67 percent of the male population between the ages of 18 and 45 years. In addition, approximately 10,000 women served in the forces. It is estimated that approximately 140,000 persons served overseas.

A total of 104,988 Army personnel served overseas with the Second New Zealand Expeditionary Force, and, of these 99,343 (97,893 males and 1,450 females) left New Zealand on or before 15 August 1945, and 5,645 (5,491 males and 154 females) left New Zealand on or after 16 August 1945. (Some detailed tables are given on pages 269-271 of the 1956 issue of the Yearbook.)

The following table shows the approximate strength of each of the services from the outbreak of war in September 1939 at yearly intervals until August 1945, when hostilities ceased. The figures at July 1942 are also shown, as that month marked the peak for mobilisation, there being 151,073 men in the armed forces at that time, representing approximately 43 percent of the male population of military age.

As at 31 MarchNavyArmyAir ForceAll ServicesFemale Personnel (Included in Previous Columns)
In New ZealandOverseasTotal
1939 (September)1,32018,0001,48620,39241420,806-
19401,79129,3003,80827,6287,27134,89918
19413,57975,14810,21354,99733,94388,940202
19425,605109,38918,22882,20151,021133,2222,356
1942 (July)6,110124,77323,666104,49050,059154,5493,476
19437,657104,08733,77782,74062,781145,5217,302
194410,01872,66241,59555,03969,236124,2757,942
194510,41246,69835,00442,73149,38392,1145,609
1945 (August)10,46640,94231,5736,96246,02482,9864,632

CASUALTIES ON ACTIVE SERVICE—The following table gives particulars of casualties suffered on active service by members of the armed forces in the wars, etc., listed. For the Second World War the figures shown for Navy and Air Force include New Zealand personnel serving with the Royal Navy and Royal Air Force respectively. Deaths and injuries due to accidental causes while on active service are included in the figures of deaths and wounded respectively. The number shown as “missing” refers to the number so classified at the end of the period quoted.

Deaths (Including Died as Prisoner of War)Wounded and InjuredPrisoners of WarWounded and Taken Prisoner of WarInternedMissingTotal
*At 4 August 1919 this total comprised 16,688 deaths, 41,315 wounded, and 1 missing.
South African War, 1899-1902228166----394
First World War, 1914-18 (up to 12 November 1918)—       
    1 N.Z.E.F.16,30241,262356--8458,004*
    Samoa2-----2
    Nurses13-----13
            Totals16,31741,262356--8458,019
Second World War, 1939-45 (up to 31 December 1946)—       
    Navy57317054-3-800
    Army6,79315,3246,6441,219-4630,026
    Air Force4,1492555203223-4,979
    Mercantile Marine110---123-233
            Totals11,62515,7497,2181,2511494636,038
Jayforce (up to December 1948)11-----11
Korea (up to December 1954)       
    Navy21----3
    Army37801---118
            Totals39811---121
Malaya (up to September 1960)—       
    Army1021----31
    Air Force52----7
            Totals1523----38
Vietnam (up to 20 October 1971)—       
    Army35187----222
            Totals35187----222

PERSONS WITH OVERSEAS WAR SERVICE—Census statistics on overseas war service are now given.

Wars19611966
MalesFemalesTotalMalesFemalesTotal
*Plus any with service in both World Wars.
Overseas service—      
Only in Korean War4,948344,9825,459225,481
Only in Second World War140,5495,447145,996139,0215,703144,724
Only in First World War45,8791,06446,94334,30078735,087
Only in South African War991141,0054504454
In Korean War and Second World War1,39751,4021,52971,536
In Second World War and First World War3,274623,3362,616472,663
In South African War and First World War47054751941195
In South African War and Second World War*44-4435-35
Totals with overseas war service197,5526,631204,183183,6046,571190,175

Although the number of First World War veterans declined by 26 percent between the censuses of 1961 and 1966, there still remained 37,979 (37,144 men and 835 women). Of this figure, 27,765 served with the New Zealand forces, and the remaining 10,214 served with the Australian, United Kingdom, Indian, and other Commonwealth forces, will include an unknown number of immigrants who have arrived in New Zealand since 1918

The number of those with overseas service in New Zealand forces in the Second World War declined from 122,939 (120,885 men and 2,054 women) to 117,631 (115,812 men and 1,819 women) between 1961 and 1966, the decline being accounted for by emigration as well as deaths.

PERSONS WITH WAR SERVICE IN NEW ZEALAND ONLY—In the following table the numbers of persons in New Zealand in 1961 mobilised for at least 28 days in home service only are given.

MalesFemalesTotal
Home service only, First World War9,1202179,337
Home service only, Second World War84,2788,27592,553
Home service, First World War, and overseas service, Second World War210-210
Home service, Second World War, and overseas service, First World War7,754437,797

CIVIL DEFENCE—In 1959, a Ministry of Civil Defence was established within the framework of the Department of Internal Affairs, and three regional commissioners were appointed to implement Central Government policy within their regions. For civil defence purposes, the North Island was divided into two regions and the South Island formed a third region.

The Civil Defence Act 1962 put into legislative form the concept and machinery of a national civil defence scheme. It provided for the formation of national and regional civil defence committees, advisory planning committees, the appointment of a secretary for civil defence, and a director and deputy director of civil defence.

Various planning committees have been established and are responsible for formulating national civil defence plans for consideration by the National Civil Defence Committee prior to being submitted to the Minister of Civil Defence, who is given power under the Civil Defence Act to approve them as national plans.

The civil defence roles and responsibilities of Government departments and other organisations have been defined in national plans. They provide the basic procedures for Government action in a civil defence emergency for communications, traffic control, emergency supplies, medical arrangements, law and order, transport, welfare, public relations, evacuation, and fire fighting.

The preparation of local civil defence plans and the establishment of an organisation to implement such plans, are the responsibility of local authorities. Every local authority was required to prepare a local civil defence plan by 31 December 1969 and submit it to the Regional Commissioner for approval. Central Government assists by conducting regional training courses, sending local authority civil defence officials for training at the civil defence training school in Australia, providing some stores including radio transceivers and subsidising on a $1 for $1 basis certain categories of civil defence expenditure. It also issues training manuals and standard forms for the various sections of civil defence. In each region a training officer has been appointed to assist local authorities with civil defence training programmes and exercises.

Civil defence police are trained by the New Zealand Police, the establishment being 3,500. Some 2,000 civil defence traffic officers are being trained either by the Ministry of Transport or the local authority, as is appropriate.

SECURITY INTELLIGENCE SERVICE—The New Zealand Intelligence Service Act 1969 gave statutory recognition to the Security Service which was established on 28 November 1956. Subject to the control of the Minister in charge of the service, functions of the New Zealand Security Intelligence Service are to obtain, correlate, and evaluate intelligence relevant to security and, as appropriate, to advise Ministers on matters relevant to security. It is not a function of the Security Intelligence Service to enforce measures for security. Offences under the Act include subversion, espionage, and sabotage. There is a commissioner of security appeals.

Chapter 10. Section 10 LAND REGISTRATION AND VALUATION

10 A—REGISTRATION OF TITLES AND TRANSFER OF LAND

REGISTRATION OF LAND OWNERS—Practically all title to privately-owned land and interests in land in New Zealand is held under the land transfer system administered under the Land Transfer Act 1952. This system was introduced into New Zealand in 1870 and was based largely on the Torrens system of registration of title devised for South Australia.

This land transfer system provides a simple and cheap method of recording the transfer and other dealings with land and at the same time to ensure security of title by a system of State guarantee. The mechanics of recording dealings are provided by the creation of a register, each folio of which is an office duplicate of the owner's title. The folio or title has recorded on it full particulars of the proprietorship to the land, together with any changes which occur through transfer, death, or other devolution, and the encumbrances to which the land becomes subject. The cardinal principle of the Land Transfer Act is that the register is everything and that the purchaser gets, upon the registration of a transfer, an indefeasible title against the world.

When national or district schemes for drainage, irrigation, water supply, or sewerage which result in improvement to land are undertaken, statutory authority is customarily given to charge part of the cost against the land. These charges are recorded against the titles concerned.

Special procedures are necessary for the registration of dealings with Crown land and Maori land and these are contained in the Land Act 1948, the Maori Affairs Act 1953, and the various related Acts respectively.

The Joint Family Homes Act 1964 provides for settlements of land as “joint family homes” and wide use is made of this procedure year by year. (See Section 19.)

Certificates of Title Issued—The following table shows the number of certificates issued for the latest 12 years.

Year Ended 31 MarchTotal
196129,337
196231,743
196328,764
196429,049
196535,258
196639,760
196742,692
196846,118
196942,669
197037,525
197141,639
197239,270

MAORI LANDS—Before European settlement, all the land in the country was held by the various groups and tribes of the Maori people in accordance with their traditional customs and usages, and the land so held was described as Maori customary land. By the Treaty of Waitangi the exclusive rights to purchase such land was reserved to the Crown. Practically all of the land which was formerly Maori customary land has now been converted to other forms of title by one or other of the following processes:

  1. Purchase or other acquisition by the Crown (from whom in turn the European colonists obtained land for farms, etc.).

  2. The issue of a Crown grant to a Maori owner on the recommendation of the Maori Land Court.

  3. The issue of a freehold order by the Maori Land Court in favour of the Maori or Maoris found entitled upon an investigation of title. This process was used instead of process (b) after the introduction of the land transfer system into New Zealand.

Land which was included in titles issued under processes (b) and (c) became known as Maori freehold land.

Maori freehold land becomes Crown land if all interests in it are purchased or otherwise acquired by the Crown, or becomes European land when bought or inherited by a person of less than half Maori blood, or is declared to be so by the Maori Land Court. Provision exists in Part I of the Maori Affairs Amendment Act 1967 for the removal of the special status of “Maori land” from land owned by up to four persons and meeting certain other requirements.

Maori Land Court—The Maori Land Court consists of a Chief Judge and such other judges as the Governor-General may from time to time appoint. It is a Court of Record and its general function is to deal with problems peculiar to multiple ownership of Maori lands including the partitioning and combining of titles for better utilisation, the effecting of exchanges, directing the holding of meetings of owners, and confirming or disallowing resolutions passed by such meetings, confirming sales, and making other miscellaneous orders.

The Maori Appellate Court consists of any two or more Judges of the Maori Land Court, provided that two Judges at least shall concur in every decision of the court. With certain exceptions, the Appellate Court determines appeals, whether on law or on fact, from all final orders of the Maori Land Court.

Although the Maori Affairs Amendment Act 1967 has reduced the jurisdiction of the court by giving the Maori people themselves much greater powers in the alienation of Maori freehold land without reference to the court, the court nevertheless in 1970-71 transacted considerable business. Some 302 sales involving a total of 9,900 hectares of a value of $1,400.525 were put through. In the same period 157 leases comprising 8,600 hectares were granted.

In addition to this, the court recorded a further 447 contracts negotiated directly by the owners themselves. There were also 480 meetings of owners authorised and held by the court during this period.

A considerable number of leases and sales of Maori land are to Maoris.

ACQUISITION OF LAND—Safeguards have been made for long-term planning in the use of land, whether publicly or privately owned, in order to ensure that it and its resources are used to the best advantage of the community as a whole. Legislation introduced in 1968 and 1969 (by amendment to the Land Settlement Promotion and Land Acquisition Act 1952) prevents, where there is an operative regional planning or proposed or operative district scheme, the acquisition by overseas interests of land of 1 acre or over designated or zoned as a reserve, or public park, or for recreational purposes, or as private open space, or for preservation as an object or place of historical or scientific interest, or of natural beauty, or any proposed such purpose and all islands or parts of islands within 100 miles of the mainland, and the Chatham Islands. Where there are no regional or district schemes the legislation applies to any land of 1 acre or over in area and the purchase may not be approved if the land is likely to be required for reserve purposes. The legislation also covers rural and farm land of 5 acres or over. Here a purchase may be approved if specified conditions, directed to ensuring beneficial use of the land from a national viewpoint, or permanent future residence, are met.

The court shall grant its consent where the purchaser or lessee is a person ordinarily resident in New Zealand, i.e., who has resided in New Zealand for 21/2 years and the court is satisfied that he intends to continue to reside in New Zealand. Where the purchaser or lessee is not a person ordinarily resident in New Zealand or is an overseas company, the court shall not grant its consent unless it is satisfied that: the land is not required for any reserve, public park, recreation purposes, or for preservation as an object of historical or scientific interest or natural beauty; and that the land is not an island less than 100 miles from the nearest part of the coast of the North Island or the South Island or forms part of the Chatham Islands. In the case of farm land, the court must be assured that the purchaser or lessee intends to conduct experimental or research work on the land which will benefit agricultural industries in New Zealand or the community generally, or that the land will be used for purposes other than agricultural with greater advantage to the community, or in the case of an individual that he intends to reside permanently in New Zealand and farm the land exclusively for his own use and benefit and has the ability and means to do this.

Part I of the Land Settlement Promotion and Land Acquisition Act authorises the Minister of Lands to take in certain circumstances any farm land that is suitable for settlement, and is, or when subdivided and developed will be, capable of substantially increased production. Land cannot be taken from any person owning less than the equivalent of two economic farms, and provision is also made for the retention of land for the owner's children. The owner may object to a Land Valuation Committee or the Administrative Division of the Supreme Court to the taking of land. The court may also be called in to assess compensation for land taken if the owner does not accept the Crown's offer.

Part II deals with the control of sales and leases of farm land to prevent undue aggregation. The Act applies to sales of freehold farm land and, with certain exceptions, to leases of farm land for terms of 3 years or more. The consent of the court is required to such transactions unless the purchaser or lessee files a declaration with the District Land Registrar within 1 month of the date of thetransaction to the effect that he owns no farm land, has no interest in any estate or trust owning farm land, has not since the passing of the Act transferred any farm land to any person as trustee or created any trust in respect of farm land, and that he has entered into the transaction solely on his own behalf.

The Act prevents the purchase of farm land, without the consent of the court, by a trustee for any person under the age of 17 years, or the purchase by a company or trustee for a company to be formed where the shareholders are fewer than 10 in number and any member of such company is under the age of 17 years (or where shares will be held in trust for any person under that age at the date of the transaction).

LAND TRANSFERS—The following table shows transfers registered under the Land Transfer Act during the latest 11 years. (1 hectare = 2.47 acres.)

Year Ended 31 MarchUrban PropertiesRural PropertiesAll Properties: Total Consideration
NumberAreaConsiderationFreeholdTotal Freehold and Leasehold
NumberAreaConsiderationNumberConsideration
  hectares  hectares    
  (000)$(m) (000)$(m) $(m)$(m)
196152,2336,475239.88,403692124.49,179135.8375.6
196249,3585,657233.47,787569117.28,455126.7360.1
196346,2776,114237.36,78245992.57,28999.1336.4
196451,9426,706299.17,269525111.07,894120.8419.9
196559,9837,368362.78,642643156.69,565173.5536.2
196661,5817,426394.09,281631185.39,927198.6592.6
196759,1516,166394.08,914644184.09,488195.2589.2
196855,8205,710390.57,566451141.28,105151.4541.8
196957,8545,621426.47,329505141.27,801150.1576.5
197063,7286,506530.78,480574184.18,896193.7724.4
197174,0207,122701.79,080628205.09,590217.3918.9

Urban Land Transfers—The following table shows urban land transfers by consideration groups for March years.

Consideration GroupFreeholdLeaseholdAll Urban Transfers
NumberTotal ConsiderationAverage ConsiderationNumberTotal ConsiderationAverage ConsiderationNumberTotal ConsiderationAverage Consideration
  $(million)$(000) $(million)$(000) $(million)$(000)
     1969-70    
Under 2,00012,17114.71.23180.30.912,48915.01.2
2,000- 2,9995,76213.72.41170.32.45,87914.02.4
3,000- 3,9994,28614.53.4890.33.34,37514.83.4
4,000- 9,99922,076155.37.05033.67.122,579158.87.0
10,000- 19,99914,944195.813.12653.613.515,209199.313.1
20,000- 49,9992,57970.527.4882.427.42,66772.927.4
50,000-199,99946439.184.3242.081.548841.184.1
200,000 and over4014.1351.520.7337.54214.7350.8
            All groups62,322517.68.31,40613.09.363,728530.78.3
     1970-71    
Under 2,00011,48213.91.23230.30.911,80514.21.2
2,000- 2,9996,04914.32.4940.22.46,14314.62.4
3,000- 3,9994,84716.43.4760.33.44,92316.73.4
4,000- 9,99924,292171.87.15764.17.224,868176.07.1
10,000- 19,99921,023277.513.23464.613.221,369282.113.2
20,000- 49,9994,007108.127.01183.126.64,125111.227.0
50,000-199,99967656.182.9302.688.070658.783.2
200,000 and over7627.1356.651.1227.88128.2348.7
            All groups72,452685.39.51,56816.410.474,020701.79.5

In general, transactions included in the under $2,000 group would involve vacant sections, although many building sections are now priced above this level.

Urban land transfers involving consideration between $2,000 and $19,999 would be, in the main, residential properties, although the group would include a considerable number of building sections, particularly in the main urban areas.

The range of transactions involving $20,000 or above would represent mainly commercial and industrial properties, although increasing numbers of residential properties will be included near the lower end of the range.

The following table shows urban land transfers by land registration districts.

Registered in Land Registration District1969-701970-71
NumberAreaTotal ConsiderationNumberAreaTotal Consideration
  hectares  hectares 
  (000)$(million) (000)$(million)
North Auckland21,0862.1203.025,0442.5276.7
South Auckland8,1810.859.510,1911.081.8
Gisborne7140.14.97720.15.7
Hawke's Bay2,7000.319.32,8090.323.2
Taranaki1,4810.19.91,7540.213.2
Wellington11,8511.4113.313,2481.1137.9
Marlborough6380.13.96430.15.6
Nelson1,6380.210.01,7750.213.3
Westland372- -1.2394- -1.5
Canterbury9,0600.865.310,7891.094.3
Otago3,7910.325.14,2500.431.9
Southland2,2160.215.32,3510.216.6
            Totals63,7286.5530.774,0207.1701.7

Rural Land Transfers—The following analysis shows transfers of rural freehold properties classified by size groups for 1970-71.

Size Group (Acres)*1969-701970-71
NumberAreaTotal ConsiderationNumberAreaTotal Consideration
*1 acre = 0.405 hectare.
  hectares  hectares 
  (000)$(million) (000)$(million)
Under 304,14013.142.04,66114.751.8
30- 495088.28.15298.58.5
50- 991,03531.223.699929.624.8
100-14968833.621.472435.322.4
150-24974958.626.376760.327.5
250-499748106.431.5749105.931.7
Over 500612323.031.2651374.138.3
            Totals8,480574.1184.19,080628.4205.0

The next table gives average consideration per acre by size group and weighted average price per acre of rural freehold land transfers for the latest 5 years. (The weighted average price is based on total acreages transferred during the period April 1953-March 1966.)

Size Groups (Acres)*1966-671967-681968-691969-701970-71
*1 acre = 0.405 hectare.
 $$$$$
Under 301,231.991,164.941,238.231,300.011,422.64
30- 49355.85311.08418.23398.66402.04
50- 99303.43307.84315.25305.54339.34
100-249187.25190.06189.33209.13211.06
250-499103.68103.61107.30119.77121.15
500 and over36.6935.2628.8639.1541.46
Weighted overall average price per hectare274.85272.43272.21301.07315.80

The following table shows all rural land transfers, freehold and leasehold, by land registration districts for the year ended 31 March 1971.

Registered in Land Registration DistrictFreeholdLeaseholdTotal
NumberAreaConsiderationNumberAreaConsiderationNumberAreaConsideration
  hectares$(million) hectares$(million) hectares$(million)
  (000)  (000)  (000) 
North Auckland1,89668.937.1514.70.91,94773.638.0
South Auckland1,86385.549.5746.61.91,93792.151.4
Gisborne22170.74.0123.00.423373.74.4
Hawke's Bay43845.612.9263.51.146449.214.0
Taranaki52828.511.8435.51.157134.012.9
Wellington1,11790.525.1556.61.11,17297.126.2
Marlborough39136.74.83415.70.742552.45.5
Nelson35019.54.34210.60.539230.14.8
Westland634.20.7201.70.2835.90.9
Canterbury1,15091.932.06613.61.91,216105.534.0
Otago52748.210.45921.81.858670.012.1
Southland53638.212.3289.40.756447.613.0
            Totals9,080628.4205.0510102.612.39,590731.0217.3

10 B—VALUATION OF LAND

GENERAL—Equitable land values are a basis for many of the relations of the Central Government and local authorities with the individual. In particular they are required in connection with the following: (a) the levying of land tax; (b) the apportionment of rating levies over contributory local authorities; (c) the levying of rates by local authorities; (d) the advancing of money on mortgage by Government departments and by trustees under the Trustee. Act; (e) the assessing of stamp, estate, and gift duties; (f) the fixing of prices payable to the Crown or by the Crown for transfers of land.

SYSTEM AND PROCEDURE—The Government Valuation of Land Act 1896 set up a separate Government department charged with the duty of assessing the values of real estate for taxation and other purposes of the Central Government and for local rating purposes. The present law relating to the valuation of land is contained in the Valuation of Land Act 1951, and in the Land Valuation Proceedings Act 1948.

The work of the Valuation Department is directed by the Valuer-General, the actual work of valuing being done by district valuers and assistant valuers. The duty of a valuer is to examine each property and to estimate (a) the value of the land; (b) the value of the buildings (if any) and other improvements (if any) upon such land; and (c) the capital value of the property.

Valuers are enjoined not to strain after high values, not to accept special prices paid for land in exceptional circumstances, but to determine the value neither above nor below the fair selling value in view of the many and diverse purposes for which the values are used.

Generally, under the New Zealand law, the increased value attaching to any piece of land which is due to the successful working of other lands in the district, or to State or local authority expenditure on public works, or to the general prosperity and development of the country, forms portion of the “land value”.

“Improvements” on land are defined, with certain provisos, as any work done or materials used on or for the benefit of the land by any owner or occupier resulting in an increase in the value of the land. With the introduction of land value in 1970 (in place of unimproved value) the term “improvements” correctly speaking, includes only those items of work done or material used which result in structural additions to the property.

The “capital value” is, broadly speaking, the unencumbered market value of the land at date of valuation, and the “value of improvements” is the added value given by the “improvements”.

THE VALUATION ROLL—A valuation roll is prepared for each district over which a territorial local authority has rating jurisdiction, setting forth the ownership, description, and valuation of each property, including rates postponement and special rateable values where these are required to be determined.

Revision of Rolls—District valuation rolls are revised by the Valuer-General at intervals of not more than 5 years unless for good reason he decides otherwise.

The Supplementary Roll—There is, in addition to the district valuation roll for each district, a supplementary roll for that district. Generally, all special valuations of land made during the currency of a district roll for particular purposes—e.g., the granting of loans by Government departments or trustees on the security of lands, the assessment of stamp, gift, and estate duties—are entered on the supplementary roll.

Objections to Valuations—In the case of a revision of a district roll, the Valuer-General, any local authority, or any owner whose name appears on the roll, may object to any valuation thereon. Where a particular property only is revalued, only the owner has a right of objection. If, after the Valuer-General has reconsidered the matter, the objector is still dissatisfied he may ask for the objection to be heard by the Administrative Division of the Supreme Court.

ADMINISTRATIVE DIVISION OF THE SUPREME COURT—The Land Valuation Proceedings Act 1948 as amended in 1968, provides for objections under the Valuation of Land Act to be determined by the Administrative Division of the Supreme Court. In addition to its jurisdictionunder the Land Valuation Proceedings Act 1948, the Division hears claims for compensation under the Public Works Act 1928 and determines values under the Land Settlement Promotion Act 1952. Land valuation committees for particular localities operate under the general jurisdiction of the Division. There is a right of appeal from a committee's decision to the court with a further right of appeal to the Court of Appeal in certain cases.

If any owner who has objected to a valuation made at a revision of a district roll is not satisfied with the value of the land as fixed by the Division's order, he may, within 14 days of the sealing of the order, give notice to the Valuer-General that he requires the capital value to be reduced to the value which he (the owner) considers to be the fair selling value as specified in his notice (but not less than the aggregate amount owing on mortgages or other charges on the land), or the land to be acquired on behalf of Her Majesty, or sold, at that value. There is also provision that if the Valuer-General is of the opinion that the value has been fixed by the Division at less than the capital value, he may, within 14 days after the sealing of the Division's order require the owner to consent to what he (the Valuer-General) considers is the fair capital value, and, failing such consent being given within 30 days after notice is delivered, he may, with the approval of the Governor-General in Council, acquire the property at that value on behalf of Her Majesty.

VALUATIONS IN RELATION TO RATING—The district valuation roll so long as it continues in force is by law the roll from which the valuation roll of every local authority rating on the capital of on the land value is framed.

The third major rating system is the annual (rental) value system, where the annual values are assessed by valuers appointed by the local authorities concerned. The Valuer-General may be so appointed. The annual value is defined as the rent at which a property would let from year to year reduced by 20 percent in the case of houses, buildings, and other perishable property, and by 10 percent in the case of land, but it may not be less than 5 percent of the value of the fee simple. A new valuation roll in this regard is prepared either annually or triennially.

Parts IV and V of the Rating Act 1967 provide for local authorities to grant applications for rates postponement in respect of certain residences in commercial and industrial zones and for farmlands in counties with valuations reflecting potential use for urban development. Rates postponement values are determined either under the Valuation of Land Act or the Rating Act. According to the system of rating in force, special rateable values for non-conforming commercial or industrial land in residential or rural zones are also provided for in order that these classes of properties will not enjoy a rating advantage. Likewise special rateable values may be determined for rural or residential land or commercial or industrial areas, for single-unit dwellinghouses in areas where values are influenced by demand for multi-unit housing, and for “existing use” properties within the meaning of Section 36 of the Town and Country Planning Act 1953.

Part VI of the Rating Act provides for rating relief for farmlands subject to rates levied by borough (or city) councils, independent town councils, and county councils in respect of county towns. Th Act provides that these local authorities may assess valuations for rating purposes for such farmland lower than the normal rateable values.

Equalisation of Values—The Rating Act, Part IX, provides for an equitable adjustment of rate and of levies based on rateable values as between the several constituent districts comprising the district of an ad hoc local authority where those constituent districts have been revalued by the Valuer-General at different times. Provision is also made for equalisation to be done where the seven ridings of a county have been revalued at different dates.

CAPITAL AND UNIMPROVED VALUES OF LAND—The figures in the following table show valuations over a long period of years for the whole of New Zealand; they are gross values and include the value not only of rateable properties but also of churches, schools, unoccupied Crown lands, and other lands exempt from local rating.

At 31 MarchCapital Value (Land and Improvements)Unimproved Value of Land*

*Included in previous column.

†Includes the districts revalued after 1 March 1971 in the “land value” basis provided for by the Valuation of Land Amendment Act (No. 2) 1970 which came into effect on that date.

 $(million) 
1878199.1125.1
1885226.5..
1888222.3151.0
1891244.4151.7
1897277.2168.8
1902309.6189.7
1906395.4245.9
1907473.3299.4
1909543.0345.5
1911586.2368.1
1913681.1425.9
1915742.1461.4
1916778.3482.6
1917810.9502.2
1918842.8521.8
1919891.1552.0
1920940.2581.8
19211,037.2635.3
19221,089.0658.3
19231,106.8661.6
19241,137.0667.7
19251,174.7678.6
19261,206.5682.1
19271,236.5683.0
19281,262.9670.4
19291,301.8689.5
19301,329.1677.8
19311,335.6663.3
19321,325.7643.6
19331,307.4629.1
19341,300.7619.5
19351,275.2602.3
19361,271.6591.4
19371,264.5575.7
19381,272.7564.7
19391,305.8565.6
19401,321.0557.8
19411,346.2555.1
19421,363.8553.8
19431,368.4553.8
19441,377.6554.1
19451,394.7555.0
19461,420.9558.4
19471,492.8568.5
19481,592.1583.2
19491,778.5614.3
19501,971.8648.9
19512,225.5698.3
19522,629.8788.5
19533,064.7899.6
19543,405.5974.3
19554,136.61,158.2
19564,613.21,288.8
19574,992.71,395.1
19585,354.51,502.3
19595,664.51,610.6
19606,132.51,779.6
19616,497.41,905.7
19626,945.72,061.1
19637,373.62,212.1
19647,760.42,345.8
19658,459.22,644.5
19669,085.02,865.5
19679,836.13,184.2
196810,631.63,487.0
196911,349.73,705.2
197012,515.64,170.7
197113.305.74,489.0

Between 1943 and 1950 values were stabilised through the operation of the Servicemen's Settlement and Land Sales Act 1943, and the increases shown in this period mainly reflect the writing into new valuations of increases which had occurred prior to 1943.

The lifting of land sales control on urban properties in 1950 and on rural properties in 1951 was reflected in the general revaluations.

In the following table the gross values are analysed in more detail.

As at 31 MarchNorth IslandSouth IslandNew Zealand
Capital Value (Land and Improvements)Unimproved Value of Land*Capital Value (Land and Improvements)Unimproved Value of Land*Capital Value (Land and Improvements)Unimproved Value of Land*

*Included in previous column.

†Includes the districts revalued after 1 March 1971 on the “land value” basis provided for by the Valuation of Land Amendment Act (No. 2) 1970, which came into effect on that date.

   $(million)   
   Counties   
19662,223.7640.81,271.4494.43,495.11,135.2
19672,371.7682.81,456.3602.23,828.01,285.0
19682,597.8747.01,565.5652.14,163.31,399.1
19692,857.7836.41,624.3649.64,482.01,486.0
19703,136.5910.91,718.6675.34,855.11,586.2
19713,340.51,008.31,853.3751.65,193.81,759.9
   Boroughs   
19664,286.21,366.81,285.4360.85,571.61,727.6
19674,622.71,495.61,365.5400.65,988.21,896.2
19685,012.81,673.11,436.1411.86,448.92,084.9
19695,325.41,779.01,513.6433.56,339.02,212.6
19705,979.32,068.01,659.2512.47,638.52,580.4
19716,383.52,208.11,704 5516.78,088.02,724.8
   Independent Town Districts   
196614.32.64.10.318.32.8
196715.62.84.30.219.93.1
196815.82.73.60.319.43.0
196925.26.33.50.328.76.6
197018.23.83.80.322.04.1
197119.44.14.40.323.84.4
   Grand Totals   
19614,575.01,306.61,922.4599.16,497.41,905.7
19624,885.71,412.42,060.0648.76,945.72,061.1
19635,211.51,526.22,162.1686.07,373.62,212.1
19645,511.91,630.72,248.5715.17,760.42,345.8
19656,057.61,853.02,401.6791.58,459.22,644.5
19666,524.22,010.22,560.9855.59,085.02,865.5
19677,010.02,181.22,826.11,003.09,836.13,184.2
19687,626.42,422.83,005.21,064.210,631.63,487.0
19698,208.22,621.83,141.41,083.411,349.73,705.2
19709,134.02,982.73,381.61,188.012,515.64,170.7
19719,743.43,220.53,562.21,268,613,305.64,489.1

The fact that land valuations are not continuously up to date has the effect in the preceding tables of delaying the appearance of other than the steepest movements and of reducing their apparent magnitudes.

With the present resources at the Valuation Department's disposal an up-to-date revaluation of all properties in New Zealand would be an impossible task, but by using the principle of valuation equalisation, mentioned earlier, it is possible to compile up-to-date gross values by local body districts for the whole country. These gross figures have been compiled, on the level of values as at 31 March 1966; they are recorded in a research paper issued by the department and are shown in the following table.

Territorial AreasCapital ValueUnimproved Value
 $(million)$(million)
Counties4,268.01,469.4
Boroughs and cities6,218.32,105.3
Town districts18.62.9
Miscellaneous4.22.2
            Totals10,509.13,579.8

A comparison of these totals with the gross values shown for the year ended 31 March 1966, given previously, illustrates the point that valuation statistics tend to have the effect of delaying current movements in the property market.

RATEABLE VALUES—The following summary indicates rateable values for counties, boroughs, and independent town districts as at 31 March 1971. The value of improvements in urban areas is much higher than in rural areas.

Local Authority DistrictNorth IslandSouth IslandNew Zealand
Capital Value (Land and Improvements)Unimproved Value of Land*Capital Value (Land and Improvements)Unimproved Value of Land*Capital Value (Land and Improvements)Unimproved Value of Land*
*Included in previous column.
   $(million)   
Counties3,116.3954.21,744.2730.94,860.51,685.1
Boroughs5,832.12,046.31,547.0481.17,379.12,527.4
Town districts (independent)16.83.73.90.320.74.0
            Totals8,965.23,004.23,295.11,212.312,260.34,216.5

These figures include the districts revalued after 1 March 1971 on the “land value” basis provided for by the Valuation of Land Amendment Act (No. 2) 1970, which came into effect on that date.

The next table shows the percentage distribution of area and population as at 1 April 1970, and of rateable property values between the different types of local authority districts as at 31 March 1971.

Local Authority DistrictAreaPopulationRateable Property Values
Capital ValueUnimproved ValueValue of Improvements
 Percentage Distribution
Counties99.130.939.539.039.9
Boroughs0.968.760.360.959.9
Town districts (independent)-0.30.20.10.2
            Totals100.0100.0100.0100.0100.0

Particulars of values for each county, borough, and independent town district in considerable detail are contained in the Report on Local Authority Statistics, where similar data are also given for dependent town districts and for road districts.

VALUERS' REGISTRATION BOARD—The Valuers Act 1948 provides for the registration of land valuers and for some control of their work. There is a Registration Board under the chairmanship of the Valuer-General, which issues certificates for registration to all valuers and annual practising certificates to public valuers. The main objects of the Act are to secure a high standard of valuation work throughout the country and to encourage competent valuers. There were 997 registered valuers at 31 March 1971.

Chapter 11. Section 11 TRANSPORT

11 A—SHIPPING

PORT DEVELOPMENT—New Zealand is on the threshold of unit and container techniques which in a number of countries are bringing about a revolution in handling methods and a new concept of co-ordination of transport through the substitution of capital-intensive for labour-intensive operations. A Ministry of Transport has been established and its major statutory function is the investigation of the economics of transport. A Transport Advisory Council, chaired by the Minister of Transport, has as its purpose the co-ordination and development of transport generally.

An Exports and Shipping Council was set up in 1964 to promote economy and efficiency in the handling of New Zealand's exports and to speed up the turnaround of ships by streamlining procedures. Streamlining primarily involves a reduction in the number of calls made by overseas ships at New Zealand ports, and such activities arise partly from the need to offset increases in the freight bill following rises in freight rates. (Outward freight on exports exceeds $100 million and inward freight on imports exceeds $70 million.) There is a cargo-handling co-ordination committee serviced by the Marine Department and affiliated to an international association with a control office in the United Kingdom.

A New Zealand Ports Authority has been set up by the Government to produce a national ports plan in the interests of higher port efficiency; its approval will be required for future large development projects by harbour boards. The authority has designated Auckland and Wellington as the first container ports.

In recent years most harbour boards have undertaken extensive port development. New Zealand's first loan from the International Bank for Reconstruction and Development (the World Bank) was authorised in 1963 for port development. It involved $5.08 million which was loaned to the harbour boards of Auckland, Lyttelton, Napier, Timaru, and Whangarei.

Facilities for roll-on roll-off vessels have been provided at Wellington, Picton, Auckland, Lyttelton, and Otago.

Auckland and Wellington installed containerised cargo facilities by mid-1971, Wellington providing two container berths and a twin-lift crane. A container service to the United States began by August 1971 from the ports of Auckland and Wellington.

Additional information to that contained in this section on port, cargo, and shipping statistics may be found in the Report on Transport Statistics, an annual publication of the Department of Statistics.

PORT STATISTICS—Demands made on ports by overseas and coastal vessels are illustrated in the following table, which gives the total number and tonnage of all calls made each year.

YearOverseas VesselsCoastal VesselsTotal
Number of CallsNet TonnageNumber of CallsNet TonnageNumber of CallsNet Tonnage
  tons (000) tons (000) tons (000)
19603,12413,54910,2494,97813,37318,527
19613,65216,17710,2475,03613,89921,213
19623,60316,45710,6545,46714,25721,924
19633,76416,43311,0766,18914,84022,622
19643,56815,69010,6537,02214,22122,711
19653,45215,4869,7667,21313,21822,699
19663,60516,7839,4278,06313,03224,845
19673,33115,6219,1568,79112,48724,412
19683,49716,5388,7048,63212,20125,170
19693,64817,0708,1508,24111,79825,311
19703,75717,2587,6718,32211,42825,580

Up to and including 1963, overseas ships made an increasing number of calls at port while on the New Zealand coast. Since 1964 there has been some reduction in calls as the recommendations of the Exports and Shipping Council have been adopted. Overseas ships have usually made at least three calls on average on the New Zealand coast while loading.

Movements of coastal vessels declined from 1953 to 1962 when the rail-road ferry Aramoana came into operation. The Aramoana displaced other coastal vessels but its daily return trips between Wellington and Picton added to the number of calls at ports. The second rail-road ferry, Aranui, was brought into service in June 1966, and had a similar effect. Since 1967 additional roll-on roll-off freighters specialising in unit cargo loads have operated between all main ports, gradually superseding the more traditional trading vessels. In 1966 the ships sailing between Wellington and Lyttelton provided a roll-on service but this was reduced by the loss of the Wahine in April 1968; extra sailings were made by other vessels to meet cargo and passenger demands. Coastal shipping has advanced to the stage where about half the general cargo is carried in units, including containers. Several colliers on the Greymouth-Wellington service have been withdrawn as coal ceded to electricity, oil, and natural gas.

The following table shows for the 3 latest years the total entrances of merchant shipping at the various ports. Overseas and coastal vessels calling at more than one port in the course of a single voyage have been recorded as entered at every port visited.

Port196819691970
Number of callsNet Tonnage (000)Number of callsNet Tonnage (000)Number of callsNet Tonnage (000)
Houhora9271142
Awanui355467376
Mangonui224264244
Whangaroa9210261
Bay of Islands621796616063211
Whangarei6092,4276172,5216282,621
Auckland2,7904,8852,7104,9782,3795,145
Onehunga209891908719495
Raglan351639173214
Thames406284203
Coromandel914----
Tauranga5171,5905131,6925571,761
Gisborne129193107171117226
Napier3991,4173761,5093811,409
Taranaki217752280824373889
Wanganui10258975110057
Wellington2,2365,0612,1704,8962,2344,977
Picton1,0621,6931,0781,6811,0281,573
Nelson595502497506458612
Motueka876645251
Tarakohe207121223131211129
Westport1359815010114294
Greymouth855471386229
Jackson Bay158145156
Lyttelton1,0962,9651,0612,9271,0232,948
Timaru295791263751228629
Oamaru813183347431
Otago3741,0433801,1113651,021
Deep Cove48962459--
Bluff4661,0324539924811,044
Halfmoon Bay144411554515744
            Totals12,20125,17011,79825,31111,42825,580

In the case of Wellington, Lyttelton, Picton, Bluff, and Halfmoon Bay the figures are inflated by the recording of inter-island ferry services.

All Calls of Overseas Vessels—The following table shows for the 3 latest years the number of calls and net tonnage of overseas vessels arriving at New Zealand ports, either direct or coastwise.

Port196819691970
Number of CallsNet Tonnage (000) of VesselsNumber of CallsNet Tonnage (000) of VesselsNumber of CallsNet Tonnage (000) of Vessels
Bay of Islands301722915232205
Whangarei1171,3941221,5121131,451
Auckland9274,4129714,4901,0544,642
Onehunga211892214
Raglan211121
Tauranga4201,5484241,6494621,717
Gisborne351603214437193
Napier2671,2242761,3462701,239
Taranaki129600148680146703
Wanganui593588
Wellington4732,2884992,2815162,328
Picton29156261222597
Nelson9535591387103504
Westport8510694
Jackson Bay33----
Lyttelton4211,8094601,8574651,920
Timaru136665136649114518
Oamaru--2323
Otago201841221919205829
Deep Cove515----
Bluff192881179858172880
            Totals3,49716,5383,64817,0703,75717,258

The inward overseas tonnages of ships in the preceding table are converted to percentages for the major ports in the next table.

Port19661967196819691970
   percent  
Whangarei8.58.38.48.98.4
Auckland26.726.526.726.326.9
Tauranga6.07.89.49.710.0
Napier7.07.07.47.97.2
Taranaki4.84.43.64.04.1
Wellington14.915.613.813.413.5
Other North Island1.71.42.11.82.4
            North Island69.671.171.471.972.5
Lyttelton12.511.510.910.911.1
Timaru3.73.54.03.83.0
Otago6.76.25.15.44.8
Bluff5.05.05.35.05.1
Other South Island2.52.73.23.03.5
            South Island30.428.928.628.127.5

OVERSEAS SHIPPING: Ports of Arrival and Departure—The next table shows the extent to which various ports were made the first port of arrival or the last port of departure by overseas vessels during the last 3 years.

PortEntered as First CallCleared as Last Call
196819691970196819691970
 net tonnage (000) of vessels
Whangarei1,2771,3281,2581,2321,2951,288
Bay of Islands--24--24
Auckland2,7742,8923,0502,1842,2432,116
Onehunga-610-710
Raglan1-11--
Tauranga5856796939509401,046
Gisborne13713444155
Napier205186115384385399
Taranaki17713181212222224
Wanganui---577
Wellington812812815645560676
Picton232017324023
Nelson11417228190160196
Greymouth11----
Lyttelton431389341184262298
Timaru7710486107194107
Otago458065191249215
Bluff111126180291282283
            Totals6,6466,9347,0326,5536,8876,966

As will be seen, in 1970 55 percent of overseas vessels (on a tonnage basis) arriving in New Zealand made Auckland or Wellington their first ports of entry, and 40 percent used one of these two ports as the final departure point. Most of the tonnage at Whangarei comprises overseas oil tankers, whose calls are practically limited to that port.

Passengers—The overseas passenger traffic is concentrated principally at Auckland and Wellington. Small numbers of overseas passengers, however, arrive at and leave from the other ports. The following table gives the numbers of passengers arriving at and departing from each port for the latest 5 years.

PortPassengers Arriving from OverseasPassengers Departing for Overseas
Year Ended 31 MarchYear Ended 31 March
1966196719681969197019661967196819691970
Auckland29,00031,50724,09722,21719,70126,47328,25023,23424,01121,701
Napier1588681577100155159124174
Wellington15,22522,06418,56711,8,9310,20214,25717,26310,4358,666
Lyttelton13429016075204230207284502589
Dunedin14816488882909234
Invercargill1236751012471139712960
Other39540437258470916443758289394
            Totals44,79554,33343,41633,79029,40338,05643,50741,88535,58231,618

Entrances and Clearances of Overseas Vessels—The following table gives the number and net tonnage of overseas vessels entering and clearing New Zealand ports during the last 11 years (recorded at the first port of arrival and final port of departure only), and distinguishes those entered and cleared “with cargo” from those “in ballast”.

YearWith CargoIn Ballast*Total
VesselsNet Tonnage (000)VesselsNet Tonnage (000)VesselsNet Tonnage (000)
*“In ballast” means (a) inwards—"having no cargo for discharge in New Zealand”, such as cruise ships and vessels to load exports; (b) outwards—"having no cargo loaded in New Zealand”, such as cruise ships, empty tankers, and phosphate ships.
   Entered   
19608183.8001547019724.501
19618654.1501738041.0384.954
19628504.0551417349914.789
19638834.1461467641.0294.910
19649014.5921698491.0705.441
19658974.6371719871.0685.624
19669154.9812031.1471.1186.128
19677884.1802441.6581.0325.838
19688174.3263772.3191.1946.646
19698394.4673912.4671.2306.934
19709485.1223501.9101.2987.032
Cleared
19606102.6443511.7659614.408
19616512.9993801.9241.0314.923
19626803.0643201.8211.0004.885
19637303.0443041.8321.0344.876
19647333.3853191.9731.0525.358
19657433.2803252.2651.0685.545
19667373.2953812.8061.1186.101
19677303.1493272.7371.0575.886
19688793.4453163.1071.1956.553
19699403.8912902.9961.2306.887
19709894.2192832.7471.2726.966

Direction of Overseas Shipping—Particulars of the number and net tonnage of vessels entered and cleared between New Zealand and various countries are given in the following table.

Country19691970
EnteredClearedEnteredCleared
No.Net Tonnage (000)No.Net Tonnage (000)No.Net Tonnage (000)No.Net Tonnage (000)
Australia4292,1763751,6814261,7084021,846
Canada3016541125160519
Ecuador1213641020815
Fiji69333634166423560227
France416422112732152
French Polynesia4262012922312108
Germany, Federal Republic of167652215681255
Gilbert and Ellice Islands10658571379529
Hong Kong13396171967620
Iran19329304161939332544
Japan2391,0982411,1042611,2562611,226
Kuwait22542225152664312277
Nauru29239272231918324229
Netherlands526319135727
New Caledonia419941644874460
Philippines2918562661036
Singapore10751612486317159
South Africa628519831828
Tonga94057892210127
USSR7201472139
United Kingdom106653121796133925135936
United States71401723658647372374
Other Countries774679956087502100483
            Totals1,2306,9341,2306,8871,2987,0321,2726,966

CARGO STATISTICS—With cargo statistics it should be noted that the term “ton” does not invariably denote a weight of 2,240 lb. It is practicable to obtain the actual weights involved for only a portion of the goods handled. In other cases close approximations are made by applying uniform formulas as to the number of bales, cases, sacks, etc., to the ton. A considerable portion of trading goods, however, is recorded in measurement tons, 40 cubic feet of space being regarded as the equivalent of a ton. As the practice is uniform, comparisons from year to year are not appreciably affected, nor are comparisons between ports, unless there is a radical difference in the class of trade carried on, in which case recourse should be had to consideration of items of trade. Since a much larger proportion of imports are in measurement tons, direct comparisons of tonnages of imports and exports are not always valid.

The following table gives a summary of the tonnage of cargo handled at all ports for the last 11 years.

YearInward*TranshipmentsOutward*Total Tonnage
CoastalOverseasCoastalOverseas

*Excluding transhipments.

†Transhipments included twice.

manifest tons (000)
19602,2835,0591101,9961,93311,490
19612,4335,7041582,1641,98312,600
19622,4645,1571162,2312,04512,130
19632,8825,6971092,5502,12013,467
19643,8387,1871033,5042,59317,328
19654,9457,181854,6882,57419,558
19665,5427,942745,2142,67721,523
19675,4076,887525,1052,92720,431
19685,6107,286405,4133,95122,341
19695,6647,527345,4484,59923,305
19706,1938,322616,0354,77025,442

From about 1964 the pattern of shipping (and cargo) movements between New Zealand ports has been substantially altered. 1964 saw the opening of the oil refinery at Whangarei and the distribution to other ports of the refined products, currently amounting to some 2 million tons annually, has been by coastal delivery instead of by direct overseas discharge. The emergence of more and more specialised ships, e.g., roll-on roll-off freighters, dry bulk carriers, both in the coastal and overseas services coupled with the technical improvements in port facilities, has led to the rise of ports handling specialised cargoes and the virtual elimination of the small regional port and the traditional small coastal shipping services.

The next table shows for each port the total inward and outward cargo in 1970. Loadings of bunker fuels amounting to 380,118 tons are not included.

PortInward*TranshipmentsOutward*Total Tonnage
CoastalOverseasCoastalOverseas

*Excluding transhipments.

†Transhipments included twice.

   manifest tons (000)  
Parengarenga6,161--66,088-72,249
Houhora3,240----3,240
Awanui12,838----12,838
Mangonui6,682----6,682
Whangaroa2,380----2,380
Bay of Islands8,62849--29,51838,195
Whangarei149,7803,336,974-2,943,218103,6826,533,654
Mangawhai---50,515-50,515
Auckland1,456,9302,085,43843,672152,495876,1414,658,348
Onehunga122,2846,551444103,96812,818246,509
Raglan15,403712-225-16,340
Thames---3,781-3,781
Tauranga460,987270,3142,88625,4351,767,5862,530,094
Gisborne22,3085,132-8,92346,58482,947
Napier264,747299,598-12,789362,814939,948
Taranaki219,033244,16718547,296186,247697,113
Wanganui77,3564,381-2,525-84,262
Wellington1,265,0881,031,9733,053917,997255,3483,476,512
Picton692,879--721,47225,6961,440,047
Nelson133,36535,37542031,184410,504611,268
Motueka355--1,690-2,045
Tarakohe21,365--207,283-228,648
Westport1,2556,210-177,288256185,009
Greymouth3,565--50,875-54,440
Jackson Bay113--6,943-7,056
Lyttelton699,312560,9556,884345,859186,2791,806,173
Timaru106,84549,8186338,966109,396305,151
Oamaru6,2871,039-12,451-19,777
Otago259,486168,6493,50452,720158,606646,469
Bluff169,600214,445-50,387238,728673,160
Halfmoon Bay4,921--2,418-7,339
            Totals6,193,1938,321,78061,1116,034,7914,770,20325,442,189

Transhipments—Developments in all transport services have led to a marked decline over the last few years in the volume of cargo transhipped. The 1970 figure of 61,111 tons is mainly “overseas to coastal” and “overseas to overseas” through the port of Auckland.

Inward Overseas Cargo—The following table shows the tonnage of some major items of inward overseas cargo handled in 1970. Transhipments are included.

PortFresh FruitGrainGypsum, Plaster of ParisIron and SteelMachineryFertilisersMotor Spirit, Kerosene
   manifest tons   
Whangarei--11.071609-121.167-
Auckland63.36272.93952.502347.50169.527318.829202.897
Tauranga-24.185-18.0452178.825-
Gisborne----12.990-
Napier-7192012.8531.342234.1146.642
Taranaki-6.981-5.055562213.65823
Wellington9.1501.6407593.33830.3721.131215.934
Nelson18-12.1641.5051.2851.954-
Westport--5.518-19--
Lyttelton21.208-19.86463.43018.321117.03783.936
Timaru691--1.73325441.316-
Otago110-4.39317.9053.38360.56110.968
Bluff--510.0431.640148.2558.506
All other ports62--5322292.974-
            Totals94.601106.464105.61272.549126.9371.442.811528.906
PortMotor Vehicles and PartsOil, Other MineralsSugarTextilesAll Other GoodsTotal
   manifest tons   
Whangarei1,8643,200,006--2,2573,336,974
Auckland175,25110,486141,79659,898608,4532,123,441
Tauranga1,509---47,748270,314
Gisborne----2,1415,132
Napier2,613--4241,253299,598
Taranaki1,226--4516,802244,352
Wellington200,22258,822125,455398,7241,034,864
Nelson15,506-51992,76535,725
Westport----6736,210
Lyttelton40,2707,171223,799167,381562,419
Timaru8106-384,97049,818
Otago6,9924,146-1,99161,617172,066
Bluff3,848--14342,005214,445
All other ports9708-438,35013,168
            Totals451,0813,280,645142,318111,4631,405,1398,368,526

Outward Overseas Cargo—In the section dealing with the export trade it is pointed out that pastoral products make up over 80 percent of New Zealand's exports. The following table shows how the various ports participated in the handling of the main items in the outward overseas cargo, including transhipments, during 1970. Although pastoral products constitute the bulk of New Zealand's exportson a value basis, a number of other types of commodities constitute an important part of the total outward overseas cargo. The following table shows the extent to which ports of loading participated in the handling of the major remaining items.

PortButterCheeseOther Milk ProductsFrozen and Preserved MeatHides and SkinsTallowWool
   manifest tons   
Bay of Islands8,44235,59013,054712,0236
Whangarei28,304-11,579-237841
Auckland67,85815,242193,088139,13821,50617,89756,589
Onehunga14941671,041-203
Tauranga36,9608,08888,810--7961,442
Gisborne--97615,859287-2,356
Napier77297,46899,02913,15312,60566,560
Taranaki18,51855,18117,08154,7483,1273,4512,835
Wellington13,0115,57020,39373,28614,3174,68444,542
Picton---3,052-278246
Nelson903,5701,5613,4362951,227414
Lyttelton61,2109,92442,5548,7136,53835,268
Timaru-1,284-63,5663,8883,67221,600
Otago2401,46319214,3814,1813,80733,517
Bluff1904,947903123,6279,16111,62244,882
            Totals173,77597,328357,632646,77178,72269,404310,261
PortFresh FruitBeans and PeasPaper, Newsprint, etc.Timber, SoftwoodWood PulpAll Other GoodsTotal
   manifest tons   
Bay of Islands-----32929,518
Whangarei---8,204-54,787103,682
Auckland14,10220810,54713,140223336,867886,405
Onehunga150123571,228-9,75812,826
Tauranga123-151,1611,350,74499,34530,3211,767,790
Gisborne2,699--22,332-2,07546,584
Napier37,49535212195,735-29,560362,814
Taranaki-3613120,713-10,551186,372
Wellington1942,4341532,002-75,049255,635
Picton2,590563-16,871-2,09625,696
Nelson66,050309-328,477-5,092410,521
Lyttelton1,83116,8323375,006-59,162187,381
Timaru-7,01278372-7,924109,396
Otago3,585201280,849-16,193158,611
Bluff230257-32,928-9,981238,728
All other ports---256--256
            Totals129,04928,216162,8871,978,85799,568649,7454,782,215

Shipping Between New Zealand Overseas Territories and the Cook Islands—In the tables of overseas shipping no account is taken of ships moving between the main islands of New Zealand and New Zealand overseas territories and Cook Islands. Information on cargoes will be found in section 38, Overseas Territories and the Cook Islands.

SHIPPING ON INLAND WATERS—The only inland water shipping of any consequence is the service running on Lake Wakatipu, operated with the Earnslaw providing tourist excursions. Until 31 December 1968, the service was owned and operated by the New Zealand Railways; from 1 January 1969, the vessel was transferred to private ownership.

REGISTRY OF OVERSEAS SHIPS—The following table shows the country of registry of vessels arriving in New Zealand during the latest 6 years.

Country of Registry196519661967196819691970
British Commonwealth—  net tons (000)   
    United Kingdom2,6052,5442,6252,6302,5462,422
    New Zealand470463395366374461
    Other British Commonwealth35464211141116
        With cargo2,6182,5212,3202,1971,9652,443
        In ballast493532742910996556
            Totals, British Commonwealth countries3,1113,0533,0623,1072,9622,999
            Percentage of total555052474343
Other—      
    Italy122250302265158137
    Japan4495344688371,0461,114
    Liberia263452466519746867
    Norway506576364488498366
    Netherlands321375343313341207
    Remaining countries8528888321,1161,1841,343
    With Cargo2,0192,4601,8602,1292,5022,679
    In ballast4946159151,4091,4711,354
            Totals, other countries2,5133,0752,7753,5383,9734,033
            Percentage of total455048535757
            Grand totals5,6246,1285,8376,6456,9347,032

NEW ZEALAND SHIPPING REGISTER—The figures for vessels registered in New Zealand as at the end of each of the last 11 years are as follows.

YearSteam and Motor VesselsOther Vessels*Totals
VesselsGross TonnageNet TonnageVesselsGross TonnageNet TonnageVesselsGross TonnageNet Tonnage
*Includes sailing vessels, and barges, dredges, etc., not self-propelled.
1960491243,008122,631422,4712,031533245,479124,662
1961503241,096120,992422,4712,031545243,567123,023
1962493250,399124,724402,6522,096533253,051126,820
1963496244,047120,603504,0513,505546248,098124,108
1964521251,032122,798534,1803,628574255,212126,426
1965534235,506114,309604,2733,699594239,779118,008
1966556238,149112,520654,3353,720621242,484116,240
1967589223,571103,090685,2444,612657228,815107,702
1968597223,573102,461726,1145,318669229,687107,779
1969625208,98695,282645,4024,599689214,38899,881
1970659210,66795,702695,7264,811728216,393100,513

In the table which follows, the vessels on the New Zealand register at 31 December 1970 are classified and listed for various ports of registry.

Port of RegistrySteam VesselsMotor VesselsOther Vessels*
VesselsGross TonnageNet TonnageVesselsGross TonnageNet TonnageVesselsGross TonnageNet Tonnage
*Includes sailing vessels and barges, dredges, etc., not self-propelled.
Whangarei---181,8282363307205
Auckland103,0711,38841177,29135,712455,0074,275
Tauranga---55,0832,2351146
Napier1819449133,1811,246---
Wellington1521,3519,1638357,22326,99815286232
Nelson---245,5652,218---
Lyttelton53,5781,253172,8651,3053226
Timaru---61,641588152
Dunedin22,4359951922,28311,032---
Invercargill2969368281,48451618585
            Totals3532,22313,616624178,44482,086695,7264,811

Auckland is the port of registry of the majority of the vessels forming New Zealand's “mosquito” fleet, the average net tonnage of the 466 vessels on the Auckland register being only 89 tons.

Of the 728 vessels registered in New Zealand at the end of 1970 only 72 were classified as employed in the coastal or foreign trade. A great number of vessels are employed exclusively within “restricted limits” or are pleasure craft.

MARINE OFFICERS' CERTIFICATES—The examinations for masters, mates, and engineers serving in the mercantile marine are conducted by the Marine Department, the regulations relating to these examinations being based upon those of the United Kingdom Board of Trade with such modifications as are necessitated by local conditions. The Board of Trade recognises the following certificates only as of Commonwealth validity: Extra Master, Master, First Mate, and SecondMate Foreign-going ships, First- and Second-class Steam and Motor Engineers. It is a condition of such recognition that candidates must possess service qualifications and pass examinations similar and not inferior to those prescribed by the Board of Trade. There are examinations for masters and mates, and for marine engineers in both the foreign-going and home trade.

SHIP SURVEY STATISTICS—The Marine Department carries out the survey of ships as required by the Shipping and Seamen Act 1952, and 1,088 certificates of survey were issued in 1970. The department is also required to issue certificates to vessels engaged in international voyages in accordance with the provisions of the International Convention for the Safety of Life at Sea 1960, to which New Zealand is a signatory. Also special surveys are made for seaworthiness after damage, for efficiency of equipment, and for tonnage measurement.

LIGHTHOUSE SERVICE—On headlands, capes, reefs, and shoals around the 4,330 miles of coastline there are 296 navigational aids. These aids comprise 25 manned lighthouses, 130 automatic lights, 105 day beacons, 20 navigational buoys, 3 fog signals, and 13 radio beacons, and represent a capital investment of $5 million approximately. Their maintenance and servicing is a responsibility of the Marine Department, and involves an expenditure of approximately $600,000 annually. Lighthouse tenders, aircraft, helicopters, and road transport along with a number of workshops are used to provide the mariner with reliable “signposts”. Light dues collected from ships meet most of the running costs of the service.

The “Xenon gas” light installed on Tiritiri Matangi Island, the main coastal approach light tower to Waitemata Harbour, is of 11 million candlepower, and is one of the most powerful in the Southern Hemisphere.

WRECKS—In the case of any wreck or shipping casualty in New Zealand waters a superintendent of mercantile marine, or other person empowered by the Minister of Marine, institutes an inquiry into the cause and circumstances of such casualty. If necessary, a formal investigation is held by a magistrate, who has power to cancel or suspend the certificate of any officer from whose wrongful act or default damage has resulted.

Should any wreck occur on the coast, or in any river or lake, the receiver of wrecks for that district has the necessary authority to be used in the preservation of life and property.

The numbers of shipping casualties reported to the Marine Department during the year ended 31 December 1970 are shown in the following table. It should be noted that the figures list all casualties including small craft.

Type of ShipMachinery, Breakdown, and MiscellaneousCapsizing and CollisionsStranding and GroundingFounderingFireTotal
Passenger1----1
Cargo-11-13
Fishing2051326872
Dredges, tugs, etc.11---2
Pleasure craft23201410976
            Totals4527283618154

11 B—RAILWAYS

RAILWAY DEVELOPMENT—A network of railways extending over more than 3,000 route miles links almost all the principal centres of population in New Zealand and carries a large share of the passenger and freight traffic to and from the towns and cities. Practically all the railway services in the country are provided by the New Zealand Government Railways Department, using the title New Zealand Railways for trading purposes. The department also operates road services over more than 5,000 route miles of highways; a rail and road vehicle and passenger ferry service across Cook Strait between Wellington and Picton; and an air-freight service across Cook Strait. A total staff of almost 21,000 people is employed by the department.

Recent years have witnessed notable progress in development of the system and a steady increase in the carrying capacity of its main lines. Extensive use is being made of the latest developments in railway-transport technology, including diesel and electric traction, transistorised equipment for centralised traffic control, mechanised equipment for freight handling and track-maintenance work, and electronic data-processing machines to assist with accounting and statistical operations. Many new types of goods wagons have been and are being introduced, and numerous station buildings, goods sheds, bridges, etc., are being replaced by up-to-date structures in a continuing programme.

The largest railway construction project in recent years was completed with the opening in January 1971 of the 75-acre Te Rapa marshalling yard near Frankton. The massive yard is the first in New Zealand to have a semi-automatic hump-shunting system, while the refined electronic devices incorporated in the system make it also the most advanced. Designed initially to handle some 3,000 wagons a day, it will ultimately have a capacity to sort 5,000 daily.

A major project still in the course of construction is the 15-mile Kaimai Deviation, including a 5 1/2 mile tunnel through the Kaimai Hills, which will shorten the railway distance between the Waikato and the Bay of Plenty districts.

A loan of $13.73 million was made available by the International Bank for Reconstruction and Development early in 1971 to assist a 6-year railway capital development programme. The loan will meet the overseas content of the cost of wagons and workshops and signalling equipment due for delivery during the first 3 years of the new programme. This loan follows upon an I.B.R.D. loan of $36 million made available in 1965 for a rolling stock re-equipment programme which was completed in 1970 at a cost of $54 million.

BRIEF HISTORY—In 1860 a contract was let by the provincial government of Canterbury for the construction of a railway from Lyttelton to Christchurch, and the first portion of this line was opened on 1 December 1863*. A line from Invercargill to Bluff Harbour was opened on 5 February 1867, and meanwhile, in 1865, the Auckland Provincial Council had begun construction of a line from Auckland to Drury.

In 1870 the Central Government established an Immigration and Public Works Department which had as one of its main objects the building of a system of railways to open up the country for settlement. By 31 March 1880, 1,182 route miles of State-owned railways were open for traffic, and by 31 March 1900 more than 2,100 route miles in 10 separate sections were in use. The 369-mile trunk line between Christchurch and Invercargill was completed in January 1879, but it was November 1908 before the 426-mile North Island main trunk railway between Auckland and Wellington was ready for traffic throughout.

Other main lines were completed, to link most of the short isolated sections. The last link to be completed was that from Christchurch to Picton, in 1945. Since then, between 1950 and 1957, 63 miles of branch lines have been built in the North Island to serve the extensive man-made forests.

In 1957 the main highway between Blenheim and Nelson was deemed, for the purpose of calculating passenger fares and freight charges, to be a “notional railway” connected at Blenheim to the railway system.

Over the years since the railways were first built, vast improvements have been made and many sections reconstructed at considerable expense to ease gradients, shorten distances, and reduce curvature. Several of these major railway deviations involved the boring of long tunnels, such as those on the Wellington-Tawa deviation, opened in June 1937; the Turakina-Okoia deviation, opened in December 1947; and the Rimutaka deviation between Upper Hutt and Featherston, opened in November 1955.

*A special article in the 1963 issue of the Yearbook (pp. 1175-1195) outlined the first 100 years of railway development in New Zealand.

EXTENT OF THE SYSTEM—The total route mileage of railways vested in the New Zealand Government Railways Department and open for traffic at 31 March 1971 was 3,012—1,625 miles in the North Island and 1,387 in the South Island. In addition, the Railways Department was working traffic over a further 4 miles of railways owned by other Government departments. Double line was provided over a total of 161 route miles, of which 129 miles were in the North Island.

A total of 62 route miles of railway electrified on the 1,500-volt direct current, overhead contact system was in use at 31 March 1971. The 8 1/2 mile Otira - Arthur's Pass section of the South Island transalpine line, including the Otira Tunnel, was electrified in 1923; the 7-mile Wellington-Johnson-ville line in 1938; and the 24 1/2 mile Wellington-Paekakariki line in 1940. The first section of the Wellington - Hutt Valley electrification was brought into operation in 1953, and the last stage of this project, covering 22 route miles, was completed in July 1955. The 6-mile Christchurch-Lyttelton section, including the Lyttelton Tunnel, was electrified in 1929 but changed to diesel traction in 1970.

RAILWAY CONSTRUCTION AND ENGINEERING—In most instances, Government railways in New Zealand have been constructed by the Public Works Department, now the Ministry of Works, and handed over to the Railways Department upon completion. Recent practice has been for the Ministry of Works to construct the earthworks, bridges, tunnels, and buildings, and for the Railways Department to lay the track and install signals.

Track—All track is laid to a gauge of 3 ft 6 in. Steel rails for main lines weigh 91 lb per yard, but several secondary and branch lines have been laid with rails weighing 72 lb per yard. Much of the track, not yet renewed since these standards were adopted in 1950, is still laid with rails weighing 85, 70, and 55 lb per yard. About 65 miles of track are completely renewed each year. Timber sleepers, laid 2,400 to the mile, have traditionally been of Australian hardwood, but since 1960 substantial and increasing use has been made of treated radiata pine sleepers from New Zealand mills.

Bridges—To carry the railways across gorges, rivers, and streams in New Zealand, about 2,600 bridges and viaducts have been built with an aggregate length of 55 miles. The longest railway bridge is that over the Rakaia River, 34 miles south of Christchurch. Completed in 1939 to replace an original timber structure of the 1870s, it is 5,720 ft (1.08 miles) long.

The highest viaduct is the Mohaka, completed in 1937 to carry the Napier-Gisborne railway 318 ft above the bed of the Mohaka River. Twenty New Zealand railway viaducts altogether carry the rails more than 110 ft above the streams they cross.

Tunnels—There are 184 railway tunnels with an aggregate length of 53 miles in use, 108 in the North Island and 76 in the South Island. The two longest tunnels are the Otira (5 miles 26 chains) on the Midland Line in the South Island, opened in 1923; and the Rimutaka (5 miles 37 chains) on the Wairarapa line in the North Island, opened in 1955. Excluding city tube railways, these stand sixteenth and thirteenth respectively in a list of the world's longest railways tunnels. The Kaimai Tunnel, to be constructed on the Kaimai Deviation, will be 5 miles 39 chains long.

Cook Strait Rail/Air Freight Service—An air freight service across Cook Strait was commenced in February 1947; information on its operation is given in subsection 11d.

Cook Strait Rail Ferry Service—Two ferries carrying rail and road vehicles, and passengers, are operated by the Railways Department between Wellington and Picton. The Aramoana (4,160 tons) and Aranui (4,542 tons) are each designed to carry a maximum of 34 railway wagons, or about 85 motorcars, on the vehicle deck and a further 30 motorcars in an upper-deck garage. There is all-weather accommodation in lounges and cabins in each vessel for about 500 passengers, but it is possible to carry up to 1,130 passengers per ship on special occasions. Regular sailings with the Aramoana began in August 1962 and a two-ship timetable was introduced with the advent of the Aranui in June 1966. In November 1971 the Railways Department took over maritime operation of these ferries from the Union Steam Ship Company.

A third ferry, Arahanga, entered the service in 1972, and a fourth vessel was ordered in 1971 from France for delivery early in 1974. Both are of a larger design than the first two ferries and are designed for freight only, with limited accommodation for road truck drivers.

ROLLING STOCK: Passenger Cars—The first diesel railcars on New Zealand railways were placed in service in 1936. At 31 March 1971 a fleet of 41 was in use on passenger services. Railcars are being phased out in favour of road services.

Multiple-unit electric coaches were first introduced on the Johnsonville line in 1938. By 1956 a fleet of 49 motor coaches and 79 trailer coaches was in use on Wellington suburban train services. A typical three-coach set comprising one 600 hp motor coach and two trailer coaches weighs 96 tons unladen, measures 188 ft 6 in. overall, and seats 200 passengers. This stock can accelerate rapidly from stops and operates up to 50 m.p.h. in normal service.

SPECIAL SERVICES—A hostess-served “Blue Streak” daytime express service between Wellington and Auckland was instituted in October 1968. This service runs 3 days a week in each direction. The service is being re-equipped with three 155-ft-long twin-coach railcars each to seat 96 passengers and have an operating speed of 70 miles per hour.

In December 1970 the “Southerner” diesel express trains were introduced to the service between Christchurch and Invercargill; there are refurbished passenger cars and a buffet car in which light meals and liquors are served.

In September 1971 the “Silver Star” sleeping-car expresses were introduced between Wellington and Auckland. The new air-conditioned trains each normally comprise 10 sleeping cars with accommodation for 160 passengers in single and two-berthed cabins, a 42-seat restaurant car licensed to serve liquor, and a power/luggage van.

Wagons—The Railways Department's fleet of goods and livestock wagons at 31 March 1971 totalled, with a total carrying capacity of 399,000 tons. In recent years thousands of new wagons have been introduced, including long, covered bogie wagons with wide doorways for mechanical loading of palletised freight, for use on express goods trains. Special-purpose wagons include those designed for log traffic, packaged timber, and bulk commodities such as cement, flour, plaster, heated tallow, sulphuric acid, and aluminium sulphate, and wagons for coal traffic for the Mission Bush steel mill. Many bogie flat-top wagons have also been built or modified for the ever-increasing volume of container traffic. In addition to the wagons owned by the department, another 242 privately-owned wagons are also in use, mainly for petrol and cement traffic.

MOTIVE POWER—Since 1949 steam power has been steadily replaced by diesel traction. All steam locomotives in the North Island were replaced by diesel locomotives by the end of 1967, and those in the South Island in 1971 with the exception of two retained for a Lumsden-Kingston tourist vintage train. In February 1972 15 “Dx” diesel-electric locomotives weighing 96 tons and with double the horsepower of the “Da” class locomotives were introduced to haul the “Silver Star” sleeping car expresses, and heavy express-goods trains between Wellington and Auckland.

The proportions of railway traffic moved by the different types of motive power are shown in the following table.

Year Ended 31 MarchPercentage of Total Traffic Moved by
Steam LocomotivesDiesel LocomotivesDiesel RailcarsElectric LocomotivesElectric Multiple Units
196150.038.44.23.04.4
196246.242.04.23.04.6
196340.148.14.32.94.6
196434.354.24.22.94.4
196530.858.33.82.94.2
196626.363.03.72.84.2
196721.867.63.72.84.1
196818.172.63.12.04.2
19698.483.72.71.14.1
19701.291.72.51.03.6
19710.892.52.40.83.5

There are now 299 diesel-electric locomotives, and 14 electric locomotives apart from shunting locomotives.

REVENUE AND EXPENDITURE—Gross revenue and expenditure on the railways (including subsidiary services) are shown in the following table.

Year Ended 31 MarchGross RevenueExpenditureNet Revenue

*In addition, a 53rd week's revenue of $2,014,433 was taken into the department's accounts for the year ended 31 March 1969. Because there was no corresponding expenditure, this sum has not been included in the tabulated figures, in order to maintain comparability with previous years. The additional revenue became available because accounting procedures over the past few years had taken only 52 weeks' (364 days') revenue into account each year, and the additional days had now accumulated into a full week.

†Deficit recovered from General Reserve.

  $(thousand) 
196788,75687,878878
196885,83284,6601,172
196990,015*86,4953,520*
197099,72994,1215,607
1971105,242112,827-7,585

The chief items of expenditure for 1970-71 were: wages $69,237,026; locomotive fuel (including electricity), $2,302,567; stores and material, $16,499,932; depreciation, $8,733,143; miscellaneous, $15,110,912.

The revenue and expenditure for recent years, distinguishing between railway operation and other items, are given in the following table.

Year Ended 31 MarchGross RevenueExpenditureNet Revenue or Loss
Railway OperationSubsidiary Services, etc.Railway OperationSubsidiary Services, etc.Railway OperationSubsidiary Services, etc.
*See footnote to preceding table.
   $(thousand)   
196775,02813,72875,15112,727- 123+1,001
196871,65314,17971,88012,780- 227+ 1,399
196974,60215,41372,89213,603+ 1,710+ 1,810*
197083,19416,53579,83614,286+ 3,358,2,249
197186,99918,24396,50216,324-9,503+ 1,919

The respective Island figures of revenue and expenditure for railway operation only (i.e. omitting subsidiary services) are given below for the 1970-71 year.

AreaRevenueExpenditureNet Revenue or LossRatio of Expenditure to Revenue
  $(thousand) percent
North Island63,25566,032-2,777104.4
South Island23,74430,470-6,726128.3
            Totals86,99996,502-9,503110.9

The revenue and expenditure of the various subsidiary services conducted by the Railways Department, is set out in the following table. Full working costs are charged against these services, and interest which is debited to road services and rail ferries is credited to miscellaneous receipts as revenue.

ServiceRevenueExpenditure
1968-691969-701970-711968-691969-701970-71

*This service was transferred to a private operator in January 1969.

†This figure excludes the 53rd week's revenue.

   $(thousand)   
Lake Wakatipu steamer22-**68-**
Advertising service235273302179195217
Departmental dwellings9769539441,8941,8821,974
Road services—      
Passenger and goods7,2087,7608,5217,2417,7148,787
Cook Strait rail ferry service5,3235,8916,1974,2214,4955,346
Miscellaneous1,6491,6582,279---
            Totals15,41316,53518,24313,60314,28616,324

Revenue—In the following table the railway operating revenue is classified according to the class of traffic, etc., from which it was derived.

Year Ended 31 MarchPassenger TrafficGoods, Livestock, and ParcelsRefreshments and BookstallsTotal
$(thousand)
19675,91567,4481,66575,028
19685,29464,7851,57471,653
19695,41967,4771,70674,602
19705,67275,7091,81383,194
19715,83079,0992,07086,999

The revenue from passenger fares and luggage during the year 1970-71 represented an expenditure on railway travel of $2.06 of mean population. The total railway operating revenue was equal to $3.08 per head.

Expenditure—The railway operating expenditure under various heads is now given.

Year Ended 31 MarchMaintenance of Way and WorksMaintenance of Rolling StockLocomotive TransportationTraffic TransportationHead Office and General Charges*Refreshments and BookstallsTotal
*Includes superannuation subsidy.
$(thousand)
196719,01217,67112,10522,3832,2321,74875,151
196817,32917,18911,53521,6692,4541,70471,880
196917,22918,15211,51321,6742,5011,82372,892
197019,27820,47811,83323,4752,8561,91679,836
197124,10523,76214,04628,8673,4532,26996,502

Expenditure has been influenced by progressively higher rates of pay and improved conditions of employment.

Capital Expenditure—The expenditure on capital works and new equipment is set out in the following table.

Item19701971
 $(000)$(000)
Plant and equipment1,0971,369
Works programme5,4755,386
Rolling stock7,0444,944
Electrical6242
Motor vehicles906937
Rail ferries3971,614
            Totals14,98014,292

This capital expenditure has been met from the department's own depreciation reserves, from the loan granted by the International Bank for Reconstruction and Development and buyer's credit.

The relative proportions of capital funded from these sources were as follows:

Source19701971
$(000)percent$(000)percent
Railway depreciation9,5386410,79776
I.B.R.D. loan5,441362,36516
Buyer's credit--1,1308
            Totals14,98010014,292100

RAIL PASSENGER TRAFFIC—The completion of the suburban railway electrification at Wellington in 1955 and the introduction of fast railcar services between 1955 and 1959 resulted in peak passenger patronage in 1961-62, but since then there has been a steady decline in passenger journeys in face of competition from other forms of transport.

The decline in non-suburban passenger traffic is attributable to the increased use of buses and private cars and the development of air services. The operations of the department's Road Services Branch are outlined under another heading at the end of this section.

The following table sets out the numbers of rail passenger journeys and the corresponding receipts.

Year Ended 31 MarchNumber of JourneysPassenger Revenue
SuburbanNon-suburbanTotalSuburbanNon-suburbanTotal
*Traffic in this year was affected by the suspension of services for 10 days in May 1967 because of a strike by a section of the staff.
 (000)(000)(000)$(000)$(000)$(000)
196621,2342,65423,8891,9763,9215,897
196721,2092,51423,7232,0053,9095,914
1968*20,1222,06422,1861,9473,3475,294
196920,3001,96222,2612,0523,3675,419
197019,1831,84821,0312,1813,4915,672
197119,0971,91121,0082,2103,6205,830

GOODS AND LIVESTOCK TRAFFIC—The following table shows the tonnage of goods and livestock traffic, and revenue received.

Year Ended 31 MarchGoods and Livestock (excluding Parcels) CarriedGoods, Livestock, and Parcels Revenue
TonnageNet Ton-milesNorth IslandSouth IslandTotal
*Revenue from parcels traffic was $2,335,000.
 (000)million$(000)$(000)$(000)
196611,8881,473.146,80420,50967,313
196711,5341,483.947,13920,30967,448
196810,5811,405.145,61419,17164,785
196910,7981,502.947,64919,82767,476
197011,5931,676.654,21021,49975,709
197111,8501,756.757,10721,99279,099*

RAIL FERRY TRAFFIC—Traffic statistics for the rail ferry service across Cook Strait are given in the following table.

Year Ended 31 MarchReturn CrossingsPassenger JourneysMotor VehiclesFreight in Railway Wagons
NumberManifest TonnageDeadweight TonsManifest Tons

*Two-ship service from 27 June 1966.

†The number of sailings was affected by industrial disputes.

1966563211,52051,396256,980215,480432,142
1967*810322,22460,690303,450294,933521,383
1968974339,12466,067330,335343,791581,542
19691,032372,98476,067380,335421,064679,948
19701,049433,69989,055445,275507,281752,098
1971996447,21590,533452,665498,324687,951

Financial statistics for the Cook Strait ferry service are as follows.

Year Ended 31 MarchRevenueExpenditure, Total
PassengerRefreshmentMotor VehiclesOther GoodsTotal
 $(000)$(000)$(000)$(000)$(000)$(000)
1966431794812,7933,7841,960
19675531376202,8704,1803,200
19685691546813,2254,6303,788
19696341697703,7495,3234,221
19707202028934,0765,8914,495
19717972269594,2156,1975,346

The following diagram illustrates the traffic on the railways and road services.

RAILWAY EMPLOYEES—The average number of persons employed by the State railways throughout the year ended 31 March 1971 was 20,814, compared with 21,082 a year earlier.

ACCIDENTS AT LEVEL CROSSINGS—Accidents at level crossings with roads resulted in the death of 13 people and injury to 65 others in 1970-71; in the previous year 11 were killed and 34 injured. In furtherance of departmental policy, an additional 18 automatic road-crossing alarms were installed in 1970-71.

PRIVATE RAILWAYS—There are a number of short private railways in New Zealand, principally lines serving collieries and sawmills. There is a 7-mile line of the Ohai Railway Board, extending from Wairio (north-west of Invercargill) to coal mines at Ohai. The Whakatane Board Mills Ltd., in the North Island operates a 6 1/2 mile private line from Awakeri to their mill at Whakatane in the Bay of Plenty.

RAILWAY OPERATED ROAD SERVICES—There is a network of railway-operated road services the origin of which dates back to November 1926 when a bus service between Napier and Hastings was purchased. Others were acquired in the following years (notably the services within the Hutt Valley and between the Hutt Valley and Wellington in 1927 and 1928), but it was 1934 before the first long-distance coach service was taken over. The main development of the network took place between 1936 and 1951, when the route mileage over which licences were held rose from 260 to 5,992. Now the Railways Department runs more than 25 percent of the total vehicle mileage of all licensed road passenger service operators in New Zealand (see section 11c), and maintains in its fleet more than 25 percent of all the vehicles used to provide road passenger services throughout the country. During the year ended 31 March 1971, the Railways Department's road services branch employed a staff of 1,477 on average.

Suburban bus services at Auckland, Rotorua, Hastings, Hutt Valley, Wellington-Khandallah, Titahi Bay, Paraparaumu, and Dunedin, with a fleet of 251 vehicles at 31 March 1971, carried 15,063,000 passengers and earned a total revenue of $1,621,970. All the other road passenger services, both long and short distance, with 596 coaches, buses, and other vehicles, carried 7,570,000 passengers and earned a revenue of $5,318,094. The routes of the services in operation at 31 March 1970 covered 5,569 miles of highway.

In addition to the road passenger services, a small number of road goods services were operated. Goods traffic on these services, together with the hire of vehicles to the Rail Ancillary Goods Service, produced a further $1,580,867 in 1970-71. Some 272 motor trucks and vans were maintained for the goods services. The Rail Ancillary Goods Service is operated by the department's traffic branch for the carriage of goods consigned to or from wayside stations.

The following selected statistics illustrate the development of the Railways Department's road services operations.

Year Ended 31 MarchRoute Miles at 31 March*Number of Passenger Vehicles at 31 MarchNumber of Other Vehicles at 31 MarchTotal Passenger JourneysTotal Passenger and Goods RevenueTotal Expenditure, Including Interest Charges
*Route mileage for which licences are held.
    (000)$(000)$(000)
19464,50746415416,5882,1981,918
19515,99274930124,0914,2164,320
19565,84276335619,2715,1705,036
19615,75473533221,3705,6745,638
19665,85872937822,2976,3856,343
19685,89976237721,3966,7296,906
19695,91976537222,5857,2087,241
19705,92577737722,1757,7607,714
19715,94277637922,6338,5218,787

11 C—ROADS AND ROAD TRANSPORT

GENERAL—Capital investment in New Zealand's roading and road transport system exceeds that of all other forms of transport services. There are over 59,000 miles of roads and over 1 million motor vehicles, while the population census in 1966 revealed that there were 34,906 road transport drivers, 13,533 persons engaged in the construction and maintenance of roads, 16,653 persons whose occupations involved carrying and cartage services, 22,206 persons occupied in the repair of motor vehicles, and 7,205 persons engaged in motor-vehicle assembly and body building.

ROADS AND BRIDGES—Rising levels of investment in roads and road transport are a measure of the importance of motor vehicles in our modern environment. This form of transportation developed mainly because it permitted a way of life people desired and a form of travel which they found highly convenient, but investment levels have become so large and all-pervasive that they affect every corner of our social, economic, and political life. Furthermore, future economic development depends largely on the mobility of the motor vehicle. This mobility has been achieved by the development of an effective roading network and will be retained and improved only through progressive policies aimed at meeting future needs. For these reasons roads and road transport can be expected to play an increasingly important part in New Zealand's national development. In terms of ton/miles of freight carried, road transport has doubled in the 10 years and now comprises approximately half of total freight movement. Farm production, for example, relies heavily on road transport.

The cost of providing adequate roads in New Zealand as a proportion of annual investment is relatively high in comparison with other countries. The cost of construction varies considerably from place to place, depending upon topography, soil types, rainfall and availability of aggregate. While a road of 18 feet sealed width can be built for $5,000 per mile in some places, a road of comparable standard can cost anything up to $50,000 per mile in less favourable localities.

Annual roading expenditure by central and local government now exceeds $100 million, or approximately 2.3 percent of gross national product. Maintenance comprises about one-third of the expenditure.

Because of its many swiftly-flowing rivers and streams and its inland gorges and deep ravines, New Zealand is faced with major bridging problems, which are perhaps different in character and more complex than those generally found elsewhere. A major programme of replacement and new construction has been under way for many years, some 12 percent of the board's expenditure being spent in this way. In recent years expenditure from the National Roads Fund has resulted in over 5 miles of new bridging being built each year.

Motorways are expensive to construct and are justified only in areas of high traffic density. They require strong foundations, and thick surfacings to stand up to the heavy, fast, and continuous traffic. They confer two great benefits—greatly increased traffic capacity and greater safety. The limited number of access points, designed to permit smooth and safe entrance and exit, and the complete absence of ordinary intersections, contribute substantially to safety and the uninterrupted, fast flow of traffic, which also reduces transport costs.

The Auckland motorway system is one of the largest engineering undertakings ever attempted in New Zealand and one which is changing the face of metropolitan Auckland. An indication of the size and complexity of motorway design is gained from the statement that the cost of the large dual interchange for the Auckland inner city part of the motorway system will be of the order of $20 million, including land purchase. The 4,600-ft Thorndon overbridge on the Wellington Motorway is the largest bridge contract in the history of the Ministry of Works.

Details of formed roads and streets at 31 March 1970 are given in the following table.

Nature of SurfaceCities and BoroughsCountiesTown DistrictsTotal
County RoadsState Highways and Motorways
   miles  
Paved and sealed5,56713,4075,9589525,027
Metal or gravel50627,3879514828,892
Unmetalled864,80321375,109
            Totals: formed roads6,15945,5977,12215059,028

There are 9,632 bridges of 25 ft and over with a total length of 897,557 ft.

Auckland Harbour Bridge Traffic—Before the Auckland Harbour Bridge of four lanes and a span of 3,597 ft was opened in 1959, it was expected that it would take 19 years for traffic to reach 8 million vehicles a year, but instead it took only 5 years. Extensions have been made by way of two additional lanes on each side of the existing bridge making a total of eight traffic lanes.

Traffic totals for March years are shown in the following table.

Class of Vehicle1966-671967-681968-691969-701970-71
(thousand)
Cars10,55911,43312,38513,97615,630
Motor cycles, etc.213233242248277
Buses268272264270270
Trucks444446465505519
Non-revenue traffic171201204154141
            Totals11,65512,58513,56015,15316,837

Christchurch-Lyttelton Road Tunnel—This tunnel was opened in 1964 and is 1 1/4 miles long. There is an increasing volume of traffic using the Christchurch-Lyttelton road tunnel as shown in the following table.

Class of VehicleYear Ended 31 March
19671968196919701971
Cars916,546964,659931,669991,4001,081,664
Motor cycles, etc.99,73484,64768,42162,00359,904
Buses14,14914,35614,23314,37714,321
Trucks137,016154,512182,970200,505215,929
Non-revenue traffic34,14434,15433,20634,13836,148
            Totals1,201,5891,252,3281,230,4991,302,4231,407,966

ROADS ADMINISTRATION—The main statutes covering roads administration in New Zealand are the Public Works Act 1928, the Municipal Corporations Act 1954, the Counties Act 1956, the National Roads Act 1953. Administration of the country's roading system is exercised by municipalities in respect of streets, by county councils in respect of county roads, and by the National Roads Board in respect of State highways.

The National Roads Board is charged with the responsibility of providing an adequate roading system balanced to meet the country's needs. The Board came into being in 1954 as the result of the passing of the National Roads Act. This same Act provided for the establishment of the National Roads Fund. Under the chairmanship of the Minister of Works, the National Roads Board is an organisation of 10 members, representative of the private motorists, commercial vehicle owners, counties, municipalities, the Ministry of Works, and Ministry of Transport. It is of interest to note that Government members are in a minority. The representative nature of the Board ensures that the widest possible background of knowledge and experience is brought to bear on roading Essentially the Board is a politically orientated policy-making body; it is required to think nationally and to act nationally. The most important functions of the Board are:

  1. to administer the National Roads Fund.

  2. to provide a roading system adequate for New Zealand's needs.

  3. to advise Government on all matters concerning roading including the provision of finance.

  4. to assist and advise local authorities on roading problems.

  5. to undertake at intervals of not more than five years a comprehensive survey of the roading positions in New Zealand.

The money in the National Roads Fund is derived from road taxation paid by the users, the private motorist and the commercial vehicle operator. Through this roads fund the money is returned to the road user in the form of safer, smoother, more economical travel. It is an inviolate fund. Under the legislation by which it was brought into operation on 1 April 1954, all taxation paid into it must be immediately available and be used for roading purposes. In effect the National Roads Act provided for an independent fund at the disposal of an independent board and removed the element of uncertainty associated with annual appropriation of funds through Parliament. Nevertheless opportunity is provided for Parliament to debate the Board's activities.

The National Roads Board can be likened to a board of directors with the Minister of Works as chairman and Director of Roading as chief executive officer. The Board meets regularly once a month. Most of the business is conducted in open meeting with representatives of the press in attendance.

The Board employs no staff directly but the Ministry of Works provides an engineering and administrative service for which it is paid 5 percent of total National Roads Board expenditure. The roading division of the Ministry of Works carries out the executive functions of the Board and in servicing the Board calls on the specialist services of other divisions and branches of Ministry of Works as required, e.g., bridge design, land purchase, accounts, legal, etc.

There are approximately 7,200 miles of State highway, for which the Board meets the full cost of construction and maintenance. In addition, there are some 45,000 miles of county roads and 6,000 miles of municipal streets, maintenance and construction of which are subsidised by the Board. The National Roads Board is the controlling authority for State highways. As the Board's agent, Ministry of Works has responsibility for financial control and technical control. In certain cases, the Board has delegated its powers of construction and/or maintenance to local authorities.

In the case of county roads and municipal streets, responsibility lies with the local authority concerned. Apart from the question of standards on major works, there are no strings and no overriding control by Central Government.

Under the National Roads Act, in December of each year the Board is required to estimate its income for the following year and to make its primary allocations of funds expected to be available. At the present time there are three sectors and funds are allocated on the following basis: for counties—not less than 23 percent of motor revenue; for municipalities—not less than 16 percent of motor revenue; for State highways—not less than 50 percent of motor revenue; this leaving 11 percent of motor revenue for allocation to any or all of the above, at the discretion of the Board.

For purposes of roading administration, New Zealand is divided geographically into 22 roads districts and funds are allocated by the Board to each sector in each district as fairly and equitably as possible having regard to particular needs.

In each roads district there is an advisory body known as a District Roads Council. These councils are representative of the same interests as the Board itself. Although they have no executive powers, their recommendations concerning relative priorities have considerable influence on board decisions. In addition to its regular meetings the Board makes visits of inspection to several roads districts each year. These visits afford an opportunity for Board members to get a better appreciation of local problems, needs, and conditions through observation and discussion, and to maintain personal contact with District Roads Councils. The Board is thus able to keep in close touch with the roading problems of New Zealand, and is better able to discharge its responsibility of providing an adequate roading system balanced to meet the country's needs.

Finance—A National Roads Fund has been established within the Public Account, the revenue of the Fund being derived mainly from motor taxation with an annual contribution from the Government. Expenditure from the Fund is for the purpose of developing State highways to modern standards and of subsidising the roading programmes of local authorities.

Motor spirits tax of 18.10c per gallon is paid into the National Roads Fund. (Additional tax of 3.30c per gallon imposed on 4 May 1967 was credited to the Consolidated Revenue Account until 1 April 1969, when 2.30c per gallon was transferred to the National Roads Fund, leaving lc per gallon credited to the Consolidated Revenue Account until 1 April 1971, since which date this amount has been credited to the National Roads Fund.) An equivalent mileage tax is payable for diesel-powered motor vehicles; this has been apportioned to National Roads Fund and Consolidated Revenue Account on the same basis as for motor spirits tax. Quarterly licence fees under the Heavy Motor Vehicles Regulations range from $4.83 (not above 2 1/2 tons) to $63 (11 tons), with $7 for each additional ton above 11. The fees for farmers' trucks range from $2.66 on a corresponding basis. Heavy traffic fees, less the cost of collection, are paid into the National Roads Fund. Tax imposed under the Local Authorities (Petroleum Tax) Act 1970 (3c per gallon from February 1971) is not credited to the National Roads Fund.

Following is a statement of receipts and expenditure of the National Roads Fund for the latest three March years.

Item1968-691969-701970-71
Receipts—$(000)$(000)$(000)
    Petrol tax (net)53,55864,93366,807
    Mileage tax3,5733,8764,834
    Fees and charges—   
        Heavy traffic fees8,8039,5239,820
    Contribution from Consolidated Revenue Account3,0001010
    Miscellaneous receipts—   
        Repayments of plant purchases766
        Repayments of advances to local authorities751
        Rents380462427
        Sales of land and buildings94177127
        Interest on plant purchases11- -
        Interest on advances to local authorities1- -- -
    Bailey bridging hire261910
    Interest on investments706078
    Miscellaneous7- -- -
    Fabricated steel and Calender Hamilton bridging6212
            Total receipts69,53279,09482,123
Expenditure—   
    Highways maintenance12,41012,16714,014
    Highways construction25,70928,64831,123
    Local authority roading subsidies and grants30,32732,25134,917
    Local authorities advances--36
    Administration and general expenses—   
        Ministry of Works administration3,2463,4604,336
        Fees and travelling expenses192526
        Miscellaneous expenses375375431
    Bridging expenses—   
        Bailey bridging, etc4365107
    Unauthorised expenditure676
            Total expenditure72,13576,99884,998
    Balance in Fund at end of year1,5673,663788

In the following table are shown the amounts which have been expended on State highways construction, renewal, or maintenance during the last five years. Maintenance figures include the cost of flood damage restoration when applicable. There are 7,243 miles of State highways, of which 89 percent are now sealed.

Class of Expenditure1966-671967-681968-691969-701970-71
*Motorway structures included from 1968-69.
 $(thousand)
Construction and improvement23,82120,41120,12822,73526,385
Bridges and other structures*2,5472,1685,5815,9134,738
Maintenance, repairs, etc.9,46910,26512,41012,16714,014
            Totals35,83732,844.38,11940,81545,137

An analysis of the actual expenditure on maintenance in each Island, as compared with the number of motor vehicles in each Island at 31 March of each of the last five years, appears in the following table, the percentages relating to New Zealand totals.

Item1966-671967-681968-691969-701970-71
Percentage of New Zealand Totals
North Island—     
    Maintenance expenditure66.8364.3764.3762.1763.48
    Motor vehicles68.9869.2269.2669.5169.68
South Island—     
    Maintenance expenditure33.1735.6235.6337.8336.52
    Motor vehicles31.0230.7830.7430.4930.32

The following table shows the mileage of State highways in the North and South Islands at 31 March 1971, together with a classification as to the type of construction or surface.

IslandLength of Highways (including Motorways)
Sealed SurfaceGravel or Macadam SurfaceTotal
 miles
North Island3,4603893,849
South Island3,0053893,394
            Totals6,4657787,243

State Highways—The National Roads Act provides for the declaration of roads as State highways with the approval of the Minister of Works. In 1969, the National Roads Board reviewed the State highway system, and re-affirmed the principle that the network must continue to be based on the pattern of national development, needs of defence, and directness of route and main travel desire lines. The most important principles in designing a State highway system are that the total mileage of the system must be based on routes of primary importance; that routes must be equitably distributed in relation to the pattern of national development; and that routes must be confined to those which have characteristics in keeping with the function of the system. To achieve the National Development Conference target of an annual income of 4.5 percent in real product, it has been estimated that there will be increases of 5.71 percent in motor vehicle mileage and 6.01 percent in commodity cartage.

Although urban development with its growing industrialisation is a predominant problem, the National Roads Board is also aware of the need for continued development of a fully effective inter-regional network with adequate rural feeder roads. Balanced development of the total network is essential if primary production is to increase and production costs are to be restrained.

Highway Standards—In order to qualify for highway subsidies local authorities are required to carry out works to a standard approved by the National Roads Board. Subsidies are not payable unless the approved standard is observed, although work of a higher standard may be undertaken provided that the additional expenditure involved is found by the local authorities concerned. From time to time the Board's standards are revised to meet the latest developments in highway practice and engineering design and also to cater for the requirements of increasing traffic. Roadmaking materials used in highway works are subject to standard tests.

Motorways—The Public Works Act makes provision for the declaration of motorways. Motorways provide efficient and economic means of communication, while the control of access and the total elimination of ribbon development will go far to improve road safety and prevent obsolescence.

The total mileage of motorways in use at 31 March 1971 was 65.58 miles. During 1970-71,7 motor-way bridges, totalling 1,464 ft, were completed. Under construction at 31 March 1971 were 8 bridges with a total length of 3,088 ft.

Activities During the Year Ended 31 March 1971—During the year ended 31 March 1971, 117 miles of new sealing on highways were completed, giving an aggregate of 6,465 miles sealed, or 89 percent of total highway mileage. In addition improvements to existing sealed surfaces were effected on 4,564 miles of highways.

New bridging totalled 4,677 linear feet, compared with 7,698 linear feet in the previous year.

Local Authority Roading—The National Roads Board pays a subsidy at the rate of $1.50 for each S2 that is spent by local authorities out of their own funds on such programmes of subsidised works as have been accepted for a financial year by the Board.

In recognition of the urgency and importance of the country's bridge renewal problem, the Board makes generous grants for bridge replacement. Wooden bridges built 50 and 60 years ago. which have served the country well, continue to deteriorate at a greater rate than replacements can be built. In 10 years to March 1971 there have been 2,779 bridges completed.

For the year ended 31 March 1971 the following amounts were paid to local authorities from the National Roads Fund for roading.

Local AuthoritySubsidyGrantsTotal
 $(thousand)
Municipalities9,0164,15413,170
County councils (including road boards)11,6638,28119,944
            Totals20,67912,43533,114

Loan Assistance—To assist counties and municipalities with their planning the National Roads Board meets 30 percent of the cost of approved transportation surveys in urban areas. Plans have been completed or are in the course of preparation in all cities with a population in excess of 30,000 people.

Needs studies have been made for county and municipal roading and the Board has carried out regional surveys to assess relative needs.

It is envisaged that more comprehensive and co-ordinated surveys will become necessary as development increases in complexity, and that the Board's criteria will need to extend further into the field of productive economics.

Development Roading—In addition to the expenditure on roading from the National Roads Fund, moneys are provided annually by the Consolidated Revenue Account (Vote Roads) for development road construction. Under this heading subsidies are paid to local authorities for the construction of new road giving access to farmlands being brought into production. This Vote also finances access roadings to lands being prepared for farm settlement by the Lands and Survey and Maori and Island Affairs Departments, as well as certain new roading of a national development character.

New roads constructed for farm access are handed over to the care of local authorities, while national roading normally becomes the responsibility of the National Roads Board for maintenance as part of the State highway system.

Government roading expenditure from the Consolidated Revenue Account (Vote Roads) for the year ended 31 March 1971 was $1,970,386.

Overall Roading Expenditure—The following table shows the total expenditure on roading from all sources for the year ended 31 March 1971.

National Roads Fund—$(000)$(000)
    State highways45.137 
Subsidies, etc. - local roading34,908 
  80,045
Consolidated Revenue Account (Vote Roads) 1,970
Local authority funds—  
    Municipalities19,480 
    County councils17,55037,030
            Total 119,045

Roading expenditure over the latest 11 years is related to gross national product in the following table.

Year Ended 31 MarchRoading Expenditure: Central and Local GovernmentTotal as Percentage of Gross National Product
MaintenanceConstructionTotal
*Provisional.
  $(million) percent
196125.0545.4770.522.69
196226.7545.4172.162.65
196327.1647.2574.412.47
196427.4756.3683.832.62
196527.6758.8286.492.48
196629.6369.5299.152.65
196731.3467.4898.822.53
196831.6260.9692.582.30
196936.0966.20102.292.35
197035.5873.93109.512.30
197142.0776.97119.042.24*

REGISTRATION AND LICENSING OF MOTOR VEHICLES—The amounts for initial registration fees are: motorcars, from $16 to $50 according to engine capacity; motor cycles, $10; power cycles, $6; light trucks, $30; heavy trucks, $50; trailers, $10; tractors, $2; traction engines, $10; and any other motor vehicles, $20. Annual licence fees are as follows: power cycles, $4; motor cycles, $6; motorcars and private station wagons, $10; traction engines, $3; trailers (not exceeding 2 tons laden weight), $6. Other fees include drivers' licences, $1; changes of ownership, $5; and dealers'licences (motor cycles, $6: any other motor vehicles, $10). All such fees, except those for drivers' licences which are payable to the local authorities, were credited to the National Roads Fund until 30 June 1967; since 1 July 1967 they have been credited to the Consolidated Revenue Account.

The various types of motor vehicles licensed as at 31 March in each of the last five years are itemised below.

Type of VehicleLicensed as at 31 March
19671968196919701971
Cars781,047807,962833,488861,958908,253
Rental cars3,0872,9803,0683,2223,661
Private taxicabs188146165157159
Light goods service vehicles (i.e. gross laden weight 2 tons and under)88,73291,09999,073101,814110,385
Heavy goods service vehicles (i.e. gross laden weight over 2 tons)74,31073,57667,91469,66371,377
Contract vehicles1,4031,4011,5791,5941,182
Omnibuses2,7442,7272,7132,6882,643
Public taxicabs2,9152,8982,9002,8912,918
Service coaches466489499455470
Vehicles including cycles exempted from payment of annual licence fees76,95874,88875,60677,88981,707
Motor cycles31,33730,06829,64729,17632,099
Power cycles18,29118,35918,23318,82620,974
            Totals, motor vehicles1,081,4781,106,5931,134,8851,170,3331,235,828
Trailers, including trailers exempted from payment of annual licence fees189,735191,337201,264211,539224,667
Dealers' cars3,7603,6703,5693,6363,709
Dealers' motor cycles10191103109133
            Totals, all vehicles1,275,0741,301,6911,339,8211,385,6171,464,337

Motor vehicles exempted from the annual licence fee include a miscellaneous collection of machines such as farmers' motor vehicles used solely on the farm and only venturing on roads to proceed from one part of the farm to another, or from farm to garage for repair, etc., excavators, scoops, trench diggers, cranes, and logging trucks (used on private roads), etc.

The rate of increase in the number of motor vehicles has exceeded the rate of increase in population. The following table shows the changes in relationship between the number of licensed vehicles and population as at 31 March in the latest 11 years.

As at 31 MarchNumber of Persons in Population per CarNumber of Persons in Population per Motor Vehicle (Excluding Trailers)
19614.63.1
19624.53.0
19634.32.9
19644.12.8
19658.82.7
19663.72.6
19673.52.5
19683.42.5
19693.32.4
19703.32.4
19713.12.3

The countries with fewest persons per motor vehicle are, in order, United States, Canada Australia, and New Zealand, but the standard of vehicles is not uniform.

The next table shows the estimated total consumption of motor spirits in New Zealand, together with the quantity consumed by motor vehicles on public roads, for each year during the last 11 years.

Calendar YearConsumption of Motor Spirits
By Motor Vehicles on Public RoadsTotal Consumption
 million gallons
1960234.3280.4
1961245.4296.4
1962253.0298.7
1963273.0317.1
1964294.9339.7
1965312.7356.8
1966333.8373,8
1967339.7378.4
1968344.6382.9
1969367.4400.9
1970381.9416.6

The following diagram illustrates the trend that has taken place in the number of motor vehicles licensed, and in the consumption of motor spirits by motor vehicles.

Registrations of new vehicles and those vehicles previously registered only in another country-are as follows for the six latest years.

Year Ended 31 MarchCarsMotor Cycles (Including Power Cycles)Commercial VehiclesTrailersTotal Registrations
196668,5304,78615,95922,743112,018
196762,9824,82717,79124,942110,542
196853,5083,86713,43919,05289,866
196949,8173,46512,04118,00583,328
197057,0194,24218,00717,72096,988
197172,50610,79222,17218,484123,954

ROAD TRANSPORT—The Transport Act 1962 is the main legislation governing road transport-and the operations of the Ministry of Transport; attendant regulations set out the rules of the road, the requirements as to motor vehicle equipment, and the obligations of motor drivers and owners and pedestrians.

Transport Licensing—Transport licensing is primarily an economic measure to achieve better coordination of road and rail transport and to prevent excessive competition and duplication of services within the road transport industry. Public passenger buses, taxicabs, vehicles and harbour ferries can only be operated with a licence. A transport licence is also needed for the cartage of goods in the following circumstances:

  1. When they are carried for hire or reward by means of a motor vehicle.

  2. When they are carried in competition with the New Zealand Railways beyond specified distances whether for hire or reward or not, except with vehicles which together with their load, weigh 2 1/2 tons or less and farmers' vehicles with a payload of up to 5 tons.

Thus goods service licensing extends beyond the common carrier operating throughout the country and can include farmers and businesses carrying their own goods in their own vehicles, if these vehicles are over the laden weights or carrying the load prescribed above and they wish to operate them beyond certain distances.

In general, goods cannot be carried by road between places where a route is available which includes at least 40 miles of rail. However, certain commodities (particularly some foodstuffs) can be carried without this restriction up to 50, 75, or 100 miles, and for some goods, such as livestock, fresh meat, poultry, or fresh fish there is no restriction at all. In addition, this restriction ceases to apply where use of the railway would increase the journey by more than one-third of the shortest road route available. The licensing authorities (see below) may also grant exemption from the railway restriction in particular cases where this is in the public interest.

Apart from these exemptions in respect of competition with the railways, there is complete freedom from transport licensing for certain special or limited transport services.

New Zealand is divided into 17 transport licensing districts (including one harbour ferry district at Auckland) which are administered by five full-time licensing authorities appointed by the Minister of Transport for terms of up to 5 years. They adjudicate on applications for a licence to enter the industry, on transfer or renewals of licences, and on changes to or withdrawals of transport services.

The factors to be considered in dealing with these applications are specified in the Transport Act 1962, and emphasis is placed on consideration of the public interest and of users of public transport. There is a right of appeal from the decisions of licensing authorities to the Transport Licensing Appeal Authority.

Charges for transport services do not come within the jurisdiction of the licensing authorities. Public bodies operating public passenger services fix their own charges; the Secretary for Transport all others. In every case there is a right of appeal to a Transport Charges Appeal Authority.

Both the Minister of Transport and licensing authorities have powers in respect of public inquiries into or reviews of transport services and licences. Reviews of taxicab services must be made at least every three years in the four main centres and in other centres with a population of more than 10,000.

In general, licences may be either continuous, seasonal, or temporary (not more than 14 days). However, all rental service licences have a duration of three years after which application must be made for their renewal.

Operations of Licensed Goods and Passenger Services—The following tables review the operations of licensed road transport services. The first of these tables gives the estimated overall figures concerning licensed road goods services for each of the five latest years ended 31 March.

Road Goods Services1965-661966-671967-681968-691969-70
*As shown at year ending 31 December.
Revenue$(000)126,000139,600139,600153,100176,700
Capital invested$(000)96,000109,600104,900114,900126,600
Total vehicle-miles(000)315,000325,000324,100330,000350,000
Number of goods-service licences...6,8656,8246,7626,694*6,619*
Average revenue per vehicle-milec40.2042.9444.4346.3950.46
Average number of miles per vehicle...16,46316,56015,79516,42117,190

The second table shows traffic data, revenue, and number of vehicles used by the road passenger services operating in New Zealand, and is inclusive of services in the four metropolitan transport districts, for each of the five latest years ended 31 March.

Road Passenger Services1965-661966-671967-681968-691969-70
Traffic statistics—      
    Passengers carried(000)183,009175,301172,948171,148153,346
    Vehicle-miles(000)79,54879,61881,44083,32481,367
Total revenue$(000)24,03624,25325,89027,28928,371
Total revenue, per milec30,2130,4631,7932,7534,86
Number of vehicles included...3,5943,7743,8163,9193,804

Statistics on bus services run by the New Zealand Railways (included above) are given separately in Section 11b.

The following table sets out statistics of taxicab services for the five latest March years.

Item1965-661966-671967-681968-691969-70
Includes private-hire taxicabs. At 31 December 1969 there were 2,878 public taxicab authorities issued by transport licensing authorities.
Estimated total capital invested in cabs$(000)5,4045,6595,2585,2775,340
Mileage run(000)99,000102,700102,900106,600102,300
Total revenue$(000)12,60013,60013,98014,70014,900
Revenue per milec12,7313,2413,5913,7914,54
Number of vehicles*...3,3203,1033,0443,0653,048

Statistics of the rental vehicle industry are set out in the following table.

Item1965-661966-671967-681968-691969-70
*As at year ending 31 December.
Number of cars...3,2493,4713,5453,661*3,810*
Number of other vehicles...938937870907*990*
Mileage run(000)48,80051,80045,96053,96857,056
Estimated total revenue$(000)4,8005,5005,3006,5006,600
Revenue per milec9.8410.6211.5312.0411.56

Economic Research—The Ministry of Transport has intensified its economic research into transport operations and determined a long-term research plan. An association of business consultants has been commissioned to make a comprehensive transport policy study for examination by the Government.

TRAFFIC ACCIDENTS ON ROADS—Motor-vehicle accidents involving death or personal injury are required by law to be reported to the Police. For the year ended 31 December 1970, 13,300 such accidents, resulting in 655 fatalities and in injuries to 20,791 other people were reported. Comparative figures for 1969 and 1968 were (1968 figures being given in parentheses): number of accidents 12,554 (12,065); fatalities 570 (522); persons injured 18,726 (17,698). The increases must be related to the growing number of vehicles on the roads.

Details of the nature of road accidents for the calendar year 1970, which have been compiled by the Ministry of Transport, are set out in the following table.

Nature of AccidentFatal AccidentsInjury AccidentsTotals
Overtaking34341375
Head-on collision (not overtaking)96864960
Rear-end collision19749768
Loss of control or running off road on straight761,3611,437
Loss of control or running off road while cornering1422,2262,368
Collision with obstruction17850867
At intersections—   
    Vehicles moving in same direction, one turning11784795
    Vehicles moving in opposite direction, one turning right11763774
    Vehicles crossing paths, not turning311,4861,517
    Vehicles crossing paths, turning14681695
Vehicles merging3204207
Vehicle manoeuvring5542547
Pedestrian crossing road731,4881,561
Pedestrian, other22192214
Miscellaneous24191215
            Totals57812,72213,300

Statistics of deaths resulting from motor vehicle accidents are available for many years from vital statistics, these figures being discussed briefly in Section 4c.

The following table shows motor accident death and injury rates in 1970 for New Zealand in comparison with other countries.

CountryPersons KilledPersons InjuredKilled per 10,000 VehiclesKilled per 100,000 PopulationInjured per 10,000 VehiclesInjured per 100,000 Population
*Year ended 30 June 1970.
New Zealand66520,7915.623.2176.4736.1
Australia*3,67691,3738.030.0193.0734.0
Great Britain7,501355,8525.013.8238.0656.7
United States55,3002,000,0005.027.1179.4981.5

ROAD SAFETY: Enforcement of Traffic and other Laws—Traffic on roads in six cities and boroughs is controlled by local authorities. Elsewhere throughout the country it is controlled by the Ministry of Transport which is also responsible for traffic on motorways within all urban areas. In national emergencies or major disasters, all traffic control comes under the supervision of the Ministry of Transport.

In addition to regulation of traffic and standards of driving, traffic officers enforce the laws relating to heavy traffic, tyre pressures, and the allowable weights of vehicles and loads on different classes of road. They also enforce the legislation concerning the licensing of road transport services.

Traffic officers are not part of the Police and do not engage in criminal investigations. They form however, a uniformed and disciplined enforcement body and close liaison is maintained with the Police. Traffic officers have the power to arrest without warrant persons driving under the influence of drink or drugs, or being in charge of a motor vehicle while under the influence of drink or drugs and refusing to deliver ignition keys.

Persons giving a traffic or police officer good cause to suspect that they are driving with a blood-alcohol concentration of 100 mg or more per 100 ml of blood may be required to give a blood sample for analysis. An initial test with a breath-test device is used as a screening process.

Offences—Penalties are awarded by Courts for driving and other offences under the Transport Act 1952 and attendant regulations. There is also a system in operation whereby points are automatically registered according to a fixed scale against persons convicted of driving offences.

The Secretary for Transport has authority to suspend drivers' licences for 6 months where 100 or more demerit points are received in less than 1 year, or for 3 months where this number of points are received within 2 years. Official warnings are issued and compulsory interviews take place before these levels are reached.

Breaches of certain parking, speeding, and overloading laws are dealt with under an infringement system. A person committing an infringement must pay a specified fee within a certain time. Failure to pay the fee is an offence.

Speed Limits—The maximum speed for highways generally is 55 miles an hour, although there are 60 mph areas on suitable highways. However lower limits are prescribed for certain vehicles, e.g., 45 mph for motor cycles with pillion passengers (but 30 mph for motor cyclists not wearing safety helmets); 50 mph for heavy passenger vehicles; and 40 mph for heavy goods vehicles.

A general speed limit of 30 mph is fixed in cities, boroughs, town districts, or other localities declared to be closely populated districts. Areas with a speed limit of 40 mph may also be specified by the Minister of Transport; and limited speed zones may be established for which the maximum permitted speed may be either 55 mph or 30 mph depending on conditions and circumstances.

Inspection of Motor Vehicles—All vehicles using the roads must be inspected every six months to ensure that their mechanical and structural fitness is of a satisfactory standard. Most lightweight vehicles are required to have a warrant of fitness which can be issued at approved garages, or at testing stations operated by local authorities or the Ministry of Transport. All heavy vehicles, withminor 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.

The design and standard of construction of vehicles manufactured, assembled, or modified in New Zealand are also regulated to ensure safety.

Third-Party Insurance—Every motor vehicle operated on the road is required to be insured against the owner's (or his driver's) liability for damages as a result of injury or death arising from the negligent use of the vehicle. The transport legislation also provides indemnity in respect of victims killed or injured by the negligent use of uninsured or unidentified vehicles. The premium for third-party insurance is paid with the annual licence fee.

Road Safety Education—Publicity directed towards road safety is carried out through the press, radio, and television and by means of posters, etc. Special road safety campaigns and traffic improvement courses are held from time to time. Great emphasis is placed on instruction in schools by uniformed road traffic instructors who visit all schools at least twice a year, and also lecture to teachers' colleges and other groups.

Road Safety Council—The New Zealand Road Safety Council also advises the Government on matters of road safety. Safety committees deal with local issues and make recommendations to the Council.

TRAFFIC OFFENCES—The following table shows the nature of the offences resulting in convictions during the three calendar years. The table covers only offences reported by officers of the Ministry of Transport; in addition some city councils employ their own traffic control staff and total convictions are therefore rather higher than shown. Convictions in Magistrates' Courts for the calendar year 1970 were, for instance, 165,995.

Type of Offence19681969*1970
*Since April 1969 parking infringements which result merely from overstaying a time limit have been dealt with outside the criminal law.
(a) Road traffic offences—   
    In charge of motor vehicle while under the influence of drink or drugs10590111
    Driving, or attempting to drive, while under the influence of drink or drugs414297302
    Reckless driving9610368
    Driving in a dangerous manner349414435
    Driving at a dangerous speed323385476
    Using motor vehicle without reasonable consideration and careless driving or careless use2,7512,7463,298
    Exceeding 30 mph22,78319,85919,543
    Exceeding 55 mph6,5355,4273,948
    Exceeding 45 mph with trailer1,2591,1761,341
    Exceeding 45 mph with pillion passenger381293310
    Learner's plate offences3647122,005
    Overtaking offences1,4091,6041,732
    Failure to keep to the left2,8172,7192,612
    Failure to yield right of way1,1711,1141,388
    Failure to yield right of way at pedestrian crossing155104285
    Failure to stop at compulsory stop sign5,2815,0095,615
    Driver's licence offences6,1226,5968,088
    Vehicle licences and registration offences3,0572,7612,695
    Lighting offences4,1013,2003,238
    Failure to dip lights220126136
    Defective brakes486432394
    Warrant of fitness offences9,7058,78810,201
    Loading offences474232278
    Railway crossing offences201115126
    Parking offences24,30411,754*6,663
    Cycling offences1,209861941
    Noisy vehicles1,4051,4101,550
    Motor cyclist exceeding 30 mph without safety helmet (rider or pillion)1,1869351,109
    Mechanically defective or unsafe vehicle1,6661,0522,953
    Aiding and abetting153300183
    Exceeding temporary speed limit611710366
    Breaches of limited speed zone1008956
    Failure to stop in half clear road ahead or following too closely308296380
    Driving whilst disqualified429494680
    Power cyclist offences24180146
    Pedestrian offences58103128
    Exceeding 40 mph924361,011
    Exceeding 60 mph-1931,164
    Parking infringements (failure to pay only)-128317
    Breath-test blood alcohol offences-3971,550
    Emitting excessive smoke--67
    Miscellaneous4,1876,0175,144
(b) Heavy motor vehicle offences—   
    Exceeding heavy traffic licence1,9631,268718
    Heavy traffic licence not carried, or no heavy traffic licence1,7081,6541,258
    Exceeding gross weight77633
    Exceeding axle weight1,5171,31878
    Road classification exceeded2,2164854
    Exceeding weight or speed limit on bridge53739
    Exceeding 50 mph (omnibus)--5
    Failure to pay overloading infringement fee--45
    Exceeding 45 mph with heavy motor vehicle830605759
    Miscellaneous heavy motor vehicle offences348822489
(c) Transport offences—   
    Unlicensed goods service646128
    Exceeding rail restriction mileage352127
    Unlicensed ancillary goods service396154
    Breach of goods service licence88103128
    No certificate of fitness667594489
    Failure to carry certificate of fitness8117596
    Exceeding certificate of loading16710288
    No vehicle authority carried13010466
    Breach of drivers' hours regulations1691315
    Rental vehicle offences622427
    Taxicab offences12145
    Failure to carry certificate of loading-63176
    Miscellaneous offences269114107
(d) Offences under miscellaneous Acts and Regulations374147
        Totals116,82397,43597,754

URBAN PASSENGER SERVICES OPERATED BY LOCAL AUTHORITIES—The data provided in this section covers the whole of the urban passenger transport services operated by local authorities, and no account is taken of the various motor-bus services operated by the New Zealand Government Railways, or by any private enterprise.

In the last 20 years motor and trolley bus services have increased and electric tramways have been superseded. The last tramway system serving a city area was in Wellington, and this was terminated in May 1964. Wellington, however, still retains 31 chains of track for the only electric cable tram service now operating in New Zealand.

From 1 November 1969 to 31 March 1971 local authorities received grants from the Ministry of Transport of twice the amount of heavy traffic fees paid in relation to urban passenger service operations.

A National Urban Passenger Transport Council has been established under the Ministry of Transport Act with the function of administering Government assistance by way of loans or grants for capital expenditure to urban public passenger transport operators as recommended by the Committee of Inquiry into Urban Passenger Transport (parliamentary paper H.37a, 1970).

Details of revenue and expenditure are given in the following table. In the latest year losses rose to nearly $3 million, with only Eastbourne Borough Council making a profit.

Year Ended 31 MarchRevenueAverage Fare per PassengerRevenue per Mile RunExpenditureExpenditure per Mile Run
Passenger FaresTotalOperating ExpensesCapital ChargesTotal (incl. “Other")
 $(000)$(000)cc$(000)$(000)$(000)c
Auckland        
    19673,4103,4707.7544.073,1667013,86749.10
    19683,4833,5468.3646.333,1806863,86650.51
    19693,3643,4628.4346.103,2336673,90051.93
    19703,3643,5338.4847.773,4336504,08355.21
    19713,7113,9729.4053.423,9446384,58361.63
Gisborne        
    196754588.7529.855786533.23
    196856599.4530.935786433.54
    1969596310.0434.015986736.51
    1970596310.7133.686086836.48
    1971656811.2136.4169128143.04
New Plymouth        
    19671261304.9325.641511216332.16
    19681261295.4225.361461215831.01
    19691261295.4425.331481516332.38
    19701351435.8628.601581517334.64
    19711451596.3331.851791519438.92
Palmerston North        
    196779825.3824.1983159828.80
    196892947.0926.97961611131.88
    196994979.5127.28931711030.89
    197095999.6828.45961811332.56
    197111011310.0829.401251814337.06
Eastbourne        
    196715116013.5932.191223315430.94
    196815316314.0233.621203315431.66
    196915216214.0033.46x1233215832.51x
    197015216614.0336.72x1293416436.13x
    197116919015.4642.151393017438.74
Wellington        
    19672,1262,1717.2349.082,2554132,66860.44
    19682,1912,2377.7651.842,3664082,77964.40
    19692,0542,0987.7051.182,2914282,71966.33
    19702,0342,0807.6550.912,4634182,88170.50
    19712,0712,1187.7753.783,0624183,48088.35
Christchurch        
    19671,2671,3016.5928.751,4182751,69337.42
    19681,4481,4768.1832.191,4892821,77138.64
    19691,4211,4448.2231.681,5462961,84240.42
    19701,4541,5248.2833.341,6372901,92742.15
    19711,5801,7079.2437.561,9871102,09746.15
Timaru        
    196773766.5224.81902611637.91
    196867736.5628.62782310239.78
    196968736.0527.65812310439.38
    197073816.9230.75872811543.70
    197179906.7435.03972812548.52
Dunedin        
    19678328647.9245.788072301,03754.95
    19688128457.9645.128252301,05556.30
    19697798108.0246.888402281,06861.81
    19707668028.0548.688631881,05163.77
    19717357708.5250.689741601,13374.60
Invercargill        
    19671201235.7024.811523218437.10
    19681191255.8727.041523218439.79
    19691171226.1826.741533318540.57
    19701191216.4725.281593119039.60
    19711191226.7926.061923222447.69
Totals, All Services        
    19678,2388,4357.3540.078,3001,74410,04447.74
    19688,5488,7498.0542.308,5101,73110,24549.53
    19698,2358,4608.1141.99x8,5671,74710,31751.21x
    19708,2518,6138.1643.21x9,0851,68010,76554.01x
    19718,7849,3108.8147.2910,7681,46112,23562.14

Details of vehicles, miles run, and passengers carried are given in the following table.

Year Ended 31 MarchNumber of VehiclesNumber of Miles RunTotal Passengers CarriedPassengers per Mile Run
Trolley BusesMotor BusesTrolley BusesMotor Buses

*Includes two cable cars. 38,000; 1970-71, 37,000.

†Includes cable car mileage; 1966-67, 38,000; 1967-68, 38,000; 1968;69, 38,000; 1969-70

Auckland  (000)(000)(000) 
    19671332353,3214,55443,9795.58
    19681282353,1864,46941,6575.44
    19691272352,9934,51739,9125.31
    19701272272,9174,47939,6585.36
    19711262162,9254,51039,3865.30
Gisborne      
    1967-11-1946163.17
    1968-10-1925913.08
    1969-10-1855893.19
    1970-11-1885552.96
    1971-10-1885783.08
New Plymouth      
    1967318584482,5595.06
    1968318314802,3324.57
    1969-22-5052,3104.58
    1970-22-5012,3054.60
    1971-22-4992,2854.58
Palmerston North      
    1967-14-3391,4744.34
    1968-14-3501,2933.70
    1969-15-3559902.79
    1970-14-3489822.82
    1971-14-3861,0922.83
Eastbourne      
    1967-19-4981,1132.23
    1968-19-4851,0932.25
    1969-19-485x1,0882.24x
    1970-19-453x1,0832.39x
    1971-19-4501,0952.43
Wellington  (000)(000)(000) 
    1967121*1352,4801,94429,4176.65
    1968121*1502,2872,02828,2276.54
    1969121*1461,8852,21526,6706.51
    1970121*1411,8622,22426,5846.51
    1971121*1351,9092,03026,6396.76
Christchurch      
    1967-166-4,52419,2434.25
    1968-166-4,58417,6993.86
    1969-166-4,55817,2913.79
    1970-166-4,57117,5713.84
    1971-166-4,54517,0953.76
Timaru      
    1967-15-3051,1253.69
    1968-13-2551,0244.01
    1969-13-2641,1284.27
    1970-13-263x1,05140.0
    1971-13-2571,1694.54
Dunedin      
    1967684399389410,5065.57
    1968684396291210,1915.44
    196959438398899,7035.62
    197054437239259,5115.77
    197142476139068,6355.68
Invercargill      
    1967-21-4972,0974.22
    1968-21-4642,0344.39
    1969-23-4571,8934.14
    1970-23-4791,8343.83
    1971-19-4691,7483.73
Totals: All Services      
    1967325*6776,85214,197112,1285.33
    1968320*6896,46514,218106,1435.13
    1969307*6925,71714,429x101,5745.04x
    1970302*6795,50214,430x101,1335.07x
    1971289*6615,44714,24199,7225.07

The length of routes covered by the services are given in the following table.

Area and ServiceAt 31 March
19671968196919701971
Auckland—mmchmchmchmchmch
    Trolley bus61405767576757675767
    Motor bus1406415101523215501550
Gisborne—          
    Motor bus180180180180180
New Plymouth—          
    Trolley bus329--------
    Motor bus2039236823682368240
Palmerston North—          
    Motor bus560560560560560
Eastbourne—          
    Motor bus160160160160160
Wellington—          
    Trolley bus324324324324324
    Motor bus58515911594359435943
    Tram, cable031031031031031
Christchurch—          
    Motor bus1614016268163401647916524
Timaru—          
    Motor bus23112032502502511
Dunedin—          
    Trolley bus25202520252025202247
    Motor bus44354435443544353221
Invercargill—          
    Motor bus266266270270280

11 D—CIVIL AVIATION

GENERAL—New Zealand today ranks among the leading nations of the world in terms of use of air transport per head of population. A further significant increase in international air traffic with some resultant effect on domestic air traffic, is taking place following the opening of the International Airport at Auckland in November 1965, and the use of that airport and Christchurch by large jet aircraft. The main runway at Auckland International Airport is 8,500 ft long and the airport cost $20 million to construct.

International aviation plays an increasingly important role in the promotion of tourism.

DEVELOPMENT OF AVIATION—Aviation developed early in New Zealand. Richard William Pearse, of the Waitohi Valley near Timaru, designed and built a successful heavier-than-air machine which flew at least as early as 31 March 1904, thus almost forestalling the Wright Brothers. There were numerous other important New Zealand pioneers.

In the 1920s aviation activities spread, notably through the aero-club movement, and commercial air services came into being in the 1930s. Scheduled air transport operations over specific routes were first commenced in New Zealand in 1934, on the route Inchbonnie - Hokitika - Franz Josef Glacier, on the West Coast of the South Island. Subsequent extensions of services up to the outbreak of war in September 1939 resulted in a network over most of New Zealand. During 1946 and 1947 the New Zealand National Airways Corporation absorbed all then existing scheduled commercial services, and by adding to the fleet of aircraft was able to commence new services.

Regular international air services did not begin before the Second World War despite a number of gallant pioneer flights. Tasman Empire Airways Ltd. (TEAL) was incorporated in New Zealand on 26 April 1940, following a formal inter-governmental agreement on air traffic rights across the Tasman Sea on 10 April 1940. The company's first operation commenced between Auckland and Sydney on 30 April 1940 with the flying boat Aotearoa.

In June 1950 the company took over the Auckland-Suva service from New Zealand National Airways Corporation. The Wellington-Sydney service was inaugurated on 3 October 1950 and the Christchurch-Melbourne service on 28 June 1951. With the withdrawal of flying boats from Tasman routes, the Wellington-Sydney service was temporarily discontinued in June 1954 and a new service from Christchurch to Sydney using Douglas DC6 aircraft was commenced in the following month. The same type of aircraft were also employed on the Auckland-Fiji route from June 1954. The first Lockheed Electra turboprop aircraft was brought into use on the trans-Tasman service in December 1959, and by March 1960 all TEAL services between Australia, New Zealand, and Fiji, were being operated by the company's fleet of three Electras.

The Coral Route to Tahiti via Suva and Aitutaki was inaugurated in December 1951 but was terminated in 1964.

It had become clear that the monopoly of the Tasman air traffic formerly reserved to TEAL could not be much longer maintained in New Zealand's interests and this fact, together with the spread of jet aircraft throughout the world, led to planning for the company to extend its services to the United States and elsewhere, for which purposes it would require large jet aircraft. In these new circumstances the Australian and New Zealand Governments agreed that New Zealand should purchase the Australian shareholding and thus become the sole owner of the company. In March 1961, an agreement to this effect was concluded and at the same time a bilateral air services agreement was negotiated between Australia and New Zealand whereby each country granted to the airline of the other rights to and beyond its territory. Subsequently, the New Zealand Government negotiated traffic rights for Air New Zealand in Honolulu, Los Angeles, Pago Pago, Hong Kong, Tahiti, Noumea, Kuala Lumpur, and Singapore, in addition to the company's traditional rights in Fiji and the rights already obtained in Australia. (The change of name from TEAL to Air New Zealand was made on 1 April 1965.) Pure jet services to the United States, Singapore, and Hong Kong were inaugurated during 1965-66; prop-jet Electra services were retained for Wellington-Tasman flights until mid 1972. Services to Los Angeles are operated via Fiji, Honolulu, and Tahiti.

The operations of Air New Zealand earn or save an estimated $25 million in overseas funds and make an important contribution to the country's external balance of payments. Air New Zealand made a profit of $1.1 million in 1970-71, a profit was also made in each of the 16 preceding years. The company has placed an order for three DC10 aircraft, the first to be delivered in April 1973. It has also let a contract for the construction of a hangar and associated facilities at the new Rarotonga airport.

CURRENT AIR SERVICES—The major air transport services within New Zealand are provided by the National Airways Corporation which operates a network linking all major centres.

Secondary services are provided by smaller operators such as Mount Cook Airlines and Geyserland Airways. In addition, air charter and air taxi services are provided from most major aerodromes by licensed aero clubs or small operators.

Air freight services are provided by Safeair Ltd., which operates under contract to the Railways Department, the Post Office, and the National Airways Corporation. Safeair Ltd. also provides a regular passenger and freight service between both Wellington and Christchurch and the Chatham Islands under a contract arrangement with the Government.

A private express air freight service, between Auckland, Wellington, Christchurch, and Dunedin operates overnight and, utilising B-170 aircraft under charter from Safeair Ltd., has from 2 August 1971 provided an air freight service with customer door-to-door delivery. This service has been wellpatronised and may have prospects of extension to other smaller centres. National Airways Corporation in association with ground transport operators offers an express air freight service over their whole air transport network in addition to their normal freight services from and to city freight depots.

Aero clubs and flying schools provide facilities for learning to fly and for private flying, and at most aerodromes licensed air charter and air taxi services are provided by the smaller operators.

International air services are operated by New Zealand's own international airline, Air New Zealand Ltd., and other regular international air services are provided by BOAC, QANTAS, Pan American World Airways, American Airlines, and UTA French Airlines.

LEGISLATION—The principal legislation affecting civil aviation in New Zealand is the Civil Aviation Act 1964. This Act established the Department of Civil Aviation which later, under the Ministry of Transport Act 1968, became a Division of the Ministry of Transport. The principal functions of the Division are stated to be: (a) to promote and encourage the orderly and economic development of civil aviation; (b) to exercise such functions as may be necessary to ensure the safe operation of aircraft; (c) to initiate and carry out surveys into any aspect of civil aviation; (d) to provide for the investigation of accidents in which aircraft are involved.

The Director of the Civil Aviation Division has statutory powers of his own in regulatory matters. The Ministry of Transport embraces also the New Zealand Meteorological Service and the Chief Inspector of Accidents, formerly part of the Department of Civil Aviation.

The Air Services Licensing Act 1951 made provision for the establishment of the Air Services Licensing Authority, a four-man independent body, with the primary function of receiving and determining applications for the grant, renewal, amendment, or transfer of air service licences. Under the Act, an air service licence is essential for any air transport or specified aerial work conducted for hire or reward. International air services are governed by inter-governmental air transport agreements and the International Air Services Licensing Act 1947.

In May 1966 most international airlines, including Air New Zealand, entered into what is known as the Montreal Agreement which also has provisions concerning the liabilities of international air carriers towards their passengers. As a result of the number of different conventions covering the subject there are different limits of liability for the death of a passenger depending on the routes over which the passenger has arranged to travel. The limits may be either $6,000, $12,000, $42,000, or up to US $75,000.

The Carriage by Air Act 1967 governs the liabilities of domestic air carriers towards their passengers and consignors of goods. Briefly, it provides that an air carrier is liable for damage resulting from the death or personal injury of a passenger as a result of an accident unless the carrier can prove that it took all necessary measures to avoid the damage. The limit of liability is set at $42,000. This compares with the situation under the former law whereby the claimant had to prove the negligence of the air carrier and the maximum amount which could be claimed in damages was $10,000.

AIR NAVIGATION SERVICES AND FACILITIES—The Civil Aviation Division of the Ministry of Transport is the responsible authority for the provision of all facilities for air navigation in New Zealand, its island territories, and the Cook Islands, and by delegation the facilities for flying operations in Western Samoa.

Air navigation facilities include a variety of electronic aids such as non-directional medium-frequency beacons (NDB), very high-frequency beacons (VOR), instrument landing systems (ILS), surveillance radar (SRE), precision approach radar (PAR), distance measuring equipment (DME), and also visual aids to navigation including visual glide slope indicators (VASI), high and low intensity approach, runway, and taxiway lights, aerodrome identification beacons, obstruction lights, hazard beacons, runway markings, cloud height measuring devices, wind strength and direction indicators, etc.

To assist the safe, orderly, and expeditious use of the air navigation system the Division provides a comprehensive ground services organisation comprising air traffic control units, communications services, crash-fire services, a search and rescue service, and ground safety organisations. Units of the ground services organisations are located at the majority of aerodromes served by regular scheduled air transport services in New Zealand and Pacific island territories operating from control towersand associated departmental buildings. In addition, control centres and communications centres are established at Auckland and Fiji for the conduct of international operations and at Wellington, Christchurch, and Dunedin to provide services to en-route aircraft throughout the entire country. A search and rescue service is provided from rescue co-ordination centres established by the Division whose responsibility it is to co-ordinate the effort and resources of military and civil agencies in the planning and direction of major search and rescue operations, whether air, land, or sea.

The Division maintains a flight supervision and standards service and conducts examinations and issues licences for all categories of aircrew and ground personnel. Specially equipped aircraft and qualified aircrew are continuously engaged on the checking and calibration of all air navigation facilities.

An Aeronautical Information Service prepares and publishes New Zealand Aeronautical Information and Notices to Airmen and, in collaboration with Lands and Survey Department, produces aeronautical maps and charts, etc.

An aeronautical training college is established at Christchurch International Airport where regular courses are conducted in air traffic control, meteorology, radio engineering, communications, and crash-fire procedure.

GOVERNMENT EXPENDITURE—A summary statement of operating and capital costs and recoveries of the Civil Aviation Division for the year ended 31 March 1971 is now given.

ItemCostsRecoveries
Operating$(000)$(000)
Civil Aviation, New Zealand—  
    Regulatory and general1,155138
    Airports19553
    Airways6,8083,637
Civil Aviation, South Pacific territories2523
Meteorological Services, New Zealand and South Pacific territories2,05332
            Totals10,4633,863
Capital  
Civil Aviation, New Zealand—  
    Regulatory and general53-
    Airports1,317330
    Airways1,88116
Civil Aviation, South Pacific territories2,4097
Meteorological Services, New Zealand and South Pacific territories51-
            Totals5,712353
            Grand totals16,1754,216

NATIONAL AIRWAYS CORPORATION—The major domestic air transport operator is the New Zealand National Airways Corporation which provides regular services to 26 centres throughout the North and South Islands.

The corporation's fleet consists of 4 Boeing 737s, 5 Vickers Viscount 807s, and 13 Fokker Friendships.

Statistics of operation of the National Airways Corporation for the 4 latest years are shown in the following table.

Item1967-681968-691969-701970-71
Revenue mileage flown11,231,26110,670,19910,097,26510,405,121
Revenue passengers carried—    
    Schedule1,145,1851,267,7121,440,1351,494,351
    Charter10,59516,04715,94513,205
Passenger-miles created (000)—    
    Schedule453,362483,394547,105568,787
    Charter4,7028,6398,5807,500
Revenue passenger-miles (000)—    
    Schedule306,118337,364383,901404,919
    Charter3,1995,2665,2924,606
Average passenger journey (miles)267267267271
Freight, excess baggage, mail (lb) (000)—    
    Schedule37,52837,84944,470 
    Charter1,3481,1751,513 
Excess baggage ton-miles274,222301,005343,601 
Freight ton-miles (000)—    
    Schedule4,9014,8775,8726,383
    Charter224---
Mail ton-miles644.769673.845746.999799.842
Total revenue load factor64.3563.6963.6067.12
Revenue passenger load factor67,5269,7970,1771,19
Operating expenditure ($)18,669,56520,927,36824,427,08827,997,606
Operating profit ($)376,764274,050964,8541,086,348

The corporation is charged under the National Airways Act 1945 “with establishing and operating national air transport services to meet the needs of the people of New Zealand”. The corporation has therefore sought constantly to improve the standard and scope of its service whilst keeping fares at a low level. The expansion achieved during recent years is indicated by the increase in revenue passenger-miles on scheduled services from 306 million in 1967-68 to 405 million in 1970-71.

FLYING OPERATIONS—The following table gives the summarised results of the operations of scheduled commercial air services during the last 11 years.

Year Ended 31 MarchHours FlownMiles Flown (000)PassengersFreight lb (000)*Mail lb (000)Passenger-miles (000)Freight Ton-miles* (000)Mail Ton-miles (000)
*Includes excess baggage.
196165,6609,174745,256142,7752,226189,6616,769355
196272,78910,367843,340153,1482,319214,1897,400375
196364,0729,575822,950139,6532,464211,8996,775397
196464,4459,887873,246115,7842,552228,2096,243394
196571,78710,894984,511127,6992,542262,3677,041431
196678,85311,9691,113,363151,1692,815296,6298,160453
196774,69812,2611,170,949128,4832,983311,0367,709470
196875,58212,1961,173,116104,0223,708310,6317,376646
196971,88711,6061,305,020113,6163,692344,4428,491684
197066,81011,7971,478,785150,1574,191391,3959,615754
197166,64311,9101,534,879160,7754,411413,43510,509808

Cook Strait Rail/Air Freight Service—The New Zealand Railways Air Freight Service was commenced officially in February 1947 following a number of special inter-island freight flights which had been carried out by the Royal New Zealand Air Force at the request of the Railways Department to meet a shipping emergency. The service was conducted by the RNZAF, operating Dakota aircraft, until June 1947, when the service was handed over to the New Zealand National Airways Corporation, which continued to operate with Dakotas.

In 1950 the Railways Department decided to allow private enterprise the opportunity of tendering for the contract to run the service, and the successful tenderer was Straits Air Freight Express Ltd. (now known as Safeair Ltd.), which took over on 1 April. The service is at present being maintained by five Bristol Freighter aircraft on a daily basis, the number of trips varying according to the amount of cargo offering. Some charter work has been undertaken in recent years.

Traffic statistics for this freight service for the last 11 years are as follows. The drop from the peak figures of 1961-62 can be attributed in part to the operation of the rail-road ferry G.m.v. Aramoana across Cook Strait between Wellington and Picton from August 1962. There was further competition when the sister ship G.m.v. Aranui was introduced in 1966.

Year Ended 31 MarchTrips FlownHours FlownMiles FlownFreight lb (000)Freight Ton-miles (000)Passengers
196111,8534,864635,078112,7712,6931,231
196213,7395,534765,022122,3603,0411,557
196312,3815,050660,924110,6252,650927
196410,5884,265560,13087,6562,067809
196511,3154,558591,79695,7642,239899
196613,1825,894778,501116,8702,9931,500
196710,9225,139677,00393,5352,549902
19688,5374,167557,84669,3542,170531
19698,1913,952532,42672,9842,143480
197015,8986,337849,437108,6853,434413
197113,3837,152967,791114,9483,714843

AERIAL WORK—Aerial topdressing as a means of improving hill pastures and checking and preventing soil erosion was begun commercially in 1949. The industry developed rapidly and is now an established feature of the national economy. About half of the total fertiliser and lime applied to farms in New Zealand is spread by means of aircraft.

Aerial spraying (i.e., the release from the aircraft of agricultural chemicals in liquid form, such as insecticides and weedicides) has also been developed. The volume of this work has increased to more than 6 million gallons a year. A technical qualification is now mandatory for pilots engaged in the application of all agricultural chemicals. The qualification is to ensure that pilots are familiar with the chemical properties and correct techniques in applying the agricultural chemicals, many of which are highly toxic.

A summary of aerial work operations follows.

ItemYear Ended 31 March
1968196919701971
Hours flown93,77795,287106,055112,299
Number of operators72717777
Material distributed—    
    Fertiliser and lime (tons)754,280793,552899,526902,985
    Seed (tons)1,5991,4081,5741,876
    Spray (gallons)3,048,3183,551,6364,813,5636,476,729
    Animal poison (tons)3,2413,2833,5145,541
    Supplies (tons)5784448701,290
    Fencing (tons)1,4031,031741943
    Dusts (tons)59218052
    Prills (tons)477420315251
    Miscellaneous (tons)4,5499,0013,2563,704

INTERNATIONAL AIR SERVICES—New Zealand's own airline, Air New Zealand Ltd., provides services to Sydney, Melbourne, Brisbane, Hong Kong, Singapore, Norfolk Island, New Caledonia, Fiji, American Samoa, Rarotonga, Tahiti, Honolulu, and Los Angeles. At 1 April 1971 Air New Zealand's fleet comprised five Douglas DC8s and two Lockheed Electras. Air New Zealand expects to operate international services to and through the new Cook Islands airport at Rarotonga in 1973.

Other services through New Zealand include: Pan American World Airways—from the United States to Auckland via Tahiti; through Honolulu and Pago Pago to Auckland; British Overseas Airways Corporation—twice weekly from the United Kingdom to Sydney, Auckland, and beyond to Fiji, linking with flights to London; Union de Transport Aeriens—weekly from Los Angeles via Tahiti to Auckland and beyond to Noumea; American Airlines—twice weekly from the United States to Auckland; and QANTAS—a full range of trans-Tasman services linking with regional and round-the-world services out of Sydney.

A minority financial interest is retained in the regional South Pacific operators: Polynesian Airlines Ltd. (PAL)—operating between Western Samoa, American Samoa, Tonga, and Nandi; and Air Pacific Ltd.—operating between Fiji, the British Solomons, the Gilbert and Ellice Islands, the New Hebrides, Western Samoa, Tonga, Nauru, and Port Moresby.

TOTAL TRAFFIC FOR OVERSEAS AIRLINES—Total traffic figures for overseas airlines operating to and from New Zealand, showing passenger movements, freight, and mail separately, are given in the following tables for March years.

INTERNATIONAL REVENUE PASSENGER MOVEMENTS YEARS ENDED 31 MARCH
RoutesEntering New ZealandLeaving New ZealandTotal
1969-701970-711969-701970-711969-701970-71
Trans-Tasman      
Auckland-Sydney77,23490,82877,48386,219154,717177,047
Auckland-Melbourne9,86413,1468,73811,47118,60224,617
Auckland-Brisbane11,15612,97911,88513,40323,04126,382
Wellington-Sydney27,50028,91327,59727,86455,09756,777
Wellington-Melbourne6,3816,3196,7736,87613,15413,195
Wellington-Brisbane2,6383,1763,0093,3075,6476,483
Christchurch-Sydney35,81441,27138,56642,61874,38083,889
Christchurch-Melbourne12,41717,81514,06616,88926,48334,704
            Total183,004214,447188,117208,647371,121423,094
Pacific      
Long haul19,71323,62218,55124,38038,26448,002
Short haul40,47749,37437,31246,41177,78995,785
            Total60,19072,99655,86370,791116,053143,787
INTERNATIONAL REVENUE FREIGHT (KILOGRAMMES) YEARS ENDED 31 MARCH
RoutesEntering New ZealandLeaving New ZealandTotal
1969-701970-711969-701970-711969-701970-71
Trans-Tasman      
Auckland-Sydney1,718,6411,775,3442,288,5392,720,5574,007,1804,495,901
Auckland-Melbourne151,178231,825199,401348,260350,579580,085
Auckland-Brisbane21,38722,724266,874280,109288,261302,833
Wellington-Sydney427,206432,500273,468254,289700,674686,789
Wellington-Melbourne83,18595,15082,54876,115165,733171,265
Wellington-Brisbane4,1627,77624,58015,40228,74223,178
Christchurch-Sydney558,074750,482931,992758,7991,490,0661,509,281
Christchurch-Melbourne60,817111,799104,855225,265165,672337,064
            Total3,024,6503,427,6004,172,2574,678,7967,196,9078,106,396
Pacific      
Long haul300,994358,9721,920,6461,592,9022,221,6401,951,874
Short haul209,305226,0241,025,9841,030,1071,235,2891,256,131
            Total510,299584,9962,946,6302,623,0093,456,9293,208,005
INTERNATIONAL MAIL (KILOGRAMMES) YEARS ENDED 31 MARCH
RoutesEntering New ZealandLeaving New ZealandTotal
1969-701970-711969-701970-711969-701970-71
Trans-Tasman      
Auckland-Sydney401,882418,184134,047139,774535,929557,958
Auckland-Melbourne16,54815,71910,1705,01926,71820,738
Auckland-Brisbane6,2087,1844,0526,19810,26013,382
Wellington-Sydney132,118119,16263,79573,903195,913193,065
Wellington-Melbourne5,3047,13511,0916,48716,39513,622
Wellington-Brisbane2,1365376088322,7441,369
Christchurch-Sydney37,39539,10929,95932,99867,35472,107
Christchurch-Melbourne8,94110,2885,9419,97014,88220,258
            Total610,532617,318259,663275,181870,195892,499
Pacific      
Long haul111,552136,56166,23280,996177,784217,557
Short haul118,513154,060192,204194,343310,717348,403
            Total230,065290,621258,436275,339488,501565,960

AIR FREIGHT—Air freight involves mostly exports and imports to and from Australia, and imports from United States and United Kingdom. Exports concern mainly made-up textiles, meat and live animals, notably racehorses. Imports air-freighted are mainly machinery, scientific instruments, pharmaceutical products and textiles.

AIRPORT STATISTICS—The following table shows airport activities for the 2 latest years ended 31 March.

AirportMovements of Passenger PlanesFreighter Plane MovementsPassenger Arrivals and Departures
InternationalDomestic
1969-701970-711969-701970-711969-701970-711969-701970-71
*Those airports serviced by N.A.C., Safeair, and Mount Cook Airlines not separately listed.
Auckland4,4024,89918,88618,804642638917,403997,644
Blenheim--4,0133,24811,12312,39868,11567,055
Christchurch1,3341,41318,07918,6072,4612,945690,996740,553
Dunedin--8,7858,216284256162,287169,057
Gisborne--5,3635,5126-60,40658,511
Hamilton1-5,3874,783643277,95474,915
Invercargill12335,7615,7706884,45087,627
Napier--6,6866,048241085,88986,005
Nelson--9,3288,750733752135,392135,576
New Plymouth--3,9404,31817614865,58966,754
Palmerston North--6,2216,1511239483,78884,075
Rotorua--5,4055,805-457,33163,824
Wellington1,3591,42230,06329,92413,43115,142888,868925,454
Other*-1124,21430,49718655264,432282,674
            Totals7,1087,778152,131156,43329,25932,4823,642,9003,839,724

AERO CLUBS AND COMMERCIAL FLIGHT TRAINING ORGANISATIONS—The next table gives a summary of the training activities of aero clubs and other flying organisations for the last six years.

Year Ended 31 MarchClubs* OperatingMembershipAircraft in useHours FlownAb Initio Pupils Under Training
AssociateFlyingDualSolo
*Other organisations included are given in parenthesis
196636 (7)2,4485,10216928,20358,5711,143
196736 (12)2,4816,54621740,80174,2381,667
196839 (16)2,4137,27423847,52983,7771,803
196939 (13)2,1036,78123944,09971,1421,816
197040 (18)1,9136,30825948,89676,2531,857
197139 (17)1,8016,44824248,22376,6591,952

LICENCES—A summary of licences and certificates current at 31 March in the 5 latest years is given below.

Type of LicenceAt 31 March
19671968196919701971
Flight Crew (ICAO) Type—     
    Pilots licences—     
        Student Pilot2,9643,4133,4983,3303,427
        Private Pilot2,2872,8432,9092,8373,146
        Commercial Pilot804893896908917
        Airline Transport Pilot311335376397409
    Pilot Licence Ratings—     
        Instructor376407420395444
        Instrument490537545548559
        Compass2220262723
        Chemical230246239243258
        Towing200261237260268
    Navigator Licences—     
        Flight Navigator838894104103
    Licences to Operate Radio Equipment in Aircraft—     
        Flight Radio Operator22---
        Flight Radio Telephone Operator Rating2,4753,2203,8874,0464,668
    Flight Engineer Licences—     
        Flight Engineer5962596171
Other Licences, Certificates, etc.—     
    Aircraft Maintenance Engineer Licences407475513534583
Aircraft—     
    Certificates of Registration1,0101,0521,0471,0731,113
Aerodromes—     
    Public Licences5250494650
    Private4947454650
    Authorised Places78369
    Government Civil2121211823
    Air Service Certificates5455556870

Chapter 12. Section 12 COMMUNICATIONS

12 A—POST OFFICE

GENERAL—The main role of the New Zealand Post Office is to provide the nation with telecommunication and postal services, to operate a savings bank, and conduct agency services on behalf of Government.

The demands on the department are growing and will continue to grow, if anything at an increasing rate, as the public demands more and better services in the postal and telecommunications field. The improvements and changes in the immediate past will, it is considered, appear relatively minor compared with those which will need to be faced in the next decade and with technological advancement. For instance, there is a growing requirement for the use of Post Office circuits for data communication purposes. Services introduced to meet this demand include the leasing of Post Office point-to-point lines and the establishment of a Datel 600/1200 service using the telephone switched networks. Consideration is also being given to a Datel 200 service which will also use the telephone switched networks. The Datel service enables data calls to be made on the same basis as toll calls.

The Wellington Postal Centre, brought into operation with the completion of the Post Office Headquarters Building in 1971, is extensively mechanised. The installation of an automatic parcel-sorting machine and modern conveying equipment for the movement of postal articles between processing points, is a major step towards a fully mechanised system. Provision has been made for the later introduction of automatic letter-sorting equipment when the volume of traffic is sufficient to warrant it. The occupation of the building climaxed many years of planning and intensive study of postal mechanisation in other countries.

Planning for similar modern postal centres at Auckland and Christchurch has now commenced. International telecommunications are vital to international commerce and trade and have social importance. High-quality outlets from New Zealand provided via the COMPAC cable system (1963) and the SEACOM cable system (1967) have been needed to cope with public demand.

With the continued growth in traffic demand, Government approved the establishment of a communications satellite earth station. In addition to providing additional international telecommunications facilities, the new system makes live television relays practicable. The earth station, which is located some 3 miles south of Warkworth, works through a satellite over the Pacific Ocean. The earth station was brought into service on 17 July 1971.

An international Gateway telephone exchange, opened at Auckland in March 1969, handles all of New Zealand's outgoing and incoming international telephone calls, and enables the international operators to connect calls by dialling direct to subscribers in other countries, as well as enabling operators in overseas countries to dial direct to subscribers on automatic telephone exchanges in New Zealand.

An important development in New Zealand's international telex service was the introduction in July 1968 of automatic subscriber-to-subscriber calling. Telex subscribers in New Zealand can now dial direct to subscribers in Australia, Britain, Canada, Fiji, Japan, United States, and a number of European countries without the aid of the international operator.

HISTORICAL—With the arrival of Governor Hobson in 1840 the first post office proper was set up at Kororareka (now Russell). The same year saw the establishment of offices at other settlements in the north and at Port Nicholson (Wellington), and the beginnings of overland mail routes. By 1858, 73 post offices had been opened to provide communication services for the scattered settlers. In that year a Post Office Act was passed making the Post Office an independent department of State.

The system of communication by telegraph was inaugurated in the 1860s. A separate department, the Telegraph Department, was created by Act of Parliament in 1865 to take responsibility for the erecting of telegraph lines and the opening of morse telegraph offices. The North and South Islands were linked by telegraph cable in 1866 and by telephone cable in 1926.

The telegraph and postal services were amalgamated in 1881. Under the Post Office Act 1959, the name of the department became the Post Office, and the Minister's title became Postmaster-General.

A table in the Statistical Summary towards the back of Yearbook shows the growth of postal and telecommunication activities over the last 50 years.

POSTAL BUSINESS—At 31 March 1971 there were 1,514 post offices in New Zealand.

The following table shows the numbers of articles posted in the latest 5 years.

Year Ended 31 MarchLetters, Lettercards, and PostcardsAccounts, Circulars, Newspapers, Packets, etc.ParcelsTotal Articles Posted
  million  
1967275.6292.68.2576.4
1968269.1292.07.1568.2
1969279.9288.26.8574.9
1970288.6299.87.0595.4
1971311.4295.67.8614.8

The average numbers of letters, etc., posted in New Zealand per head of population during the year ended 31 March 19. I were: letters, lettercards, and postcards, 109.8; accounts, circulars, newspapers, packets, etc., 104.2; parcels, 2.8.

Chartered air services are used to convey the bulk of surface mail between the North and South Islands.

There are 95,600 private boxes installed at 604 post offices.

Rural Mail Delivery—The rural delivery system enables country residents to obtain postal notes, money orders, and stamps, to register correspondence, and to collect or post their mail in boxes at or near their gates. The deliveries are generally performed by contractors who handle the mail in conjunction with the carriage of goods, and thus the rural mail delivery is in many areas the medium by which residents obtain their newspapers, bread, parcels, etc. Boxholders more than doubled in the 25 years to 1965 when they reached 75,000. Since then growth has levelled off, the peak being 77,379 in 1970; at 31 March 1971 the total was 76,766. The cost of the rural delivery service is $1.6 million a year.

Inland Airmails—On 16 March 1936 the first regular airmail services linking up larger centres of population were established between Palmerston North and Dunedin, and between Nelson, Blenheim, and Wellington. As air services increased in frequency and extent the airmail facilities were correspondingly expanded. The present network extends from Kaitaia to Invercargill.

The number of letters and parcels carried by air in New Zealand is now shown.

Year Ended 31 MarchLettersParcels
196723,045,000237,462
196819,513,000282,938
196922,429,000293,545
197022,971,000304,791
197127,712,000328,185

Overseas Airmails: The weight of airmail dispatched from New Zealand is about 20 percent of the total amount of mail forwarded overseas each year. In 1970-71, 500,191 lb of letters, 330,312 lb of newspapers and packets, and 325,804 lb of parcels were posted by overseas airmail.

Trans-Tasman Air Services—The first flight of the regular trans-Tasman service linking Auckland and Sydney took place on 30 April 1940, connection being made at Sydney with the Empire service to London. The existing service provides for flights between New Zealand (Auckland, Wellington, and Christchurch) and Australia (Sydney, Melbourne, and Brisbane) with a frequency overall of at least one flight each day.

New Zealand - United Kingdom Air Service—This service is now operating daily via the Pacific to London, the transit time New Zealand to the United Kingdom being normally 1 to 2 days.

New Zealand - Hong Kong and Singapore Air Services—There is a twice-weekly direct service from Auckland to Hong Kong and a thrice-weekly service from Auckland to Singapore. Airmail to countries in the Far East is also dispatched to Sydney for reforwarding.

Trans-Pacific Services—The trans-Pacific service operating between New Zealand and North America commenced on 20 July 1940. Airlines now operate a daily service to San Francisco and Los Angeles.

Pacific Island Services—Airmails are forwarded by New Zealand operated air services to Fiji, French Polynesia, New Caledonia, and American Samoa (Pago Pago). Local air services provide connections from Pago Pago to Apia, and from Nandi (Fiji) to Nukualofa (Tonga), Niue, Apia (Western Samoa), the Gilbert and Ellice Islands, Nauru Island, and Wallis and Futuna Islands. Direct airmail services from New Zealand also operate to Norfolk Island.

Overseas Parcel Post—Particulars of overseas parcels received and dispatched in each of the latest 5 years are contained in the following table.

Year Ended 31 MarchOverseas Parcels ReceivedOverseas Parcels Dispatched
NumberWeightCustoms DutyNumberWeight
  lb$(000) lb
1967579,6625,216,9581,350310,1261,805,036
1968533,1644,740,2521,252365,4592,024,821
1969533,4054,691,5111,630400,2312,077,052
1970554,7224,803,0441,626418,3922,154,185
1971658,2095,442,9551,815458,5432,373,307

MONEY ORDER AND POSTAL NOTE SERVICES—Details of these services are now given.

Money Orders—New Zealand has reciprocal money-order agreements with all British Commonwealth countries and also with the United States of America, the Republic of Ireland, South Africa, and Tonga. Money orders may also be issued in New Zealand for payment in any other country with which the United Kingdom has exchanges of money orders.

For payment within New Zealand the maximum amount for a single order is $200, but there is no limit to the amount which may be remitted. The commission is computed on each individual order.

For money orders issued for payment overseas there is a limit for most countries of $80 for a single order. There are two special rates of commission, one rate applying to Australia (and countries advised through Australia), Fiji, Norfolk Island, and Tonga, and the other rate to all other countries.

During 1970, 2,061,672 money orders were issued in New Zealand for a total of $45,683,792, and of that total 114,796 orders of a value of $2,080,388 were issued for payment overseas. Money orders issued overseas for payment in New Zealand in 1970 numbered 51,933 with a value of $1,228,366.

Postal Notes—Postal notes ranging from 10c to $2 and for $3, $4, and $5 are issued in New Zealand for payment within New Zealand, Niue, and the Cook Islands.

Postal notes are negotiable, and their period of validity is unlimited. They are, therefore, a popular medium for making small inland remittances by post, and during the year ended 31 March 1971, 3,414,076 postal notes valued at $6,245,585 were purchased by the public.

British Postal Orders—These are both issued and paid in New Zealand. Denominations sold in this country are 5p, 7 1/2p, 10p, 12 1/2p, 15p, 25p, 50p, 75p, £1 and £2 sterling. (In decimal currency, which has applied in the United Kingdom from 15 February 1971, 5 pence equals the previous 1 shilling.) Commission is payable. For all remittances in excess of £2 per day a permit is required.

As these orders are payable in several British Commonwealth countries they are a popular medium for making small postal remittances to overseas countries, particularly the United Kingdom.

During the year ended 31 March 1971 the Post Office sold 1,480,845 British postal orders valued at $3,270,214, and paid 140,543 orders valued at $449,987.

Gift Tokens—Post Office gift tokens were introduced on 15 December 1969 to enable people to buy savings gifts from the Post Office. They are issued free of commission in denominations of $1, $2, and $5. They may be credited to any type of Savings Bank account, or used to purchase bonus bonds or national development bonds. Gift tokens issued to 31 March 1971 amounted to $192,815.

POST OFFICE SAVINGS BANK—Details on the Post Office Savings Bank are given in Section 29, Banking and Currency.

TELEPHONE SERVICES—The following table indicates the growth of telephone installations (the figures are as at 31 March).

Item1961196919701971
Main telephones—    
    Automatic361,132634,824675,729716,862
    Manual171,428141,698127,076118,466
Extension telephones201,145372,435393,228420,613
Public telephones3,2314,5264,6384,751
Private line telephones1,919633603449
Toll offices1,4671,3491,3161,286
            Total telephones740,3221,155,4651,202,5901,262,427
Telephones (all types per 1,000 population)303416426440
Applicants awaiting installations27,15213,55513,92315,426
Number of toll calls51,689,12668,273,66866,956,19367,856,888

About one-sixth of the main telephones are business telephones (in 1968 there were 128,018 business telephones). At 31 March 1971 there were 835,328 subscribers.

During 1970-71 the number of waiting applicants increased from 13,923 to 15,426, about 64 percent of these being in the Auckland City and environs. Six automatic exchanges in this area have provided relief during 1971-72.

Thirty-one new automatic exchanges were brought into service during the year ended 31 March 1971; also substantial progress was made in the extension of free calling areas, thereby eliminating toll fees between outlying exchanges and their town or city centre; 23 more exchanges were provided with this service.

According to the latest comparative data available (January 1970), compiled by the American Telephone and Telegraph Co., New Zealand ranks fifth in the number of telephones per 100 of population, the leading countries being the United States of America (56.38), Sweden (53.74), Switzerland (45.38), Canada (43.76), and New Zealand (42.63).

A broadband toll link, comprising microwave, radio and co-axial cable systems, connects main centres from Whangarei to Dunedin. The installation of a $3 million microwave radio telecommunications system between Wellington and Auckland is to be completed in 1972. The present link is by co-axial cable from Auckland to Hamilton and from Palmerston North to Wellington with a microwave radio system between Hamilton and Palmerston North. The new link runs from Wellington to Auckland via Masterton, Napier, Taupo, Rotorua, and Hamilton.

Free local telephone calling is provided in New Zealand, as distinct from charging for each local call as followed by many overseas administrations.

The following table shows the classifications of telephone exchanges and the annual rental rates for different classes of connection as from 1 October 1971.

Class of ExchangeClass of ConnectionAnnual Rate Within Base-rate Area
BusinessResidential
  $$
Class I Automatic exchanges with more than 10,000 paying subscribers.Individual134.7561.10
 2-party98.0052.88
(Typical exchanges are Auckland, Christchurch, Dunedin, Hamilton, Invercargill, Palmerston North, and Wellington.)3-party93.1051.70
 4-party88.2050.53
 5-party80.8547.00
 6-10 party73.5042.30
Class II Automatic exchanges with 3,001-10,000 paying subscribers.Individual128.6361.10
 2-party95.5552.88
(Typical exchanges are Blenheim, Masterton, Levin, and Oamaru.)3-party90.6551.70
 4-party85.7550.53
 5-party78.4047.00
 6-10 party71.0542.30
Class III Automatic exchanges with 2,001-3,000 paying subscribers.Individual116.3858.75
 2-party91.8850.53
(Typical exchanges are Alexandra, Dannevirke, Marton, Westport.)3-party86.7849.35
 4-party82.0848.18
Manual exchanges with over 3,000 paying subscribers.5-party75.9544.65
(A typical exchange is Taupo.)6-10 party68.6039.95
Class IV Other exchanges affording continuous service.Individual110.2554.05
(Typical exchanges are Hokitika, Picton, and Queenstown.)2-party80.8547.00
 3-party85.7545.83
 4-party75.9544.65
 5-party68.6042.30
 6-10 party61.2537.60
Class V Exchanges observing restricted hours of service.Individual85.7545.83
(Typical exchanges are Kawhia, and Waitotara.)2-party71.0539.95
 3-party66.1538.78
 4-party63.7036.43
 5-party58.8034.08
 6-10 party56.3532.90

For stations located outside the boundary of the base-rate or special rate area of an exchange a mileage is added to the rental, depending on the distance by line measurement from the base-rate or special rate boundary to the respective subscriber's station.

In March 1971 there were 49,398 party lines serving 113,456 telephones.

TELEGRAPH SERVICES:Telegrams—There is a downtrend in inland telegrams, which is in keeping with world experience, telegrams having declined in popularity compared with other forms of communication. In the year to 31 March 1971, 5.5 million telegrams were lodged; the peak post-war year was 1955-56 with 7.6 million.

Operating methods on the public telegraph network took a major step forward with the introduction in 1971 of automatic circuit switching (Gentex) for the public message teleprinter network. The move means that the 119 teleprinter offices which make up the public teleprinter network can now dial each other direct. This has meant a substantial reduction in telegram handlings (previously messages were manually retransmitted from office to office over a fixed point-to-point network) and shorter telegram transmission times.

Telex Service:Telex—the international abbreviation for Teleprinter Exchange Service—is a customer-to-customer service using page teleprinters. An international telex service for communicating with overseas subscribers commenced in New Zealand on 1 September 1960 with only 16 subscribers. Service was then available with 23 overseas countries.

Automatic telex service was introduced in New Zealand on 13 May 1964 with 150 subscribers. This service absorbed the previous international connections and all New Zealand telex subscribers may now communicate with each other as well as with overseas telex subscribers. International service is now available with 137 countries. At 31 March 1971 there were 1,164 subscribers.

The annual rental is $650 for a standard machine and $900 for a teleprinter equipped with a tape reperforator and transmitter. In the year to 31 March 1971 rentals totalled $533,730 and call revenue was $1,078,564 (internal $676,422 and international $402,122).

The range of telex services was extended on 1 July 1971 to include public telex booth service at Auckland, Wellington, Christchurch, and Dunedin, and teltex and telexogram services. Teltex service enables telex subscribers to lodge telex messages at chief post offices for hand delivery to addressees whilst telexogram service provides for telex transmission to the addressee.

INTERNATIONAL TELECOMMUNICATIONS:Cable Links—Telegraphic communication overseas was first established between New Zealand and Australia by means of the Eastern Extension Telegraph Company's cable from Wakapuaka (Nelson) to Sydney in 1876, and between Auckland and Canada via Norfolk Island, Suva, and Fanning Island in 1902. In 1945, the Commonwealth's external telecommunications systems were brought under Government control and, in accordance with the Commonwealth Telegraphs Agreement 1948, the New Zealand Post Office purchased the assets in New Zealand of Cable and Wireless Ltd., the private company previously controlling these services, and took over the operation of the overseas cable services.

In July 1962 a new submarine cable with a capacity of 80 telephone channels was brought into operation between New Zealand and Australia as part of a Commonwealth round-the-world cable project. The cable was extended from New Zealand to Fiji in December 1962, and in December 1963 was further extended, via Hawaii, to Vancouver and across Canada by microwave to Montreal. At Montreal it links up with the trans-Atlantic telephone cables, to connect with Britain, and provide high-quality circuits for telephone, telegraph, and telex communication between New Zealand, Australia, Fiji, Canada, the United States of America, and Britain. This cable system links New Zealand with most of the world's major countries, and it was supplemented by the bringing into service in March 1967 of the South-East Asia Commonwealth Telephone Cable which extended the system from Australia to New Guinea, and (via Guam) to Malaysia, Hong Kong, and Singapore.

International Telephone Service—Telephone communication by cable and radio is now available to almost all countries of the world, as well as to Ross Dependency (Scott Base), Raoul Island, Chatham Islands, Campbell Island, passenger ships, and H.M. New Zealand and Australian warships.

Satellite Communications—Because of the rapid increase in international telecommunication traffic, an earth station has been constructed in New Zealand for communicating with other countries via satellites in space.

International Radio Services—The first wireless-telegraph station in New Zealand for communicating with ships at sea was opened at Wellington on 26 July 1911.

In November 1953 a high-power radio transmitting station was opened at Himatangi providing at that time for direct New Zealand - United Kingdom radiotelephone and telegraph circuits. These circuits are now provided via cable, and the Himatangi radio station is used generally for services with places in the Pacific area to which there are no cable facilities. The receiving station complementary to Himatangi is Makara Radio.

Direct radio circuits are operated from New Zealand to Apia, Rarotonga, Niue, and Noumea. Communication is effected with outer islands in the Cook group by Rarotonga Radio through small feeder stations. Small stations in the Tokelau Islands communicate with Apia Radio.

Other principal stations under the control of the New Zealand Government are located at Auckland, Wellington, and Awarua on the New Zealand mainland, at Niue, and at Chatham Islands. Facilities are provided for the transmission of radiotelegrams to ships at sea, and special rates operate for vessels registered in New Zealand and Australia.

INLAND RADIO SERVICES—The use of mobile radiotelephone services continues to grow. Post Office very-high-frequency service available from 56 base stations meets the mobile communication requirements of 3,398 subscribers operating 22,596 mobile units. A miscellany of private and Government owner-operated stations provide mobile radiotelephone services through 2,306 base stations for a further 8,257 mobile units. Radiotelephone services continue to provide essential service for isolated communities which cannot reasonably be reached by landline—e.g., isolated settlers, alpine huts, etc. There is also a free radio-medical service for ships at sea and for lighthouses on the New Zealand coast for use in emergency. New licences were issued for radiotelephone stations in 523 small commercial and pleasure craft operating round the New Zealand coast bringing the total number of ships licensed to 5,800. In the Citizen radio service 465 new walkie-talkie sets were licensed making a total of 5,004 sets in use throughout the country. There are now 52,928 radio transmitting stations of all types licensed compared with 47,938 in 1970.

Direct radio circuits are operated between the New Zealand mainland and the Chatham Islands.

Smaller stations are established at certain lighthouses on the New Zealand coast and also on a number of adjacent islands. Marine radio beacons are operated at the lighthouses at Cape Reinga, Cuvier Island, Moko Hinau Island, East Cape, Portland Island, Stephens Island, Baring Head, Cape Campbell, The Brothers, Godley Head, Taiaroa Head, Dog Island, and Puysegur Point.

Licences for amateur stations are intended to provide facilities for experimental transmission to those interested in radio science, and are issued only to holders of amateur operators' certificates.

REVENUE—The revenue of the Post Office for the latest financial years is now shown.

Item1967-681968-691969-701970-71
 $(000)$(000)$(000)$(000)
Postal revenue—    
    Postages23,07123,67225,08526,475
    Private box and bag rentals and rural mail delivery fees477490504523
    Miscellaneous90774893
 23,63924,23925,63727,091
Telecommunications revenue—    
    Telex9101,0791,2351,628
    Telegraph4,1374,0434,0544,082
    Tolls25,96527,45629,67732,941
    Telephones43,96146,90649,06252,454
    Overseas telecommunications3,4504,0864,6786,018
    Radio231294298299
 78,65583,86489,00497,422
Miscellaneous revenue—    
    Fees from Government departments, etc.3,3203,4283,4663,907
    Money order and postal note commission424391404454
    Rents received226272284291
    Other revenue343599704693
 4,3134,6904,8585,345
            Total revenue106,607112,793119,499129,858

Revenue and expenditure for the latest 11 years are shown in the following table.

Year Ended 31 MarchRevenue $(000)Expenditure $(000)
196153,31053,243
196260,11260,003
196364,87464,777
196470,18370,068
196577,84176,586
196686,96284,890
196791,52693,582
1968106,607100,781
1969112,793106,575
1970119,499117,087
1971129,858143,548

CAPITAL—Capital expansion necessary to meet demand requires substantial provisions for new telecommunications systems and the replacement of those which have become obsolete. Accommodation to house this equipment, to provide post offices in newly developed areas, and to replace old and inadequate offices is an important part of Post Office capital development.

Capital expenditure on telecommunications development and buildings is financed partly by the Post Office, and partly from National Development Loans Account on which interest is paid at the rate of 5 percent. The interest payment amounted to $12.9 million in 1970-71.

In 1970-71, $25.9 million was spent on the development of telecommunications systems and $7.3 million on buildings (this includes $3.3 million for the buildings and equipment for the satellite earth station). In addition, $2.4 million was invested in other assets such as motor vehicles, tools and plant, and office equipment. All this expenditure was financed from National Development Loans Account and capital equipment credit arrangements. The capital liability of the Post Office is now $292.5 million and liability under capital equipment credit arrangement is $1.8 million.

WORK PERFORMED FOR OTHER DEPARTMENTS—Because it has numerous small offices readily accessible to the public, the Post Office also undertakes agency work for other Government departments. Among the principal activities in this connection are the receipt and payment of moneys on behalf of the various departments, the more important of which are enumerated below.

Receipts—For the following departments: Education (examination fees, etc.), Health, Inland Revenue (land tax and income tax, under PAYE system), Lands and Survey, National Roads Board (special mileage tax on motor vehicles), Public Trust Office, State Advances Corporation (State rents, loan and interest repayments), Electricity (some electric-power receipts), Ministry of Transport, Tourist and Publicity, Valuation, Customs (collection of Customs duty and sales tax), Treasury (Government Superannuation and National Provident Fund receipts).

Payments—Departments of Social Welfare (social security benefits and war pensions, etc.), Health (refunds of medical expenses), Defence, Labour (subsidised wage payments and military training medical examination payments), Maori and Island Affairs (Maori trust payments), Public Trust Office, Police (witness warrants), Treasury (Government superannuation payments and miscellaneous payments for other departments), Ministry of Works, and for Reserve Bank (interest warrants and coupons).

Other services performed by the Post Office are the issue of licences in respect of motor vehicles and radio apparatus, and assistance to the Marine Department and the Civil Aviation Division of Ministry of Transport on radio matters. In some of the smaller centres postmasters act as registrars of births, deaths, and marriages, also as registrars of electors.

Other activities, not strictly departmental, include the receipt of motor vehicles insurance (third-party risks) premiums under the Transport Act 1962, the issue of fishing and game licences on behalf of acclimatisation societies, organising and selling health stamps, and collecting revenue for such outside bodies as the New Zealand Poultry Board, the New Zealand Trade Certification Board, the Armed Forces Canteen Council, and the New Zealand Broadcasting Corporation.

STAFF—Staff numbers at 31 March are shown in the following table.

Classification1968196919701971
Permanent staff25,80526,38926,91227,665
Temporary and non-classified staff3,5573,6624,2444,694
            Total staff29,36230,05131,15632,359

VEHICLES—The Post Office fleet as at 31 March 1971 consisted of 4,031 vehicles—1,286 trucks, 1,523 vans, 1,216 cars, and 6 motor scooters. Of this fleet, 449 vehicles are used for hire to other departments, 2,711 for engineering construction work, and 760 on postal, telegram delivery, and other general work. The fleet travelled 35.9 million miles in the year ended 31 March 1971.

12 B—RADIO AND TELEVISION BROADCASTING

GENERAL: New Zealand Broadcasting Board—In January 1932, control of the broadcasting service, under the Broadcasting Act 1931, was vested in the New Zealand Broadcasting Board. Existing plant was purchased from the Radio Broadcasting Company which had purchased the existing stations in the four main centres in 1925 and added to them. At this time the number of receiving licences was about 70,000.

New Zealand Broadcasting Service—The Broadcasting Act 1936 abolished the New Zealand Broadcasting Board and vested control of the newly constituted National Broadcasting Service in a Minister of the Crown. Administration of the service was placed in the hands of a Director of Broadcasting, appointed by the Governor-General in Council.

By the 1936 Act the Minister of Broadcasting was empowered also to establish and operate commercial radio stations broadcasting advertising matter. The Broadcasting Amendment Act 1937 provided for the establishment of a National Commercial Broadcasting Service which existed separately until the two services were combined under the Director of Broadcasting on 26 August 1943.

The Broadcasting Amendment Act 1960 provided for the establishment of a television service to be operated by the Minister in Charge of Broadcasting in association with the existing broadcasting service.

New Zealand Broadcasting Authority—Under the Broadcasting Authority Act 1968 an authority of three members has been appointed to consider and adjudicate upon applications for warrants to establish and operate broadcasting stations, either sound radio or television. The authority is required to make rules from time to time on the balance and quality of programmes, the character and standard of advertising, the accuracy and impartiality of news, and other matters, after consultation with the New Zealand Broadcasting Corporation and representatives of owners of private broadcasting stations holding warrants under the Act. Several private commercial radio broadcasting stations have been approved, including Radio Hauraki (N.Z.) Ltd. and Radio i Ltd. in Auckland, Radio Waikato in Hamilton, Radio Whakatane and Radio Otago.

In October 1969 the Minister of Broadcasting directed the authority to carry out an inquiry into television services and extensive hearings took place in 1970, particularly as regards the operation of a second channel. In July 1971 the authority recommended that the existing TV services be converted to colour transmission by 31 October 1973 with a second channel to be introduced later. (Parliamentary paper F.5, 1971.)

NEW ZEALAND BROADCASTING CORPORATION—The Broadcasting Corporation Act 1961 established a corporation of three members empowered from 1 April 1962 to take over and operate the existing service. The Broadcasting Corporation Amendment Act 1965 allowed the membership of the corporation to be increased from three to seven, and extended the powers of the corporation to permit assistance to performing art and cultural organisations. General or special directions in line with Government policy may be given in writing to the corporation by the Minister of Broadcasting. A copy of every such notice must be laid by the Minister before Parliament. The Director-General, who is appointed by the corporation, is paid out of the Consolidated Revenue Account, but any such money is repaid to this account from the Broadcasting Account.

RADIO—The New Zealand Broadcasting Corporation operates 48 medium-wave broadcasting stations and two short-wave transmitters of Radio New Zealand, the latter having 19 assigned frequencies. Of these, 28 stations broadcast advertising material. No advertising is broadcast on Sundays, Christmas Day, or Good Friday. Station 2YA, 1YA, 3YA, 4YA, and 4YW maintain a daily 24-hour service apart from shutdowns once a fortnight between the hours of 11.20 p.m. Sunday and 6 a.m. Monday (5 a.m. in the case of 2YA). The shutdowns are staggered so that at least two of these stations are always on the air.

Coverage of Short-wave Service—Radio New Zealand broadcasts to the Pacific islands a daily home-service programme from 5 a.m. to 5.45 p.m. on one frequency and a special evening programme from 6 p.m. to 8.45 p.m. on two frequencies. Its transmission to Australia comprises a daily home-service programme from 8 a.m. to 5.45 p.m. on one frequency and a special evening programme from 9 p.m. to 11.45 p.m. on two frequencies. In addition to its large radio audience throughout the Pacific, Radio New Zealand has listeners as far distant as the United Kingdom, Sweden, France, the United States, and Japan. Radio New Zealand programmes illustrate many different aspects of life in this country.

Local Broadcasting—Whereas in many Commonwealth countries local broadcasting has only recently begun, in New Zealand it is in many ways the most important part of the NZBC's system. Local stations not only provide a wide range of entertainment programmes, but also play a valuable social role through new community services and participation in cultural activities. Recent decentralisation of administration has enabled local radio stations to be more responsive to the communities they serve.

Broadcasts to School—Programmes are designed to aid teachers who require the assistance broadcasting can give in meeting syllabus requirements particularly in the fields of science, social studies, music, and language. Seventeen programmes a week are broadcast to children ranging from 4 to 13 years. The most popular programmes, dramatised stories for infants, are heard by more than 140,000 children. New developments to assist teachers in secondary schools include liberal studies programmes for sixth and seventh forms and vocational training for fifth forms.

TELEVISION—In August 1958 the Government decided that the 625-line system would be the standard for any television service in New Zealand.

In October 1958 approval was given to the then New Zealand Broadcasting Service to purchase equipment to enable technical investigations to be made. The Service began regular transmissions in Auckland in 1960, in Christchurch and Wellington in 1961 and Dunedin in 1962. A programme service is now provided for 65 hours a week. Of this period, 34 hours provide for interspersed commercial advertising on 4 days of the week.

Extension to Coverage—The corporation has been steadily extending TV coverage to all areas of New Zealand. At October 1971, it was operating six 100 kW transmitters, one 50 kW, ten of from i to 10 kW, and 66 installations of less than 1 kW.

Corporation transmitters now provide coverage for 93 percent of the population. In addition, some 330 small units licensed to the corporation are operated by private individuals or societies, the latter receiving financial assistance from the NZBC. These small transmitters cover 6 percent of the population giving a total coverage with varying degrees of signal quality to 99 percent of the population.

Because of the nature of the terrain and the dispersal of population, the establishment of television has posed engineering problems not often met by other countries, though the progress that has been made compares most favourably. The major areas which still require upgrading are Central Otago, South Taranaki, the King Country, Taupo, and Bay of Plenty.

By 1971, 82.5 percent of homes in New Zealand were equipped with television sets, making a total of 232 television sets per 1,000 inhabitants. Comparative international statistics for the latest available year, 1968, were: New Zealand 223; Australia 213; United Kingdom 280; United States 392; Canada 294; Japan 208; Netherlands 209; Denmark 348; Sweden 296; France 189; and West Germany 249.

Television Programmes—Film purchased overseas makes up about 70 percent of NZBCTV programmes. All stations are active in the presentation of New Zealand news. An analysis of TV programmes for the month of September 1971 showed that of the total hours telecast 26 percent were devoted to news, talks, and information programmes (including religion), 9 percent to variety, 22 percent to drama, 10 percent to comedy, 8 percent to adventure, mystery and westerns, 12 percent to children's programmes, 6 percent to cinema films, and 7 percent to sports. Four mobile outside telecast units have been in use since the beginning of 1963.

ORCHESTRAS: NZBC Symphony Orchestra—Formed in 1946 as the National Orchestra, this is a full symphony orchestra widely known for the high standard of its public concerts as well as its performances over the air. Distinguished guest conductors and celebrity artists from other countries along with New Zealand choirs appear regularly with the orchestra. Free concerts for school children are an established part of its tour programme. The playing strength of the orchestra is approximately 90 players. This enables the NZBC symphony to undertake the complete symphonic repertoire.

During the 1970-71 season, the orchestra presented a total of 73 concerts under a series of guest conductors. A significant development has been the increase on the amount of time devoted to New Zealand music and musicians by the orchestra on YC programmes.

The corporation has established its own orchestral training scheme, which gives full-time training to selected young New Zealanders, and a National Youth Orchestra which gives a series of concerts once a year.

NEW ZEALAND LISTENER—Programmes and advance information for all NZBC television channels and radio stations are published in the weekly journal, the New Zealand Listener, first issued on 30 June 1939. The circulation of the Listener has now risen to over 137,000. As well as containing programme information the Listener occupies a special place in New Zealand journalism as a leading periodical dealing with the current scene. It publishes interviews, talks, and discussions as well as fiction, poetry, and criticisms. Through its editorial and correspondence columns, the Listener provides a forum for serious public discussion on important New Zealand and overseas questions.

FINANCIAL STATISTICS—The following tables show the financial results of the principal activities of the New Zealand Broadcasting Corporation.

Item1966-671967-681968-691969-701970-71
Commercial Activities  $(thousand)  
Income—     
    Net revenue from advertising services and New Zealand Listener after deducting commission9,41610,70111,34013,32714,119
Expenditure—     
    Purchase of programmes1,5981,7962,0682,1922,799
    Operating costs, including programming, engineering, administrative, publishing, general running, and selling expenses5,7966,4367,0088,39110,111
    Provision of technical facilities and services9101,1371,1961,0921,103
 8,3049,36910,27211,67614,013
    Surplus before taxation1,1121,3321,0681,651106
    Provision for taxation152486392711-
    Surplus, commercial activities960846676940106
    Concert Activities—     
        Net expenditure on orchestras and concert presentation603637628692771
Non-Commercial Activities     
Income—     
    Gross licence fees8,8399,2339,63710,06310,766
        Less Post Office collection charges663673671720836
 8,1768,5608,9669,3439,930
    Interest on investments2499194290315
    Miscellaneous receipts666473599
 8,2668,7239,2339,69310,254
Expenditure—     
    Purchase of programmes1,4531,6651,7641,7892,411
    Operating costs, including programming, engineering, administrative, and general running expenses3,3383,7233,9564,2785,043
    Depreciation provision1,6962,1142,2021,9421,945
 6,4877,5027,9228,0109,399
    Credit for provision of commercial, technical, and other facilities9101,1371,1961,0921,103
 5,5776,3656,7266,9188,296
Net expenditure—Radio New Zealand......126134199
    Surplus, non-commercial activities2,6892,3582,5072,4931,504
    Net surplus3,0462,5672,5552,741839

There are two principal sources of revenue: licence fees and radio and television advertising. While licence fee revenue is credited to the accounts of the non-commercial stations and sales revenue to those of the commercial stations, a common fund is in fact operated, all revenue being available for the general purpose of broadcasting.

Gross revenue from licence fees and from advertising for the latest 5 financial years is shown in the following table.

Item1966-671967-681968-691969-701970-71
   $(thousand)  
Radio-licence fees1,9521,9291,9492,0631,765
TV-licence fees6,8877,3057,6888,0008,164
Radio advertising4,7274,6145,2045,8625,819
TV advertising5,7377,3967,5419,2137,517
            Totals19,30321,24422,38225,13823,266

LICENCES—As from 1 October 1971 the radio licence, which stood at $3 a year, was abolished and the television licence raised from $13 a year to $20.

The following table summarises licences for television receivers issued for districts. These districts correspond approximately to reception areas: Auckland includes Taupo; Wellington includes Taranaki, East Coast, Hawke's Bay, Nelson, and Marlborough; Christchurch includes West Coast and its southern boundary is the Waitaki River.

At 31 MarchAucklandWellingtonChristchurchDunedinTotal*Number of Sets Covered by Hirers' Licences†

*Includes sets hired on ships, 22 in 1971.

†Included in preceding figures.

1966189,337139,55261,80044,142434,87756,922
1967225,975169,58878,61555,656529,88870,233
1968240,845186,19189,29459,563575,94774,062
1969252,841197,95494,10462,821607,81581,089
1970256,962209,00197,40264,160627,61791,697
1971272,474217,879105,62068,445664,44091,679

At 31 March 1971 there were 697,271 radio receiving licences, at which date there were approximately 800,000 households.

12 C—NEWSPAPERS, LIBRARIES, AND CINEMAS

NEWSPAPERS—There are eight daily newspapers in the four main metropolitan areas with a total circulation of 728,000. In the smaller cities and provincial towns there are 33 daily newspapers with a total circulation of 317,000.

When circulation figures for daily newspapers are related to population figures, it is found that New Zealand has 373 copies per 1,000 inhabitants. The latest comparative figures for other countries include United Kingdom, 488; Australia, 363; Canada, 212; United States, 309; U.S.S.R., 305; Sweden, 518, Norway, 383; Denmark, 356; and France, 251. (Source: UN Statistical Yearbook.)

Statistics compiled from various sources disclose that from 1840 to 1940, altogether 468 newspapers (of all categories) were established in New Zealand. The acceleration of motor transport had a speedy and decisive effect on the small-town press. Many local papers which, by publishing once, twice, or three times a week, had been serving adequately the needs of a district and backblocks were unable to survive when city papers were able to reach remote settlements within a few hours of publication, offering to country dwellers such superior attractions as daily publication, full services of New Zealand and world news, sporting news, and attractive magazine features. Under the steady pressure of competition, mergers were effected in a number of provincial towns to reduce the quota of papers, generally to a single daily.

The circulation of all periodicals is not known, but for 147 periodicals (not including two national weeklies classified as newspapers) the circulation is 2,026,000. (These statistics are compiled from information gathered by the Association of New Zealand Advertisers.)

The total number of magazines, reviews, journals, and periodicals printed (but not necessarily all sold) in 1968-69 was 109,025,000 compared with 92,697,000 in 1967-68.

Advertising—The advertising revenue of newspapers and periodicals is shown in the following table, along with the selling value of the newspapers and periodicals at the factory door.

Type of PublicationAdvertising RevenueSelling Value
1968-691969-701968-691969-70
 $(000)
Newspapers, daily25,79230,4318,7779,426
Newspapers, other than daily2,4722,4293,0873,372
Magazines, reviews, journals, and periodicals1,5411,8602,5422,503

LIBRARIES—New Zealand is fairly well served with libraries and the book stocks and circulation figures compare favourably with those of other English-speaking nations. In most centres the local authority maintains a public library.

Under the auspices of the New Zealand Library Association, a comprehensive system of inter-library co-operation has been developed, particularly in the use of resources by means of inter-library loans.

National Library of New Zealand—By the National Library Act 1965, the Alexander Turnbull Library, the General Assembly Library, and the National Library Service were combined to form the National Library of New Zealand.

A comprehensive collection of New Zealand material within the requirements of the Act is maintained by the Alexander Turnbull Library which also compiles the National Bibliography.

The National Library is responsible for maintaining and developing a national lending and reference collection, and for making its resources available to other libraries. On 31 March 1971 this collection comprised approximately 310,000 titles together with 22,000 volumes of bound periodicals.

Other functions are concerned with the national system of inter-library lending and national bibliographical projects. The National Union Catalogue records the non-fiction holdings of the major New Zealand libraries and now contains over 950,000 entries. The Union List of Serials in New Zealand Libraries, available in published form, is a similar record covering periodicals and other serial publications. The Index to New Zealand Periodicals, published annually, indexes significant articles from a wide range of New Zealand periodicals.

The library also acts as purchasing agent for most Government department libraries operating within the Public Account and provides a cataloguing, reference, and library advisory service for departments.

General Assembly Library—The General Assembly Library was established in 1858 and provides library services for Parliament. The chief librarian is guided by a committee of members of Parliament headed by the Speaker.

Since 1903 the library has been the depository for books, periodicals, etc., published in New Zealand. It contains about 10,000 bound volumes of New Zealand newspapers as well as many stored on microfilm; about 16,000 volumes of periodicals and, in addition, some 15,000 books or pamphlets relating to New Zealand. Several New Zealand newspapers are indexed daily.

The library has its strongest collections in subjects necessary to provide information for members of Parliament in their legislative duties. These include economics, politics, administration and law, biography and history. It has a good collection of Government documents, mainly from English-speaking countries—particularly parliamentary papers and debates—as well as publications of international organisations such as United Nations, UNESCO, and the International Labour Office.

In all, the library holds about 340,000 volumes.

During the parliamentary recess, the library is open to the public on the recommendation of a member of Parliament.

Alexander Turnbull Library—The Alexander Turnbull Library in Wellington is a State research and reference library, bequeathed to the nation in 1918 by Alexander Horsburgh Turnbull (1868-1918).

The original bequest has now been increased to approximately 117,500 books, together with many thousands of manuscripts, totalling 1,160 linear feet; 17,992 paintings, of which 7,742 are originals; 8,900 maps; and an extensive photograph collection. Acquisitions increase steadily in number, by purchase and gift. The Turnbull material has been augmented by many important donations and bequests, including some entire collections.

The fields covered by the library fall into two main divisions. The Pacific collections (inclusive of Antarctica) are strongest in material relating to history, early voyaging, ethnology, and literature, with particular emphasis upon New Zealand publications and the work of New Zealand authors; the trustees of the National Library have decided that these holdings should be regarded as the comprehensive national collection of New Zealand material. The general or non-Pacific collections are primarily concerned with English literature, rare books, and the development of the art of printing. The Milton collection, which was of especial concern to Turnbull himself, is of particular importance. There are about 9,500 volumes in the rare book collection of first editions of works in English literature, early printed books, examples of fine printing, and important historical and scientific works.

The library's extensive holdings of manuscript material include private archives relating to most aspects of New Zealand history. The library's resources of early paintings of historical and topographical interest are outstanding, as is the collection of photographs and negatives which has been built to about 162,000 pieces during the past 20 years.

The Alexander Turnbull Library is responsible for the compilation and publication of the National Bibliography, begun by the National Library Service in 1947, and for the centralised cataloguing of current New Zealand material.

Extension Division—This division has two parts:

(a) Country Library Service—The Country Library Service, founded in 1938 under the control of the Minister of Education, has been extended through regional offices in Hamilton, Palmerston North, and Christchurch for closer contact with participating libraries. Bulk loans of books are made free of charge to libraries controlled by local authorities, both borough and county, which operate a free library service locally and maintain it at a reasonable standard of efficiency. To towns where the population is less than 15,000, loans are made from book vans, special subject collections are sent, and thousands of books are supplied in response to requests for information and for individual titles. Libraries in towns with a greater population, excluding the main centres, also receive assistance. Their bulk loans are made direct from regional offices instead of, or in addition to, loans from book vans. Outside the boundaries of boroughs and town districts, groups of people may have books at the rate of $6 for 50 changed at regular intervals. Nine specially equipped vans, each carrying 1,600-2,000 books, travel over the whole territory.

Libraries obtaining books from the Country Library Service on 31 March 1971 included the following: free libraries, 148; county libraries, 801; groups, 27; Ministry of Works, Electricity Department, and New Zealand Forest Service camps, 67; psychiatric and general hospitals, and prisons and borstal institutions, 63. The number of books on loan to these libraries totalled 326,886 and 148,520 books were lent on request and in loan collections during the year.

(b) School Library Service—The School Library Service, established in 1941, is responsible for providing a wide and varied choice of books of high imaginative quality or technical excellence for children at all levels of ability and stages of development. The bookstock at 31 March 1971 totalled 2,298,977 books.

General exchanges of books for recreational reading are made by 13 district offices to State and private primary schools from Standard 1 upwards. An information and request service is available to teachers and pupils of primary and secondary schools. Public libraries which give free service to children and young people also receive circulating loans of books. Services to pre-school groups are given through local public libraries or direct from district offices.

For the year ended 31 March 1971, books exchanged totalled 977,493 and 805,612 books were on loan at 31 March. 1,139,440 books were provided through the information and request service.

Library School—Since 1946 the New Zealand Library School has offered to university graduates a full-time, 1-year course. It leads to a diploma and to library posts at the professional level. Some 536 students had successfully completed the course by the end of 1970 and in 1971 there were 39 New Zealand students and 4 under the various schemes of external aid. Students doing this course receive the same allowances as do students at teachers' colleges. The school also conducts the block course for library assistants with University Entrance leading to the New Zealand Library Association Certificate and to library posts at the intermediate level. Students attend on a full-time basis, usually on leave with pay from their libraries, for three blocks of tuition spaced at intervals of about 9 months and each taking 4 weeks.

CENSUS OF LIBRARIES 1969—The quinquennial census of libraries for the year ended 31 March 1969 covered a total of 445 libraries, namely, 266 public libraries (including 56 suburban branches), 33 tertiary education libraries, the National Library, and 144 libraries of a technical nature.

Tertiary education libraries comprised the libraries of the 6 universities, with 3 libraries closely associated with them; libraries of 9 teachers' training colleges; 1 agricultural college library; 10 libraries of theological colleges and 5 libraries of technical institutes. Libraries of secondary and primary schools were not covered in the census.

In the period 1964 to 1969 public library membership increased by 35 percent but circulation per member dropped at most libraries, both large and small. This could be due to the increased viewing of television. (Licensed television sets in the country increased from 144,000 at 31 December 1963 to 604,000 at 31 December 1968.) There was, on average, 26 issues per adult member and 16 issues per child member for the year 1968-69. There were in the public libraries 4.37 books to every member and on average these books circulated 5.12 times annually; thus members took out an average of 22.40 public library books a year. (This compares with 29.06 books for the year ended March 1964.) These circulation figures for public libraries were relatively high by international standards. Junior readers read four times as much fiction as non-fiction, while adults read three times as much.

The following are summarised tables of the results of the 1969 census. Full details containing the census data have been published in a separate report prepared by the Department of Statistics.

Class of LibraryNumber of LibrariesBook Stock at 31 March 1969Circulation During Year
Books*SerialsPamphletsTotalItems Lent Outside the LibraryItems Lent to Other LibrariesItems Borrowed From Other Libraries

*Microforms (films and cards), included in books.

†Periodicals included in serials.

‡ Excludes armed forces and institutional (penal, etc.) libraries which are included under public libraries.

     (thousand)   
National libraries13,484179113,6732,539124
Libraries in universities, etc341,50531461,8251,1341321
Special libraries—        
    Learned societies and commercial interests61167196193825444
    Government departments and associated organisations83607424701,1011691422
            Totals, special libraries144774620891,4832241826
            Grand totals1795,7631,1121056,9813,8974351
PUBLIC LIBRARIES—BOOK STOCK AT 31 MARCH 1969
Class of Public LibraryNumber of Library SystemsOwn StockTotalFor Reference Only (Included in own Stock)Country Library Service Stock
AdultJunior
RentalFree FictionFree Non-fictionFictionNon-fictionAdultJunior

* 191 library systems covering 266 libraries.

†Includes Canterbury suburban pool stock, adult 19,722, junior 35,773.

In centres with an estimated population of—(thousand)
50,000 and over7316238830256981,7376121
20,000-49,99916991803331534881331257
10,000-19,99918347393621627832110
5,000-9,99929807185541430553114
3,000-4,9993571653933621322213
Under 3,0005810454772252131269
            Sub-total1637036811,4085811863,55910212853
Armed forces and institutions2828547331159252
            Grand totals191*7327351,4815841873,71810413255
PUBLIC LIBRARIES—BOOKS: CIRCULATION AND USE
Public LibraryNumber of LibrariesIssues from Own StockIssues from Country Library Service StockInter-library Loans
AdultJuniorTotalAdultJuniorLent to Other LibrariesBorrowed from Other Libraries
RentalFree FictionFree Non-fictionPeriodicals
*191 library systems covering 266 libraries.
In centres with an estimated population of—(thousand)
50,000 and over71,7551,7781,4484072,1147,502--213
20,000-49,999161,1231,7397561571,7505,5266535116
10,000-19,99918498378426917142,10710155-16
5,000-9,99929676320356515531,95513782-19
3,000-4,99935413249150212661,09910248-14
Under 3,000583401057851676968645-10
            Sub-total1634,8054,5683,2157325,56318,884492265387
Armed forces and institutions286467262416372-8
            Grand totals191*4,8694,6353,2417355,56819,047498267495

NOTE: Because of rounding, totals in the previous three tables may differ slightly from the sum of the individual items.

International Statistics on Libraries—The following tables compiled from published UNESCO and other statistics show New Zealand's position in relation to other English-speaking countries as regards library resources, borrowers, and book circulation.

NATIONAL, UNIVERSITY, AND SPECIAL LIBRARIES
CountryPopulation (Million)YearType of DataLibrary Category
NationalUniversitySpecial
New Zealand2.81,969Libraries134144
   Volumes (000)3,6731,8241,483
Australia11.61,966Libraries115...
   Volumes (000)1,0004,241...
Canada20.01,966Libraries176580
   Volumes (000)40012,1275,613
South Africa14.41,958Libraries2......
   Volumes (000)700......
United Kingdom53.71,963Libraries34781,177
   Volumes (000)11,00027,68814,850
United States of America194.61,965Libraries12,1686,000
   Volumes (000)12,534241,000130,000
PUBLIC LIBRARIES
CountryPopulation (Million)YearNumber of LibrariesBook Stock, Number of VolumesBorrowersCirculation, Number of Volumes
    (000)(000)(000)
New Zealand2.81,9692103,72885119,047
Australia11.61,9665529,5471,888...
Canada20.01,96689020,573...80,824
South Africa14.41,9583684,933537...
United Kingdom53.71,96356277.200......
United States of America194.61,9651,113199,533......

CINEMAS—Statistics relating to cinemas are normally collected every alternate year. The survey of cinemas for the year ended 31 March 1969 covered 227 theatres, compared with 312 in 1967.

The extensive development of television since 1961 has influenced cinema patronage. Cinema attendances during the year 1968-69 were 5.3 million fewer than when the previous survey was made in 1966-67. The average annual number of admissions per head of mean population fell from 7 in 1966-67 to 5 in the latest survey.

The following table gives figures of cinema attendances and takings.

YearTheatresAdmissionsGross Admission TakingsAverage Admission Price*Admissions Per Head of Mean Population
*Including amusement tax up to and including 1964-65. This tax was abolished as from June 1965.
  (000)$(000)cNo.
1939-4057431,1714,02012.919.1
1944-4555135,4205,17614.621.3
1949-5060036,3535,58015.319.3
1953-5458237,3687,36019.718.1
1956-5757837,5968,96623.817.1
1958-5954738,2089,70025.416.6
1960-6154540,63210,79226.617.0
1962-6349137,58410,13627.015.0
1964-6539726,0268,18031.410.0
1966-6731219,6067,78939.77.3
1968-6922714,3086,61446.25.2

The following statistics for the last three collections cover the operations of all classes of cinemas— viz, (a) those operating 6 days per week; (b) those operating on odd days per week; (c) circuit, or itinerant operators. The average number of screenings per week in these categories in 1968-69 were 12.0, 2.6, and 1.3 respectively.

Item1964-651966-671968-69
Cinemas—   
    Screenings 6 days per week176163130
    Screening odd days per week19713393
    Circuit24164
            Totals397312227
Cinemas according to seating accommodation—   
    Other than circuits—   
        Under 200422717
        200 and under 50014410367
        500 and under 1,000157140115
        1,000 and over302624
    Circuit cinemas24164
            Totals397312227
Seating accommodation (all cinemas) No.209,991178,722143,428
Average seating capacity per cinema No.529573632
Persons engaged—   
    Full time—   
        Males No.518439360
        Females No.418349333
    Part time—   
        Males No.722566422
        Females No.1,182984697
Performances per year No.138,314114,98794,086
Average attendance per performance No.188171152

Statistics on the commercial operation of theatres are given in the following table. These statistics relate only to cinemas, and do not purport to show employees, revenue, and expenditure of the motion picture industry as a whole. In particular, the full revenue and expenditure in connection with screen advertising, and also head office expenses of controlling companies (including such items as interest on debentures and mortgage charges), unless recovered from exhibitors, are not recorded in the statistics. The item “Rent” under “Theatre expenditure” does not represent the rental value of all theatres, but only the rent paid where theatres were leased or rented.

Item1964-651966-671968-69
*Includes drawings of working proprietors.
Revenue— $(000) 
    Admission receipts (including amusement tax)8,1807,7896,614
    Screen advertising384251137
    Other receipts304484564
            Totals8,8688,5247,315
Expenditure—   
    Salaries and wages*2,1282,0191,732
    Film hire2,6042,8332,188
    Advertising598611556
    Amusement tax180......
    Rent370368339
    Repairs and maintenance226307343
    Depreciation21213991
    Other expenses1,4521,4881,402
            Totals7,7687,7656,650

Classification by Statistical Areas—The following two tables show some of the principal statistics for cinemas for 1968-69 by statistical areas. Attendances per person in 1968-69 declined in all areas.

Statistical AreaPopulation 1 April 1969Number of CinemasSeating AccommodationPaid AdmissionsAverage Admission ChargeAdmissions per Head of Population
*Based on mean population in this case.
   Number of Seats(000)cNo.
Northland94,900125,27537136.83.9
Central Auckland656,2004129,1433,79051.85.8
South Auckland - Bay of Plenty408,8004322,4391,85438.14.5
East Coast - Hawke's Bay176,700149,05990539.85.1
Taranaki101,50095,52448138.44.7
Wellington542,0003630,5063,02148.55.6
Marlborough-Nelson98,80095,02243638.64.4
Westland23,90073,26715730.96.6
Canterbury388,1002917,5901,97350.55.1
Otago182,3001910,48083947.24.6
Southland107,60085,12348139.34.5
            All areas2,780,800287143,42814,30846.25.2*
Statistical AreaAdmission TakingsFilm HireFilm Hire as a Proportion of Admission TakingsNumber of Performances for YearAverage Attendance per PerformanceAverage Seating Capacity per Hall
 $(000)$(000)percentNo.No.No.
Northland1364331.23,457107440
Central Auckland1,96368635.021,441177711
South Auckland - Bay of Plenty70723433.113,388139522
East Coast - Hawke's Bay36011832.77,380123647
Taranaki1856133.13,701130614
Wellington1,46546031-419,408156847
Marlborough-Nelson1685130.63,139139558
Westland491429.71,387113467
Canterbury99633633.712,222161607
Otago39612531.65,488153552
Southland1895931.13,075156640
            All areas6,6142,18833.194,086152632

Classification by Urban Areas—Statistics have been prepared for the principal urban areas for the latest year and are shown in the next table. The Hutt urban area has been included with Wellington for the purposes of these statistics.

Seating accommodation in relation to population in these areas shows Dunedin to have one seat for every 20.1 persons, Wellington one for every 20.6, Auckland one for every 21.0, and Christchurch one for every 23.2.

Urban AreasPopulation 1 April 1969Number of CinemasSeating AccommodationPaidAdmissions per seatAverage Admission ChargeAdmission per Head of Population
 (000)No.No. of Seats(000)No.cNo.
Auckland5883827,9833,74713452.06.4
Wellington (including Hutt)2951514,3121,91413454.06.5
Christchurch2581511,1261,57214153.36.1
Dunedin11065,49362011351.55.6
            All areas1,2527458,9147,85313352.75.3
Urban AreasAdmission TakingsFilm HireFilm Hire as Proportion of Admission TakingsNumber of Performance for YearAverage Attendance per PerformanceAverage Number of Seats Available per PerformanceProportion of Hall Capacity Filled per Performance
 $(000)$(000)PercentNo.No.No.percent
Auckland1,94968134.920,84118094519.0
Wellington (including Hutt)1,03432231.211,3711681,01916.5
Christchurch83828433.88,74118081022.2
Dunedin31910332.23,75416595217.3
            All areas4,1401,38933.544,70717693818.7

Classification of Cinemas—The following table shows the classification of cinemas according to number of screening days per week and of circuit operators.

ScreeningNumber of CinemasSeating AccommodationPaid AdmissionsAdmissions per SeatAverage Admission ChargeAdmissions TakingsFilm Hire
 No.No. of Seats(000)No.c$(000)$(000)
Six days per week130108,04213,10012147.36,2012,053
Odd days per week9335,3861,2093434.2413134
Circuit4
            All cinemas227143,42814,30810046.26,6142,188
ScreeningPersons EngagedNumber of Performances for YearAverage Attendance per PerformanceAverage Number of Seats Available per PerformanceProportion of Hall Capacity Filled per Performance
Full TimePart Time
MaleFemaleMaleFemale
 No.No.No.No.No.No.No.percent
Six days per week31130227055081,32416189817.9
Odd days per week493115214712,7629544221.6
Circuit......
            All cinemas36033342269794,086152......

Cinema Attendance in Principal Countries—The table below shows the number of admissions per head in the years quoted in a number of selected countries. These figures are taken from the United Nations Statistical Yearbook.

CountryYearNumber of Admissions
Total (Million)Per Head
Australia1,966383
Canada1,966995
Denmark1,967306
France1,9672164
Germany, West1,9681923
Israel1,9665822
Italy1,96756711
Japan1,9683133
New Zealand1968-69145
Norway1,966195
Russia (U.S.S.R.)1,9684,71520
Spain1,96835811
Sweden1,968305
Switzerland1,968356
United Kingdom1,9682374
United States1,9671,3017
Yugoslavia1,9681005

Chapter 13. Section 13 LAND USE AND RESOURCES DEVELOPMENT

13 A—PHYSICAL ENVIRONMENT

PHYSICAL ENVIRONMENT AND ECONOMIC GROWTH—Accelerated development due to demographic and economic growth has produced interactions with the natural environment that were not so evident in earlier history. There is a growing realisation that the economic well-being of New Zealand and the preservation of its unique natural features both depend on wise use of the land. Neither may be accorded a higher priority than the other as of right, nor is there any simple means of arriving at the optimum balance between development and growth on the one hand and preservation of natural resources on the other. Where there is a major conflict the choice between economic welfare and what is commonly referred to as “the quality of life” is one for informed public decision. Provided the necessary safeguards are adopted, economic growth and the maintenance of environmental values can be compatible. An Environmental Council has been formed as one of the sector councils of the National Development Council and a Minister for the Environment appointed.

The problem facing New Zealand is how to combine the economic and social pressures on soil, water, plant, and fauna resources with the maintenance of ecological and aesthetic qualities. Solution of this problem will require understanding by both administrators and the public, firstly of the importance and interdependence of the different values involved, and secondly of the ecological implications of any decisions affecting resource utilisation.

In the past, insufficient attention has been given to the possibility of comprehensive or multiple resource use. Single use rather than optimum use has tended to place the advocates of exploitation and protection in opposing camps. New Zealand is now being forced to reconsider the long-established pattern of single-purpose development projects, and the passing of the Water and Soil Conservation Act 1967 is evidence of this new outlook.

Further evidence of a growing awareness of the need to protect and improve the quality of the human environment is provided by the decisions of the National Development Conference sessions in 1968 and 1969. The conference recognised that the simple objective of increased gross national product per head was insufficient—the true objective and justification of economic growth being to improve the quality of life of the community. As a result, an Environmental Council has been set up to advise the National Development Council and the Government on matters of economic development which will affect the environment. Thus, there is provision for environmental issues to be considered at the level of macro-economic planning and policy making.

At the micro-economic level also, there is increasing awareness of the need to weigh up the costs and benefits to society when resource utilisation is likely to involve environmental degradation. Formal cost-benefit analysis, or at least its basic concepts, is being used in project analysis. There is, however, wide recognition of the limitations involved in measuring environmental values, particularly as different groups of society place different values on many phenomena. It is also recognised that there are difficulties in discounting resources like soil, output from which can be sustained indefinitely, against irreplaceable resources like minerals, and values resulting from eternal aesthetic qualities against temporary productive values.

LAND USE—The total area of New Zealand, excluding the island territories in the Pacific, but including the minor islands since these form parts of land districts, is 26,867,400 hectares.

The broad grouping of land use is shown in the following table.

Land UseAcres (million)Hectares (million)
Occupied farm land—  
    Improved grassland20.58.30
    Tussock and other native grassland11.84.78
            Total grassland32.313.08
    Land in field crops, gardens, and orchards1.10.45
    Plantations3.41.38
    Land in fern, scrub, and second growth3.41.38
    Standing bush2.71.09
    Barren and unproductive land1.90.77
            Total occupied farm land42.917.35
Land in cities and boroughs0.69.24
National parks, reserves, and domains6.22.51
State forest land10.14.09
Exotic forest owned by companies0.60.24
Other land, including waste land such as mountains, bare rock, water surfaces, roads, etc.6.02.43
            Total land66.426.87

With over 26 million hectares of land and a population of less than 3 million, New Zealand has not in the past been conscious of the problems of resource utilisation experienced in the more closely settled countries. An extensive coastline (approximately 15,000 km), great variety of landscape and responsive soils and a generally favourable climate at lower altitudes are some of the assets which, because of the small population, have been utilised without any serious detrimental effects on the social and economic fabric. In retrospect, however, it is apparent that some of the land and other resources have been wastefully exploited. For example, at the time of the first European settlements, two-thirds of the country was forested, but the destruction of much of this was without economic return, and in areas which proved unsuitable for farming serious soil erosion resulted. Destruction of forest and tussock grassland vegetation destroyed existing ecological balances and stability has still not been achieved in some areas.

Effects of Urbanisation—The growth and changing distribution of the population have been strongly influenced by the distribution of the most productive soils. In the nineteenth century, when the population was small, the ultimate results of preferential settlement of the best agricultural land were not appreciated. Generally, the most productive areas became the most prosperous and therefore, when the towns within them grew, it was at the expense of the most productive soils. Later, manufacturing and tertiary industries tended to locate in these towns because of the labour, markets, and services they offered.

It has been estimated that between 1949 and 1964 urbanisation claimed approximately 15,800 hectares of good farming land, and that expansion over the following 15 to 20 years would require another 30,000 hectares of similar quality land. Considering that the total area of good farming land includes approximately 8,300,000 hectares of first-class pastoral land and 500,000 hectares of first-class cropping land, and that agricultural production derives benefits from urbanisation, this is not a serious problem on a national scale. In certain localities, however, unrestricted urban expansion could have serious limiting effects on agricultural production in the future. The problem is most acute around Auckland, the population of which is 698,000, increasing at 3.5 percent per annum, and therefore likely to double in 16 years. In such cases the legislation intended to direct expansion onto lower value soils (e.g., Town and Country Planning Act 1953 and Local Government Commission Act 1967) may prove to be inadequate because, while it can direct growth in each locality onto the least productive soils, it cannot prevent growth as such. It is not possible to reverse the historical factors that have determined the present population distribution, but it is felt that a national policy for the protection of the soils potentially most productive may be necessary.

WATER RESOURCES—Although New Zealand is generally favoured with abundant rainfall distributed fairly evenly throughout the year, the growing demand for water, especially in areas subject to recurrent seasonal drought, is tending to outstrip readily available supplies. Even where sufficient water is available to meet foreseeable demands, deterioration of the natural quality and disturbance of the natural pattern of flow could limit utilisation for some purposes. Loss of mountain soils as a result of the destruction of forests and the presence of browsing animals in upland catchments, and intensive farming of lower areas have contributed to the increased amounts of suspended sediment and gravel carried into streams. Organic and inorganic substances from farming operations and urban development are of increasing concern, particularly in the case of Auckland which will shortly have to begin drawing some of its water from the river draining the intensively farmed Waikato catchment. To ensure that the quality of natural waters is maintained as source of supply for human and animal consumption and as wildlife habitats and recreational areas, it is necessary that sedimentation, pollution, eutrophication, and draining be minimised.

In an effort to preserve the natural beauty and quality of the waters of Lake Taupo (61,000 hectares) in the centre of the North Island, a major project is underway to create substantial reserves along the lake shores. Preservation of the quality of water is crucial to the future of wildlife habitats, particularly the Taupo fishery, to the quality of drinking water drawn from the lake and, in the long term, to recreational and scenic values of the lake surroundings. In recent years, large-scale land development and increased human occupation in the Taupo basin have sharply accelerated the rate of eutrophication of the lake. In an effort to reduce nutrient inflow to a minimum, large reservations of peripheral land in natural cover have been proposed and generally accepted. As a further means of countering erosion and the inflow of nutrients, studies are being undertaken to establish guidelines for farming, forestry, and other uses outside the reserve areas.

Legislation—In 1953, the Waters Pollution Act was passed. This Act set up the Pollution Advisory Council, whose responsibility was to formulate policies such as to prevent and/or reduce water pollution throughout the country. In 1963 the Waters Pollution Regulations were issued. These defined water quality standards to which waters could be classified and prescribed that each waste outfall must have a permit to ensure that the water quality is not reduced to below the classified standard.

In 1970 the Pollution Advisory Council's title was changed to the Water Pollution Control Council. At the same time responsibility for the Waters Pollution Act was transferred from the Minister of Marine to the Minister of Works, who is also in charge of the Soil Conservation and Rivers Control Act 1941 and the Water and Soil Conservation Act 1967. From 1 April 1972 the Water Pollution Control Council was replaced by the Water Resources Council, which is responsible for maintaining the quality of natural water in New Zealand at a satisfactory level. The council is at present classifying all rivers and coastal waters throughout New Zealand. These classifications divide rivers or coastlines into sections according to the uses of the waters, e.g., water supply, swimming, shellfishing, and the like. The water quality standards, prescribed according to these uses, must then be complied with by discharges of wastes.

The allocation of water in New Zealand is the responsibility of the Water Resources Council. Broadly, the council's functions involve developing and co-ordinating a national policy concerning New Zealand's water resources to ensure that the greatest local and national benefits are obtained from its use.

By 1971 the council and regional water boards had granted some 4,000 water rights, with about 700 under action and 40 declined.

Since its inception, the council has developed a standard set of conditions for rights granted and developed a computer system for recording and retrieving information on water rights granted throughout New Zealand.

The council is also actively encouraging regional water boards to carry out water resources surveys in their respective areas.

POLLUTION—Public concern for the quality of the environment is reflected in an increasing awareness of the presence of air, water, and soil pollutants. There is a growing recognition of the fact that not only do extreme forms of pollution cause an immediate hazard to human health, but that all forms of pollution in some way impair physical, mental, and social well-being. Some forms of pollution, are easily recognised and relatively simple to define, such as oil slicks and radioactivity; other forms of pollution (such as objectionable noise and odour) are more subtle, since these are particularly subject to individual response.

The geographical isolation of New Zealand has provided this country with certain natural advantages This country enjoys a climate which is favourable to the dispersion of air pollution. There are, of course, external threats to the New Zealand environment. The National Radiation Laboratory of the Department of Health continuously monitors the additional amount of radioactivity in the environment caused by the testing of nuclear weapons; to date, this has been well within safe limits and lower than in countries in the Northern Hemisphere. Oil discharged from ships at sea, whether the discharge is accidental or not, constitutes a threat to New Zealand's coastal beaches and to marine life.

Pollution is usually most acutely noticeable in the form of air pollution, whether by offensive gases, sounds, or odours. At the present time, except for a few limited situations such as domestic smoke pollution in Christchurch, the concentrations of pollutants in the New Zealand atmosphere are well below those causing concern overseas. In part this situation is the result of climatic conditions and of the comparatively recent growth of urban communities and industry to a size at which they become significant as a source of pollution. Legislation and supervision in recent years have ensured that new technical processes being established are equipped to the highest standards of pollution control now enforced overseas.

Water pollution can be caused by sewage from towns and liquid wastes from industries, while fertilisers washed from farmlands by rain add nutrients to natural waters. These nutrients encourage the development of water weeds and other aquatic plants which may lead to a deterioration of the water environment.

To reduce land pollution there is a need for some means to convert into fertilisers or feedstuffs the waste materials derived from slaughtering 35 million livestock each year. Present methods of disposal by burial or dumping are wasteful of both the nitrogen content of these materials and the land used for their disposal.

New Zealand produces about 2 million cubic metres of solid wood residues each year. Except where sawmilling is integrated with a pulp mill, disposal of this waste is on the land by burning, as technical developments have not yet produced other means of securing some return from this residue.

Organic chemical pesticides and herbicides are widely accepted as essential for efficient agriculture. Some 80 different herbicides and fungicides and 40 insecticides are in common use in New Zealand. The use of D.D.T. as an agricultural chemical has been banned, but there are dangers that substitutes may disturb ecological systems. Windblown drift from hormone weedicides applied in spray or dust form have damaged grape and tomato crops. Their use within effective radius of vineyards is now controlled by Government regulation.

CONSERVATION OF NATURAL ASSETS—In New Zealand the traditional and current attitude towards conservation is to emphasise the desirability of preserving, at least in selected areas, the characteristic beauty of the landscape and providing access and facilities for recreation and enjoyment of such natural features. This emphasis has resulted in a significant provision of extensive national parks and smaller reserves.

Scientific investigation and research have already reinforced the validity of the beliefs based on sentiment and aesthetics that there are dangers in any disturbance of natural equilibrium of air, water, soil, plants, animals, and stabilised landforms, or in the pollution of any of them. Changes in the balance of dominance of even obscure organisms or a slowly declining water table can be factors in the deterioration of countryside.

Conservation however means much more than the preservation of scenic and scientific values. Conservation in the widest sense implies the maintenance without diminution of the basic resources on which New Zealand's economy and way of life are based.

There already exist many organisations concerned with problems of conservation in its many fields. National agencies or Government departments charged with the implementation of legislation include the National Water and Soil Conservation Authority which promotes soil and water conservation through the Water and Soil Division of Ministry of Works, catchment authorities, and regional water boards; the New Zealand Forest Service concerned with the welfare and management of vast areas of protection forest and mountain lands and with the control of fire and noxious animals on all unoccupied Crown land; the Department of Lands and Survey which supervises the management of extensive areas of tussock grassland and which (through the National Parks Authority) administersover 2.4 million hectares of national parks, scenic reserves and reserves for the preservation of fauna and flora; the Marine Department concerned with fresh water fish; and the Department of Internal Affairs which has a special interest in the preservation and propagation of game birds and of protected native birds.

Societies with membership open to the public which are vitally concerned with aspects of conservation include the Royal Forest and Bird Protection Society, the Scenery Preservation Society, and the Federated Mountain Clubs. Basically such societies act as public watchdogs but some are also involved in the actual care and study of natural areas. In addition, acclimatisation societies have statutory responsibilities in some aspects of conservation.

While there is no body specifically charged with research into the preservation of natural resources, several Government departments, notably the Department of Scientific and Industrial Research and the New Zealand Forest Service, carry out investigations aimed at solving conservation problems. Also the Royal Society of New Zealand and some of its affiliated bodies as well as the universities and museums foster or carry out research and inquiry in the field of conservation.

FOREST CONSERVATION—Direct and indirect responsibilities bestow on the Forest Service a vital role in the conservation of the nation's resources.

Of the many definitions of conservation the one adopted by the Society of American Foresters is regarded by the Forest Service as equally appropriate in New Zealand: “Conservation as applied to the forest is the management and husbandry of the forest for specific objective or objectives to fulfil human needs. The objective may involve the management of the forest for water, timber, wildlife, forage, or recreation or for a combination of these uses. It may include the maintenance of the forest in the wilderness state for spiritual enjoyment and primitive recreation.”

In respect of State forests (about 4 million hectares) this definition embraces: (a) the husbanding of indigenous forests yielding timber needed for special purposes, but which are difficult to perpetuate and must therefore be used as sparingly as possible; (b) the management in selected areas of less silviculturally difficult forests, such as Westland terrace rimu and beech, on a sustained yield basis; (c) the creation and management of exotic forests on a sustained yield basis for the production of wood for a wide range of uses; (d) the establishment or maintenance in a healthy state of protective vegetation on hill and mountain land to preserve soil and to control the flow and protect the quality of water; (e) the protection of exotic and indigenous forest against fire, disease, and noxious animals for the maintenance of: a supply of exotic and indigenous wood, a vegetative cover to preserve soil and water values, a habitat for wild life, and scenic and other amenity values in perpetuity; (f) the legal reservation of selected forest types as forest sanctuaries and scenic reserves; (g) the use of exotic and indigenous forest for recreational and other purposes, including spiritual enjoyment, where this is not incompatible with essential timber production or soil and water conservation.

Recreation in State Forests—Policy in regard to recreational use of State forests has entered a positive phase in recent years. There has arisen fuller recognition of the appeal of the wild lands, particularly for the dweller in urban surroundings. Many indigenous State forests offer scope for leisure pursuits in surroundings of great natural beauty—for study of wild life (plant and animal); for strenuous travel through difficult country; and for the sports of shooting and fishing enthusiasts. Most of the attractive forested hill country is managed primarily for soil and water conservation; recreational use can be allowed in almost all such protection forests without interfering with the main management objectives. In fact, private hunting can be of benefit through its contribution in destroying wild animal pests.

There is being developed a system of State forest parks where management planning incorporates provision for recreation. Such provision includes improvement of access from the main roads to the forest boundaries, clearing and maintaining tracks, erecting bridges, making camp sites and picnic places, and (sometimes in co-operation with tramping and alpine clubs) building and maintaining shelter huts, assets also of use to Forest Service personnel. Entry is unrestricted except that, in the interests of safety, persons carrying firearms require permits from the Forest Service.

State forest park status does not sterilise the resources of the area so designated. The Forest Service retains full control of disposal of timber, minerals, or other produce and remains responsible for any forestry operations needed for the well-being or improvement of the park, whether for production or recreation. Advisory committees representative of the recreational users are appointed to help with the planning of this aspect.

The older exotic forests also offer the attractions that only a sylvan setting can provide and have the advantage of accessibility. In many places walks and picnic spots have been prepared for use by the public and selected areas will be preserved from felling for their scenic value. Because of the dangers which may be encountered in the working areas of what are essentially timber-production forests, to grant complete freedom of entry is not practicable.

WATER AND SOIL CONSERVATION—In New Zealand today water and soil conservation is organised on a national and local basis. The National Water and Soil Conservation Authority is the central policy-making body and, with the Soil Conservation and Rivers Control Council and the Water Resources Council, comprises the National Water and Soil Conservation Organisation. The authority is responsible for formulating general policy guidelines concerning water and soil conservation and each council has certain functions delegated to it.

Representation on the authority and councils includes counties and municipalities, catchment authorities, regional water boards, drainage and river boards, farming, manufacturing, and recreational interests, and appropriate Government departments.

Regional water boards and catchment authorities have been formed over much of the country. These local government bodies are the action arms of the organisation and are responsible for putting its policies into operation.

A Soil Conservation and Rivers Control Council was set up in 1941. By 1967 there were 17catchment authorities—13 catchment boards, 3 catchment commissions (these differ from boards in that they consist of appointed members only, the majority being nominated by territorial authorities, and may have a more limited function), and the Waikato Valley Authority. (Set up by the Waikato Valley Authority Act 1956, this authority is organised on a similar basis to a catchment commission and, in the main relies on territorial local authorities to construct works.) These 17 authorities covered three-quarters of the country. The remainder of the country was serviced by the Ministry of Works district offices as agents for the Soil Conservation and Rivers Control Council.

In 1967, the Water and Soil Conservation Act was passed. This Act promoted a national policy in respect of natural water. It requires the whole of New Zealand to be covered by regional water boards having the power to grant water rights and to plan for the best use of New Zealand's water resources. The existing catchment authorities were given added functions to allow them to be regional water boards. Those areas not covered by catchment authorities are being incorporated into existing catchment authority areas or established as new water regions. Whether these new regions wish to exercise functions relating to erosion and river control is optional, but those functions relating to the use of natural water are mandatory.

Since the Act came into operation in 1968 one new catchment commission (regional water board) has been formed and a number of areas have been added to existing regions. There are now 18 catchment authorities (regional water boards) throughout New Zealand.

Catchment Control Schemes—The policy of the Soil Conservation and Rivers Control Council is to foster complete catchment control schemes wherever possible, i.e., the integration of river control work with water and soil conservation practice on the land areas in individual river catchments.

This concept has developed from the realisation that many problems of river flooding have been aggravated by inadequate management practices of the land in a river catchment. If run-off can be restricted to a minimum, then this will help to lessen flooding in small streams. It will also greatly reduce soil erosion and the aggradation of river beds.

Drainage—The high rainfall and run-off factors in New Zealand have created drainage problems in many areas, particularly in low-lying sections of valleys, where river gradients are flat, and coastal areas. Drainage works are often carried out in conjunction with river-control schemes, in which case they must be properly co-ordinated with the river works, and may include floodgates and pumping stations. In the North Island particularly there are large areas of peat swamps that pose a special problem in development because of the danger of excessive shrinkage with over drainage.

River Control—New Zealand has a generous and well-distributed rainfall that exceeds 1,100 mm over about 70 percent of the country, and has only a very small area receiving less than 600 mm. In. some districts, such as the west coast of the South Island and the western central plateaus of the North Island, annual rainfall exceeds 2,500 mm, with extremes of over 5,000 mm.

The topography and soils over most of the country generally favour high run-off as shown by both total annual river flows and peak flood discharges. There are, however, some areas in the North Island where flood peaks are greatly reduced by porous pumice soils, while on some rivers systems natural lake storage in headwaters helps to control flooding.

Severe storms are likely to occur in any season of the year and extreme falls of 300-500 mm in 24 hours have been experienced in certain areas. With total run-off and peak flood discharges being among the highest in the world, it is not surprising that flood control is a major problem in New Zealand.

With the passing of the Soil Conservation and Rivers Control Act 1941 and the setting up of catchment authorities with their specialist staff, great progress has been made with river-control work throughout the country. Action was naturally focused first on the major river valleys where there has been a history of severe flood damage and where the property owners have been able to meet their share of the cost. Schemes are now in hand, or planned, for controlling the lower reaches of most of the major problem rivers.

There are still many rivers in New Zealand where major control schemes cannot be justified at the present time, but where a great many smaller, individual works are being carried out. Such works primarily serve to hold the river in check and prevent serious deterioration until such time as more comprehensive planning can be justified.

Most river-control works are carried out by catchment authorities or river boards, but some smaller works are also carried out by Ministry of Works, counties, and drainage boards.

Hydrology—The effective use and control of water depends upon the availability of accurate long-term data on water movement such as run-off and river flows. In 1959 New Zealand began a new phase in hydrological work when a regional system for collecting comprehensive data was initiated. This involves subdividing New Zealand into 91 regions, based on similarity of slope, rock type, and precipitation, and is designed to avoid uneconomic fragmentation of work. For each region there is a representative catchment from which accurate run-off data are collected and published. The information is used when applications for water rights are being considered.

Since 1965 a programme of hydrological research on small catchments has been operating as part of New Zealand's International Hydrological Decade programme. Hydrological work is largely carried out by the Ministry of Works although some field work is done by catchment authorities.

Irrigation—New Zealand's climate allows a wide range of crops to be grown successfully. However, many of its soils, although potentially capable of high production levels, suffer from a seasonal moisture deficit and require irrigation to reach their maximum productivity. Irrigation therefore plays an important part in New Zealand's agricultural economy.

Reserves of undeveloped but productive land are virtually exhausted. The increases in primary production that will be needed to keep pace with increases in population will have to come from soils already farmed but not developed to their full potential. Many soils at present farmed under dryland conditions are capable of substantially increased production under irrigation.

Otago—The earliest schemes were constructed in Central Otago by local people and used old mining races as the source of their water. These races were not originally planned for irrigation and land suitable to irrigate from them often occurred in small, separated areas.

The early schemes were followed by others planned, built, and controlled by the Government, the first being the Ida Valley scheme completed in 1917 and serving an area of 5,000 hectares. Many more schemes have been completed by the Government, and others are under construction or proposed.

The Upper Waitaki scheme, which takes its water from the Waitaki Dam, serves an area of 1,375 hectares; it was completed in 1965 at a cost of $487,630. Construction is now under way on the Lower Waitaki scheme which will serve an area of 14,000 hectares at an estimated cost of $2.25 million and will draw its water from the Waitaki River.

Canterbury—The average rainfall between Canterbury's foothills and its coast is 750 mm, and experience has shown that with irrigation a substantial increase in farm production is possible. It was possible to plan irrigation of the Canterbury Plains on a much larger scale than had been possible in Central Otago. This was because of the large areas of suitable land and a plentiful supply of water from the main rivers crossing the plains.

In 1935 the Government was anxious to provide productive employment and so decided to go ahead with a number of schemes. This was done on the assumption that the benefits to be gained would induce landowners to irrigate immediately water was available. Some schemes were started without any prior commitment by the landowners to use the water.

On this basis, the Redcliff scheme (serving about 1,600 hectares and drawing water from the Waitaki River) and the Levels scheme (serving about 1,600 hectares and drawing water from the Opihi River) were completed in 1936 and 1937.

Work was also started on the Rangitata River diversion race. This race has a capacity of 1,200 cusecs and runs from the Rangitata River to the Rakaia River, the water being used partly for irrigation and partly to generate electricity. The Ashburton-Lyndhurst, Mayfield-Hinds, and Valetta Farm Settlement schemes, which draw their water from this race, were completed in 1944, 1948, and 1957.

The latest scheme is the Morven-Glenavy scheme on which construction has commenced. This will serve 9,700 hectares north of the Waitaki River and will use water from that river. The total cost of the scheme is estimated at $1.5 million.

In addition to these large, Government-controlled community schemes, irrigation is used on single farms or orchards in many parts of New Zealand, in particular in Hawke's Bay, Nelson, and Marlborough. Water is generally drawn from underground sources, or pumped from rivers and drains, and applied by spraying.

Major irrigation schemes are financed, constructed, and operated by the Government. The present Government policy is to make an acreage charge for the supply of half the quantity of water required in a normal season. A charge, based on the amount of water used is also made for extra water supplied in excess of the half quota.

These charges are fixed so that over a period of 40 years the revenue should meet the costs of operation and maintenance of periodic renewal of items of capital works, and of interest on one-quarter of the capital cost of the scheme. Reduced charges apply until the end of a development period of 10 years, taken from the start of operation of the scheme.

National policy for irrigation is now under review. Major proposed changes include placing irrigation under the control of the National Water and Soil Conservation Authority, with individual schemes being operated by local authorities, and with more emphasis on overall scheme planning and financing.

Soil Conservation—The problem is one of restoring an erosion-resistant and water-absorbant combination of soil and vegetation, while ensuring that maximum permanent production is maintained or achieved under various systems of land use.

The changes in vegetation consequent on land development has been reflected in disturbed soil conditions in many parts of New Zealand. The protective, stabilising, and water-controlling combination of vigorous native vegetation, litter, and spongy soil has given way to a shallow-rooted, less protective carpet of grass on a compacted, impervious, and often exhausted soil. Soil erosion now occurs on more than 8 million hectares of hill country and mountain land, about one-third of the total area of New Zealand.

Successful techniques that have been developed to control erosion include spelling, control of burning and animal pests, oversowing, topdressing, strict grazing control, soil conservation fencing, stock-water ponds, gully control, contour ploughing, terraces, grassed waterways, and open and close tree planting. Cost-sharing rates are available to farmers carrying out these control practices.

Land classification is extensively used in New Zealand. Initially this technique involves making an inventory of the physical factors of slope, soil type, climate, vegetation, and erosion types and severity existing, either over a whole catchment or over an individual farm. This basic information then allows soil conservators to recommend the best treatment (conservation practices) and use of particular areas of land so as to ensure maximum permanent production from any one area.

Water and soil conservation farm plans are a vital means of helping landowners make the best use of their land and water resources. These plans involve the integration of conventional farm practices with those recommended under the land classification system.

A plan is formulated by a soil conservator and then discussed with the landowner concerned. The plan may then be adjusted to suit the landowner's ability to carry it out over several years.

A valuable aid in promoting water and soil conservation practices on farms has been the setting up of reserves and demonstration areas throughout the country. These areas are used to show local farmers in particular just how their problems can be overcome by the use of correct practices. Many of these areas also serve as research centres.

Soil conservation works are largely carried out by catchment authorities, with some being done by Ministry of Works conservators (in those areas not covered by a catchment authority). Research into soil conservation is largely the function of Ministry of Works scientists and soil conservators.

13 B—CROWN LAND

GENERAL—There are 6.1 million hectares of Crown land which are held under lease or licence by individuals for farming or other purposes. Crown land permanently set aside for national parks, reserves, and domains comprises 2.5 million hectares. The Department of Lands and Survey is also developing 0.51 million hectares of land for subdivision and settlement as individual farms. Unoccupied Crown land can be broadly defined as land vested in the Crown which is not for the time being set aside for any public purpose, held by any person in fee simple or on lease or licence, or under development by the Department of Lands and Survey.

RESERVES AND NATIONAL PARKS: History—Land has been set aside for public purposes from the early years of colonial administration in New Zealand. The New Zealand Act 1840 (Imperial) authorised the disposal of land “to any persons, bodies, public or corporate, for the public uses of our subjects there resident or any of them”. Royal Instructions of 1840 to Governor Hobson elaborated on this and provided that such lands were not to be granted, conveyed or demised, or occupied by any private person or for any private purpose. A subsequent Royal Instruction dated 1846 and the New Zealand Company's Colonisation Act 1847 (Imperial) authorised the vesting of reserves in trust for public purposes or uses.

Scenic and historic reserves are controlled by scenic and historic boards, by local authorities, or by the Commissioner of Crown Lands for the district. A large number of honorary rangers help in the supervision of these reserves. The legislation governing these and all other reserves is the Reserves and Domains Act 1953. Once land has been reserved for a specific purpose, either by notice in the New Zealand Gazette or by deposit of a subdivisional plan, the purpose of the reservation can be changed or the reservation revoked only by the Minister of Lands.

Subdivision of land into residential sections is controlled by the local authority under the Municipal Corporations Act 1954 or the Counties Amendment Act 1961. Land is normally set aside as reserves, but the local authority may take a cash payment for reserve development. Local authorities are charged with ensuring that adequate provision is made on subdivision for reserves and with subsequent administration of reserves. The Crown is not bound by this legislation, but in practice refers its subdivisions to local bodies for approval and makes generous provision for reserves.

It was in 1887 that the three mountain peaks of Ruapehu, Ngauruhoe, and Tongariro were given to the nation by Te Heuheu Tukino and associated chiefs as “a national park for the benefit of everybody”. The gift area formed the nucleus of New Zealand's first national park—Tongariro—in 1894. The second national park—Egmont—was constituted by special legislation in 1900.

The first general legislation on national parks was enacted in 1928—this provided a uniform means of setting up and administering new parks. Under this legislation two new parks were established—Arthur's Pass in 1929 and Abel Tasman in 1942. Interest in national parks increased after the Second World War and a review of the administration led to the passing of the National Parks Act 1952. This made the Minister of Lands responsible to Parliament for national parks and laid the foundations for an integrated system of parks. Fiordland (part of which was first reserved in 1905) became a national park and five new parks were constituted—Mount Cook (1953), Urewera (1954), Nelson Lakes (1956), Westland (1960), and Mount Aspiring (1964).

The National Parks Act established the National Parks Authority consisting of the Director-General of Lands (chairman), the Assistant Director-General of Lands, the Secretary for Internal Affairs, the Director-General of Forests, the General Manager of Department of Tourist and Publicity, three persons appointed by the Minister of Lands on the recommendation of the Royal Forest and Bird Protection Society, the Federated Mountain Clubs of New Zealand and the Royal Society of New Zealand respectively, and two persons appointed by the Minister of Lands to represent the national park boards. The National Parks Authority is serviced by the Department of Lands and Survey.

Each national park is under the control of a National Park Board of which the Commissioner of Crown Lands for the district is chairman. Each board comprises not more than eight persons appointed by the Minister of Lands but in the case of Egmont and Tongariro special provisions exist regarding the appointment of members to the boards. Salaried rangers in each park are responsible for development, protection, and interpretation, and their work is supplemented by the voluntary help of about 250 honorary rangers appointed from those whose interests bring them into the parks frequently or who live nearby. A voluntary body, “Friends of the Urewera National Park”, has been formed to support the work of the Urewera National Park Board.

DESCRIPTION—Ten national parks have been constituted in New Zealand covering 2,057,654 hectares or one-thirteenth of the country's land area. They are set aside as the law says “for the purpose of preserving in perpetuity as national parks, for the benefit and enjoyment of the public, areas of New Zealand that contain scenery of such distinctive quality or natural features so beautiful or unique that their preservation is in the national interest”. The National Parks Act requires that parks be administered and maintained so that they are preserved as far as possible in their natural state; that their value as soil, water, and forest conservation areas is maintained; that, as far as possible, native flora and fauna is preserved and introduced flora and fauna exterminated; and that, subject to restrictions necessary to preserve native flora and fauna or for the general welfare of the parks, the public has freedom of entry and access. The only restricted area is the “special area” set aside to protect the habitat of the takahe (notornis)—50,000 hectares out of the 1,220,000 hectare Fiordland National Park.

Any form of development not provided for in the National Parks Act must be sanctioned by Act of Parliament. Permitted development includes the erection of houses for park rangers and huts for Government employees engaged in noxious animal destruction, the erection of huts by mountaineering, tramping, or other similar clubs, and the erection of ski tows and similar facilities. Appropriate commercial undertakings may operate in the parks under licence while boards controlling the parks may, with the consent of the Authority, establish camping grounds, huts, hostels, accommodation houses, or other buildings, and may help private enterprise in their establishment. “Wilderness areas” where development is restricted to access by foot-track are provided for in the Act and a number have been set aside. Virtually all the finance for parks is provided by the Government, but donations by private individuals or organisations are encouraged and earn $2 subsidy for $1 from the Government.

Three of the 10 national parks are in the North Island and seven in the South Island.

Urewera National Park (200,117 hectares), surrounds Lake Waikaremoana and contains the largest remaining forest area in the North Island. Kiwi, kaka, and most other native birds are found and the area is rich in Maori history.

Tongariro National Park (69,170 hectares), includes the three volcanoes—Ruapehu, Ngauruhoe, and Tongariro—and is the ski-ing playground of the North Island.

Egmont National Park (33,498 hectares), contains one of the world's most symmetrical mountains and preserves forests within a 9-km radius. It varies from heavily-forested lower slopes to the bare scoria, rock, snow, and ice of the upper levels.

Abel Tasman National Park (19,171 hectares), contains coastal and elevated bush-clad country along the shores of Tasman Bay and includes off-shore islands and reefs. It has a broken coastline within many bays, coves, and beaches of golden sand.

Nelson Lakes National Park (57,112 hectares), is centred on the twin lakes of Rotoiti and Rotoroa and is surrounded by mountainous country with extensive beech forests on the lower slopes.

Arthur's Pass National Park (98,399 hectares), preserves an alpine and forested area straddling the Southern Alps.

Mount Cook and Westland National Parks (69,905 and 88,608 hectares), share a common boundary along the main divide of the Southern Alps. Westland includes forest and lake country and a small strip of sea coast as well as the Franz Josef and Fox Glaciers. Mount Cook contains most of New Zealand's highest mountains, including the highest—Mount Cook (3,764m)—and includes the 29-km-long Tasman Glacier.

Mount Aspiring National Park (278,019 hectares), embraces the alpine region in north-west Otago and south Westland extending from the Haast Pass to the Routeburn area at the head of Lake Wakatipu and including Mount Aspiring (3,035m).

Fiordland National Park (1,223,655 hectares), one of the world's largest national parks contains majestic scenery with fiords, mountains, forests, and lakes. It includes Lakes Manapouri and Te Anau while the road through the Homer Tunnel gives access to Milford Sound. The park is the only known habitat of the takahe (notornis) and the kakapo.

Scenic Reserves—Scenic reserves, of which there are 935 with a total area of 255,864 hectares, preserve native forest, and allow access by the public to other scenic features such as the sea coast, lakes, rivers, waterfalls, limestone caves, thermal areas, and scenic vantage points. Forest areas range from large tracts of remote forested land with considerable conservation value to small remnant areas in developed districts. Large scenic reserves have been set aside along main highways, but in general, barren mountainous regions not included in national parks remain Crown land.

There are 17 reserves in excess of 2,000 hectares; some areas at present set aside as scenic reserves could, in future years, achieve national park status.

Scenic reserves over 2,000 hectares are: Lewis Pass, Wanganui River, Buller Gorge, Rakeahua (Stewart Island), Lake Kaniere, Gouland Downs, South Cape (Stewart Island), Glenhope, Lake Brunner, Tennyson Inlet, Rahu (Reefton), Mangamuka Gorge, Tangarakau, Te Tapui (Cambridge), Pihanga, Waioeka Gorge, and John Coull Memorial Reserve (Wanganui River).

Among the best known reserves not in the preceding list are Trounson Kauri Park in North Auckland, Huka Falls, near Taupo, Hongi's Track, and various thermal areas near Rotorua, Waitomo Caves, Ball's Clearing in Hawke's Bay, Pelorus Bridge and Hundalee in Marlborough, the Summit Road Scenic Reserves and Peel Forest in Canterbury, Punakaiki and Lake Ianthe in Westland, and Forest Hill and Curio Bay in Southland.

In an endeavour to recreate the natural New Zealand scene in an area where exotic trees, noxious weeds, and engineering development have intruded, the Department of Lands and Survey has established a plant nursery at Taupo where native trees and shrubs are being propagated for beautification of reserves in the Taupo basin.

There is provision in the Reserves and Domains Act 1953 for land to be declared private scenic reserves—this land remains in private ownership, but receives the protection of the Act. There are 2,180 hectares in 27 private scenic reserves and these include White Island, where grey faced and other petrels nest in large numbers, as well as about 3,000 pairs of gannets annually. The Pukeiti Rhododendron Trust area is a private scenic reserve near New Plymouth in native bush being planted with native trees as well as rhododendrons. One private reserve near Awaka provides, in an area of 550 hectares, shelter for native birds. Other large private scenic reserves are Moncrieff, near Nelson, and Makarora on the Haast Pass Road.

Historic Reserves—Sixty-three areas of historic interest totalling 1,414 hectares are set aside as historic reserves and the Department of Lands and Survey co-operates closely in the administration and investigation of historic sites with the New Zealand Historic Places Trust. Historic reserves mark the landfall and landing places of early voyagers such as Tasman and Cook, the site of missionary Samuel Marsden's first sermon on New Zealand soil, sites of early fortifications, of engagements during the Maori wars, and buildings of historic value. (The Treaty House area at Waitangi, administered by the Waitangi National Trust, is not a historic reserve, in the strict sense.) Sites of Maori rock drawings and places of significance in New Zealand's early constitutional history are also preserved.

There are also 259 hectares in 10 private historic reserves.

Bird Sanctuaries and Allied Reserves—Land is reserved for bird sanctuaries, for the preservation of flora and fauna, or some similar purpose in cases where the land provides a habitat for bird or plant life of such importance that some control on public access is desirable. Such areas are reserved under the Reserves and Domains Act 1953. In all there are 48 reserves in this category with a total area of 187,010 hectares. Some of them are maintained areas, but most are off shore, outlying, and subantarctic islands. Major areas of particular public interest include Little Barrier Island in Hauraki Gulf, the only known habitat of the stitch bird, and now part of the Hauraki Gulf Maritime Park: Cape Kidnappers gannet colony in Hawke's Bay; Kapiti Island off Wellington's west coast; the white heron colony in South Westland; and the Taiaroa Head albatross colony near Dunedin.

All of New Zealand's subantarctic islands, except for a small area surrounding the meteorological station on Campbell Island, are reserved for the preservation of flora and fauna and provide a habitat for marine mammals and millions of sea birds. As well as Campbell Island, the reserves include the Auckland Islands, Bounty Islands, Antipodes Islands, and Snares Islands. To the north of New Zealand, most of the land in the Kermadec Islands is similarly reserved.

A committee convened by the Department, of Lands and Survey has been set up as an advisory body for the administration of the outlying island reserves.

Generally, access to reserves of this type is by permit only, a policy followed solely in the interests of preservation of the plant and bird life to ensure an absolute minimum of human interference to anything living and growing naturally there.

Hauraki Gulf Maritime Park—This park was established under the Hauraki Gulf Maritime Park Act in 1967. The park may include reserves of any type on or off the east coast of the North Island from Whangamata Harbour to Home Point at the northern end of Bland Bay. It includes such well-known islands as Motuihe, Rangitoto, Browns, Motutapu, Motuora, Poor Knights, Little Barrier, and part of Kawau containing the historic Mansion House. The park is controlled by a board of 10 members.

Nature Conservation Council—The Nature Conservation Council Act 1962 provides for the establishment of a Nature Conservation Council. This council of independent members, expert in the field of conservation, has been set up to co-ordinate scientific and technical information on nature conservation, to inquire into the effect of proposed public works on any aspect of nature conservation and to act as an advisory body to Government on matters affecting nature conservation which is defined in the Act as “the preservation of the native flora and fauna and the natural features and natural beauty of New Zealand”.

Wildlife Refuges and Sanctuaries—The Wildlife Act 1953 provides for the constitution of wildlife sanctuaries, these being areas devoted primarily as habitat areas for wildlife where the maximum degree of protection can be afforded. Restrictions are imposed on entry into the sanctuaries and certain prohibitions dealing with killing or disturbance of wildlife are imposed. The former game sanctuaries are now termed wildlife refuges. Occupiers of any land in wildlife refuges can be authorised to carry out certain operations necessary for the normal use of land.

Public Domains—Domains, of which there are 886 covering 25,156 hectares, provide districts with land for the recreational needs of the people as a whole. Many domains are designed primarily to provide for organised sport but there are a large number which preserve for public use attractive natural areas, particularly along the coastline, and provide facilities for camping. Some outstanding examples of coastal domains are Orewa, near Auckland, Ohope Beach, near Whakatane, Queen Elizabeth Park, near Wellington, Momorangi Bay in the Marlborough Sounds, Kaiteriteri and Pohara in the Nelson district, and Waikuku Beach in Canterbury. Universally known city domains are the Auckland Domain and Hagley Park, Christchurch. Native bush is protected on domain land.

Summary of Areas Reserved—The following table records the main classes of reservations at 31 March 1971.

Type of ReservationNo.AcresHectares
*Includes 16 scenic and historic reserves totalling 441 acres (178 hectares).
National parks105,087,5702,057,654
Scenic reserves (public)935632,252255,864
Historic reserves (public)63*3,493*1,414
Bird sanctuaries and allied reserves45462,112187,010
Public domains88662,16125,156

ADMINISTRATION—Crown land is administered under the authority of the Land Act 1948. The Minister of Lands is charged with the administration of the Land Act, and his executive officer is the Director-General of Lands. New Zealand is divided into 12 land districts, the executive officer for each district being a Commissioner of Crown Lands.

The central authority under the Land Act is the Land Settlement Board consisting of the Minister of Lands (chairman), the Director-General of Lands (deputy chairman), the Secretary to the Treasury, the Director-General of Agriculture, the Valuer-General, the Director of Rehabilitation, a representative of the State Advances Corporation, a representative of the Returned Services Association, the Assistant Director-General of Lands, the Fields Director of the Department of Lands and Survey, and not more than two other persons appointed by the Minister.

The Land Settlement Board is required to appoint one or more land settlement committees for each land district, and 20 of these committees have been set up. Each committee consists of three members with the Commissioner of Crown Lands for the land district as chairman and two private farmer members.

The Land Settlement Board, through the Department of Lands and Survey, disposes of Crown land for farming, residential, commercial, and industrial purposes. The demand for this land, particularly farm land, and for the other categories in and near to the main centres, is considerable. Disposals are offset to a certain extent by purchases of private land or the interests of lessees or licensees of Crown or Maori land.

DISPOSAL OF CROWN LAND—Crown land is normally offered to the public at valuation and if necessary a ballot is conducted to decide the successful applicant, although in certain circumstances preferential allotment can be made. Any land may, however, be offered for disposal by tender at a minimum price or rental value or by public auction at an upset price.

Crown land may be acquired on the following tenures:

  1. Farm land, urban land, commercial, or industrial land—(a) On renewable lease; (b) for cash; (c) on deferred payments. A renewable lease is for a term of 33 years with a perpetual right of renewal for the same term and, except where otherwise provided for, with a right of acquiring the fee simple.

  2. Pastoral land—(a) On pastoral lease for a term of 33 years with a perpetual right of renewal for the same term, but with no right of acquiring the fee simple; (b) on pastoral occupation licence for a term not exceeding21 years, with no right of renewal or of acquiring the fee simple.

  3. Short tenancies for grazing or other purposes for a term not exceeding 5 years.

Selections—The following table shows details of selections during the year 1970-71.

TenureNumber of SelectorsTotal Area SelectedPurchase Price or Annual Charges
*Areas and rents not shown; licences on royalty basis only.
  acreshectares$(000)
Freehold51610,8244,380578
Renewable leases14911,2774,56418
Pastoral leases and licences311,7004,7351
Deferred-payment licences59256,39722,823...
Special leases (s. 67, Land Act)246,7422,7285
Licences for removal of minerals*3.........
Licences to occupy1,17125,21410,204207
Leases of endowment and other lands7013,1865,33615
            Totals 1970-712,528135,34054,770824
            Totals 1969-702,588235,68395,3781,125

Leases and Licences—The following table shows the total number of leases and licences current as at 31 March 1971.

TenureLeases and LicencesAreaAnnual RentAnnual Instalment*
*Including improvement loading.
  acreshectares$$
  (000)(000)(000)(000)
Renewable leases11,4893,6921,4941,39221
Leases in perpetuity6,2871,2685133061
Pastoral leases and licences5627,8773,1882114
Special leases (s. 67, Land Act)669189762837
Deferred-payment licences13,9631,034418...2,571
Misc, leases and licences1,94711045281
Licences to occupy4,713344139278...
Leases of endowment and other lands2,9093781531452
            Totals 1970-7142,53914,8926,0272,6432,607
            Totals 1969-7043,27214,9096,0332,5442,560

Freeholdings—The following table shows the number of leases and licences freeholded, either for cash or on deferred payments.

Method of PaymentCrown LandsEndowment and Other LandsAreaPurchase Price
 No.No.acreshectares$(000)
Cash249414,1795,738361
Deferred payments214273,92429,9161,377
            Totals 1970-71463788,10335,6541,738
            Totals 1969-70414778,97031,9581,346

Further details on leases and licences may be obtained from the annual report of the Department of Lands and Survey, parliamentary paper C.1.

LAND DEVELOPMENT—The Land Settlement Board was constituted in 1941 to administer land policy and land development through the Department of Lands and Survey.

Development of land for settlement includes clearing, cultivation, grassing, fencing, erection of buildings, and installation of water supplies. To consolidate pastures and to control regrowth of scrub and weeds, the land is farmed as part of the development process.

The major development districts are Southland with 144,500 hectares under development, Rotorua 72,800 hectares, North Auckland 61,900 hectares, and Te Kuiti 50,000 hectares.

In the year ended 31 March 1971 there were 6 developed units allocated and an estimated 1,419 farms could eventually be made available from the 489,560 hectares on hand for development at 31 March 1971.

MARGINAL LAND DEVELOPMENT—The Marginal Lands Act 1950 assists farmers to restore maintain, and increase production on marginal lands, by providing finance where it is not available through normal lending channels. It also provides help in amalgamation of uneconomic units either by financing farmers into additional land, or by purchase of land and allocation to adjoining holdings.

An estimate of the area of grassing undertaken with Marginal Lands Act finance is 214,000 acres with increases in carrying capacity estimated at 513,000 sheep, 22,000 cattle, and 2,200 dairy cows.

For the year ended 31 March 1971, the board granted 70 loans totalling $3,441,167. In all, from the inception of the marginal lands scheme, 1,597 loans have been approved, amounting to $26,327,461.

As from 10 June 1971 the rates of interest payable on advances made on or after this date have been as follows.

Purpose of LoanCurrent AccountInstalment Mortgage
First MortgageSecond or Subsequent MortgageFirst MortgageSecond or Subsequent Mortgage
 percent
Development and amalgamation (including purchase of chattels)—    
    (a) Up to $30,0005 1/265-51/261/2-6
    (b) Over $30,000787 1/2-78 1/2-8
Refinance787 1/2-78 1/2-8
Stock5 1/266-5 1/26 1/2-6

Loans approved prior to 10 June 1971 continue to bear interest at the rate ruling at the time the application was approved. However, on conversion to instalment mortgage, unless a commitment has been made by the board prior to 10 June 1971, the rates shown above will apply.

13 C—MAORI LANDS

USE OF MAORI LAND—The term Maori land is a technical one, denoting ancestral land that has always been owned by Maori people. All except an insignificant portion of it is owned by defined people in defined proportion. All sales and some leases of such land still require ratification by the Maori Land Court.

In 1965 it was established by a committee of inquiry that the area of land in New Zealand still designated Maori land comprised some 1,489,473 hectares in the North Island and some 89,000 hectares in the South Island. In the subsequent 5 years to 1970 a total area of Maori land comprising 54,600 hectares was sold with the consent of the Maori Land Court.

Of the area of Maori land remaining, some 109,000 hectares is controlled by the Board of Maori Affairs, mainly for farm development though some land is farmed by arrangement with the owners; some 200,000 hectares is farmed by Maori farmers themselves; approximately 400,000 hectares is leased to non-Maoris; 300,000 hectares is controlled by Maoris working through Maori incorporations operating on a shareholding basis with a management committee. The balance of the land comprising something more than 400,000 hectares is not in actual use; possibly half of this is suitable for farm development while a quarter would be useful for forestry, but the remainder would have no economic potential.

The Maori Affairs Amendment Act 1967 provided for the Europeanisation of all Maori land which is surveyed and which is owned by not more than four Maori owners. An unknown area running to thousands of hectares of such Maori land has been "Europeanised” by transferring the relevant records from the Maori Land Court to registers of the Land Transfer Office. Apart from this, many Maori people own their own homes in urban areas and many more own farm land purchased from non-Maoris that is designated, for record purposes, as “European” land.

MAORI LAND DEVELOPMENT—Maori land development policy is directed to the settlement of Maori farmers on farms which will assure them of a reasonable standard of living based on today's costs and standards; to secure them the best possible tenure for the lands they farm; to assistthem to develop the land and to teach them modern methods of farming. The means at the department's disposal have permitted the development of approximately 4,000 hectares of new land annually. In the year ended 30 June 1970 there were 12 farms settled. From 1935 up to 30 June 1970 the department had settled 2,378 Maori farmers on farms.

The estimated area of Maori land suitable for settlement is limited to 293,000 hectares (85,000 hectares under departmental control and 208,000 hectares of idle land), on which about 500 Maori sheep farmers and 3,300 dairy farmers could be eventually settled.

BOARD OF MAORI AFFAIRS—The Board of Maori Affairs constituted under the Maori Affairs Act 1953 consists of the Minister of Maori Affairs, the Secretary for Maori and Island Affairs, the Director-General of Lands, the Valuer-General, the Secretary to the Treasury, the Director-General of Agriculture, the member of the Executive Council representing the Maori race or, if there is no such member, any member of the Executive Council appointed by the Governor-General to be a member of the Board, and three other members appointed by the Governor-General.

The functions of the Board include, among other things, the following:

  1. The control of the development and settlement of Maori land or land owned or occupied by Maoris.

  2. The approval of investment and advances, and of certain expenditure from the Maori Trustee funds.

  3. The control of negotiations for the acquisition of Maori lands by the Crown.

  4. The control of expenditure on housing operations under the Maori Housing Act 1935.

MAORI TRUSTEE—The Maori Trust Office was originally created to take over from the Public Trust Office the administration of certain Maori reserves and the administration of the estates of deceased Maoris and those under disability. The Maori Trust Office now forms part of the Department of Maori and Island Affairs and is headed by the Maori Trustee, comparable in status and functions with the Public Trustee. The control of most Maori Trustee activities has been decentralised by the delegation of wide powers to the District Officers of the Department of Maori and Island Affairs, who deal primarily with all Maori Trustee matters in their districts.

In addition to the administration of Maori reserves, situated mainly in Taranaki, and in Nelson, Greymouth, and other South Island localities, the Maori Trustee has the responsibility for the administration of large areas of Maori land elsewhere. Most of these lands are, like the Maori reserves, vested in the Maori Trustee, who is responsible for leasing them and distributing the proceeds to the owners.

The Maori Trustee has extensive lending powers used principally for the settlement and improvement of Maori land, for the establishment of Maoris in business, and for housing purposes. Most advances are made on the security of Maori land.

The following table is a summary of the assets and liabilities of the Maori Trustee as at 31 March in the latest two years.

ItemAs at 31 March
19701971
Assets—$(000)$(000)
    Cash300567
    Investments—  
        Government securities6,3786,628
        Local authority debentures444576
        Mortgages, charges, and advances on overdraft4,0113,817
    Land, buildings, and miscellaneous445415
            Totals11,57812,003
Liabilities—  
    Amounts held for beneficiaries and sundry depositors7,9828,131
    Reserves and Appropriation Account3,5713,858
    Sundry creditors, etc.2514
            Totals11,57812,003

13 D—SURVEYS

GENERAL—The Lands and Survey Department is facing an increasing demand for engineering survey information on which to plan major construction works, and for topographical and cadastral information on which to plan the future development of the country. Mapping efforts are being concentrated on completing the topographical map coverage of the unmapped areas of the country as quickly as possible. Much work is being carried out on control surveys, especially in the investigation of electric power projects, and this is designed to fit into a system of national coverage of precise levelling.

Precise levelling is being extended continuously for the purpose of correlating the level data of irrigation and drainage and other engineering works.

Surveys of private lands for the purpose of the Land Transfer Act 1952 are carried out by registered private surveyors and are examined and approved by the Lands and Survey Department.

AERIAL SURVEY AND TOPOGRAPHICAL MAPPING—Extensive use is made of aerial photographs for other than purely mapping purposes. All types of land and engineering development investigations into geological resources, afforestation, and town and rural planning are now based on data extracted from the aerial photographs. The department is responsible for the maintenance of a complete library of aerial photographs, which are made available for all national purposes.

There is an increasing demand for topographical maps of all scales for land development, forestry, engineering, geological and soil survey, and other governmental purposes. New cartographic techniques have revolutionised the production of better and more varied scales and types of maps.

Mapping is also undertaken of islands and territory within the Ross Dependency, Antarctica. Information for these maps is based on aerial photography supplied by the United States, field work from New Zealand field parties, and maps prepared by other countries.

MAPS—Map sales agencies are maintained at each of the district offices except Wellington and at the Head Office of the Department of Lands and Survey. In addition 446 private selling agents have been appointed throughout the country and overseas. All maps for sale are listed in the Catalogue of Maps published by the department.

Chapter 14. Section 14 FARMING

14 A—GENERAL

SOILS AND SOIL MANAGEMENT—Soil is the product of its environment, which includes the kind of rocks that outcrop on the surface, the parent material of the soil, the climate in which the rock is transformed into soil, the relief or slope of the surface, the vegetation and the time during which the soil has been forming. In New Zealand large areas of soil are formed on uniform parent materials. The mantle of loess that covers large areas of downland, hill, and terrace of both islands, and the alluvium of large areas of plain and valley floor, are derived from the greywackes of the axial mountain chain that stretches from Otago almost to East Cape. Soils formed on such parent materials tend to have many properties in common. In Otago large areas of loess and alluvium are derived from the schist mountains, and in the central North Island there are extensive deposits of volcanic ash that include acid rhyolite ash poorly supplied with plant nutrients, and yielding soils of low productive value, as well as basic ash on which some of the most productive soils in the country are formed.

The conditions that control soil formation tend also to govern the kind of land use. Thus a close relationship between soils and land use arises in two ways—from characteristics inherent in the soils themselves and from environmental factors such as the climate and topography. Maps showing the pattern of soils of and land use are published in A Descriptive Atlas of New Zealand (1959) and in An Encyclopaedia of New Zealand (1966).

The great majority of New Zealand soils are not naturally fertile. They are usually leached, acid, low in humus, and without deep reserves of fertility. Since the soils are characteristically immature, with great local variability, pockets of rich alluvium, fertile volcanic loams, lime-rich rendzinas, and deep black-earths are unfortunately small and widely scattered. The complicated rock, relief, climate, and vegetation patterns are responsible for a mosaic of soils, that does not fit readily into the broad soil zones on the world.

Frequently, minerals or trace elements are lacking. Sulphur improves some South Island grasslands, and potash much of the lowlands. Traces of molybdenum have been used successfully on yellow-grey and yellow-brown earths and red-brown volcanic soils; copper on sandy, peaty, and gumland soils; and cobalt on the pumice lands and leached podzols of Northland and Nelson. It is a tribute to the New Zealand farmer and soil scientist that they have been able to build up the soil into such a high level of productivity.

The simplest classification of soils is into three orders—azonal, intrazonal, and zonal, depending on which elements have been most important in forming them.

Zonal (Mature) Soils—Only a quarter of New Zealand's soils can be considered mature, i.e., where climate, and more especially vegetation conditions, have a greater influence on their development than the parent rock.

Nearly 10 million acres of humid hill country and lowland have friable yellow-brown earths and podzols. In the north, these resemble subtropical red and yellow podzols, and further south they are something like the subalpine brown soils found in temperate lands overseas. Under tawa, puriri, taraire, and other broad-leaf trees, leaf fall provides a layer of brown humus but under the pines (kauri, rimu), and the beeches, the small and sometimes resinous leaves return less nutriment to the soil. The kauri gumland soil of the North is a strongly-leached podzol.

Azonal (Recent) Soils—In the main, New Zealand soils are young and unstable, resembling the parent material. They form rapidly in the warm, humid climate, but may be removed just as quickly by vigorous erosion. Half the country consists of mountains and steep hills, which give rise to thin steepland skeletal soils, closely related to the parent rock. High rainfalls have leached out many of the minerals so that some soils may be classified as podzols (zonal). On the river flats and plains are the gravels, sands, and fine silt deposits, grouped as alluvium. Other immature soils include the thick layers of recent volcanic ash around the central North Island volcanoes and Mount Tarawera.

Intrazonal (Local) Soils—These also are immature, little modified by climate and vegetation, but showing distinct variations derived from local conditions, such as limestone, volcanic rock, swamp, or sanddune.

Approach to Soil Management—The rapid increase in knowledge of the soils of New Zealand has brought about a change in approach to soil management. Soils have been mapped and their properties and uses determined. This has stimulated the rapid conversion of large areas of “problem” land into good farms and has raised land use to a new pitch of efficiency, which reflects the modern changes to farming as an up-to-date science.

Farmers have exploited the use of certified strains of grasses and clovers, phosphatic fertilisers, lime, and trace elements. The use of aircraft for topdressing and oversowing of grass is resulting in considerable improvements to hill pasture, with a consequent increase in carrying capacity and production.

NATURE OF FARMING—Most of the dairy farms are in lowland areas of the North Island, where naturally fertile or improved soils make for good grass growth. Approximately 90 percent of the total dairy stock in the country are grazed on the flat and undulating land of Northland, South Auckland - Bay of Plenty, Taranaki, and Wellington. Pastures of high feeding value form the basis of the industry and carrying capacity may be as high as one cow per acre, and annual production as high as 350-400 lb of milkfat per acre. The main winter supplementary feed is hay and silage made from the surplus spring and early summer growth of the pastures. In most of the dairying areas fat-lamb raising is also undertaken, particularly in the Waikato and the Bay of Plenty.

On the less steep country, particularly in the North Island where there is surface-sown grassland, both store sheep and cattle are raised.

Sheep fattening farms are generally located on land which is of high fertility, either naturally or produced by topdressing. Country of this type is usually flat to undulating in topography, and tends to be concentrated on the coastal plains and river valleys of both islands, e.g., the Waikato basin, the Poverty Bay flats, the Hawke's Bay, Manawatu, Canterbury, and Southland plains. In the North Island it is normal to rely on pasture as a sole diet, while in the drier areas of the South Island it is necessary to grow special crops, such as rape, for fattening lambs, and in colder areas to grow crops for supplementing the ewe flock feeding over the winter.

Fattening farms vary considerably in area and in the size of flock carried. A flock of 1,000-1,200 ewes is commonly regarded as a 1-man unit. The average range in carrying capacity is from three to six ewes wintered to the acre. Lambing percentages are variable but average from 100 to 120 lambs per 100 ewes mated. The aim of the farmer is to sell a high proportion of these lambs, fat off their mothers, at carcass weights around 28-36 lb for the United Kingdom market. In the North Island, cattle are normally purchased in the spring to control excess pasture growth and are fattened, if possible, by the autumn. On some properties, store wether lambs from the hill-breeding flocks may also be brought in for fattening. The amount of meat produced on fattening farms averages about 120-140 lb per acre.

Hill country sheep farming covers extensive areas in both islands. The stock carried consists of a mixed-age flock of breeding ewes, ewe hoggets for replacements, and rams. Where part of the property is of poor quality, wethers may be also be carried. Products sold are wool (which usually represents 50 percent or more of the total farm income), some fat wether lambs, store lambs for fattening and, of most importance, breeding ewes which are purchased by fat-lamb farmers.

A large proportion of the beef cattle are also run on hill-country properties.

On the plains and downlands of Canterbury and in parts of Marlborough, Otago, and Southland, where the climate and soils are suitable, arable mixed farming is a feature. Approximately 92 percent of New Zealand's wheat, oats, and barley areas are in these districts. On the majority of the cereal-producing farms sheep and lambs are also fattened. Considerable areas (approximately three-quarters of the New Zealand total) of rape, kale, turnips, and swedes are grown for summer and winter supplementary feed.

TENURE OF OCCUPIED LANDS—The area of land in occupation as at 31 January 1960, classified according to tenure, was as follows:

 Hectares
Crown land (including leases and licences)7,388,147
Freehold (including all land held on deferred payment)9,038,777
Leasehold1,386,907
            Total occupied area17,813,831

Size of Holdings—Holdings, grouped according to size, as returned in each of the years 1949, 1952, 1957, and 1960 are given below. For these years, excepting 1960, statistics were collected for areas under 10 acres (approx. 4 05 hectares).

Area, in Acres*Number of Holdings
1949195219571960
*One acre equals 0,405 hectares.
1- 911,46312,36311,765...
10- 4913,61113,71610,39611,721
50- 9912,96213,46011,93212,353
100- 19917,25018,10417,94918,384
200- 31910,08410,30810,28910,687
320- 63910,65311,08311,18412,109
640- 9994,2154,3824,3574,659
1,000- 4,9995,8275,8665,7456,002
5,000- 9,999538535531551
10,000- 19,999278276261264
20,000-49,999144143141145
50,000 and over51525453
            Totals87,07690,28884,60476,928

A classification of the 76,928 holdings in 1960 according to the status of the occupier showed the following position: owner, 44,119; lessee, 13,571; manager, 3,683; partner, 3,950; shareworker, 2,107; part owner, part lessee, 9,498.

Condition of Occupied Land—In 1965, 17,602,894 hectares were assessed as being occupied, including reserves and Maori lands leased, but excluding areas within borough boundaries, and holdings of less than 4.5 hectares in extent. The land in occupation in New Zealand at 31 January 1965 was classified according to condition and use as follows.

Use of LandAcresHectaresPercentage of Total

*Includes areas sown with crops.

†Includes unimproved land together with domestic orchards, residences, private gardens, and grounds.

Area in crop at 31 January1,044,716422,7822.40
In fallow125,80050,9090.29
In sown grasses and clovers*19,433,3577,864,40744.68
In orchards (commercial only)16,5696,7050.04
In market gardens and nurseries16,3426,6130.04
In plantations1,034,926418,8202.38
            Total area in cultivation21,671,7108,770,23849.82
Balance of land21,825,9498,832,65650.18
            Total area in occupation43,497,65917,602,894100.00

Information collected in 1960 in conjunction with the World Census of Agriculture showed that 36 percent of the total area in occupation was stated as being capable of cultivation by ploughs or discs.

An indication of the condition and geographical distribution of unimproved land is afforded by the following table, which relates to the position at 31 January 1960.

Land DistrictPhormium (New Zealand Flax)Tussock and Naturally Established Native GrassesFern, Scrub, and Second GrowthStanding Native BushBarren and Unproductive LandTotal, Unimproved Occupied Land
   hectares   
North Auckland1,44743,519352,648106,50438,454542,572
South Auckland69525,221525,698278,29443,385873,293
Gisborne2647,013125,78972,08911,885256,802
Hawke's Bay22116,031138,08428,14117,077299,355
Taranaki251,73860,83678,1597,229147,987
Wellington3,206238,552272,206117,65351,262682,879
            North Island5,421472,0741,475,261680,840169,2922,802,888
Marlborough2,363569,402112,61645,52091,283821,184
Nelson84581,211153,79277,18316,972330,003
Westland1,74917,70883,83786,94351,050241,287
Canterbury1,9821,591,00698,22745,743218,4471,955,405
Otago8222,045,480248,502101,456177,6772,573,937
Southland2,815498,423123,01759,67227,195711,122
            South Island10,5764,803,230819,991416,517582,6246,632,938
            New Zealand15,9975,275,3042,295,2521,097,357751,9169,435,826

CLASSIFICATION OF HOLDINGS BY PRINCIPAL FARMING ENTERPRISES—The collection of farm production statistics in 1960 was carried out as New Zealand's part of the World Census of Agriculture. Detailed information has been published separately in the report of the New Zealand Census of Agriculture, 1959-60.

For purposes of fuller analysis of the New Zealand results than is customarily given in Statistical Area tables, counties with some affinity as to farming types, etc., have been regrouped to form what have been designated “Regional Areas”, and certain tables given in Sections 14b and 14c of this volume are set out on this basis. The following sets out in detail the content of these regional areas.

Regional AreaCounties Included (as at 1960)
NorthlandMangonui, Whangaroa, Hokianga, Bay of Islands, Whangarei, Hobson, Otamatea, Rodney, Waitemata.
South AucklandManukau, Franklin, Raglan.
Waikato and Hauraki LowlandsWaikato, Waipa, Otorohanga, Hauraki Plains, Piako, Matamata.
Cape ColvilleGreat Barrier, Coromandel, Thames, Ohinemuri.
Central PlateauTauranga, Rotorua, Taupo, Whakatane.
Westland UplandsWaitomo, Taumarunui, Clifton, Waimarino.
TaranakiTaranaki, Inglewood, Egmont, Stratford, Eltham, Waimate West, Hawera.
East CapeOpotiki, Matakaoa, Waiapu, Uawa, Waikohu, Cook.
Hawke's BayWairoa, Hawke's Bay, Waipawa, Waipukurau, Patangata.
RangitikeiPatea, Waitotara, Wanganui, Rangitikei, Kiwitea, Pohangina.
ManawatuDannevirke, Woodville, Oroua, Manawatu, Kairanga, Horowhenua, Pahiatua.
WairarapaEketahuna, Mauriceville, Masterton, Wairarapa South, Akitio.
FeatherstonHutt, Makara, Featherston.
NelsonWaimea, Golden Bay, Buller, Murchison, Inangahua.
MarlboroughSounds, Marlborough, Awatere, Kaikoura.
WestlandGrey, Westland.
North CanterburyAmuri, Cheviot, Waipara.
FoothillsAshley, Oxford, Tawera, Selwyn.
Canterbury PlainsKowai, Rangiora, Eyre, Malvern, Paparua, Springs, Ellesmere.
ChristchurchWaimairi, Heathcote, Halswell.
Banks PeninsulaMount Herbert, Akaroa, Wairewa.
MackenzieMackenzie
South CanterburyAshburton, Geraldine, Levels, Waimate, Waitaki.
OtagoWaihemo, Waikouaiti, Peninsula, Taieri, Tuapeka.
Central OtagoManiototo, Vincent, Lake.
SouthernBruce, Clutha, Southland, Wallace.
RemainderChatham Islands, Stewart Island.

Figures for 1959-60 as to the number of holdings of various principal types of farming enterprises in the several regional areas (each Island separately) are here presented. ("Principally” means 75 percent or more; “predominant” means 50-74 percent; “mixed” means approximately equal; “general mixed” covers three or more types with none predominant.)

Regional AreaPrincipally Dairy FarmingPrincipally Sheep FarmingPrincipally beef farmingDairy and Sheep with Dairy PredominantSheep and Dairy with Sheep PredominantMixed Dairy and SheepSheep and Cropping with Sheep PredominantCropping and Sheep with Cropping PredominantMixed Sheep and CroppingGeneral Mixed FarmingOther (Including Horticulture, Timber, etc.)Idle and UnusedTotal
Northland5,3971,371492382911658111589811,55710,604
South Auckland2,3571,081127167604912143643172414,492
Waikato and Hauraki Lowlands5,9621,382128374107117531742322728,657
Cape Colville58915727692025---21541681,130
Central Plateau2,12666854228621031422463804764,161
Western Uplands3421,5562813086821542401012222,608
Taranaki3,2096662216660986-3451041024,481
East Cape5391,06856842646665836922012702,542
Hawke's Bay2572,045474652551198537593582053,365
Rangitikei5542,0173991987999173946533,123
Manawatu1,9201,733621371171217013835150754,441
Wairarapa3611,010374393449351040141,642
Featherston275454833231228-167378991
            Totals, North Island23,88815,2081,0931,9818419864911841066893,0373,73352,237
Marlborough2027241047181417021623989561,452
Nelson6255486412959708750341485071672,488
Westland21422713765916--1980116874
North Canterbury155074298188132923193820
Foothills45331691611103920196012641
Canterbury Plains47848318353921362145196217256522,302
Christchurch12148144238962618830459
Banks Peninsula75259722241610226164443
Mackenzie-225--1-693109217345
South Canterbury3321,8731947102361,335175415271383595,047
Otago2301,07823212523988727278741,892
Central Otago16663851126251015162731,032
Southern1744,35129311418191777814662571646,760
Remainder-85-211----641136
            Totals, South Island2,52711,4023396997344123,2694488068752,32285824,691
            Totals, New Zealand26,41526,6101,4322,6801,5751,3983,7606329121,5645,3594,59176,928

The average area of holdings where the main types of farming were principally carried out were; dairy, 59 hectares: sheep, 462 hectares; beef, 418 hectares. The most common size groups were: dairy, 30-40 hectares; sheep, 101-161 hectares; beef, 101-161 hectares.

FARM EMPLOYMENT SURVEY—A survey of farm employment was made by the Department of Statistics for the last week in June 1970. The survey covered 55,395 holdings; it excluded 4,101 holdings where there were no working owners, etc., nor any employees. The total of 59,496 holdings represented a coverage of 91 percent of all farm holdings. There were 7,670 females in the total of 65,607 working owners, etc., and 4,860 females in the total of 33,639 employees. Also family assistance was listed as 6,108 unpaid males and 10,120 unpaid females.

Farm TypeHoldingsWorking OwnersWorking Lease-holdersSharemilkersEmployees
Owning HerdNot Owning HerdPermanentCasual

*First named predominant.

†Either predominant.

Principally dairy16,96216,9078453,6221,7555,677443
Principally sheep11,65911,737546655,3011,783
Principally beef2,2322,2561355440492
Dairy and sheep*9421,06259767052774
Dairy and beef*8511,01643854834528
Sheep and dairy*40145218231818747
Sheep and beef*8,4588,130404766,9491,165
Beef and dairy*2282382210105811
Beef and sheep*1,2311,24054--802169
Mixed livestock1,9142,084866361984222
Sheep and cropping2,7102,805132--1,221448
Principally cropping1,2601,224127-1451196
General mixed farming1,8552,045916161,056312
Market farms and gardens1,3501,75093--593277
Other3,3423,972126562,4241,393
            Totals55,39556,9182,7813,9082,00026,9796,660

An analysis of employment on farms as disclosed by the Census of Population and Dwellings 1966 appeared in the 1971 and earlier issues of the Yearbook.

CAPITAL EXPENDITURE ON FARMS—An annual survey of capital formation in the farming industry is made by the Department of Statistics. It covers all productive farm holdings of 10 acres and over outside boroughs. The collection does not include holdings given over wholly to plantations of timber trees or where farming is secondary to another industry. Owing principally to the number of occupancy transfers which took place immediately prior to or during the 1969-70 collection, information could not be collected from all farm holdings; the following tables include data from about 91 percent of all farm holdings qualifying for inclusion.

Statistics obtained from these returns have been linked up with those given by the 1969-70 annual farm collection to relate capital expenditure and farm types. Capital expenditure on farms during the year ended 31 March 1970, according to farm types, and also by statistical areas, is set out in the following table.

Farm Type and Statistical AreaNumber of HoldingsCapital Expenditure
Building ConstructionMotor Vehicles and TrailersTractors and Farm MachineryImprovements and DevelopmentTotal Expenditure

*Dairy predominant.

†Sheep predominant.

‡Beef predominant.

 $(000)
Principally dairy farming18,4458,9243,2394,8697,08424,117
Principally sheep farming13,8015,7563,0514,23711,02724,072
Principally beef farming2,5008453624111,0642,683
Dairy and sheep (*)1,1106122353196141,780
Dairy and beef (*)8043871802555001,322
Sheep and dairy ()520260113147331851
Sheep and beef ()8,9595,3612,5953,03012,13223,118
Beef and dairy ()253875946122314
Beef and sheep ()1,1446033302741,0652,272
Mixed livestock1,6167593634701,1922,783
Sheep and cropping3,3511,7037602,2762,3277,065
Principally cropping1,5557382871,0056222,652
General mixed farming1,7691,0245421,3561,3924,315
Market farms and gardens6743931643351731,065
Others2,7931,8614807948784,013
            Totals, 1969-7059,29429,31312,76019,82640,523102,422
 $(000)
Northland4,7402,0779251,1272,5286,657
Central Auckland4,2992,1798039091,7665,657
South Auckland - Bay of Plenty13,5047,6002,6233,5018,14621,870
East Coast1,3077032765151,5733,068
Hawke's Bay3,6591,8228301,3543,1407,147
Taranaki4,3341,7667541,0751,6475,242
Wellington7,0242,9551,4301,6784,76610,829
            Totals, North Island38,86719,1037,64110,16023,56660,470
Marlborough1,1436122453976861,941
Nelson1,8807363486059912,680
Westland5822121112045681,095
Canterbury7,6884,1941,8544,4945,95916,501
Otago4,4112,2191,2451,9344,1549,551
Southland4,7232,2381,3162,0324,59910,184
            Totals, South Island20,42710,2105,1199,66616,95841,952
            Totals, New Zealand59,29429,31312,76019,82640,523102,422

GROSS FARMING INCOME AND VOLUME OF FARM PRODUCTION—Gross farming income is the value of the gross output of farming at the “farm gate” before any deduction is made for the expenses of farm operation. A description of this statistical series was given in the 1966 and earlier issues of the Yearbook.

The following table shows the value of gross farming income. The second part of this table gives the percentage contributions of each group to total gross farming income. In compiling farm income, allowance is made for changes in the numbers of livestock from year to year.

YearGroupTotal
Grain and Field CropsHorticulture, Poultry, and BeesWoolMutton and LambBeefDairyingPigs(Gross Farming Income)
*Provisional.
 $(million)
1938-399.412.618.524.413.156.74.8139.5
1955-5632.241.6143.0111.536.8176.912.4554.4
1960-6142.350.4158.3109.155.0184.514.3613.9
1961-6242.255.8153.992.659.7175.914.9595.0
1962-6343.357.1180.5107.868.8108.516.0654.0
1963-6450.062.4230.1131.374.4198.317.1763.6
1964-6548.769.6172.9166.987.1229.417.5792.1
1965-6651.176.0193.6166.995.7251.817.4852.5
1966-6758.679.9162.7140.4103.9261.417.3824.2
1967-6866.979.9131.6155.8121.6242.519.6817.9
1968-6974.186.5155.8168.5141.8237.521.4885.6
1969-7060.0x87.2x139.4x188.3x176.7x217.3x24.9x893.8x
1970-71*67.493.9132.9161.6186.6227.627.5897.5
Percentages of Total Gross Farming Income
1938-396.79.013.317.59.440.63.5100.0
1955-565.87.525.820.16.731.92.2100.0
1960-616.98.225.817.88.930.12.3100.0
1961-627.19.425.915.610.029.52.5100.0
1962-636.68.727.616.510.527.62.5100.0
1963-646.68.230.117.29.726.02.2100.0
1964-656.18.821.821.111.029.02.2100.0
1965-666.08.922.719.611.229.62.0100.0
1966-677.19.719.817.012.631.72.1100.0
1967-688.19.816.119.014.929.72.4100.0
1968-698.49.817.619.016.026.82.4100.0
1969-706.7x9.7x15.6x21.1x19.824.3x2.8100.0
1970-71*7.510.414.818.020.825.43.1100.0

The following diagram shows farming income for the farming groups.

INDEXES OF VALUE AND VOLUME OF FARM PRODUCTION—Index numbers have been compiled showing the movements in value of gross farming income and volume of farm production, both in total and for component groups. The value of gross farming income is measured as prices current in each particular year. For the compilation of index numbers of volume of farm production, computations have been made for each year showing what the aggregate annual values would have been had the 1938-39 prices been constant throughout the period. From the resultant aggregates, index numbers have been compiled which measure the movements in the volume of production (for, since prices were assumed to be constant, volume is the only variable factor in the aggregates).

In the following table index numbers of value and volume on the base: 1938-39 (=100) are given, and these give a clearer idea of the extent of year-to-year change.

YearGrain and Field CropsHorticulture, Poultry, and BeesWoolMutton and LambBeefDairyingPigsAll Farm Produce
*Provisional.
INDEX NUMBERS OF VALUE
1938-39100100100100100100100100
1955-56343330769457279313258397
1960-61449400851448417326296440
1961-62449443827380452311313426
1962-63462452970442521319333468
1963-645324951,238538564350354547
1964-65517552929684661405365567
1965-665446031,046684731444363611
1966-67623634879575793461360591
1967-68718633709637926428405586
1968-697956868396891,080419443634
1969-70644x691x750770x1,346x384x514x640x
1970-71*7237447156611,421402570643
INDEX NUMBERS OF VOLUME
1938-39100100100100100100100100
1955-5610816914315215013187139
1960-6117917618319917214392166
1961-6216320018420919614096169
1962-63195225197211208144110178
1963-64215249194219195149111184
1964-65202260196221206158101189
1965-6621927922222820916791200
1966-6723128822224623516780207
1967-6827929122525625016590213
1968-6931529422725627216880218
1969-70250X319X224264X306x152x92213x
1970-71*259322228256318149106213

The volume series for total farm production continued to rise during the years from 1963-64 to 1967-68 but the value series showed decreases of 3.3 percent in 1966-67 and 0.8 percent in 1967-68.

The rise in 1968-69 of 8.2 percent in the total value index series was due, substantially, to increased slaughterings, continuing rises in prices for meat, and a recovery in wool prices. The total volume index increased by 2.3 percent.

In 1969-70, although the value index for all farm produce increased by 0.9 percent there were decreases in the value indexes for the three groups—grain and field crops, wool, and dairying. Volume indexes for the three groups also showed decreases and for the first time in over 20 years the volume index for all farm produce showed a decrease. The greater part of the decline was in the dairying and grain and field crops groups, largely as a result of drought conditions.

Provisional figures for 1970-71 show an increase of 0.5 percent in the total value index series. A decrease in returns from the two groups—wool, and mutton and lamb, was more than offset by increases in all other groups. The volume index of all farm production remained the same as in 1969-70.

The tables clearly show the effects of fluctuations in the price of wool from year to year, and the marked increase in beef production in recent years.

Over the 32-year period, the average annual compound rate of increase in the volume series has been 2.4 percent. For the latest 5 years the average annual compound rate of increase has been 1.3 percent, this slower rate being attributed largely to the fall in production in 1969-70 and the unchanged level in 1970-71.

The following table shows, in quinquennial periods (except for the 4-year period in the last column), the proportions of gross farming income derived from exports of farm produce and from local consumption. A description of the methods of estimation was given in the 1967 and earlier issues of the Yearbook.

Gross Farming Income1941-42 to 1945-461946-47 to 1950-511951-52 to 1955-561956-57 to 1960-611961-62 to 1965-661966-67 to 1969-70
Derived—  percent   
    From exports677170686563
    From New Zealand consumption332930323537
            Totals100100100100100100

DAIRY PRODUCTION—The next table shows the estimated production and utilisation of milkfat during each of the last five seasons. (Source: New Zealand Dairy Board.)

Utilisation1966-671967-681968-691969-70x1970-71

Includes small quantities of creamery fat used in whey buttermaking.

†Including residual fat in skim milk from home separation.

‡Provisional.

   million lb  
Creamery buttermaking*465.2450.0485.5428.3419.1
Cheesemaking97.597.684.087.894.9
Whole-milk products17.317.318.721.523.4
            Totals580.0564.9588.3537.6537.4
Residual fat in skim-milk products5.25.3x6.3x5.65.6
            Total processed by dairy factories582.5570.2x594.6x543.2543.0
Consumed as milk, cream, or ice cream44.8x44.2x44.4x45.646.5
Fed to stock15.8x16.6x17.3x17.918.9
Wastage6.5x6.36.66.16.1
            Total production “at pail"652.3x637.3x662.9x612.8614.5

Production by dairy factories during the last five seasons is set out in the following table.

Product1966-671967-681968-691969-701970-71*
*Provisional.
   tons (000)  
Creamery butter251.6243.0264.1233.1225.9
Whey butter3.13.42.93.93.2
Cheese108.1109.196.198.3106.1
Condensed and powdered whole milk15.514.417.023.025.0
Skim-milk powder137.5144.9133.4110.5123.0
Buttermilk powder23.223.823.820.518.7
Casein46.846.467.762.054.8

The butter produced in New Zealand is of a salted type and, because the cows are fed almost entirely on grass, it has a high carotene content which makes it yellower than the butter from countries where cows are fed indoors for much of the year. Most of the cheese exported is a cheddar. Milk powders include those made from whole milk of from separated milk and buttermilk, by-products of buttermaking. Lactose is made from whey, a by-product of cheesemaking. At one time skim milk, buttermilk, and whey were almost entirely fed to pigs, but in recent years more has been dried to produce powder.

The following table gives estimates, derived by the New Zealand Dairy Board, of the average milkfat production per cow “at the pail”.

YearTotal MilkfatDairy Cows in MilkAverage Production per Cow

*Provisional.

†Including an allowance for cows milked on small holdings not covered by the annual farm census.

 million lb(000)lb
1961-625471,968276
1962-635591,997279
1963-645862,011290
1964-656222,032305
1965-666452,088308
1966-676532,131305
1967-686382,232285
1968-696632,304287
1969-70613x2,321x264x
1970-71*6152,239274

The following diagram shows the progress of the dairy industry over a long period of years.

The New Zealand Dairy Board of 13 members functions under the Dairy Board Act 1961. Apart from two Government representatives, all are producer members—three are appointed by the New Zealand Co-operative Dairy Company, eight are elected by other dairy companies, with voting proportionate to the quantity of milkfat received by those companies from their suppliers in six geographically-defined wards.

The Dairy Board's work is divided broadly into two sections; one concerned with the development of the dairy industry and the other with marketing of dairy produce. (This latter activity is described in Section 21A, Marketing of Farm Products.) It is a further function of the board to promote bobby calf and pig industries.

The Dairy Board has the broad function of linking manufacturing plans and growth with export market requirements. It is responsible by statute for the purchase and sale of export dairy products and for the development, in all respects, of the dairy industry.

Dairy companies have full power to make manufacturing decisions; they decide what they make from their milk. In this situation there must be a co-ordinating mechanism between manufacturing plans and marketing requirements, and this function of the Dairy Board has been developed over the years.

Reports on market trends, expected returns, product development, and a wide range of other relevant information are collected and rationalised by the board and conveyed in a steady flow to dairy companies. Since the board is the sole purchaser of produce for export, this purchasing power helps to link manufacturing plans with commercial reality.

From the trading funds of the several products, the board has been able to give financial stimulus, both to vary the quantities of dairy products and to widen their range. Day-to-day liaison with the Dairy Research Institute and the co-operative dairy companies promotes product research and development.

MEAT PRODUCTION AND DISPOSAL—The following table shows in summary form production and disposal of meat. Figures are shown at bone-in weights.

Product and Use1965-661966-671967-681968-691969-70
 tons (thousand)
Production
Beef265.3271.4314.5344.2360.9
Veal22.025.624.926.325.6
Mutton149.9185.5212.7196.7196.8
Lamb312.0326.9344.7357.1356.9
Pig meat—     
    Porker16.114.816.215.316.8
    Baconer21.319.218.819.320.1
    Chopper2.42.02.41.71.7
Edible offal40.845.551.853.356.0
            Total829.9890.8986.01,014.11,034.8
Disposal
Exports and ships' stores536.2590.9680.8715.3 
For canning11.713.912.111.3 
Local consumption281.9286.0293.1287.4 
            Total829.9890.8986.01,014.1...

Meat consumed in New Zealand represents approximately one-third of total production. The figures in the next table give actual consumption during the years ended 30 September, by classes of meat (bone-in weights).

ProductLocal ConsumptionConsumption per Head of Mean Population
1967-681968-691969-701967-681968-691969-70
  tons(000)  lb 
Beef121.2122.9120.998.8x99.3x96.4x
Veal10.49.59.18.5x7.77.3
Mutton81.183.985.566.167.8x68.2x
Lamb26.425.226.321.520.4x21.0
Pig meat—      
    Porker15.415.316.412.6x12.413.1x
    Baconer19.819.019.616.115.3x15.6
    Chopper2.22.31.91.81.91.5
Edible offal12.313.314.410.010.711.5x
            Totals288.8291.6294.2235.5x235.5x234.6x

The following table shows the numbers of the different classes of livestock slaughtered for food during each of the last 11 September years. The figures are for total killings—i.e., they include export works, abattoirs, rural slaughterhouses, and an allowance for killings on farms.

Year Ended 30 SeptemberSheepLambsCattleCalvesPigs
Carcasses (000)
19607,35619,2839561,234863
19617,28919,8469951,299839
19628,00221,5181,2241,413850
19637,22021,3081,2821,412921
19647,90122,1571,2861,3921,002
19657,55221,9241,1381,231951
19666,71122,3261,1721,102874
19678,47424,1581,2121,217790
196810,15926,4241,4951,235821
19699,60226,8571,6941,357790
19709,84627,5371,8481,310828

Meat intended for export from New Zealand is slaughtered at meat export slaughterhouses, of which 41 are at present operating. They are licensed annually under the provisions of the Meat Act 1964 and regulations thereunder, which also authorises officers of the Department of Agriculture to inspect all meat whether for export or for local consumption.

The principle of producer control of the export meat industry was established in 1922. A system was created in which the processing and exporting companies—public, private, and co-operative—worked under the overall direction of the Meat Producers Board. This system over the years has given the producer a choice of the people he did business with and a choice of methods of selling his stock. That choice for the producer meant that he obtained full benefit from a competitive situation. The system has also given the producer, through his representatives on the Meat Producers Board, the chance to influence through sales promotion the sale of his meat right down to the retail shops half a world distant. The board has controlled shipping to place supplies and has advertised widely, especially in Britain; it controls its own system of grading export meat; and it is general spokesman for the industry. The board ensures that farmers receive a return for their meat which is satisfactory when compared with overseas realisations.

The Meat Producers Board and the Wool Board are in the position of having to make not only long-term decisions but also to meet day to day situations as they occur. This they do with the aid of their own technical staff and through an economic service which is in close and constant contact with the sheep farming industry throughout New Zealand.

WOOL PRODUCTION—New Zealand holds third place in the world as a producer of wool, and second place as an exporter.

New Zealand specialises in the production and export of crossbred wool. There is, at present, only a small annual consumption by local mills. The quantity, on a greasy basis, used by local manufacturers in the post-war period until 1958-59 ranged between 4.9 thousand metric tons and 6.6 thousand metric tons annually. Figures for local consumption in recent years are as follows.

Year Ended 30 JuneQuantity Used (Greasy Basis)
 metric tons
 (000)
19617.8
19629.3
19638.2
19649.2
196510.1
196610.6
196710.2
196811.3
196914.6
197017.4
197121.9

The following table shows for the last 11 seasons the total wool production (greasy basis), the movement in the average price per kilogram of wool (greasy basis), and the estimated total value of wool production (obtained by valuing the production estimate at the overall price per kilogram of greasy wool sold at auction).

Season Ended 30 JuneTotal Wool Production (Greasy Basis)Average Price Per kilo (Greasy Basis)Estimated Value of Total Wool Production
 metric tons (000)cents$(m)
196126774.12197.6
196226671.98191.6
196328178.70221.4
1964279101.17283.0
196528377.40218.8
196631576.46241.0
196732264.77208.4
196833050.42166.5
196933261.86205.3x
197032856.48185.3x
197133453.42178.4

On account of lack of information on changes in stocks of wool on farms, the above figures of production should not be taken as precise measures of actual production in each season.

An analysis of greasy wool sold at New Zealand auctions, according to quality groups, is given in the following table. (Source: Wool Commission.)

Quality Group1966-671967-681968-691969-701970-71
Bales (000)Percentage of Total SalesBales (000)Percentage of Total SalesBales (000)Percentage of Total SalesBales (000)Percentage of Total SalesBales (000)Percentage of Total Sales
60-64's and up13.80.911.90.811.60.812.30.912.61.0
60's8.00.58.50.58.10.57.30.58.70.6
58-60's, 58's, and 56-58's72.24.663.24.060.24.058.94.147.83.4
50-56's and 56's120.17.7109.06.9105.27.092.56.4100.87.3
52's47.33.040.82.657.23.749.13.450.53.6
50's121.07.7114.27.3111.97.587.16.173.05.3
48-50's133.98.6146.99.4155.110.3145.010.1124.59.0
46-50's and 48's341.721.9323.420.6354.123.5306.321.3289.620.9
46-48's445.928.6475.330.2391.726.0388.027.0366.526.4
46's and lower257.116.5278.717.7255.016.7290.220.2312.622.5
            Totals1,560.9100.01,571.9100.01,510.2100.01,436.6100.01,386.6100.0

The New Zealand Wool Board was set up under the Wool Industry Act 1944. There are eight members—six elected representatives of sheep farmers and two Government-appointed members. The Director-General of Agriculture is an associate member. The board's functions are: to promote the use of New Zealand wool; to promote scientific or industrial research into all aspects or the industry; to undertake joint projects with the Meat and/or Dairy Boards which may benefit the wool production industry; and to advise Government on the affairs of the industry. The board may exercise further functions in production and marketing, through regulation. Income is derived fromthree sources, namely, from a levy on all wool, either exported or processed in New Zealand; from interest earnings on funds held by the Wool Commission; and from the Government. For the 1971-72 season the levy was 1.55c per kilogram. In the same year, the Government met one-half of the costs of wool research in New Zealand and one-half of the total cost of the Wool Board's contribution to the International Wool Secretariat.

Approximately four-fifths of the board's income is contributed to the work of the International Wool Secretariat. This organisation is a partnership of the wool boards of four grower countries—New Zealand, Australia, South Africa, and Uruguay. Its functions are the promotion of wool in consuming markets often in conjunction with manufacturers and retailers; technical service to manufacturers; quality control of manufacturers licensed to use the Woolmark symbol; and research and product development. The International Wool Secretariat has its headquarters in London and branches in 25 consuming countries. Recently the International Wool Secretariat Board has decided to promote blends of wool and other fibres.

In New Zealand the board's staff are engaged in local promotion of wool, technical service and quality control to the local industry, and technical promotion overseas. It has a shearing instruction service and staff engaged in packaging, wool transport, wool handling, and economics and marketing research.

The Wool Research Organisation, established in 1960 at Lincoln, Christchurch, conducts fundamental research into wool chemistry, physics, and biosynthesis. It carries out applied research in scouring, new products processing and manufacturing performance, and fibre measurement. In November 1971, a pilot manufacturing plant was completed to aid in the applied research field, especially in the processing of crossbred wool.

In 1971, as a result of a study undertaken by the Battelle Memorial Institute, the board recommended to the Government that a wool marketing corporation be established. The corporation would have broad powers to improve the marketing of New Zealand wool throughout the world. It is proposed that the corporation should be formed at the start of the 1972-73 selling season and an establishment company has been set up to determine methods of implementing the proposals.

FARM PRODUCTIVITY—Based on sophisticated techniques of grassland farming, agricultural production has continued to grow in a way which has resulted in increasing quantities of dairy products, meat, and wool for export. This has been accompanied by a marked rise in the productivity of labour employed in farming—production has steadily increased without an increase in the farm labour force. A general improvement in management practices and a heavy rate of investment in land improvement have been the principal factors responsible for the expansion of output. A study by Professor B. P. Philpott attributes two-thirds of the 2.6 percent annual increase in output between 1920-60 to capital investment and one-third to improved efficiency in the use of resources. The pattern is one of more intensive farming, for the area used for farming has not expanded since early in the present century. This has meant more intensive use of public and social capital. Since, with more intensive farming, there is a greater demand for any given operation in a defined area, recent decades have witnessed a very substantial growth of contract services for farmers in harvesting and in farm maintenance and improvement. The trend towards this division of function in farming activities was, of course, largely influenced by the production and availability of highly specialised new farm machinery which it would have been uneconomic for individual farmers to own. There is evidence to suggest that over recent years capital invested in farming has been employed more productively than during the 1950s.

AGRICULTURAL DEVELOPMENT CONFERENCE—An Agricultural Development Conference was held in 1963 and 1964. It was called as a result of the feeling in both producer and official circles that agricultural expansion should proceed at a more rapid rate and that a thorough examination should be made of the economic factors impeding such expansion. Targets in livestock numbers were set by the conference, which also made a number of recommendations to the Government based on the conclusions of the eight working parties.

NATIONAL DEVELOPMENT CONFERENCE—At the National Development Conference in 1969 the targets established by the Agricultural Development Conference were reviewed after working parties had examined commodity developments, capital requirements, and manpower requirements of farming. Further projections were made to 1972-73 and to 1978-79. In addition to pastoral production, agriculture was extended to include grains and seeds and horticulture. For the period ending 1978-79, the total agricultural contribution to national earnings was projected to increase by 5.1 percent annually. This would require an increase in livestock numbers at a rate of 2.6 percent a year, reaching 111 million ewe equivalents in 1972-73, and 130 million ewe equivalents in 1978-79.

AGRICULTURAL PRODUCTION COUNCIL—This council was set up following a recommendation of the Agricultural Development Conference in 1964. It comprises the Minister of Agriculture (Chairman), the Director-General of Agriculture (Deputy-Chairman), the Dominion President, Federated Farmers of New Zealand (Inc.), the Chairmen of the three producer boards (Dairy, Meat, and Wool), the Secretary to the Treasury, and the Secretary of Industries and Commerce.

The main functions of the council are to keep under review the projections revised by the National Development Conference, to propose measures that will facilitate the attainment of these projections, and to consider any matters that may be referred to it by the Minister of Agriculture.

In 1968, the Agricultural Production Council accepted the role of Agricultural Sector Committee for the purposes of the National Development Conference, and, following the establishment of the National Development Council after this conference, the Agricultural Production Council became the Sector Council for Agriculture under the new organisation for national planning, preserving at the same time its original functions.

The council has several standing committees—Executive, Finance, Manpower, Meat, Horticulture, Farm Costs, Taxation, and Grains and Seeds—and working parties on specific projects.

The council has also established 23 District Agricultural Advisory Committees which bring together at local level all the organisations which service agriculture in that region. These committees review the progress of agriculture in their district; identify factors limiting production and propose remedial measures; ensure that farmers and their advisers are fully aware of development incentives and concessions and the availability and terms of finance; and keep the council advised of local problems and circumstances.

DEPARTMENT OF AGRICULTURE—The Department of Agriculture has existed as a separate department since 1892 and has been instrumental in building up farm production. The principal functions of the department as set out in the Department of Agriculture Act 1953, are: to promote and to encourage the development of all phases of the agricultural, pastoral, and horticultural industries in New Zealand, including the stock, poultry, fruit, vegetable, flax (Phormium tenax), tobacco, hops, and honey production industries, with a view to maintaining and improving the quality of the products derived from those industries and increasing the production of those products; and to promote, control and encourage the marketing and sale of those products.

Under the control of the Minister of Agriculture, the Department of Agriculture provides a service of which the main object is the advancement of the interests of primary production. Under a Director-General of Agriculture there are Divisions of Animal Health, Meat, Dairy, Advisory Services, Research, Economics, and Administration. Though the service is primarily advisory, the department administers a number of Acts and regulations.

Animal Health—The Animal Health Division is responsible for the control of infectious diseases of livestock, including poultry diseases, and vaccination and testing are carried out to prevent and eradicate certain serious stock diseases. Special attention is given to herds supplying milk for human consumption. Livestock husbandry forms an essential part of the extension service provided by this division. All stock exported and imported is examined by the division's veterinarians; the division controls the importation of all animal products into New Zealand and operates quarantine stations for imported livestock. The division is concerned with the control of noxious weeds through the agency of county councils and, with the Pest Destruction Council through district pest destruction boards, in the destruction of rabbits, hares, opossums, and wallabies.

Meat—The Meat Division is responsible for the ante-mortem and post-mortem inspection of all stock and meat produced in abattoirs and meat export works—and for the standard of hygiene in these establishments as well as in all meat export and domestic meat packing plants. It supervises the standard of hygiene in game packing houses and gives veterinary certificates covering the export of game and fish.

Dairy Produce—Instruction in the manufacture of all dairy products is given by the Dairy Division. Dairy produce is inspected and graded before shipment and on arrival in United Kingdom. The division is responsible also for the registration of town supply farm dairies and provides technical advice on market milk treatment. Laboratories at Auckland, New Plymouth, Mount Maunganui, Wellington, and Wallaceville provide comprehensive examination of dairy products as a background to quality control. All dairy farms are visited regularly by farm dairy instructors. Dairy advisory officers give specialist advice at farms and dairy factories. The division licenses and registers dairy factories and approves their design, general suitability and economic justification.

Advisory Services to Farmers—The Advisory Services Division provides advisory services to farmers and horticulturalists and undertakes the various activities such as plant diagnostic, quarantine, testing, and field inspection services needed to meet the department's responsibilities under the Plants Act 1970.

Graduate advisory officers servicing districts containing about 700 farmers are backed by specialists in the fields of agricultural engineering, animal husbandry, farm economics, extension, and home management. Extension work operates through individual farm visits, groups techniques, and the mass media. There are four commercial demonstration farms at Kaikohe, Wairoa, Hindon, and Te Anau, and co-operative demonstrations are given on selected farms.

Outside its extension work, this division is responsible for certification and testing of herbage and cereal seeds, the Flock House Farm of Instruction at Bulls, and the flax estates at Foxton.

Poultry farmers also receive specialist advice.

The advisory service extends to commercial producers of pip, stone, citrus, and subtropical fruits, vegetables, berry fruits, cut flowers, nursery stock, grapes and wine, bees and honey, and to a limited extent, hops and tobacco. It covers all aspects of production—soil management, disease and pest control, and crop production and handling. Advisory officers demonstrate and adapt research results in districts for all horticultural crops and beekeeping. Experimental and demonstration areas are sited at Kerikeri and Manutuke (citrus). More emphasis is being given to commercial horticultural units to assist producers to improve the profitability of their holdings.

Horticultural inspectors inspect commercial plant nurseries, market gardens, and orchards for plant pests and diseases to restrict their spread. They advise producers on dates for picking, and give instruction in grading and packing fruit for export and local markets. They also inspect fruit, vegetables, and plant material for export from New Zealand. All pip fruit delivered to the New Zealand Apple and Pear Marketing Board for local and export markets is inspected by horticultural inspectors. An orange-quality testing service is provided for the Citrus Marketing Authority.

Information is supplied for marketing organisations in the form of seasonal forecasts of production. Periodic surveys are made of orchards, market gardens, and nurseries.

Research—All research stations of the department are under the control of the Director of Agricultural Research, with headquarters at Ruakura. Directors of Animal Research, Soil Research, and Field Research are all stationed at Ruakura. Irrigation research is done at Winchmore, and other research establishments are at Whatawhata (near Hamilton), which specialises in hill-country research, and at Invermay. Research work on animal diseases is centred largely at Wallaceville under a director. Horticultural research is centred at Levin and viticultural research at Te Kauwhata. Research activities are more fully discussed in Section 7B, Science and Scientific Services.

Economics—The Economics Division deals with international trade and trade negotiations in relation to agriculture, international quality standards, the analysis of production and marketing policies, and the general economic position of farmers. Other functions include the economic appraisal of projects associated with agricultural development and resource use.

Port Agriculture Service—The Port Agriculture Service, established in 1960, is a uniformed branch of the department under the control of a superintendent directly responsible to the Director-General. Its chief responsibility is to prevent the introduction into New Zealand of serious animal and plant diseases and pests. Officers of this service are located at ports and international airports, and deal with all items of concern to agriculture arriving from overseas.

PASTURE GRASSES—Researches and experiments in regard to pasture grasses are regular features of the activities of both the Department of Agriculture and the Department of Scientific and Industrial Research. These experiments, which extend right on to individual farms throughout New Zealand, and are conducted in co-operation with the farmers themselves, are wide in their application, and cover all the major phases of pasture management, dealing in particular with such items as pasture mixtures, suitability as to soil types, methods of establishment and management, the efficient use of fertilisers, etc. The results are made available per medium of the Journal of Agriculture and such allied publications, as well as by special pamphlets which are distributed without charge. The farmer can thus avail himself of, and profit by, highly specialised knowledge and experience. In addition, a constant endeavour is being made not only to improve existing strains by such measures as seed certification and the provision of pedigree seed, but also to evolve new strains.

The following table shows the areas under artificially sown grasses, and includes areas of tussock and other naturally established native grasses which have been permanently improved by oversowing with grasses and clovers.

YearArtificially Sown Pasture Grasses and Lucerne
Cut for Seed, Hay, or SilageNot Cut for Seed, Hay, or Silage
*Includes 74,411 hectares also sown with crops in 1963-64, 70,374 hectares in 1964-65, 74,157 hectares in 1965-66, 61,690 hectares in 1966-67, 63,434 hectares in 1967-68, and 64,139 hectares in 1968-69.
 hectares
1961-62469,4407,319,784
1962-63561,4207,336,635
1963-64540,5667,459,053*
1964-65541,2687,323,140*
1965-66599,1327,414,547*
1966-67597,0457,609,723
1967-68605,0177,563,834
1968-69664,7547,637,463*
1969-70621,4867,637,768

TOPDRESSING—Topdressing with artificial fertilisers has been, an important factor in the intensification of grassland farming. Most New Zealand soils need fertilisers, especially phosphates. Superphosphate has been produced in New Zealand in increasing quantities since the 1880s, using rock phosphates from Nauru and Ocean Islands; Christmas Island is now an increasingly important source of supply. Over the years there has been a marked changeover from straight superphosphate as the principal fertiliser for grassland and crops—usual variants are serpentine superphosphate or aerial superphosphate, or a mixture of superphosphate with potash, additional sulphur or a trace element. Production of chemical fertilisers in 1969-70 totalled 1,915,691 tons, the superphosphate content of this output being 1,660,892 tons. Approximately half of the sown grassland receives fertiliser annually, with about half the fertilised area covered by aerial distribution; about one-third of the quantity is distributed by aeroplanes from 8,000 airstrips. Total expenditure on topdressing of farm land comes to about $50 million annually, including fertiliser transport and application costs. New Zealand occupies less than 0.3 percent of the world's land area, yet this country uses 2 percent of the world's fertiliser production.

Achievement of the increased rate of development recommended by the Agricultural Development Conference is estimated to require an annual increase of fertiliser usage of about 7 percent. The greater input will be needed because, as production develops, fertilisers will be used on more difficult country and on land on which production has already been intensified.

The use of lime to correct soil acidity and increase the availability of trace elements grew steadily from 1890 to a peak of 1.5 million tons in 1945. Since then the usage has dropped to less than 1 million tons annually; there is now a more judicious application of lime and a greater use of trace elements, such as molybdenum, according to proved soil needs.

The following table gives particulars of areas of grassland topdressed during the latest 6 years.

YearGrassland Area Topdressed
With Artificial Fertiliser OnlyWith Lime OnlyWith Both Artificial Fertilisers and LimeTotal Grassland Topdressed
  hectares  
1964-654,389,335159,019650,2005,198,555
1965-664,571,075147,981582,3495,301,405
1966-674,800,827140,666568,6605,510,154
1967-684,345,080131,666472,3864,949,133
1968-694,507,956137,516477,3305,122,802
1969-704,853,833165,387632,8925,652,112

Though topdressing in the past was practically confined to sown grasses on the flat and gently undulating country, the application of fertilisers to the surface-sown hill-country pastures in increasing quantities from aircraft has followed from the development of commercial aerial top-dressing operations since 1949. Further information in this connection is contained in Section 11D.

SUBSIDIES, GRANTS, ETC.—For many years a number of grants and subsidies have been paid to the farming industry and allied organisations from public funds.

The following table shows the pattern of major payments in recent years.

Subsidy, Grant, etc.1966-671967-681968-691969-701970-711971-72 (voted)
 $(000)
Carriage of lime102879088128286
Fertiliser transport subsidy2,5292,2803,0755,5797,0509,000
Flood and drought relief672163164773,541400
Weedicide and pesticide subsidy---3,2594,0224,250
Eradication of bovine tuberculosis—      
    Compensation for condemned animals, loss of production payments, hardship payments, and incidental costs1,2891,0281,0631,2721,3962,276
Subsidies to pest destruction boards1,4811,6281,5181,8992,1042,255
Grants to pest destruction boards483348337
Subsidies to nassella tussock boards157176174172190221
Subsidies to county councils under the Noxious Weeds Act130125153204304275
Agricultural Engineering Institute708398125142190
Herd Improvement Council7379799797111
National Hydatids Council707070105106117
Veterinary Services Council634040424848
Fertiliser price subsidy----5,3661,300
Special Assistance Fund----9,786120
Dairy diversion scheme (beef)----1,1342,000
Stock drench subsidy-----1,800
Aerial application of fertiliser and lime subsidy-----700
Grant to New Zealand Wool Board-----3,420

Animal Remedies Subsidy—A subsidy was introduced in June 1971 to reduce the cost to farmers of stock drenches. This subsidy applies to a range of anthelminites which have been fully licensed by the Animal Remedies Board.

Lime Subsidy—Since 30 November 1959 a subsidy on lime transport has been paid to farmers applying lime to newly developed land which is lime responsive, has not previously been limed, and which is cultivated and sown for the first time; or, if it cannot be cultivated, which receives its first dressing of lime. Farmers meet full transport costs and are entitled to claim a refund from the Department of Agriculture. In June 1971 this rate was set at 6c per ton-mile for the first 60 miles and 2c per ton-mile thereafter.

Fertiliser Price Subsidy—A uniform subsidy of $5 per ton ex-works on all fertiliser was introduced on 6 July 1970. It was increased to $7.50 per ton in June 1971.

Fertiliser Transport Subsidy—As from 1 August 1965 a subsidy on the transport of fertiliser (excluding lime) was introduced following a recommendation of the Agricultural Development Conference.

As from 1 August 1969 fertiliser transport has been subsidised for the distance of a farm from the nearest fertiliser works at the rate of: 9c a ton per mile for the first 20 miles, 5c a ton per mile for the next 40 miles, and 2c a ton per mile for mileage over 60. In June 1971 this subsidy was increased to 7c a ton-mile between 20 and 100 miles, and 4c a ton-mile over 100 miles.

Aerial Topdressing Subsidy—In June 1971 a subsidy of $1 a ton was introduced on all fertiliser and on subsidisable lime, applied from the air.

Weedicide and Pesticide Subsidy—Introduced in 1969, this subsidy is designed to assist farmers to meet the cost of the more expensive materials they are required to use in the face of restrictions on the use of substances such as DDT.

Pest Destruction Boards—In the post-war years a determined effort has been made to rid the country of rabbits which were lowering the carrying capacity of farm land and causing a loss of production running into many million dollars in value annually. Rabbit-infested areas were brought under rabbit board control, and effective steps were made towards their elimination. From 1 April 1968 rabbit boards have been reconstituted as pest destruction boards which may also undertake opossum and wallaby control. Rates are subsidised by the Government, which also makes grants to pest destruction boards.

Other Items—Most of the remaining items represent attempts to deal with specific problems, such as the eradication of bovine tuberculosis, which are of importance to the whole community but the handling of which would impose a serious burden on individuals or small groups, and the cost of the Government contribution towards running particular organisations, such as the Agricultural Engineering Institute.

FARM MACHINERY—The following table gives details of farm machinery for those items where comparison is available. The figures relate to holdings of 10 acres (4.05 hectares) and over.

Type of Machine19601965196819691970
Agricultural tractors78,41589,43193,68895,42195,502
Milking machines36,72132,88729,36429,10827,930
Shearing stands61,63765,91871,08071,27171,055
Pick-up balers7,93210,24711,79912,38012,618
Side delivery rakes21,95324,17824,97325,43925,378
Harvesters—     
    Forage1,2004,2805,1235,3705,403
    Header4,7465,2895,8475,6925,724
Electric fence units54,70763,97066,35369,38770,140
Field mowers......50,09552,17552,005
Ploughs......41,74342,95142,101
Disc harrows......33,09633,76232,979

The figures show a continuation of the trend towards more intensive mechanisation of farm work that has been in evidence over a considerable period.

Milking Machines—Information concerning milking machines on farms was first collected in 1919, in which year there were 7,577 plants recorded. Since that year the use of milking machines has expanded rapidly. Of the 1,905,534 cows in milk on 31 January 1952, 1,799,375, or 94 percent, were milked by machine. At the end of January 1970 there were 27,930 milking machine plants in use, with a total of 205,268 sets of cups, compared with 29,108 machines and 188,501 sets of cups at 31 January 1969.

Agricultural Tractors—The numbers of agricultural tractors employed on farms has risen to 95,502. These figures do not include rotary hoes or garden tractors.

The classes of tractors on farm holdings of 4 hectares and over outside borough boundaries at 31 January 1970 are given in the following table.

TypeNumberPercentage of Total
Diesel oil—  
    Crawler7,5978.0
    Wheel43,26045.3
    Total50,85753.3
Petrol or kerosene—  
    Crawler5,9466.2
    Wheel38,69940.5
    Total44,64546.7

14 B—CROPS

GENERAL—Crops grown in New Zealand are in general sufficient to meet domestic needs for agricultural products, apart from tropical and subtropical products such as tea, sugar, cotton, etc.

Local requirements of all the important fruits and berries grown in temperate zones are met by New Zealand orchard production. Citrus fruits are grown in the subtropical northern portion of the North Island, and grapes are also cultivated in certain localities. There is a substantial export trade in apples and pears.

Potato and onion production is normally adequate.

Animals can be grazed in open pasture for the full 12 months of the year, but the winter growth of grass, except in certain favoured localities, requires to be supplemented in order to keep stock in good condition during the colder months, and in some districts supplementary fodders are necessary in the drier summer months. Hay and silage crops are grown almost exclusively on the farms where they are consumed, though some districts specialise in the growing of certain other supplementary fodder crops. The bulk of the supplementary fodders other than grass and clover, hay, and silage, is grown in the South Island, since the colder climate necessitates more extensive supplementary feeding than in the North Island.

The renewal and extension of pastures require the annual supply of very considerable quantities of grass seed, which are now grown almost entirely in New Zealand. There is an appreciable export trade in some species of grass seeds.

GEOGRAPHIC DISTRIBUTION—Grain growing is localised to a considerable extent, the Canterbury statistical area, with its fertile plains, supplying more than half of New Zealand's wheat yield, about half of the oats threshed, and over half of the barley yield. In recent years, however, the North Island has grown higher proportions of wheat and barley crops.

Maize growing is largely confined to certain portions of the East Coast (notably Cook County) and South Auckland - Bay of Plenty areas. The growing of peas for threshing is carried out extensively in Canterbury, and to a lesser extent in Marlborough and Wellington, Canterbury alone producing nearly three-quarters of the total yield. About two-thirds of the area closed off for production of grass seed is in the Canterbury district.

The Canterbury statistical area also produces a large proportion of the commercial potato crop, followed by Wellington statistical area, while the growing of potatoes for the early market is of importance in a few relatively frost-free areas, particularly Pukekohe, near Auckland. The Pukekohe district also provides the Auckland area with a considerable portion of its vegetable requirements as well as being the main onion-growing area of the Island. Wellington City draws most of its vegetable supplies from the Otaki and Levin districts, while Ohakune, in the centre of the North Island, with climate and soils suitable for the production of cabbages and broccoli, supplies both Auckland and Wellington with these vegetables. Hastings has become a centre for the canning and processing of many vegetables.

In the South Island market gardening is carried on near the cities, and on the rich soils near Christchurch over 405 hectares are devoted to this purpose; also to the immediate south of Oamaru and on the Taieri Plains just south of Dunedin there are other areas aggregating more than 405 hectares. Nelson also produces considerable quantities of fresh and processed vegetables, most of which are marketed in Wellington.

Commercial orchards in New Zealand are largely confined to certain areas suited by climatic and soil conditions. The Nelson and Hawke's Bay districts are notable for their apple and pear orchards, a high percentage of the crops from these districts normally being exported. Central Otago is well suited to the growing of stone fruits, notably apricots. Hawke's Bay and Nelson are also noted for their peach production. In certain particularly warm areas of the North Island with suitable soils citrus fruits are grown, the principal areas being Kerikeri, in Northland; Tauranga, in the Bay of Plenty; and Gisborne.

Grape growing is of importance near Auckland and in Hawke's Bay, and to a lesser extent in South Auckland. Tobacco growing is confined to the Nelson district, hop growing also being concentrated in this area.

The area devoted to each of the principal crops in the 1969-70 season and the percentage distributions for each crop by statistical areas for the North and South Island are given in the following table.

CropTotal AreaNorthlandCentral AucklandSouth Auckland-Bay of PlentyEast CoastHawke's BayTaranakiWellingtonNorth Island
 hectaresPercentage of crop area
For threshing—         
    Wheat108,394- --- -- -2.70.35.68.6
    Oats21,008--0.5- -0.90.12.43.9
    Barley56,0800.60.63.81.58.50.719.335.0
    Maize8,0891.32.527.350.914.6-1.197.7
    Peas (not canning)24,500--- -0.12.9-8.011.0
Oats—         
    For chaff, hay, or silage13,9040.50.41.9- -1.20.83.48.2
    Fed off, cut green, abandoned14,6020.20.10.60.11.60.32.25.1
Root crops—         
    Potatoes9,9280.815.83.60.86.10.925.253.2
    Swedes68,5880.20.212.60.50.81.14.820.2
    Turnips83,1280.50.44.90.72.30.84.013.6
Vegetable crops for processing10,075- -0.9- -15.146.6-0.463.0
Vegetable crops for market5,2186.728.76.04.610.30.617.774.6
Green fodder—         
    Rape29,6570.2- -0.70.26.6- -2.410.1
    Chou moellier, kale45,3290.40.36.60.314.91.721.645.8
    Other fodder crops15,6071.70.45.71.57.91.114.733.0
Grasses, clover and lucerne for seed52,7120.30.32.00.56.20.34.814.4
Grasses and clovers for hay or silage491,7167.05.835.30.74.59.58.871.6
Lucerne for hay or silage77,0580.30.19.00.43.70.82.416.7
Commercial orchards8,8574.212.211.33.523.0- -1.355.5
Market gardens6,0815.335.26.42.616.60.912.979.9
CropTotal AreaMarlboroughNelsonWestlandCanterburyOtagoSouthlandSouth Island
 hectaresPercentage of crop area
For threshing—        
    Wheat108,3941.3- -- -63.412.913.891.4
    Oats21,0081.10.4-55.317.621.796.1
    Barley56,0803.81.6- -48.87.33.565.0
    Maize8,0890.9--1.4--2.3
    Peas (not canning)24,5004.00.1-81.23.40.389.0
Oats—        
    For chaff, hay, or silage13,9042.00.60.449.320.419.191.8
    Fed off, cut green, abandoned14,6026.32.20.162.420.83.194.9
Root crops—        
    Potatoes9,9281.11.6- -35.15.43.646.8
    Swedes68,5880.41.10.814.022.541.079.8
    Turnips83,1282.01.60.453.820.48.286.4
Vegetable crops for processing10,0756.17.0-23.60.3-37.0
Vegetable crops for market5,2182.22.8-10.110.10.225.4
Green fodder—        
    Rape29,6574.10.8- -59.320.05.789.9
    Chou moellier, kale45,3291.00.6- -14.515.422.754.2
    Other fodder crops15,6072.61.60.438.017.86.667.0
Grasses, clover and lucerne for seed52,7124.31.2-61.08.011.185.6
Grasses and clovers for hay or silage491,7161.02.01.27.16.810.328.4
Lucerne for hay or silage77,0586.81.0- -46.924.83.883.3
Commercial orchards8,8572.421.5-4.516.00.144.5
Market gardens6,0811.48.0-5.36.30.120.1

STATISTICS—Detailed statistics of crops are contained in the annual statistical report on farm production issued annually by the Department of Statistics. Unless otherwise stated, the statistics quoted in this subsection relate to holdings of 10 acres (4.05 hectares) and over situated outside borough boundaries or in rural areas of municipalities.

BUSHEL WEIGHTS—For statistical and other purposes it is at times necessary to convert bushel units to a weight basis. For New Zealand produce and fruit, conversion is effected by using the following weights per bushel for the commodities mentioned.

ProduceWeight of Bushel
 lb
Wheat60
Oats40
Barley50
Maize56
Peas60
Ryecorn56
Beans65
Grass seed20
Apples40
Pears38
Quinces40
Peaches42
Nectarines42
Apricots42
Plums42
Cherries42
Oranges42-43
Lemons (uncured)42

AREA UNDER CULTIVATION—A general summary of the areas under cultivation is given in the following table. The statistics quoted in this and other tables in this subsection relate to holdings of 10 acres (4.05 hectares) and upwards outside borough boundaries or in rural areas of municipalities.

YearPasture Land*Field CropsPlantationsOrchards, Market Gardens, and NurseriesLying FallowTotal Cultivated Land

*Excluding areas of grasses and clovers cut for seed, hay, or silage, and crops sown together with grasses, which have been included in field crops.

†Excludes domestic orchards.

‡ Areas in residences, private grounds, gardens and domestic orchards are excluded.

§Includes land prepared for grassland but not sown at 31 January.

||Figures included in pasture land for 1969-70.

 hectares (000)
1963-647,3851,03642113458,900
1964-657,2531,04941913518,785
1965-667,440§1,08942714298,999
1966-677,665§1,07643015259,210
1967-687,6041,13244616249,222
1968-697,6661,21546517169,379
1969-707,7621,16348018||9,423

In the following pages statistics of the principal crops are quoted with explanatory comment. In addition to summary tables, covering in each instance a range of related items, important individual crops are discussed under separate headings.

PRINCIPAL FIELD CROPS—The following table shows the areas under each of the principal field crops for the years stated.

Crop1965-661966-671967-681968-691969-70

*Including turnips and rape mixed.

†Rape, kale, and chou moellier only.

‡Includes linseed, mangolds, and tobacco.

§Includes crops sown together with grasses, 64,139 hectares.

||Included in other crops.

 hectares
Wheat83,42495,663129,138132,121115,678
Oats34,69026,87634,34735,76649,514
Barley39,67742,40068,66668,50263,336
Maize5,6335,1017,9669,69011,362
Peas for threshing11,64911,05714,02820,29524,500
Linen flax180227182||190
Potatoes9,8888,0209,51710,1329,928
Turnips and swedes*191,598182,362177,967166,922151,716
Onions7087907881,020879
Vegetable crops for processing7,4006,4967,9508,99310,075
Green fodder92,72482,19373,58477,08574,985
Grasses, clovers, and lucerne for seed81,27172,54261,19263,49052,712
Grasses and clovers for hay or silage444,108452,048449,533523,892491,716
Lucerne for hay or silage73,75272,45779,72377,37277,058
Other crops16,41017,63317,78419,66829,572
            Totals1,093,1131,075,8641,132,3651,214,948§1,163,221

The figures quoted in the foregoing table in respect of wheat, oats, barley, maize, and peas relate to the total areas under these crops for grain or fodder. A considerable portion of the area under cereal crops, particularly oats, is cut for chaff, hay, or silage, or is fed off. In regard to peas it should be noted that additional areas of this crop for domestic consumption in the form of green peas are included under market gardens and crops for processing.

GRAIN AND SEED CROPS—Details of areas for threshing, total yields, and yields per acre of the principal grain and seed crops during recent years are set out in the following table.

YearWheatOatsBarleyMaizePeas
*Estimated.
 Areas for threshing (hectares)
1963-6482,54010,75438,0323,90512,129
1964-6574,46115,69035,2223,91911,024
1965-6680,74515,66333,9873,26511,649
1966-6793,3059,31137,2213,06111,057
1967-68126,65113,95562,7775,87314,028
1968-69129,97515,90663,5377,13823,927
1969-70108,39421,00856,0808,08924,500
1970-71*96,31517,40168,7979,389...
 Total yields (bushels (000))
1963-6410,0681,5485,7767441,100
1964-659,1982,4944,670927878
1965-6610,7212,3995,0307621,058
1966-6712,7781,5535,9097281,183
1967-6816,2532,4679,6741,4131,334
1968-6916,7792,87410,2542,0142,080
1969-7010,5533,1817,6922,3081,822
1970-71*11,9002,70010,000......
 Yields per hectare (bushels)
1963-64121.98143.95151.87190.5290.69
1964-65123.53158.95132.59236.5479.64
1965-66132.78153.16148.00233.3890.82
1966-67136.95166.79158.75237.83106.99
1967-68128.33176.78154.10240.5995.09
1968-69129.09180.69161.39282.1586.93
1969-7097.36151.42137.16285.3374.36
1970-71*123.55155.16145.36......

WHEAT—As a result of the equitable price of wheat combined with sowing of increased acreages of higher yielding varieties, and also to other economic factors, by 1968-69 the total yield had moved up to record levels of twice those of 8 years earlier, but production was seriously affected by drought conditions in 1969-70 and near-drought conditions in 1970-71.

The following diagram shows the fluctuations that have occurred in the area sown in wheat, together with the total yield and the average yield per acre.

Wheat Board—Control of the importation of wheat and flour and of the distribution of both imported and locally produced wheat rests with the Wheat Board. The operations of this board, which consists of representatives of flourmillers, wheat growers, and bakers, with the Minister of Industries and Commerce as chairman, and his nominee from the Department of Industries and Commerce as deputy chairman, are governed by the Wheat Board Act 1965.

All New Zealand milling wheat is purchased from farmers by the Wheat Board through the agency of the grain merchants acting as brokers for the board. The board is responsible for the distribution of imported poultry wheat in the North Island; in the South Island poultry wheat is not controlled. Its functions also include arrangements for the processing of wheat and the sale of flour to merchants, bakers, pastrycooks, grocers, and others.

The annual consumption of wheat in New Zealand approximates 15 million bushels—some 11 million bushels being required for flour and cereal foods, and the balance for poultry food and seed. In the 1968-69 season New Zealand's production of milling wheat was nearly self-sufficient, requiring only a small quantity to be imported; some surplus non-milling wheat was exported.

Varieties of Wheat—The choice of wheat varieties for sowing is influenced by their suitability to local conditions of climate, soil type, etc. Wheat growers receive valuable guidance regarding suitable varieties as the result of research work and field trials undertaken by the Crop Research Division, Department of Scientific and Industrial Research, the Wheat Research Institute, and the Department of Agriculture. The survey of varieties of wheat grown for threshing is now carried out each year.

The 1970 survey which related to wheat sown in 1969 and harvested in 1970 showed the following results.

VarietyArea (Hectares)YieldAverage Yield per Hectare (Bushels)
BushelsPercentage of Total Production
*Area of wheat threshed in survey by varieties; total area threshed was 108,394 hectares which produced 10,553,000 bushels.
Aotea57,7205,516,35058.5895.57
Hilgendorf16,0931,543,50816.3995.91
Arawa12,2621,180,51212.5496.27
Cross1,264143,0251.52113.15
Gamenya4,392505,8005.37115.15
Triple Dirk1,446109,1931.1675.51
Raven2,989303,4353.22101.52
Other919114,8991.22125.02
            Totals97,085*9,416,722100.0096.99

OATS—The area under oats has declined steadily, the greatest decreases being in oats for chaff, hay, and silage. This decline resulted largely from the replacement of horses by tractors.

Varieties of Oats Threshed—A survey covering the 1969-70 season gave the following results.

VarietyArea (Hectares)YieldAverage Yield per Hectare (Bushels)
BushelsPercentage of Total Production
*Area of oats threshed in survey by varieties; total area threshed was 21,008 hectares which produced 3,181,000 bushels.
Onward4,877763,36327.15156.52
Mapua9,7711,594,84356.72163.22
Black Supreme1,871243,5148.66130.15
Grey Winter38232,9641.1786.29
Other White1,204127,2844.53105.72
Other Black44649,9141.77111.91
            Totals18,551*2,811,882100.00151.58

More than half a million bushels of oats are milled each year to produce some 3,000 short tons of rolled oats, and 2,300 short tons of oatmeal and proprietary oaten foods.

BARLEY—In the five seasons 1965-66 to 1969-70 the average area of barley sown was 56,656 hectares, of which 50,586 were harvested for grain, most of the remainder being used for green feed. In the 1969-70 season there were 7,692,000 bushels of barley threshed from 56,080 hectares compared with 10,254,358 bushels from 63,537 hectares in the 1968-69 season. About half the crop is used for malting and half for manufactured stock food.

Varieties of barley grown in the 1969-70 season were as set out below.

VarietyArea (Hectares)YieldAverage Yield per Hectare (Bushels)
BushelsPercentage of Total Production
*Area of barley threshed in survey by varieties; total area threshed was 63,521 hectares.
Carlsberg18,4452,470,66136.41133.95
Kenia6,155748,61211.03121.63
Research6,038762,92511.24126.35
Zephyr18,3102,735,99240.32149.43
Other varieties56067,4101.00120.38
            Totals49,508*6,785,600100.00137.06

PEAS—The area of peas for threshing has increased rapidly over the last 3 years moving from 11,057 hectares in 1966-67 to 24,500 hectares in 1969-70. There have been fluctuations in the export figures for this commodity. In 1949 nearly 850,000 bushels were exported, whereas by 1953 the amount had fallen to approximately 370,000 bushels, but increased to 1,044,038 bushels in 1968-69.

Varieties of peas grown in the 1969-70 season were as under.

VarietyArea (Hectares)YieldAverage Yield per Hectare (Bushels)
BushelsPercentage of Total Production
*Area of peas threshed in survey by varieties; total area threshed was 24,500 hectares which produced 1,822,000 bushels.
Garden varieties7,551581,40237.2977.00
Field varieties—    
    Blue Boiling2,999217,23413.9372.43
    Maple8,607614,64539.4271.41
    White2,045145,8679.3671.33
            Totals21,202*1,559,148100.0073.54

The foregoing figures exclude green peas grown for market or processing (e.g., canning and quick freezing). There has been an increasing use of quick-frozen peas.

POTATOES—The production of potatoes is usually adequate to meet the home market.

Under the Potato Growing Industry Act 1950 a Potato Board was established consisting of seven members, three of whom are representative of the growers on an elective basis, three nominated by the New Zealand Grain, Seed, and Produce Merchants' Federation (Incorporated), and one an officer of the Public Service acting in an advisory capacity.

The principal function of the board is to ensure that adequate supplies of main-crop potatoes are available for consumption in New Zealand, and for that purpose to enter into contracts with growers for the growing of main-crop potatoes. The Act provides that the board may impose a levy not exceeding $3 per ton on main-crop potatoes sold by growers, the proceeds of which are to be applied by the board in payment of charges, etc., for which it may become liable in the exercise of its functions.

The board undertakes to compensate contract growers for any declared unsold number one grade contract produce held by growers at the end of the season. For the 1970-71 season the rate involved varied according to varieties form $15 to $20 per 2,000 lb in the South Island and $19 to $24 per 2,000 lb unit in the North Island.

Potato yields have risen to such an extent that a population of 2 3/4 million is now supplied from the same acreages as were 1 3/4 million people 20 years earlier. Most of this increased production has been achieved through new varieties and better farming practice based on research results.

Figures for area and yield of potatoes for the latest 5 years are as follows.

YearAreaTotal YieldYield per Hectare
 hectarestonstons
1965-666,888230,85823.35
1966-678,020184,39822.99
1967-689,517232,11024.39
1968-6910,132252,30124.90
1969-709,928249,20425.10

The estimated area for 1970-71 was 7,689 hectares.

ONIONS—Areas in, and yields of, onions for the latest 5 years are as follows.

YearAreaTotal YieldYield per Hectare
 hectarestonstons
1965-6670821,20829.95
1966-6779023,91630.27
1967-6878823,76630.16
1968-691,02130,40929.78
1969-7087925,54829.06

LINSEED—The area under this crop has fluctuated considerably over a long period. The highest level of 9,889 hectares was reached in 1951-52. In the processing of linseed, the linseed oil is extracted while the residue provides a valuable concentrate for stock food. A small quantity of unprocessed linseed is also used for this purpose.

SUPPLEMENTARY FODDER CROPS—The following table gives the areas of the supplementary fodder crops.

YearGrasses and Clovers, Including Lucerne for Hay or SilageCereal CropsRape, Kale, and Chou MoellierSwedes, Turnips, Turnips and RapeTotal Area of Fodder Crops*

*Excludes small areas of other minor fodder crops.

†From 1969 excludes turnips and rape (mixed).

hectares
1964-65486,02836,633101,561195,826820,048
1965-66517,86128,86392,724191,598831,046
1966-67524,50327,14282,193182,362816,200
1967-68529,25630,86173,584177,967811,668
1968-69601,26429,53977,085166,922874,810
1969-70568,77446,32074,985151,716841,795

In 1969-70 grasses and clovers cut for hay or silage totalled 491,716 hectares and lucerne 77,058 hectares. Oats was the only cereal crop utilised in any quantity for this purpose. Oats also was the principal cereal crop fed off to stock. The area of oats cut for chaff, hay, or silage or fed off amounted to 28,506 hectares. The principal green-fodder crops apart from oats are rape (26,657 hectares) and chou moellier, including kale (45,329 hectares). Swedes and turnips are the principal root crops grown in New Zealand, the total area sown in these crops in 1969-70 being 151,716 hectares.

SEED CERTIFICATION—The Department of Agriculture operates a seed certification scheme covering the more important herbage species, cereals, brassicas, and potatoes. Bred varieties of these species are produced by the Grasslands and the Crop Research Division of the DSIR. These are then reproduced under the control of the Department of Agriculture which releases them as Breeder's seed which in turn produces Basic seed. The final stages in the multiplication of certified seed are known as 1st and 2nd Generation seeds. Basic and Certified seed, 1st and 2nd Generation, are sold through the usual commercial channels.

GRASS SEED—Of the total area of grasses, clovers, and lucerne cut for seed during 1969-70, 86 percent was in the South Island.

The areas of grass, clover, and lucerne crops harvested for seed, distinguishing the principal varieties, are given in the following table.

Crop1965-661966-671967-681968-691969-70

*Includes Ariki ryegrass.

†Ariki from 1968-69.

 hectares
Ryegrass—     
    Perennial25,48622,43220,312*18,15324,851
    Italian4,5313,0171,9442,868
    Short Rotation (H.1.)6,8367,4036,8575,483
Red clover (including cowgrass)8,0716,2524,8115,78715,316
White clover22,47718,84010,52713,082
Lucerne4,4385,6124,7004,8073,679
Cocksfoot3,5333,7833,8883,9958,866
Chewings fescue6104071,195565
Crested dogstail1,9691,5373,2123,802
Other grasses and clovers3,3203,2583,7464,948
            Totals81,27172,54161,19263,49052,712

Quantities (in dressed weights) of grass and clover seeds treated by machine dressing plants for the latest 3 years are given below.

Type of SeedUnit196819691970
Ryegrass—    
    Perennialbush917,3251,031,414883,389
    Italian (including W. Wolths)bush120,805169,473226,874
    Short rotation (H1)bush445,479368,154242,578
    Arikibush204,732181,091118,440
Cocksfootlb1,754,2922,549,9761,360,845
Chewings fescuelb458,185378,522120,935
Crested dogstaillb1,771,1032,780,6471,675,186
Browntoplb207,661209,085203,136
Timothylb977,4021,045,957930,132
White cloverlb4,568,0465,631,6272,719,439
Suckling cloverlb148,492109,47675,646
Suckling white mixturelb326,852320,232238,913
Broad red clover (including cowgrass)lb1,107,2451,370,9401,193,682
Montgomery red cloverlb990,1631,319,426990,431
Lucernelb1,109,521889,502509,941
Other grass and cloverslb159,275153,30476,174

Large quantities of grass and clover seed have been exported during recent years, especially to the United Kingdom, Australia, and the United States of America. Details of the volume and value of exports during recent years will be found in Section 22b of this issue.

MARKET GARDENS AND PLANTATIONS—The following table sets out the acreages for market gardens, plantations, etc. Forest Service plantations are included in these figures. The statistics relate only to holdings of 10 acres (approximately 4.05 hectares) and over outside boroughs.

In 1956-57 the area of market gardens in the 1-9 acre (0.4 to 3.6 hectares) group represented 19 percent of the total acreage; in the case of nurseries the percentage was 21 percent and for private gardens 5 percent. Plantations were scarcely affected, being well under 1 percent. Figures include berryfruit gardens.

YearMarket Gardens*NurseriesPrivate Gardens, etc.Plantations
*Excluding crops for processing.
hectares
1964-655,90071341,458418,820
1965-665,23574849,637427,459
1966-676,06987047,216429,617
1967-686,68088846,291446,021
1968-697,79694046,645464,828
1969-707,1671,21552,038480,185

Commercial Gardens—The Department of Agriculture estimates that approximately 2,700 vegetable growers were cultivating a total area of approximately 18,211 hectares in 1964. Included in this figure are approximately 7,689 hectares used exclusively for growing crops for processing.

Commercial berryfruit gardens are surveyed every 5 years. The Department of Agriculture's last survey was in 1969 when 569 hectares farmed by 571 growers were recorded. In 1969 the areas then being grown (in hectares) were: raspberries 231; strawberries 208; black currants 45; gooseberries 24; boysenberries 63; loganberries 8. The production of berryfruits in the 1968-69 season was estimated as follows: raspberries, 1,226 tons; strawberries, 4,034 tons; black currants, 223 tons; gooseberries, 91 tons; boysenberries, 328 tons; and loganberries 63 tons. The greatest concentration of gardens is in Canterbury near Christchurch and Waimate with the combined total of 157 hectares. Raspberries account for 85 of the 119 hectares of berryfruit grown in the Nelson province. The 53 hectares in the Wairarapa are mainly of mixed berryfruit holdings. In the vicinity of Auckland 61 hectares of strawberries are grown. Other major centres of berryfruit growing are Central Otago, 25 hectares; Manawatu, 44 hectares; and Hawke's Bay, 51 hectares. Gooseberries are not grown commercially to any extent outside the Wairarapa (13 hectares). These estimates cover all gardens of over half an acre (approximately 0.2 hectare) and smaller gardens with more than a quarter of an acre (approximately 0.1 hectare) of strawberries, including those in boroughs. The only berryfruit for which there is an organised marketing scheme is the raspberry, for which local marketing committees have been established in Nelson (since 1940) and in Canterbury and Otago (since 1959), while a Central Council of Raspberry Growers was created by the Raspberry Marketing Regulations 1950 to co-ordinate marketing by the three district committees.

Nurseries—The number of nurseries registered at 31 December 1971 totalled 739 and these covered 1,204 hectares.

ORCHARDS AND THE FRUIT INDUSTRY—Apples and pears are the main fruits, the principal growing areas being Nelson and Hawke's Bay. Peach and plum orchards are distributed over Nelson, Hawked Bay, Central Otago, and near Alexandra. Central Otago, with its hot summers and severe winters, produces the greater part of the English plums, apricots, and cherries. The coastal strip from North Auckland, through the Bay of Plenty, to Gisborne is sufficiently mild for the production of citrus and other subtropical fruits such as passionfruit, tamarilloes, and Chinese gooseberries.

The area in commercial holdings of 10 acres (approximately 4.05 hectares) and over outside borough boundaries returned as under fruit trees was given as 8,857 hectares at 31 January 1970.

During 1968 the Department of Agriculture made the fourth comprehensive field survey of fruit trees in commercial orchards. This survey covered all orchards with 100 or more deciduous fruit trees, over 50 citrus trees, subtropical fruits, and mixed orchards of half an acre and over. The Horticulture Division of the Department of Agriculture has supplied the following numbers of fruit trees of principal kinds in commercial orchards based on 1968 survey figures: apple, 1,465,359; pear, 192,946; quince, 1,777; peach, 407,862; nectarine, 41,173; apricot, 159,081; plum, 113,206; cherry, 23,407; lemon, 36,372; orange, 142,491; grapefruit, 45,087; mandarin, 68,656; tangelo, 47,468.

The 1968 survey showed that the total number of fruit trees had increased since the third survey of 1963. There were 252,000 more apple trees and 18,600 more pear trees. A total of 338,074 citrus trees occupying 721 hectares of commercial orchard area was recorded in the 1968 survey. This amounted to a doubling of the total number of citrus trees over the five years since the 1963 survey.

A survey by the Department of Agriculture in 1970 of all vineyards containing at least half an acre (0.2 hectares) covered 320 vineyards. The total area in grapes was 1,468 hectares, yielding a crop of 13,223 tons. 96.5 percent was used for wine production, 2 percent was sold as table grapes, and 1.5 percent was used for making grape-juice beverage. Vineyards were mainly in Auckland (658 hectares), Hawke's Bay (327 hectares), Gisborne (278 hectares), Waikato (187 hectares), Northland (16 hectares), Manawatu-Wellington (0.81 hectares), South Island (2.8 hectares). In 1970 there were 158 licensed winemakers, who produced an estimated 3.9 million gallons of grape wine, 60,000 gallons of grape-juice beverage, 400,000 gallons of fruit wine and cider. The estimated area in glasshouse vineries in 1970 was 43,664 square metres. The main centres for indoor grape growing were: Auckland, 23,597 square metres; Waikato - Bay of Plenty, 5,853 square metres; Manawatu, 5,388 square metres; Canterbury, 4,738 square metres; Oamaru, 3,716 square metres; Nelson-Marlborough, 372 square metres. Approximately 22,473 square metres of glasshouse vineries have been adapted for early market and 21,265 square metres for late market. There were 168 tons of glasshouse grapes marketed for dessert purposes.

Apples and Pears—A summary of the activities of the New Zealand Apple and Pear Marketing Board appears in Section 21. Over 700 orchardists consistently sell apples and pears to the board. Over 75 percent of the total crop received comes from Nelson and Hawke's Bay.

Quantities of apples and pears marketed in New Zealand by the board in the last 6 seasons are given below. These figures exclude direct sales from fruitgrowers to factories and the public; these sales have been estimated to comprise approximately 20 percent of the annual apple and pear crop.

SeasonApplesPearsTotal
 bushel cases
1965-661,893,861448,8072,342,668
1966-671,957,100413,3002,370,400
1967-682,179,500468,7102,648,210
1968-692,027,000421,1002,448,100
1969-702,502,420440,9522,943,372
1970-712,084,816493,8612,578,677

A quantity of fruit later exported as processed goods is included in the above figures; in 1970-71 it involved 211,540 cases.

The following table shows the quantities of the main varieties of apples and pears marketed in New Zealand by the Apple and Pear Marketing Board and exported to the United Kingdom and elsewhere during the 1970-71 season, together with the total estimated production of each crop. Factories are given authority to purchase fruit for processing direct from the growers.

VarietyMarketed by the Apple and Pear Marketing BoardEstimated Total Production*
In New ZealandFor Export
To United KingdomTo Other Countries
*Estimated by Horticulture Division, Department of Agriculture.
Apples—bushel cases
    Sturmer Pippin270,915667,19387,055 
    Delicious292,73987,013207,863 
    Jonathan203,382176,27130,500 
    Granny Smith280,455394,454639,058 
    Cox's Orange Pippin199,496145,825- 
    Ballarat Seedling20,9214,6095,305 
    Golden Delicious194,090221,367110,400 
    Gravenstein143,177-- 
    Dougherty106,40965,50132,500 
    Others373,232120,290104,260 
            Totals, apples2,084,8161,882,5231,216,9416,451,000
Pears—    
    William's Bon Chretien159,301-- 
    Winter Cole106,23260,59845,425 
    Winter Nelis100,93210,69212,648 
    Others127,39633,85828,457 
            Totals, pears493,861105,14886,530990,000

Stone Fruits—The 1968 survey by the Department of Agriculture revealed that nearly half of the total of 407,900 peach trees were in Hawke's Bay, and that, of the balance, some 74,000 peach trees were in the Auckland district.

Production and disposal of stone fruit for the year ended 30 June 1971 were estimated as follows.

FruitDisposalTotal Production
MarketProcessing
 (000 bushels)(bushels)(000 bushels)
Peaches6466811,327
Nectarines67-67
Apricots55156
Plums—   
    European14115
    Japanese15527182
Cherries23124

Citrus and Subtropical Fruits—Estimated quantities of citrus fruits marketed in New Zealand by the Citrus Marketing Authority, together with direct sales to the public by citrus growers are given in the following table.

YearGrapefruitLemons*Sweet OrangesMandarins and Other Citrus Fruits
*Figures for lemons relate to packed 3/4 bushel cases.
bushels
1964185,050121,62533,65014,100
1965184,200133,66031,05015,800
1966158,500112,40036,60022,000
1967154,000121,00037,00025,000
1968184,500171,50058,60043,100
1969147,400119,60062,00044,800
1970222,000164,00093,00034,000
1971211,000107,00094,00046,000

Reference to the Citrus Marketing Authority is to be found in Section 21.

Estimated production figures for other subtropical fruits for 1971 are: tamarilloes, 1,900 tons; passion fruit, 300 tons; Chinese gooseberries, 2,300 tons.

HOPS—Practically the whole of the hop gardens are located in Waimea county. Production per acre (approximately 0.4 hectare) usually ranges between 1,200 and 1,500 lb. In the 1971 season 3,528 bales were packed, which was 114 bales more than the previous season. The total crop produced in the 1971 season was 1,058,434 lb, as against 1,024,400 lb in 1970. About 95 percent of the crop is now picked by machines.

A Hop Marketing Committee of six members (one Government and five producer) was established by the Hop Marketing Regulations 1939 to regulate and control the marketing either locally or overseas of all hops produced in New Zealand and to assist the industry generally.

TOBACCO—Tobacco is grown mainly in the Motueka district, Most of the tobacco produced is flue-cured, producing a yellow-leaf tobacco which is largely used for the manufacture of cigarettes, the balance, air-cured, being used mainly in the manufacture of smoking mixtures and pipe tobacco. Some 5,786,216 lb of raw tobacco leaf was imported for the year ended 31 December 1969 with a value of $3,975,804.

With the following particulars relating to tobacco production, it should be noted that the figures relate to the total commercial tobacco production and not merely to holdings of 10 acres (approximately 4.05 hectares) or over situated outside borough boundaries. (Source: New Zealand Tobacco Board.)

SeasonNumber of GrowersArea PlantedProduction*Estimated Value of Crop*
*Includes research and experimental crops.
  hectareslb(000)$(000)
1964-657282,3639,8814,554
1965-665852,0596,8233,268
1966-675291,9765,5162,984
1967-685262,0646,1543,562
1968-695232,0627,6044,917
1969-705062,0557,1624,641

The production figures represent the weight of the leaf purchased from growers before redrying. Flue-cured leaf accounted for 96.3 percent and air-dried leaf for 3.7 percent of the 1969-70 crop.

LINEN FLAX—There is a strong demand for all linen fibre produced in New Zealand from a local manufacturer of twine who uses this kind of fibre in the making of twine for closing bags and bales, for rolling meat, and for other purposes which require a twine made from a strong durable fibre.

Areas for the last five seasons are: 1965-66, 180 hectares; 1966-67, 227 hectares; 1967-68, 182 hectares; 1968-69, 152 hectares; and 1969-70, 190 hectares.

Production from the single factory still operated by the Linen Flax Corporation at Geraldine has been as follows.

Product19661967196819691970
 tons
Straw processed8731,3131,4011,2601,173
Scutched fibre10115215215399
Seed82142145145129
Tow2746463143
Linmeal5888959594

14 C—LIVESTOCK

GENERAL—New Zealand has more than 25 times as many animals as people: this ratio is probably not exceeded in any country in the world. Grasslands have been developed to the extent that the best dairy farms can carry one cow to the acre, and the best sheep farms can support up to 10 sheep to the acre throughout the year.

The first sheep stations in the 1840s were stocked with Merinos from Australia. During the 1850s and 1860s several English breeds of sheep were imported, notably Southdowns, Leicesters, Lincolns, and Romneys. In 1855 there were 761,700 sheep in the country; by 1870 there were 9,700,000. Until 1882, the year of the successful introduction of cargo refrigeration when mutton and lamb exports were sent to London, the Merino and its crosses were predominant, because the only sheep products of any importance for export were wool and a little tallow, obtained by boiling down carcasses. Then the Merino was superseded in the North Island by breeds more suited to the climate and conditions. Today the flock sheep of the North Island are nearly all predominantly of Romney blood. In the South Island, Merino blood in varying degree continued to play an important part in the flock structure but are now restricted to the foothills of the Southern Alps, while Corriedales are more profitable in the better hill country, and crossbreeds and long-woolled British breeds at lower levels.

In 1851 there were 193,000 cattle in New Zealand and by 1897 the number had reached 1,138,000. Cattle raising and fattening are usually associated with hill-country sheep farming and fat-lamb farming respectively, and beef stock are grazed chiefly in the North Island. The most popular breed of beef cattle is now the Aberdeen Angus, which has gradually gained ground over the last 30 years, with Herefords and Shorthorns next in number.

The growth of dairy herds was related to the availability of refrigeration for the export of butter from 1882, and the development of butter and cheese factories. There were 300,000 dairy cows by 1897, 185,000 of them in the North Island and 115,000 in the South Island. Now the North Island has more than 12 times as many dairy cows as the South Island. At first Shorthorn was the popular breed, but since 1920 the Jersey has emerged as the predominant breed of dairy cattle.

In the following table, dairy cows in milk, total cattle, sows, and total pigs are as at 31 January; sheep shorn, lambs shorn, and lambs tailed are for the season ending in the year stated; breeding ewes and total sheep are as at 30 June, while the coverage is of holdings of 10 acres (approx. 4.05 hectares) and over situated outside borough boundaries.

Livestock19671968196919701971
*Includes those in boroughs and on holdings under 1 acre.
Cattle (including dairy cows)7,746,8668,247,1638,604,8748,777,3328,818,902
    Dairy cows in milk2,131,3592,232,4822,304,2522,320,6362,238,974
    Total dairy cattle3,505,7143,698,0203,793,0833,729,2843,539,373
    Beef cattle4,241,1524,549,1434,811,7915,048,0485,279,529
Sheep (including lambs)*60,029,97760,473,59759,937,42560,276,11158,911,525
    Breeding ewes*41,407,70842,650,91643,384,69842,911,58143,016,717
    Lambs tailed during season39,361,93340,920,82540,415,68442,077,99839,960,586
    Lambs shorn during season16,021,57815,913,93216,119,42418,618,70016,477,969
    Sheep shorn during season54,563,34756,451,59155,761,54056,416,87856,257,299
Pigs (total)602,695614,177553,388577,925617,183
    Breeding sows75,91077,41269,22373,20477,431

The 1964 Agricultural Development Conference set a target of an increase in livestock numbers of 3.5 percent a year and the National Development Conference in 1969 revised the rate to 2.6 percent a year.

In the latest 3 years dairy cattle increased by 2.6 percent in 1969 and decreased by 1.7 percent in 1970 and 5.1 percent in 1971 and beef cattle increased by 5.8 percent, 4.9 percent, and 4.6 percent. Sheep numbers decreased by 0.9 percent in 1968-69, increased by 0.6 percent in 1969-70, decreased by 2.3 percent in 1970-71. In ewe equivalents, the increase was 2.4 percent in 1968-69, a 0.4 percent increase for 1969-70, and no change for 1970-71.

The dairying and beef-production industries are both largely concentrated in the North Island, which has 84 percent of the total cattle and 93 percent of the dairy stock. Localising the dairying industry still further, it is found that 66 percent of the milking cows of New Zealand are in the northern half of the North Island. Taranaki and Wellington districts between them account for one-quarter of the total dairy cows in milk.

Beef cattle are fairly evenly spread over the North Island, except Taranaki and areas close to Auckland.

Taking the number of beef breeding cows 2 years old and over as a guide to beef production, South Auckland - Bay of Plenty and Wellington statistical areas easily lead with 36 percent of the New Zealand total between them. Hawke's Bay is next, followed by East Coast and Northland in that order. These five districts together depasture 72 percent of breeding cows.

Northland, Central Auckland, and South Auckland - Bay of Plenty statistical areas account for 45 percent of the pig population and Wellington and Taranaki for 25 percent. The number of pigs kept in the Nelson and Canterbury areas has increased considerably in recent years and 18 percent of the pig population is now in these areas. Tanker collection of whole milk from dairy farms has reduced the rearing of pigs as a sideline; major development have taken place in the rearing of grain-fed pigs in large units.

Sheep farming is more evenly distributed between the North and South Islands. The statistical areas of major importance are Canterbury, Wellington, South Auckland - Bay of Plenty, Southland, Otago, and Hawke's Bay, in that order, these six districts accounting for 84 percent of the total sheep population in 1971.

The following table shows the distribution of livestock at 31 January 1971.

Statistical AreaDairy Cows and Heifers, Two Years Old and Over (In Milk)Beef Breeding Cows, Two Years Old and OverTotal CattleBreeding SowsTotal PigsSheep Shorn*Lambs Shorn*Lambs Tailed*
*Sheep shorn, lambs shorn, and lambs tailed during 1969-70, remaining particulars for stock at 31 January 1971.
Northland (000)2881459667541,7628141,123
            Percent12.429.3110.959.098.753.134.942.81
Central Auckland (000)201455208691,136440723
            Percent8.672.895.9010.3911.182.022.671.81
South Auckland - Bay of Plenty (000)1,0433092,772201588,5273,6915,338
            Percent45.0019.8531.4325.9725.6115.1522.4013.36
East Coast (000)8168473192,3731,1061,419
            Percent0.3610.795.361.301.464.226.703.55
Hawke's Bay (000)462287922166,4332,5144,586
            Percent1.9814.718.982.602.5911.4415.2611.48
Taranaki (000)361387469781,597632983
            Percent15.572.448.4611.6912.642.843.842.46
Wellington (000)2082581,19011768,6903,3745,668
            Percent8.9716.5713.4914.2812.3215.4520.4714.18
    North Island (000)2,1551,1937,4585846030,51912,57019,841
            Percent92.9776.5684.5775.3274.5554.2576.2849.65
Marlborough (000)15321192181,340188805
            Percent0.652.061.352.602.922.381.142.01
Nelson (000)3725140333678199445
            Percent1.601.611.583.905.351.201.211.11
Westland (000)191990-318034123
            Percent0.821.221.020.230.490.320.210.31
Canterbury (000)4711340610739,2241,1807,216
            Percent2.037.264.6012.7511.8316.407.1618.06
Otago (000)211003182166,8786385,115
            Percent0.916.423.602.602.5912.233.8712.80
Southland (000)23762892147,4381,6696,415
            Percent0.994.883.282.602.2713.2210.1316.06
    South Island (000)1633651,3611915725,7383,90820,120
            Percent7.0323.4415.4324.6825.4545.7523.7250.35

Detailed statistics of livestock are contained in the annual report Statistics of Farm Production. This publication also contains the summary tables from parliamentary paper H.23, which is a statistical analysis of the annual sheep returns.

SHEEP—The following table analyses categories of sheep and gives a broad classification of stud and other groups.

At 30 JuneRamsWethersBreeding EwesDry EwesHoggetsTotal
RamWetherEwe
thousands
Totals
19669562,60139,6683362913,13910,35357,343
19679802,70341,4083793192,82011,42160,030
19681,0042,40142,6514883312,49911,10060,474
19691,0082,03843,3853833121,97110,84059,937
19709921,76742,9114323292,59111,25360,276
19719851,73243,0174903092,03710,34258,912
Stud Sheep (Entered in Flock Book)
195717-4416153-168784
196225-5087183-196918
196719-5296215-215985
Sheep of a Distinctive Breed but Not Entered in Flock Book
19577201,97024,699352722,3366,09636,245
19628342,01229,035450752,2897,28041,975
19679192,47937,184337922,53310,25453,798
Crossbred Sheep
1957332923,7607394507365,353
1962412694,4029394368466,096
1967422253,69536112879525,248

The 1967 classification of breeds shows that of the 60,029,977 sheep in New Zealand, 45,814,676 (76.32 percent) were Romneys and 5,247,589 (8.74 percent) were crossbreeds. The remainder were composed principally of Corriedale 3,420, 696, half-bred 2,366,617, Southdown 997,784, and Merino 946,990.

There has been a steady increase in the average flock size over the last 5 years. A classification of numbers of flocks by size of flock for the last 5 years is now given.

Size of Flocks19671968196919701971
1- 994,9555,3105,2015,0675,027
100- 1992,4052,4212,2402,1682,145
200- 4994,9954,7414,5674,3474,202
500- 9996,4606,2335,7815,4735,245
1,000- 1,4996,6686,3396,1315,7455,461
1,500- 1,9995,8025,7145,5675,3635,150
2,000- 2,4993,5513,5503,5863,5493,541
2,500- 4,9994,9495,1205,1185,3355,273
5,000- 7,499811825872906919
7,500- 9,999252262261282276
10,000-19,999188218224242236
20,000 and over3737383840
            Total flocks41,07340,77039,58637,51537,514
Average flock size1,4621,4721,5141,5631,570

CATTLE—Numbers of cattle by categories are now given.

CategoryAt 31 January
1968196919701971
Dairy stock—    
    Cows and heifers, two years old and over—    
        Cows in milk during season2,232,4822,304,2522,320,6362,238,974
        Heifers not yet in milk85,06785,31995,68579,240
        Cows not in milk during season, but intended to be used again for dairying27,07825,83930,06519,931
    Heifers—    
        One and two years old604,647627,338604,730557,903
        Under one year old653,507646,070582,770551,294
    Bulls and calves intended for dairy breeding95,239104,26595,39892,094
    Totals, dairy stock3,698,0203,793,0833,729,2843,539,373
Beef stock—    
    Breeding cows and heifers, two years old and over1,647,6281,705,8711,755,3061,782,489
        Cows, two years old and over, not used for breeding64,69576,307110,703100,401
Heifers—    
        One and under two years old478,480518,833532,244569,854
        Under one year old573,921598,538634,657657,092
Steers and bulls of all ages1,784,4191,912,2422,015,1382,169,693
    Totals, beef stock4,549,1434,811,7915,048,0485,279,529
    Totals, cattle8,247,1638,604,8748,777,3328,872,902

The following table shows the number of holdings with dairy cows in milk, grouped according to size of herd in milk, for the 5 last intervals for which such information is available. The general trend is towards fewer holdings and larger herds.

As at 31 Jan.HoldingsWith 100 and OverTotal Holdings With 10 or more Cows in Milk 
With 10-19 CowsWith 20-29 CowsWith 30-39 CowsWith 40-49 CowsWith 50-59 CowsWith 60-69 CowsWith 70-79 CowsWith 80-89 CowsWith 90-99 Cows 
19524,3684,5365,5275,2454,4383,6652,5121,7261,1052,53235,654 
19573,4773,5634,5494,8354,5894,3053,0712,0231,3513,09434,857 
19602,5792,8023,6654,2154,1993,9862,9152,1481,2893,35331,151 
19688819511,2031,5081,8902,4492,6412,6792,1278,48824,817 
19698308171,1321,3651,6822,2832,4152,5852,2519,25324,613 
19707257339311,2151,5261,9162,1862,3982,2279,96023,817 

For dairy stock the Jersey breed, comprising 78.6 percent of all dairy stock in 1962, is predominant, while the main beef stock breeds are Aberdeen Angus (74.5 percent), Hereford (16.3 percent), and Shorthorn (5.4 percent).

PIGS—The rearing of pigs dropped away until 1969 with the trend of farmers to supply whole milk to dairy factories instead of separating off the skim milk.

At 31 JanuaryBreeding Sows One Year Old and OverOther Pigs of All Ages (Including Boars)Total Pigs
196681,678585,227666,905
196775,910526,785602,695
196877,412536,765614,177
196969,223484,165553,388
197073,204504,721577,925
197177,431539,752617,183

Particulars as to pig breeds collected in 1950 showed that the principal distinctive breeds were Berkshire (6.6 percent) and Tamworth (5.5 percent), but over 80 percent of the pigs in New Zealand were classified as crossbreeds.

DOGS—The count of dogs registered during the year ended 31 March 1970 showed that there were 228,157 dogs registered in counties, 69,318 in cities and boroughs, 805 in town districts, and 218 in road districts. Unregistered dogs and those up to 6 months old are not included in these figures.

POULTRY—The following table shows poultry recorded at censuses.

CensusNumber of Units Keeping PoultryFowlsDucksGeeseTurkeysTotal Poultry
April 1951180,7233,829,481260,65958,47450,9764,199,590
April 1956192,7364,160,424210,71860,93853,4914,485,571
April 1961163,4764,183,563202,24573,45766,1324,525,397
March 1966122,8444,946,838184,54082,05083,0645,296,492

In 1970-71 there were 2,823 registered poultry runs forming the basic commercial units of the industry. Of these, 1,524 flocks had fewer than 201 fowls, 218 ranged from 201 to 500 fowls, 158 from 501 to 1,000 fowls, 731 from 1,001 to 5,000 fowls and 192 flocks exceeded 5,000 fowls. There were 4,224,195 birds in these flocks.

The commercial groups sell their eggs through licensed egg floors and are therefore mainly responsible for supplying eggs to retail shops in the cities and larger towns. Egg production has been steadily increasing and sales through licensed distributors have been 37,212,000 dozen in 1968-69; 40,316,000 dozen in 1969-70; and 42,715,000 dozen in 1970-71. It is estimated that approximately 60 to 65 percent of the total egg production passes through these channels.

Poultry farming is confined largely to egg production, but units are now established for the production of table poultry, and attention paid to the production of “broilers” or 3 to 3 1/2 lb live weight chicken. At the Census of 1966 there were 1,167,000 broiler chickens.

Commercial poultry farms are distributed over both Islands, but there are concentrations around Auckland, Christchurch, and Oamaru. The poultry industry does not cater for overseas markets, though limited quantities of frozen egg pulp, surplus to local requirements, are exported.

Reference to the field covered by the Egg Marketing Authority is given in Section 21 of this Yearbook.

BEES—The rich pasture lands of New Zealand and some bush areas are favourable for apiculture and the production of high-grade honey, although more intensive farming methods and land development have eliminated many sources of nectar for the bees.

Production for the year ended 31 August 1970 was estimated at 5,400 tons of honey and 162,000 lb of commercial beeswax. Most of the honey is consumed in New Zealand, which has one of the highest rates of consumption per head in the world.

Registrations under the Apiaries Act show that at 31 May 1967 there were 3,508 beekeepers with a total of 12,770 apiaries and 194,213 hives. There are only some 300 full-time beekeepers completely dependent on honey production. Following is a summary of these registrations showing beekeepers in groups according to the number of hives kept.

Group1-5 Hives6-29 Hives30-250 Hives251 Hives and OverTotal
Beekeepers2,2297213122463,508
Apiaries2,3341,0901,7237,62312,770
Hives established5,2339,14625,551154,283194,213

Chapter 15. Section 15 FORESTRY

Table of Contents

GENERAL—Trees are among New Zealand's valuable assets, with growth favoured by temperate climate and generally adequate rainfall and soil conditions. Until the early nineteenth century extensive evergreen forests covered some two-thirds of the land area of New Zealand, the remaining third being the low-rainfall zones in the east of the South Island (carrying only tussock grasses) and the rocky mountain tops above 3,500-4,500 ft. Because of the abundance, use of timber during the early days of European settlement was wasteful, and in clearing land for farms large areas of native forest were felled and burnt in the interests of land development. There was little regard for conservation, and clearing of the forests extended well beyond the limits now considered desirable. The kauri forests of the far north were almost destroyed by logging and subsequent burning, and the areas of rimu forest in both islands were heavily depleted. It was not until towards the end of the nineteenth century that the need to conserve forests of the high mountain watersheds was recognised, and by the early 1900s national parks and scenic and climatic reserves amounting to less than 1 million hectares had been set aside as permanent forest; the area has since grown to over 2 million hectares (see Section 13).

Today, apart from the national parks, about 4 million hectares of land, valuable either for timber production or for forest growth that is vital to soil and water conservation, has been constituted State forest. The country's timber resources have been built up by afforestation with introduced species, mainly conifers, which produce usable wood in about 30 years, a much shorter time than the slow-growing indigenous species. State plantations now have an area of about 300,000 hectares, and planting by private interests has contributed an almost equal area. The output of timber from the exotic forests now greatly surpasses that from the indigenous forests, in which cutting is restricted. The exotic species are also the basis of a flourishing pulp and paper industry and an export trade in logs.

The following table shows the present area of forested land in relation to other categories of land.

Type of LandAreaPercentage of Total Area
*2.47 acres = 1 hectare.
 (million Hectares)*(million Acres) 
Total forested land6.215.423.2
Pasture and arable land13.633.750.0
Other non-forested land6.616.425.5
Minor islands0.10.20.3
Lakes, rivers, etc.0.30.71.0
            Total area26.866.4100.0

THE FORESTS TODAY—More than three-quarters of the forest area is classed as unmerchantable. This is mainly Crown-owned indigenous forest which, because it covers much of the remote and mountainous high-rainfall country, has as its primary function soil protection and water regulation. The limited production possibilities it offers must be subordinated to its protective role.

Of the 5.6 million hectares of indigenous forests that remain, only some 0.5 million hectares are merchantable by today's standards for sawmilling. Despite the greatly increased use of exotic timber the indigenous forests are being depleted at the rate of 10,000 hectares a year, primarily for sawn timber.

Merchantable forests also include almost all the planted (exotic) forests, about half of which were established and are owned privately or by local authorities. There are 500,000 hectares of productive exotic forest, over half of which is in the Bay of Plenty - Taupo region, where very large plantings were made from 1923 to 1926. The distribution of the planted forests was influenced mainly by availability of cheap undeveloped land at that time.

The exotic conifers, particularly radiata pine, have high growth rates, case of establishment and case of re-establishment on cut-over areas, and they produce wood that has many uses. Plantings of such trees are being extended and developed to provide for increasing domestic and export demand.

The distribution by area of the two classes of forest land is shown in the table below.

Class of Forested LandIndigenous ForestsExotic ForestsAll ForestsIndigenous ForestsExotic ForestsAll Forests
*Merchantable indigenous forests include some reserves, previously logged areas, and areas of such low stocking that commercial exploitation is at present uneconomic. Commercially exploitable forest in the 1,050,000 hectares detailed above is estimated to be 500,000 hectares.
Merchantable forestsacres (thousand)hectares (thousand)
    State forest1,5207002,220615280895
    Other Crown land170-17070-70
    Freehold and leasehold land4206501,070185250435
    Maori land250-250100-100
    Reserve200-20080-80
            Totals (say)2,600*1,3003,9001,0505301,580
Unmerchantable forests      
    State forest5,300-5,3002,150-2,150
    Other Crown land1,400-1,400560-560
    Freehold and leasehold land1,6001001,70065040690
    Maori land800-800320-320
    Reserve2,400-2,400970-970
            Totals11,50010011,6004,650404,700
            Totals, all forested land14,1001,40015,5005,7005706,270

BOTANICAL COMPOSITION OF FORESTS: Indigenous Forests—These can be broadly grouped into podocarp broad-leaved forest (which includes kauri forest) and beech forest, but there are also many subgroups and transition zones.

Podocarp broad-leaved forests are found at all latitudes in the three main islands, more particularly those of the north and of the warm wet lowlands and lower mountain slopes, and there is a general increase in luxuriance and in numbers of species from south to north. This type of forest has suffered severely by destruction in land clearing or from heavy logging. There are still some large areas on steep country, such as the Urewera, but these are essentially protection forests. Fairly extensive areas in the centre of the North Island and on the West Coast of the South Island contain most of the remaining indigenous softwood supplies. Otherwise, the remaining forest of this type consists of pockets that will be worked out in a few decades.

The principal podocarp is rimu (Dacrydium cupressinum) and important secondary ones are totara (Podocarpus totara), matai (P. spicatus), and miro (P. ferrugineus). Important species at higher elevations are Hall's totara (P. hallii) and kaikawaka (Libocedrus bidwilli). Kahikatea (Podocarpus dacrydioides), once common on low-lying swampy river silts now cleared for farming, is becoming scarce. The smaller podocarps of the silver-pine group (Dacrydium biforme, D. colensoi, and D. intermedium) are dominant in bog forests occupying limited areas in the central North Island and West Coast of the South Island and largely cut over for posts and sleepers.

The main broad-leaved species associated with the podocarps are kamahi (Weinmannia racemosa), rata (Metrosideros umbellata and M. robusta), and, except in Westland, tawa (Beilschmiedia tawa).

Kauri forests are found in Northland. In them, kauri (Agathis australis) either occurs frequently or is locally dominant—otherwise they are akin to the podocarp broad-leaved forest, though with many additional hardwoods. They have been almost destroyed by logging and fire and only limited reservations and a few small pockets remain.

Beech forests, in which one or more of the southern-beech (Nothofagus) species are dominant, are the forests of the south, of the mountains, and of the dry lowlands; but the species are absent from some localities where their presence might be expected, e.g., Mt. Egmont, the region 100 miles south of the Taramakau River in Westland, and Stewart Island. In the main, these forests are protection forests, but there are large areas in accessible regions that have been cut over and are regenerating, and others that have not yet been logged and will be reserved for sustained-yield management or replaced by fast-growing exotics.

Scrub and second-growth broad-leaved species occupy much of the land now classified as forest. There were, before European settlement, limited transition areas carrying manuka (Leptospermum scoparium and L. ericoides), between tussock grassland and forest proper. With deliberate destruction by fire of much tussock and forest these manuka belts have extended, and manuka even occupies extensive areas of destroyed forest remote from its own original stands. In this respect it is important, for it is often a stage in succession back to forest proper.

Exotic Forests—Introduced species of pines form the bulk of the large and valuable exotic-forest estate, and among these radiata pine (Pinus radiata) is the supreme all-purpose tree. Radiata pine grows rapidly in New Zealand (reaching sawlog size in 25-35 years), produces a large volume of usable wood, and is remarkably adapted to a variety of sites. Other major species are Douglas fir (Pseudotsuga menziesii), Corsican pine (Pinus nigra (laricio)), and ponderosa pine (P. ponderosa). Of recent years the southern pines—loblolly (P. taeda) and slash (P. elliottii) pines—have found a place in more northerly forests. Species planted on a restricted scale are lodgepole (P. contorta), strobus (P. strobus), and patula (P. patula) pines, larch (Larix decidua and L. leptoleplis), Japanese cedar (Cryptomeria japonica), Lawson cypress (Chamaecyparis lawsoniana), Monterey cypress (Cupressus macrocarpa), and western red cedar (Thuja plicata). The limited amount of introduced broad-leaved species used in plantations is, for the most part, various species of eucalypt.

The largest exotic forests are in the centre of the North Island; medium and small plantations are distributed throughout most of the country. Radiata pine constitutes about half the area of State plantations and about 90 percent of private plantations.

FOREST TREES AND TIMBERS—Detailed information on forest trees and timbers is contained in publications of the New Zealand Forest Service, including Exotic Forest Trees in New Zealand (Weston); The National Forest Survey of New Zealand, 1955, Vol. I: The Indigenous Forest Resources of New Zealand (Masters, Holloway, and McKelvey); The Physical and Mechanical Properties of the Principal Indigenous Woods of New Zealand (Entrican, Ward, and Reid); New Zealand Building Timbers (Reid); and the annual reports of the Forest Service and Forest Research Institute.

FOREST POLICY—By the Forests Act 1949, the Forest Service has, under the direction of the Minister of Forests, complete responsibility in carrying out all matters of forest policy affecting State forest land and has exclusive control and management of:

  1. All State forest land, whether for the production of timber or other forest produce, or for the protection of the land with a view to water conservation or soil stabilisation, or for ensuring the balanced use of the land, or for scientific purposes, or for recreational or amenity purposes not prejudicial to forestry.

  2. The establishment, culture, and maintenance of forests on State forest land, and the harvesting, utilisation, transport, sale, or other disposal of forest produce from State forest land.

  3. The granting of licences, leases, permits, and other rights and authorities under the Act.

  4. The enforcement of the conditions of licences, leases, permits, and other rights and authorities granted under the Act or any enactment repealed.

  5. The collection and recovery of all purchase moneys, rents, fees, royalties, charges, and revenues of the Service; and

  6. Generally the exercise of all powers, authorities, and duties conferred or imposed on the Minister or the Forest Service by the Act.

Regulations—The Forests Act 1949 authorises the appointment by regulation of committees to advise the Minister of Forests on specified matters. Regulations issued under this authority are the Timber Production Advisory Committee Regulations 1949, the Sirex Advisory Committee Regulations 1950, the Forest and Fire Publicity Committee Regulations 1952, the Waipoua Forest Sanctuary Advisory Committee Regulations 1952, the Indigenous Forest Timber Committee Regulations 1966, and the Timber Industry Training Centre Advisory Committee Regulations 1966.

Other regulations in force are the Sawmill Registration Regulations 1952, the Timber Regulations 1948, the Forest Service Fees and Charges Regulations 1953, the Forest Produce Import and Export Regulations 1966, the Forest Disease Control Regulations 1967, the State Forest Park Regulations 1969, and the Forestry Encouragement Grants Regulations 1970.

MANAGEMENT OF STATE FORESTS—The management activities of the Forest Service are directed towards: protecting, conserving, and, where possible, perpetuating the remaining indigenous forests of the country; creating an exotic forest estate large enough and sufficiently diverse to supply the future needs of New Zealand in timber and other forest produce and to provide for large exports.

Indigenous Production Forests—Conservation measures in indigenous production forests involve restriction of the annual cut, rigid insistence on full utilisation, and block sales of carefully measured standing timber. The Forest Service prepares working plans for all major State forests and through them regulates the amount of timber that may be cut annually.

Parallel to the policy of rationing the cut is that of making long-term log and timber sales. This has the effect of giving stability to sawmilling industries and to the communities dependent on them. Further stability is being sought by the practice of replanting logged areas with exotic species, combined where possible with the planting of adjacent areas of open country. By this means a sustained yield, part exotic and part indigenous, can be achieved, and the sawmilling industries and communities can look forward to a life in perpetuity.

The possibility of regenerating some podocarp forests and maintaining production from them is being explored. The ecology of the natural forest associations and the silvicultural characteristics of the individual species are being studied. Past work has shown the importance of preserving a forest climate, which means that clear felling, or any condition that allows exposure and desiccation, must be avoided.

In many districts, forests of mixed podocarps and tawa have been logged for rimu, leaving tawa behind. Recently, however, tawa has been found useful as a hardwood pulp and in the Bay of Plenty is being used for this purpose.

The kauri forests, now only remnants, are owned principally by the State. They show promise of being amenable to sound forestry management, and a small but regular cut is assured. The annual cut is strictly rationed, and bleeding for gum, which damaged many trees in the past, is forbidden. Wherever kauri is felled a portion of the growing stock in young vigorous trees is left as a reserve. Young pole stands are silviculturally treated to free them from competition and improve growth. Natural regeneration is assisted and encouraged.

The prospects of improving and perpetuating the beech forests on a sustained-yield basis are good. Both the major species, red and silver beech, when given the right conditions, will regenerate freely; both grow sufficiently rapidly to produce saw logs in 100-130 years; and both show their best development on sites that are unsuitable for agriculture. Many large areas of beech forests are still intact and, in the case of red beech, there are extensive stands of pole forest which have originated after fire, wind throw, or mining activities. Against these favourable circumstances must be set the presence in many localities of red deer, the browsing of which may check or even prevent effective regeneration.

A survey is under way into the extent and distribution of beech forests in Nelson, northern Westland, and western Southland that may be suitable for production of saw logs and pulpwood. Care will be given to the consideration of areas that must be reserved for soil and water conservation or for scenery and recreation, and any forests utilised will be managed on a sustained-yield basis or replaced in part by fast-growing exotics.

Exotic Forests—State exotic forests date from 1896, when an Afforestation Branch of the Lands Department was formed and forest-tree nurseries were established at Tapanui and Eweburn in the South Island and at Rotorua in the North Island. Planting began in 1898 and proceeded slowly until 1922, by which time 19,000 hectares had been established. From 1923 to 1936 there was a boom in afforestation, with no less than 150,000 hectares planted by the State and 120,000 hectares by commercial companies. After the boom period planting continued on a more modest scale, but in 1961 State planting was increased and the Government provided for financial inducements to encourage planting by private landholders and local authorities—with the aim of doubling the exotic-forest estate by the end of the century. The annual rate of State planting has more than trebled since then (4,000 hectares in 1961, 15,000 hectares in 1970).

In the early years exotic forestry was necessarily experimental and, as could be expected, was not equally successful with all species and in all sites tried. Location and distribution of the plantations were largely decided by the availability of land rather than by suitability for tree growing or proximity to existing or future markets.

Now that the stage of large-scale utilisation has been reached, there are opportunities to increase productivity by correcting the deficiencies in the distribution of age classes, replacing unthrifty plantations, and improving the quality of the trees, and, at the same time, meeting the demand for forest products and ensuring continuity of supplies. The diversity of products now marketable permits utilisation of trees of a wide range of sizes and aids the operations needed in management practice. There is wide use of working plans to prescribe and co-ordinate forest operations.

Present policy is to concentrate new exotic forests in areas where there is scope for building up integrated wood-based industries to supply New Zealand markets and material for export. The planted forests (both State and private) already supply over 80 percent of the total wood production and in the future will supply much more.

Stabilisation of Sand Dunes—This aspect of the Forest Service's work has a twofold objective: the stabilisation of dunes for the protection of agricultural and pastoral land, and the establishment of production forests. The Forest Service plants marram grass, sows lupin, and later establishes trees on certain protective zones. Six schemes are in operation—at Aupouri, Mangawhai, Woodhill, Waiuku, Waitarere, and Santoft—embracing a total area of approximately 40,000 hectares. About 12,000 hectares of trees have been planted.

Protection Forests—The vegetation of the mountainous areas—forest, scrub, and subalpine grass-land— is of the highest importance to the welfare of New Zealand, for many of the rivers that bring water to low-lying farmlands or provide the domestic water supply of cities and towns have their headwaters in the mountainous back country. The mountains receive frequent heavy falls of rain and are mostly formed of rocks that erode easily when exposed to heavy rain and other climatic effects. The blanket of montane vegetation absorbs much of the rainfall and, by protecting the soil and stabilising unconsolidated rocky slopes, prevents soil and rock from reaching streams and altering their flow characteristics. Settled flood plains can be protected by a combination of river-training works and maintenance of a good cover of vegetation on catchments to ensure the most stable stream flow possible.

The Forest Service controls over 2 million hectares of protection-forest land, and its main function here is to maintain the protective vegetation in good condition. The greatest threat is from the large numbers of browsing animals that were introduced many years ago, which in the absence of natural enemies and limiting climate have multiplied excessively. Consequently the first step in the effective management of these areas is control of these animals. Environmental forestry rangers are trained in field biology, in field geology, and in watershed and range management. They make careful observations of the effects of browsing animals on the vegetation to gauge if control operations have been intensive enough to allow adequate vegetation response.

The Environmental Forestry section of the Forest Service works in close association with the Forest Research Institute's Protection Forestry Branch and its associated Forest and Range Experiment Station, which investigate such features as the condition and trends of vegetation, alpine climate, rates of erosion, the possibility of introducing new forest and scrub species into badly depleted areas, and changes in animal populations and methods of control.

Recreation in State Forests—Nearly 1 million hectares of State forest are being developed as forest parks which, although primarily protection forests, will also provide recreation facilities. (Recreation in State forests is also discussed in Section 13, Land Use and Resources Development.)

Safeguarding Forests and Timber: Fire Prevention—Fire is the greatest single menace to forests; within a few hours it can destroy a valuable timber crop or undo the work of decades in building up a soil and vegetation balance. Indigenous forests are fairly fire-resistant but can become flammable in drought conditions; and severely burnt indigenous forest usually means a destroyed forest because many of the species are difficult to regenerate. Without doubt, however, the major risk occurs in the plantations of exotic conifers.

The fire-protection organisation of the Forest Service operates over the entire country, covering State forests, forests on other Crown lands, scenic reserves, and national parks. A fire-fighting service is maintained wherever the department has fire-fighting responsibilities, and well equipped fire-fighting crews can be brought into action at short notice and controlled through a radio network. Aerial fire-detection patrols operate when and where required, and aerial fire fighting, in the form of helicopters fitted with special buckets, has been adapted to deal with fire outbreak in high country and like inaccessible areas.

Although the generally adequate and well distributed rainfall reduces the risk of fire, high winds and strong sunshine can quickly dry out vegetation on exposed situations. The provision of a fire-hazard prediction and warning service is an essential function of the Forest Service. There is a nationwide network of “fire weather” and radio stations, and the fire-hazard in any part of the country is known at the head office in Wellington each day during the fire season (October to April) within an hour of weather observations being taken at the stations. This enables appropriate action to be taken, such as advice to fire authorities and broadcasting of warnings.

Legislative provisions for fire protection are the Forest and Rural Fires Act 1955 and the Fire Services Act 1949. The Forest Service is responsible for administering the former Act.

Noxious Animal Control—Under the Noxious Animals Act 1956 the Forest Service is responsible for the control of deer, goats, chamois, pigs, and other introduced wild animals on all lands where the damage they cause is detrimental to the welfare of the country. On State forest and unoccupied Crown land the Forest Service also deals with opossum and wallaby control; but on pastoral land control of these two animals comes under the Agricultural Pests Destruction Council.

The widespread populations of many of these animals have a serious effect on the regeneration of forest trees and ground-cover vegetation, in. production as well as in protection forests. The natural forest floor of ferns, mosses, and shrubs has been extensively damaged by such ground-browsing animals as deer and goats, while simultaneously the upper storey is adversely affected by the canopy-feeding opossum.

Damage by deer and opossums in commercial exotic forests has made it necessary to extend control measures into these forests

Over 200,000 animals are killed each year by Forest Service and private hunters. Even with modern facilities, including air transport of supplies and use of helicopters for hunting, control of noxious animals is difficult and overall progress is slow. In some rugged country where hunting has proved impracticable, such as in parts of Westland, poisoning has been used successfully.

Control of Insects and Fungi—Sound silvicultural practices are the first line of defence, rendering trees less vulnerable to attack.

Biological control over insect pests is exerted by their natural enemies, insect or fungal parasites. Introduced species frequently come into the country without their natural enemies, and part of the work of the biologist is to breed and liberate the latter.

Chemical control is an emergency measure to deal with outbreaks, It includes spraying of affected forests from aeroplanes, chemical treatment of nursery soils, and the dipping of timber to prevent attack by bark beetles and fungi.

Pathologists and entomologists of the Forest Research Institute make a continuous study of diseases and insects harmful to forests and timber. Observers of the institute's forest biology survey maintain a constant watch on the forests and woodlots and shelter belts to detect incipient epidemics in time for effective control measures to be taken; and much information is accumulated which helps to elucidate the relationships between the organisms and the forests.

Timber Inspection and Quarantine—Forest Service timber inspection and quarantine cover all sawn, hewn, and natural round timber, wooden packing, and ship's dunnage entering or leaving the country. In 1966, to reduce the risk of introducing insects in packing timbers, a prohibition was placed onimportation of any sawn timber with bark attached. Overseas exporters must now certify that any wooden packing they use is free of bark and insect attack when shipped. Since introduction of this requirement there has been a noticeable drop in the number of infested crates reaching the country. New Zealand exporters are required to give the same care: timber must be completely free from bark and infection and must meet the quarantine requirements of the importing country before export is permitted. Control over dunnage was extended in 1966 to include all material within New Zealand territorial waters.

FINANCE OF STATE ACTIVITIES—At present more money is being spent on the establishment and tending of forests than is obtained in revenue. Expenditure by way of general administration of forestry has been met in full from taxation, as distinct from the development of State forests, which is financed from national development loans. Sources of finance are shown in the following table.

Source1966-671967-681968-691969-701970-71
   $(000)  
Consolidated Revenue Account expenditure6,2766,7197,2538,1559,772
    Less receipts89111137168170
            Required from Consolidated Revenue Account6,1876,6087,1167,9879,602
Works and Trading Account expenditure13,56115,09419,72023,74825,918
    Less receipts11,19512,05317,12721,39723,678
            Loan moneys required2,3663,0412,5932,3512,240
Net finance required from Government funds8,5539,6499,70910,33811,842

PRIVATE FORESTRY:Private Forest Estate—The National Exotic Forest Survey found that, in 1962, forest holdings other than State forests (New Zealand Forest Service) and those on other Crown lands amounted to 211,000 hectares. Since then about 40,000 hectares have been added, mainly by afforestation companies, and the estimated areas in the various ownerships at 31 March 1971 were: local authorities, 20,000 hectares; companies, 150,000 hectares; and private persons (mainly farmers), 90,000 hectares.

Extension Services—An increasing awareness among landowners of the value of forestry as a profitable form of land use, stimulated by the various direct and indirect incentives given by Government, and the activities of farm forestry associations established throughout the country, have resulted in a marked increase in extension forestry work.

Forest Taxation—The value of standing trees docs not increase any assessment for land tax and local body rates and, since 1949, concessions have been made in connection with income tax. Expenditure incurred in planting, protecting, and maintaining shelter belts and woodlots planted for shelter, shade, erosion control, or other agricultural purpose has since that year been allowed to be charged against income for tax purposes. At the same time income from the intermittent sale of farm trees could, on application to the Commissioner of Inland Revenue, be spread over 5 years to mitigate the effects of the higher graduation tax. In 1960 the timber value of trees growing on a deceased's estate was exempted from death duties. This exemption removes the fear of a crippling burden on the estate and the possibility of the forced sale of a perhaps immature plantation.

Forestry Encouragement Finance—Under the Forestry Encouragement Act 1962 the Government may grant loans to local authorities towards the cost of establishing and tending new plantations and the tending of those already in existence. For private landholders there has since 13 April 1970 been a scheme in the form of a grant equal to 50 percent of the cost of establishing and developing new approved forests; such grants are to be an alternative to the tax concession already available to income-earning forest companies and to be limited to individuals or companies whose total annual qualifying expenditure does not exceed $200,000 a year.

FOREST UTILISATION: Removals of Roundwood—By the 1930s the easy abundance of indigenous timber had gone, whereas some of the exotic forests had reached the stage where harvesting could begin. By 1939, of the 60 million cubic feet per annum of roundwood for industrial use, some 10 million cubic feet came from the exotic forests. By 1948 the total removals of roundwood had gone up to 81 million cubic fee: with 29 million cubic feet from the exotic forests. The exotic forests are now by far the more important source of wood and in 1971 they supplied 285 million cubic feet, or 89 percent of the total supply from exotic and indigenous forests.

The table below shows the quantities of timber produced by the forests of New Zealand to supply the forest industries, which comprise 463 sawmills, nine plywood and veneer plants, two particle board mills, five pulp and paper mills, and a pulp and fibreboard mill.

ROUNDWOOD PRODUCTION*(Volume in Million Cubic Feet)
Year Ended 31 MarchIndigenous WoodExotic WoodTotal
*Excludes firewood.
195158.841.099.8
195655.768.0123.7
196155.0113.5168.5
196643.6163.4207.0
196743.2169.4212.6
196837.4184.7222.1
196936.1207.2243.3
197036.5239.5276.0
197135.8253.6289.4

Sawn-timber Production—Radiata pine and other pines account for about 90 percent of the total cut of exotics; Douglas fir provides most of the remainder. Less than a third of the country's timber requirements come from the indigenous forests, and this proportion must inevitably fall as cutting is gradually reduced to the point where a small sustained yield of indigenous timber can be maintained.

The table below gives the production of rough-sawn timber for selected years.

Year Ended 31 MarchSoftwoodsHardwoodsGrand Total
IndigenousExoticTotalIndigenousExoticTotal
NOTE—In some instances rounding off results in a total disagreeing slightly with the total individual items shown in the table.
board feet (million)
192129010300718308
1926335734210111353
1931208132219-9230
19362493428310-10293
19412775433111-12343
19462269732319322345
195130119149232436528
195627530558043346626
196128739267932436713
196621950572431233757
196721549871333235748
196819645665221223675
196917653270823225733
197017556674122224765
197116959576419221784

The following table gives details of timber production by species for the past 5-years.

SpeciesYear Ended 31 March
19671968196919701971
NOTE—Owing to rounding, details may not add to totals.
 board feet (million)
Rimu and miro166154136138138
Matai2217151511
Totara96765
Kahikatea1718171513
Tawa17911107
Beech1310111111
Other indigenous42222
            Totals, indigenous248217199197188
Exotic pines465421476504536
Douglas fir2729515553
Eucalypts22121
Other exotic66676
            Totals, exotic500458534568596
            Totals (all species)748675733765784

The growing world-wide demand for hardwood pulp had led recently to an investigation by the Director-General of Forests into utilisation of beech forests in the South Island and publicity has been given to the proposals in parliamentary paper C.4, 1971. Permanent production is envisaged from some 324,000 hectares of lower altitude forest in Nelson, Westland, and Southland conservancies. (There are 3.6 million hectares of forest in the South Island.) The Forest Service is conscious of the need to preserve major environmental values in perpetuity. Depending on the size of the industries which may develop, half of the 324,000 hectares could ultimately be converted to exotic conifers, a small portion would probably be released for farming, and the remaining area managed as regenerated native forest with or without some enrichment from exotic trees.

Wood-chip Industry—Two wood-chip mills in the Nelson region (one beginning production in 1969, the other in 1971) produce wood-chips solely for Japan. Their role is to utilise standing trees unsuitable for sawn-timber production in order to allow replanting with more productive species and to provide a market for forest and sawmill residues. At current production levels the two mills will earn $1.8 million annually in overseas exchange for the next few years.

The Pulp and Paper Industry—The total value of output of the pulp and paper industry reached $76 million in 1968-69. Over the last 12 years total production of pulp (the basic commodity) has risen at an average annual rate of over 8 percent. Production rose from 235,000 tons in 1958-59 to 567,000 tons in 1970-71. During the same period total wood consumption in the pulp and paper industry (which includes sawmills of integrated plants) increased from 39 million cubic feet to 80 million cubic feet. The industry is mainly concentrated near the big exotic forests on the volcanic plateau of the North Island. There are five pulp and paper plants in New Zealand, four of which are in the North Island. Of these four, three are integrated with sawmills to utilise fully the total input of wood. The five companies are:

Tasman Pulp and Paper Co.—This company was formed in 1952 to utilise timber from Kaingaroa State Forest. Practical assistance and financial backing were given by the Government, which is represented on the board of directors. The company's plant is at Kawerau, Bay of Plenty. The pulp and paper mill began operation late in 1955 and the sawmill early in 1956. The annual rated capacity of the sawmill is 37 million board feet of sawn-timber on the basis of one shift a day, while the capacity of the pulp and paper plant is 210,000 tons of newsprint, 105,000 tons of chemical pulp, and 182,000 tons of mechanical pulp. In 1959 the Bowater Group obtained an interest in the company and took over the management and development of the mill and world sales of all its products.

N.Z. Forest Products Ltd.—This public company utilises over 32,000,000 cubic feet of timber a year from its own pine forests and also small quantities of hardwood (tawa) from State forests. Plant capacity is 170,000 tons of kraft, printing, and writing paper, 238,000 tons of kraft pulp, 44,000 tons of defibrated pulp for fibreboard production, and 50,000,000 board feet of sawn-timber a year—on a one-shift basis. The company is equipped to convert 10,000,000 board feet of timber into wooden cases and to produce 53,000,000 square feet of veneer, 12,000,000 square feet of fibreboard, and 38,000,000 multi-wall paper bags annually. The integrated pulp mill, paper mill, and sawmill is at Kinleith near Tokoroa; the fibreboard, multi-wall paper bag and wooden case mills and plants are in Auckland. The company is also a joint owner, with Australian Paper Mills Ltd. of Australia, in Fibre Products N.Z. Ltd., a firm which makes over 13 million moulded fruit trays a year.

Whakatane Board Mills Ltd., a subsidiary of New Zealand Forest Products, operates two paper-board machines with an annual production capacity of 67,000 tons. The. company manufactures its own mechanical and semi-chemical pulp, and is self-sufficient for more than 90 percent of its raw materials; it also uses considerable quantities of waste paper. The company owns its own radiata-pine forest at Matahina and hauls the logs 26 miles to the mill by road. An associated company, Whakatane Timber Mills Ltd., has its modern sawmill located near the board mill to take the larger logs from the forest.

Caxton Paper Mills Ltd. makes tissue and various lightweight papers adjacent to the Tasman Pulp and Paper Co.'s plant at Kawerau. The mill has a capacity of 30 thousand tons annually.

New Zealand Paper Mills Ltd., at Mataura, has been in operation for more than 80 years. Its three machines produce a wide range of papers from fine tissues to heavy krafts, as well as paper felt, pressings, and manilas for special trade requirements. The mills are being modernised to enable production to be diversified and substantially increased. The company produces a small amount of mechanical pulp, which supplements purchased supplies of New Zealand-made sulphate pulp, imported sulphite pulp, and waste paper. Annual production capacity is 15,000 tons of kraft and other papers.

The two major pulp and paper companies have announced expansion plans which will become operational over the next 3 years: N.Z. Forest Products Ltd. plan to increase chemical-pulp production by 200,000 tons a year and to instal an additional paper machine for the production of 100,000 tons of industrial papers; Tasman Pulp and Paper Co. Ltd. have announced that their expansion will increase the company's annual chemical-pulp sales by 105,000 tons.

In 1969 the Government invited tenders for the processing of 320 million cubic feet of wood from Kaingaroa State Forest. After examining the proposals received, the Government awarded the sale of roughly two-thirds of the volume to Carter Consolidated Ltd. This led to the formation of a new company (Carter Oji Kokosaku Pan Pacific Ltd.), which plans to build an integrated sawmill and refiner ground-wood mill at Whirinaki in the Napier district. This project, which is geared to the Japanese market, will further increase production and exports of wood pulp.

The basic products of the pulp and paper industry are mechanical and chemical pulp, which are converted into such products as newsprint, kraft, and other paper, paperboard, and fibreboard.

The following table gives the production of pulp in New Zealand.

Year Ended 31 MarchWood Pulp
Chemical*Mechanical

*Chemical pulp includes semi-chemical pulp.

†Mechanical pulp includes ground-wood pulp and defibrated pulp

 tons
1940-217
1945-15,434
1950-21,438
195543,20429,568
1960140,057102,715
1965193,029203,372
1966193,181217,743
1967223,860205,345
1968252,442221,159
1969255,000230,975
1970311,882241,110
1971312,065254,858

Almost all mechanical pulp is used in the manufacture of paper, paperboard, and fibreboard, but there is a deliberate surplus of chemical pulp for export. (See table on trade in pulp and paper.)

Production figures for paper in New Zealand are as follows.

Year Ended 31 MarchNewsprintOther Printing and Writing PaperOther Paper and PaperboardTotal Paper and Paperboard
 tons
1940-...12,87312,873
1945-...20,61920,619
1950-...21,78721,787
1955-...40,27340,273
196076,100...85,585161,685
1965184,31711,869114,940311,126
1966195,60616,258137,290349,154
1967183,88619,664150,771354,321
1968195,54621,359154,572371,477
1969199,53021,140168,854389,524
1970204,13720,691214,125438,953
1971210,53829,218214,830454,586

The rise of production of pulp and pulp products is clearly shown in the following graphs.

Wood-based Panel Products Industries:Plywood— Nine factories manufacture plywood, and the total output for the year ended 31 March 1971, when reduced to a uniform basis of in. thickness, was 58.1 million square feet. Total production of veneer in the industry in 1970-71 was 244 million square feet in. basis).

Radiata pine has become increasingly important as a species for peeler log supply and now constitutes about 60 percent of total peeler log production. Now that the indigenous forests have become depleted, the production of peeler logs for veneer and plywood manufacture is regarded by the Forest Service as having a first claim on the State forests; hence, in its own logging activities the Forest Service aims at producing the maximum amount of peeler logs, and has recently also adopted a policy of requiring sawmillers logging State indigenous forests to reserve logs suitable for peeling and divert them to the veneer factories.

Fibreboard—Although fibreboard is manufactured from wood pulp, it is by end use a panel product. Production started in 1943 and has increased steadily since.

Particle Board— Particle board is manufactured from roundwood and sawmill residues. There is a rapidly expanding domestic market for this product for interior panelling and flooring.

Production of plywood, veneer, fibreboard, and particle board is shown in the following table.

Year Ended 31 MarchVeneer (1/16 in. basis)Plywood (ft in. basis)Particle Board (2 in. basis)Fibreboard
 million square feettons
195024.6-13,526
1960169.243.10.824,830
1961176.248.01.125,533
1962189.349.31.131,561
1963188.851.42.027,250
1964185.952.92.529,229
1965183.054.24.231,736
1966222.656.65.133,771
1967221.157.68.232,878
1968170.543.48.533,075
1969208.850.513.638,228
1970224.854.721.539,553
1971243.958.129.643,653

Production of Round and Split Produce—Considerable quantities of native timbers have been used in the past to meet the needs for mining, fencing timbers, and firewood, and for a proportion of sleeper, pole, and bridge-timber requirements. A 1968 survey showed that a total of 7 million fence posts of all types was used: 4 1/2 million of these were wooden, almost all being thinnings or small-diameter logs from exotic plantations.

Wood Preservation—In the year ended 31 March 1970, 39 percent of all sawn-timber produced was preservative treated; by world standards the proportion treated is very high, partly because of the relative ease with which otherwise non-durable exotic softwoods such as radiata pine can be treated.

Features of the preservation industry are: the very wide use in house building of timber treated by diffusion or vacuum-pressure methods with water-borne preservative at low retentions to prevent insect borer attack; the wide dispersal of small treating plants specialising in such treatment; and the quality-control function exercised by the Timber Preservation Authority (set up by the Government in 1955) Plant inspection and sampling associated with quality control are done on behalf of the Authority by Forest Service staff.

Timber Preservation Authority specifications prescribe the preservative treatments for different service conditions. For treatment of exterior timbers against decay multi-salt preservatives (essentially solutions of copper, chromium, and arsenic compounds) at high loadings are widely used, but oil-type preservatives (e.g., creosote) are also acceptable. The usual method of application of multi-salt preservatives is by vacuum pressure, but such variations as the oscillating-pressure method (OPM), the Lowry process, and the alternating-pressure method (APM) have been introduced. Oil-based preservatives are applied by pressure, hot and cold bath, and cold soak and are used for poles, posts, and sleepers. For timber out of contact with the ground and protected from the weather lighter treatment with water-soluble preservatives is acceptable.

Collection of statistics on wood preservation was introduced in 1955 and the following table shows the quantities of sawn timber treated in the country.

YearOpen TankDiffusion Impregnation*Pressure ImpregnationTotal
*Mainly boron.
 board feet (thousand)
1954-55536,98461,48468,520
1959-603070,889105,837176,756
1962-63391,242120,333211,579
1963-6416102,974125,873228,863
1964-65140132,991142,373275,504
1965-664149,621153,878303,503
1966-679148,505154,542303,056
1967-6812108,063156,755264,830
1968-6926125,825152,550278,401
1969-70189130,254171,502301,945

In addition, 8,513,000 cubic feet of other timber, such as sleepers, poles and fence posts, was treated by one of the preservation methods in 1969-70.

OVERSEAS TRADE—Forest products are growing in importance as earners of overseas funds and their more diversified development in New Zealand is also contributing to reduction of imports. For the year ended June 1971 exports of forest products were valued at about $73 million; Australia was the largest customer, taking 42.3 percent, mainly in the form of pulp and paper, and Japan was the next largest, taking 41.9 percent, mainly logs. For the same period, imports of forest products into New Zealand were valued at $21 million.

Timber Exports—There is now an established market in Australia for radiata pine and Douglas fir sawn-timber. At present Japan is taking our timber mainly in log form, but the market there for our sawn radiata pine is rapidly expanding. Exports of sawn-timber to the Pacific Islands are increasing. Only special categories of indigenous timbers are permitted for export, and these are strictly regulated.

Timber Imports—Durable Australian hardwoods are still imported for use as railway sleepers, large poles, cross-arms, wharf, bridge, and constructional timbers, etc., but greater use is being made of preservative-treated New Zealand-grown softwood timber for these and other uses subject to severe service conditions: The demand for Douglas fir, redwood, and western red cedar from North America for structural uses, exterior joinery, and weatherboards continues. Other imports are normally limited to tropical hardwoods and sapele for the furniture trade and specialty purposes.

Pulp and Paper Exports—A steadily increasing export market for both pulp and paper is developing, mainly to Australia. Chemical sulphate pulp is the only type exported in quantity. Newsprint comprises 82 percent of all paper exports.

Pulp and Paper Imports—Short-fibred pulp and special papers still need to be imported. These two items constitute about two-thirds of the value of our total forest products imports.

VALUE OF EXTERNAL TRADE IN FOREST PRODUCTS
Year Ended 30 JuneWood ProductsPulpPaper and Paper ProductsAll Forest Products
 Imports ($000, c.d.v.)
19676,2101,9197,01515,144
19684,2191,3417,59113,151
19695,0061,1789,85116,035
19707,2941,61011,34620,250
19716,2282,37612,51421,118
 Exports ($000, f.o.b.)
19677,4125,92811,04724,387
196816,8956,19518,20141,291
196929,1457,48420,77157,400
197036,8347,28622,21466,334
197142,7959,39420,49472,683

The following tables give New Zealand's imports and exports of timber for the last 6 years.

TIMBER IMPORTS BY CATEGORIES
Year Ended 30 JuneSawn TimberSleepersLogs and Poles
HardwoodsNorth American Softwoods*OakOtherTotal
*Douglas fir, redwood, and cedar.
 board feet (million)cu ft (million)
19667.222.40.28.738.52.20.8
19677.119.9-7.134.12.10.7
19684.88.40.15.118.40.10.4
19694.48.0-4.617.0-0.3
19704.313.20.24.922.6-0.4
19714.26.50.15.616.4-0.5

NOTE—Figures have been adjusted to include items not given in board feet in published statistics.

TIMBER EXPORTS BY CATEGORIES
Year Ended 30 JuneIndigenous TimberRadiata PineDouglas FirOther ExoticsTotal ExoticsTotal, All Sawn TimberLogs and Poles
SawnCases
NOTE—Small quantities of roundwood are included in the exports.
 board feet (million)cu ft (million)
19660.126.92.33.5-32.732.817.1
19670.125.91.13.00.330.330.419.9
19682.449.22.710.40.262.564.943.2
19694.770.13.224.30.498.0102.753.5
19703.878.62.326.40.7108.0111.863.6
19715.383.51.324.45.3114.5119.864.4

The following table gives New Zealand's external trade in pulp and paper for the last 6 years.

EXTERNAL TRADE IN PULP AND PAPER
Year Ended 30 JuneWood PulpFibreboard*Paper and Paperboard
NewsprintOther Paper and PaperboardTotal

*In 1,000 square feet.

†Excludes manufactures of paper and paperboard; values include minor items for which no quantities are given. Basis for valuation: exports—free on board at port of shipment; imports—c.d.v. in country of origin.

Imports tons
196621,6731933,00426,59529,599
196721,6971171,73122,08823,819
196814,8163339322,29722,690
196911,21216497621,23222,199
197013,13232542x23,255x23,797x
197117,25412449424,30924,803
Exports tons
196670,3323,291117,060,1,674118,734
196772,3263,44494,5062,55297,057
196874,3426,223125,18911,548136,737
196987,73021,127121,34918,163139,512
197080,82115,323119,60630,808150,414
197194,62617,429109,68119,432129,113

RESEARCH—Since 1947 all forestry and forest-products research administered by the Forest Service has been undertaken or co-ordinated by its Forest Research Institute, Rotorua, In addition, the Department of Scientific and Industrial Research, the universities, and private industrial organisations undertake research into certain aspects.

The Forest Research Institute programme has a wide range and includes studies of the fundamental physiological process of tree growth; the ecology of indigenous and exotic forests; silvicultural practices for all stages of exotic forestry; growth rates, productivity, and grades of timber under various silvicultural treatments and their effect on the economics of the operations; forest soils, particularly nutrient deficiencies and their correction; selection, breeding, and introduction of improved strains of trees; the impact of fungus diseases and insect pests and factors affecting the health of trees. The institute has made country-wide inventories of indigenous and exotic forest resources. The Protection Forestry Branch of the Institute (the Forest and Range Experiment Station), which is based at Rangiora, surveys the condition of protection forests and associated mountain scrub and grassland. It carries out research on climatology, hydrology, soils, the revegetation of eroded areas, and the effects of wild animals and their control.

Linked with the research into wood formation are studies of the products of forests. The physical and mechanical properties of timbers are investigated generally and with special reference to the effects of tree selection based on visual qualities and of silvicultural treatment. The suitability of species for production of wood pulp and the characteristics of the pulp from species not yet used are also studied. Research is also carried out in timber engineering, timber seasoning, and preservative treatment of timbers; in all these fields the institute works closely with the timber industry.

TRAINING IN FORESTRY—The Forest Service recruits school leavers up to the age of 20 years for training as forest rangers and foresters. Ranger trainees work for 1 year in the forests and then attend Rotorua Ranger School for 1 year where they study the subjects basic forestry. Another 2 years are then spent on forests to consolidate knowledge and to learn supervision and gain experience in planning, control, and leadership. Those selected as forester trainees attend university on a full-time study bursary to complete a 4-year degree course in forestry. A limited number of full-time study bursaries are also awarded to enable trainees to complete degree courses in science and engineering. The Forest Research Institute recruits young people of both sexes for training as research technicians.

To build up a permanent and efficient skilled-labour force, the Forest Service now recruits each year about 100 youths 16 to 18 years of age. These junior woodsmen receive a 2-year course of basic training in the practical skills of forestry at one of the woodsman schools at Kaingaroa, Golden Downs or Southland, followed by a third year of advanced training given in small groups in selected forests.

Through the Forestry Training Centre at Rotorua courses are regularly offered in timber grading, timber inspection, seasoning and treatment of timber and other forestry operations. A continuous series of courses is also provided for Forest Service staff in all phases of Forest Service activity. The Timber Industry Training Centre at Rotorua provides courses for the industry in saw doctoring, sawmilling, and timber machining. Short grading courses for local industry representatives are also held in other centres.

After a lapse of some 35 years, professional education for forestry in New Zealand recommenced at the University of Canterbury in 1970. The basic course leading to the degree B.For.Sc. (with or without honours) extends over 4 years, comprising two intermediate years of pure science followed by 2 years of professional classes. Post-graduate studies will begin in 1972, with programmes leading to masters and doctoral degrees.

EMPLOYMENT—In 1970 the total number of persons employed in the forestry sector comprised 4.1 percent of the total labour force, and the forest industries employed 10 percent of the industrial labour force. Because the major manufacturing units are logically located near their raw material supplies, there is a concentration of employment near the largest forest areas. This is seen in the central North Island where over half the country's exotic forests are located and where one-quarter of the regional labour force is engaged in forest industries. fact the forest industries have had a very marked effect on regional development. The current prosperity and the fast growth of population in the Rotorua - Bay of Plenty area is due in no small measure to the expansion of the forest industries. Apart from the expansion of the established towns such as Rotorua, the industrial development of

New Zealand Forest Products Ltd., Tasman Pulp and Paper Co. Ltd., and Caxton Paper Mills Ltd., has led to the establishment of a completely new town—Kawerau—and the rapid growth of another—Tokoroa. The development of these industrial complexes has also stimulated other industries, especially transport, vehicle repair, and building and construction. Similarly the expansion of exports of forest products was partly responsible for the increased tonnages that have passed through the ports of Tauranga and Napier over the last decade.

The following table shows the number of employees and working proprietors in the forest industries at 15 April 1971. The industry classification has been revised. Total employment reached 26,531 in 1960, 30,835 in 1965, and 34,495, in 1970. (Source: Department of Labour.)

At 15 AprilForestry*LoggingSawmillingTimber MerchantingPulp, Paper, and PaperboardOther§Total

Includes silviculture, nurseries, etc.

†Includes felling, cutting, and haulage.

‡Includes planing mills and plywood and veneer mills.

§Includes other wood industries, manufacture of furniture and fittings, wooden and cane containers, and wood and cork products.

19713,1012,9348,8333,4574,19011,69334,208

THE OUTLOOK—The State owns 80 percent of the remaining indigenous timber and about half of the 0.5 million hectares of exotic forest. It makes sales, usually of standing timber but in some cases of logs, from both types of forest to the timber industry. Owing to the poor prospects of sustained yield from most of the indigenous forests, the policy is to ration the cut to spread the resources over as long a period as practicable. Their contribution to timber supply will inevitably diminish but it is hoped that it will remain a source of special purpose timbers for several decades. The exotic forests are renewable and are managed for sustained yield. Their full possibilities have not yet been reached but owing to the irregularity of past planting programmes their composition is far from ideal and there are problems over maintaining a steady rate of expansion of output.

The large area of exotic forest in private ownership has arisen for the most part from speculative planting in the 1920s and 1930s. Most of the forests then established have since come under the control of industrial companies, which are utilising them and managing them, in several cases, to ensure regular and permanent supplies for their major wood-using factories. The other privately-owned indigenous forests are subject to uncontrolled exploitation and are expected to be exhausted at no distant date.

Long-term industrial expansion will require a continuing increase in the area of the nation's exotic forests (the Forestry Development Conference recommended a minimum annual planting programme of 52,000 acres for the next 20 years, which would give the country a total exotic forest area of nearly 2.5 million acres, compared with the present 1.3 million acres). Increased production up to the end of the century would be based for the most part on existing forest resources and would be sustained thereafter by the additional planting proposed.

New Zealand's forest industries are favourably placed in regard to the basic requirement for expansion—wood supplies from exotic forests, which will increase over the next 30 years. Efficient processing is well established, providing a good basis for further expansion; projections indicate that demand for forest products will grow both at home and abroad, particularly for paper. In many countries wood supplies are inadequate for their needs, hence they must import.

Planning must encompass management and utilisation of the forests and any necessary extension of them; requirements in manpower with the necessary skills; requirements in finance; analyses of market development; and requirements in research to develop new products and more efficient techniques.

The Forestry Development Council set up in 1969 is working towards co-operation in national planning to rationalise the forestry sector's future development; its membership includes representatives from Government and industry.

A special article in the 1969 Yearbook (pp. 1107-15) surveyed the economics of the forest industries and future development prospects.

Chapter 16. Section 16 FISHERIES

Table of Contents

GENERAL—The fishing industry in New Zealand is based mainly on the bottom-dwelling or demersal species of fish caught by trawling, Danish seining, lines, and nets, and on rock lobsters (crayfish) taken in pots. For “wet fish”, trawling is by far the most important method, producing approximately 69 percent of the total catch, followed by Danish seining 12 percent, lining and netting and other methods 18 percent in 1970. The motor trawler ranging in size between 50 ft and 60 ft with a crew of two or three men has come to be the type of vessel mainly used by the industry. In recent years there has been a trend to larger stern-ramp trawlers with improved gear and equipment. The Marine Department has two stern-ramp trawlers for technological and research work associated with fishing.

In New Zealand the fishing industry is widely dispersed around a number of smaller ports as well as the main ports. The industry is built around the handling and selling of fresh fish in the main, as opposed to processing fish. Rock lobsters, long the leading fish export, are now being challenged in value by increasing sales of “wet fish” while exports of paua, eels, and rock oysters are making growing contributions to export revenue.

The abolition of the licensing system in 1964 and the consequent liberalisation of the industry has led to increases in landings of fish. The potentialities of the fishing industry were examined in the Fisheries Committee Report to the National Development Conference 1969. The Territorial Sea and Fishing Zone Act 1965 redefined the 3-mile territorial seas and introduced a 9-mile fishing zone beyond the territorial limit.

The governing legislation for the fishing industry is the Fisheries Act 1908, which is administered by the Marine Department.

The principal regulations dealing with fisheries are the Fisheries (General) Regulations 1950, the Freshwater Fisheries Regulations 1951, and the Commercial Fishing Regulations 1963. Under the Freshwater Fisheries Regulations are issued a number of modification notices which deal with particular aspects—e.g., permissible length of different classes of fish to be taken—while the various acclimatisation societies' rules are issued under the authority of these regulations. The Oyster Fishing Regulations 1946 and the Whitebait Fishing Regulations 1964 are directly relevant to the fishing industry. Other regulations include the Seal Fisheries Regulations 1946, Rock Oyster Farming Regulations 1966, the Quinnat Salmon Regulations 1964, the Fish-pass Regulations 1947, and the Toheroa Regulations 1955. Amendments to all regulations are made from time to time.

Fishing Industry Board—In 1963 there was passed a Fishing Industry Board Act, providing for the establishment of a seven-member board with the principal function of promoting the expansion and development of the fishing industry, marketing and standards of hygiene and packaging, continuity of supply, co-ordination within the industry, and promoting means of financing development. Members were appointed and met for the first time in April 1964.

The Government made an initial grant of $100,000 towards the cost of establishing the board and annual grants are made to assist the board in meeting operating costs. A levy of approximately 1 percent of the landed value of fish came into force on 1 January 1965, and provides finance for the board's activities. The board through its committees investigates local supply and marketing, export development, technical education, tuna development, and fishing demonstrations.

Objectives of the board include the provision of adequate supplies of high-quality fish for the local market at reasonable prices, and an increase in overseas earnings from selling more fish overseas. It is recognised that fishermen must be encouraged to modernise their trawling fleet and that shore establishments of the industry must be improved to fulfil these objectives.

Fishing Industry Finance Committee—In 1965 the Government arranged to guarantee mortgages and make loans through the State Advances Corporation to purchase new, fully-equipped fishing vessels. In October 1970 loans and guarantees became available for development of rock oyster farms, and also loans for cool stores for fish. Up to 31 March 1971, 59 loans totalling $1,349,593 had been approved for new or used fishing vessels.

SPECIES OF FISH—Of the many kinds of excellent edible fishes the most important are the snapper (Chrysophrys auratus), which is the principal species in the catch (mainly by trawl) in the north-western part of the South Island, the west coast of the North Island, and the east coast of the North Island to just south of East Cape; next in importance is tarakihi (Cheilodactylus macropterus), which is taken mainly by trawlers working off the east coast of the North Island and in smaller quantities off the coasts of the South Island. The groper or hapuku (Polyprion oxygeneios) is caught on lines in the deeper water from North Cape to Stewart Island, but principally in Cook Strait and on the rocky parts of the east coast of the South Island, while the blue cod (Parapercis colias) is the staple line-caught product of the southern line fisheries, particularly about Foveaux Strait, Stewart Island, and at Chatham Islands. The flounder and sole (Pleuronectidae) occur in the more shallow and sheltered waters. Rock lobster (crayfish) are fished mainly at the Chatham Islands and around the south-west of the South Island.

The most productive grounds are in relatively shallow waters, and most of the fishing is carried on at depths of less than 80 fathoms. Depths of over 100 fathoms occur at a comparatively short distance from the coast. The principal methods of fishing arc long-lining for groper (hapuku), ling, kingfish, and snapper; hand-lining for blue cod; trawling and Danish seining, by which flounders, snapper, tarakihi, gurnard, John Dory, and a variety of other fish are taken. In bays and estuaries set-nets and dragnets are used for flounders, snapper, and mullet.

Various species of pelagic, or surface-dwelling fish, occur in quantity in waters adjacent to New Zealand. At present, landings of pelagic fish in New Zealand are insignificant. Catching techniques for the smaller species (e.g., pilchards), the medium-sized species (e.g., kahawai) and the larger species (e.g., tuna) are all different. The catching and processing of pelagic fish must be undertaken on a large scale if it is to be profitable and the viability of a fishery based on pelagic fish is currently being examined by the Fisheries Development Council.

FISHERY STATISTICS—As at 31 December 1970 there were 2,805 registered fishing boats, compared with 2,716 a year earlier. Values of catches by these boats for the year ended 31 December 1970 were as follows: over $2,000, 1,196; $1,000-$2,000, 208; under $1,000, 1,401. (The boats were manned by 4,786 persons.)

The growth in value of fisheries products is shown in the following diagram.

The estimated total quantity and value of the principal classes of fishery products marketed were as follows in the 2 latest years.

ProductUnitQuantityValue
1969197019691970
    $(000)$(000)
Wet fishcwt645,012799,8905,0186,425
Whitebait (West Coast South Island only)cwt2,8521,673383290
Oysters (dredged)sacks66,753114,9987351,267
Oysters (rock)sacks5,0994,912160170
Musselssacks19,93320,1417174
Rock lobster (crayfish)cwt175,109127,2588,8618,052
Other shellfish, etc.cwt23,67627,550217277
            Total value.........15,44516,555

Annual quantities and values of “wet fish” caught are shown in the following table.

YearTotal QuantityTotal Value
 cwt$(000)
1960542,5063,351
1961528,6323,254
1962554,6543,545
1963550,9663,376
1964589,3843,780
1965604,5823,949
1966666,2744,388
1967713,5274,626
1968671,8704,489
1969645,0125,018
1970799.8906,425

Kind or Class of “Wet Fish” Caught—The following table shows the quantity and value of the principal “wet fish” caught during the latest 2 years.

Kind or Class of FishQuantityValue
19691970196919701969197019691970
 cwtpercent$(000)percent
Snapper224,525252,20434.8131.531,4951,80129.7928.03
Tarakihi71,007102,51811.0012.8250873910.1311.50
Trevally64,58383,45810.0110.432013014.014.68
Gurnard55,59473,1998.629.152553605.085.60
Sole19,17023,1062.972.893304046.586.29
Hapuku22,09229,5133.433.693804657.567.23
Flounder21,40821,9363.322.744474938.917.68
Blue cod14,94120,1272.322.521963073.904.77
Elephant fish18,38222,2502.852.233313886.606.03
Red cod11,35514,9581.761.8783891.661.39
Moki13,54618,8032.102.35731071.461.66
Pioke13,57818,3022.102.291752493.483.87
Other94,831119,51614.7115.4954472210.8411.27
            Totals645,012799,890100.00100.005,0186,425100.00100.00

Methods of Capture—The total quantity of “wet fish” caught by each of the common methods of fishing is shown below for the latest 2 years.

Method of FishingQuantityValue
1969197019691970
 cwt$(000)
Trawl458,982554,9863,2854,106
Danish seine71,03198,703440650
Set and drag nets51,11864,381546657
Long and hand lines57,39075,598720981
Other methods6,4916,2222731
            Totals645,012799,8905,0186,425

Landings at the Ports—Ports where the total landed catch of “wet fish” was in excess of 10,000 cwt are listed in the following table.

PortQuantityValue
1969197019691970
 cwt$(000)
Auckland163,182161,0211,0021,038
Manukau58,61066,587274364
Thames15,37918,790152149
Coromandel5,03714,50232100
Tauranga49,97463,962275383
Whakatane7,26211,1745887
Gisborne64,87773,224336411
Napier55,51060,266410466
New Plymouth5,68412,96842101
Wanganui6,08313,31855110
Wellington25,71732,051276363
Nelson31,30362,174181377
Motueka8,60210,3744669
Greymouth6,31211,92065110
Lyttelton11,42820,693179290
Timaru34,35543,356448545
Port Chalmers16,19618,181207222
Bluff and Stewart Is.9,91214,638125191

The total quantity of fish landed at these ports in 1970 was 709,199 cwt, which was 88.66 percent of the total catch.

EXPORTS—A table showing quantities and values of the principal classes of fishery products exported during each of the latest 3 years is set out below. Rock lobsters, or crayfish, are exported mainly to the United States; for other fish the main markets are Australia and Japan. New Zealand's exports of fish and fish products now go to over 25 countries.

CommodityQuantityValue (f.o.b.)
196819691970196819691970
  cwt  $(000) 
Rock lobster (crayfish) and tails62,75958,13153,46912,72914,23512,432
Fish, fresh or frozen77,22574,034144,1711,6891,8994,243
Fish meal4,740485030---
Other, including smoked and canned9,8806,76910,919215216390
            Totals154,604138,982208,60914,66316,35117,065

OYSTER BEDS—The principal oyster beds around the coast of New Zealand are those situated in Foveaux Strait, between South and Stewart Islands, and the rock-oyster beds on the east and west coasts of the Auckland peninsula. During the 1970 season 113,592 sacks of oysters were dredged from Foveaux Strait, compared with 66,284 sacks in 1969.

In addition to the four Government experimental rock-oyster farms, a further 70 farms are in production in Northland and the Hauraki Gulf and an additional 70 leases for farms have been granted. This new industry is in the process of changing from tray to stick cultivation assisted by a large-scale Government spat-stick catching programme.

Rock oysters picked in 1970 totalled 9,070 sacks, compared with 9,412 sacks in 1969, and included 4,464 sacks of mature oysters from private farms.

ROCK LOBSTERS—Rock lobster, or marine crayfish, occur off many parts of the New Zealand coast. Part of the catch of rock lobster is sold in local markets for domestic consumption and part is exported as frozen rock lobster tails and whole crays.

With the development of the export of frozen rock lobster tails to the United States of America and the productive fishing in the Chatham Islands, the catch of rock lobster increased until 1968. The boom period, however, has now passed and the aim of all concerned is to ensure that this valuable fishery stabilises to provide regular supplies for overseas and local markets. The catch and exports of rock lobster over the latest 6 years are as follows.

YearProduction (Whole)Exports
QuantityValueQuantityValue
 cwt$(000)cwt$(000)
196597,9333,27028,4883,947
1966128,9813,84435,4084,619
1967159,0124,32049,1426,363
1968214,7527,43362,75912,729
1969175,1098,86158,13114,235
1970127,2588,05253,46912,432

BIG-GAME FISHING—Swordfish (striped and black marlin, and occasionally broadbill). mako shark, and other big-game fish occur principally off the east coast of the Auckland Provincial District, and attract both New Zealand and visiting big-game fishermen. The principal centres for this sport are Whangaroa, Russell (Bay of Islands), Whitianga (Mercury Bay), Whakatane and Tauranga, where specially designed and equipped launches in charge of experienced men may be hired. The season lasts from December to May, the best months usually being February and March. The record black marlin swordfish (976 lb) was caught off the Bay of Islands.

To preserve this very important fishery the Fisheries (General) Regulations 1950 prohibit the taking of swordfish by other than rod and line, and stipulate that the line be not heavier than No. 39 linen thread line. In addition, a limit bag of not more than four fish per boat per day has been imposed.

In the 1970 season (from November 1969 to June 1970), big-game fish caught included 7 black marlin, 74 striped marlin, 6 blue marlin, 396 mako shark, and 978 other species.

WHITEBAIT—This fishing is based on Galaxias species which, so far as is known, is not taken on a commercial scale in the other countries where it occurs. Whitebait fishery is carried on in the tidal reaches of many rivers, from August to November in the North Island and from September to November in the South Island. The most productive fishing grounds are near the mouths of the rivers of the West Coast of the South Island and in the lower reaches of the Waikato River. Normally the whitebait fishery gives employment to over 300 regular fishermen, and a greater number of part-time fishers. With improved transport from the more remote rivers, in which aeroplanes have played an important part, a substantial whitebait industry has been developed, particularly on the West Coast of the South Island. The 1970 season for the West Coast of the South Island showed a total of 1,673 cwt, compared with 2,852 cwt in 1969.

FRESHWATER FISHERIES: Acclimatised Species—These include quinnat salmon, brown and rainbow trout, and perch. The local administration and management of these species is delegated to acclimatisation societies and to the Department of Internal Affairs for the Rotorua and Taupo fishing districts and for the Southern Lakes Acclimatisation District, where it acts as an acclimatisation society. The Marine Department assists with management investigations, and provides technical advice. It also conducts research, on behalf of acclimatisation societies.

A fishing licence is required for the taking of acclimatised fish. The estimated revenue from angling licences in a season is $300,000.

Indigenous Species—The taking of eels, principally for export, continues to increase. Eels are the only species of which a significant commercial harvest is taken from New Zealand's freshwaters. The value of eels exported increased from $79,737 in 1967 to $469,469 in 1970.

Chapter 17. Section 17 MINERALS

Table of Contents

MINERAL PRODUCTION—In New Zealand non-metallic minerals such as coal, clay, limestone, and dolomite are both economically and industrially as important as metallic ores. Over 90 percent of the value of the present mineral production is represented by coal and limestone, together with sand, rock, and gravel for roads, ballast, building, and construction.

The increasing complexity of modern industry creates a demand for a wider range of primary and ancillary raw materials. New industries such as aluminium smelting, iron and steel, and glass manufacture create additional demands for clays, dolomite, and magnesite for refractories, limestone for fluxes and so on.

Recent activities have improved greatly the chances of successful development of a number of important minerals. These include halloysite, ilmenite sands, titanomagnetite ironsands, and sulphur. There is a probability that potential annual export values could grow to $32 million while import savings of $6 million annually could also be involved, apart from developments as regards off-shore oil and natural gas.

A Mineral Resources Council has been established as the sector council on minerals for the National Development Council. It continues to keep under review all aspects of mineral development.

The following table shows the production of metals and minerals from mines and quarries. The values are assessed at pit mouth or quarry.

Mineral19691970
QuantityValueQuantityValue
*Stockpile value.
Fuels $(000) $(000)
Coal2,326,607 tons13,6732,348,459 tons13,773
Petroleum crude Kapuni--16,175,283 gals554
Moturoa105,570 gals9158,355 gals11
Natural gas Kapuni--3,766,543,100 cu ft436
Natural gas Moturoa2,336,100 cu ftI2,144,900 cu It1
Metals    
Gold10,717 oz41311,283 oz420
Silver21,950 oz2316,428 or.17
Cadmium11 tons5210 tons48
Copper70 tons6146 tons40
Iron ore1,167 tons6673 tons4
Ironsands Primary (Export)6,800 tons4171,010 tons426
Secondary (Local)370 tons4670,160 tons271
Tungsten ore8 tons335 tons21
Zinc1,542 tons1231,436 tons182
Lead891 tons93766 tons148
Non-metallicstons tons 
Bentonite5,6307219.72288
Clay for bricks, tiles, etc.256,263341252,844339
Clay for pottery, etc9,88926311,457203
Diatomite2,129755,790185
Dimension stone22,0999819,060109
Dolomite9,91715710,111160
Greenstone61448
Limestone for agriculture1,010,1942,0921,140,3272,219
Limestone for industry112,136256122,136274
Limestone and marl, for cement1,470,3428771,499,377805
Magnesite--4768
Perlite-2,0003
Pumice19,0012818,90430
Rock for harbour work2,756,3869451,231,156718
Salt48,51846451,959364
Sand, rock, gravel, etc., for building aggregate5,440,8338,5015,297,0137,778
Sand, rock, gravel, etc., for roads and ballast19,473,90318.46821,151,13518,786
Sand for industry96,230109193,485242
Serpentine76,99119276.908344
Silica sand105,787245133,486324
Sulphur--1201
            Totals...47,771...49,241

LEGISLATION—Legislative control of mineral production is contained in the Atomic Energy Act 1945, the Coal Mines Act 1925, the Iron and Steel Industry Act 1959, the Mining Act 1926, the Quarries Act 1944, the Petroleum Act 1937, and the Continental Shelf Act 1964. The administrative agency is the Mines Department.

COAL—Coal in New Zealand has for many years been mined in certain well defined areas, outside which, no coal is known to exist in any significant quantities. The major coalfields, with the class of coal found in each, are—

Bituminous Coal (Coking): Greymouth, Westport (Buller Coalfields), Reefton (Garvey Creek).

Sub-bituminous Coal (Non-coking): Waikato (including North Taranaki), Otago (Kaitangata), Southland (Ohai), Reefton.

Lignite (Non-coking Low Grade): Southland (Mataura).

Minor coalfields from which coal is being mined, but which cannot be expected to provide an important contribution to coal resources, are—

Sub-bituminous Coal: Nelson (Puponga, Westhaven), Murchison.

Lignite: Canterbury (numerous small deposits), Otago, Charleston (Westport).

Coal Utilisation and Research—Coal utilisation and research is being fostered by the New Zealand Coal Research Association. Finance for the Association's activities is raised by a levy of 5 cents a ton made by coal wholesalers, including State coal mines, and a Government subsidy of $1 for $1 basis on operating costs and capital expenditure.

In the laboratories at Lower Hutt six persons are engaged in chemical research and analysis of coal while engineering research and development employs a further nine. Extension and advisory services throughout New Zealand are provided by six fuel technologists.

The executive of the Coal Research Association includes representatives of mine owners, mine workers, coal merchants, the Mines Department, the Department of Scientific and Industrial Research, the University of Canterbury and the New Zealand institute of Coal Mining.

Fuel Technology Service—The Mines Department has established a fuel technology service in Auckland and Christchurch to advise industrial and domestic consumers in the efficient use of coal.

Survey of Coal Resources—Investigation of coal resources is now being carried on in three phases: (i) mainly geological and chemical activities; (ii) detailed topographical surveys and shallow prospecting by means of cuts, pits, and hand drilling; (iii) investigations by deep-core drilling. For detailed information concerning geology, coal type, rank, and extent of the coalfields, those interested are referred to Geological Survey Bulletins Nos. 17, 45, 51, 56, and 59, and for an overall picture to Economic Geology of New Zealand, Volume 4, Eighth Commonwealth Mining and Metallurgical Congress, procurable from the Government Printer, Wellington.

A fresh estimate of the coal resources of New Zealand was prepared in 1969 based on information obtained by the Mines Department and the Geological Survey. The classification accepted—"measured”, “indicated”, and “inferred"—is that used by the United States Bureau of Mines and also accepted in the Commonwealth Mineral Resources Survey issued by the British Commonwealth of Nations Scientific Liaison Offices, London. These terms are simply defined as follows.

  1. “Measured coal” is coal for which tonnage is computed from dimensions revealed in outcrops, trenches, workings, and drill holes and for which the grade is computed from the results of detailed sampling. The sites for inspection, sampling, and measurements are so closely spaced and the geologic character is defined so well that the size, shape, and content are well established.

  2. “Indicated coal” is coal for which tonnage and grade are computed partly from specific measurements, samples, or production data and partly from projection for a reasonable distance on geologic evidence. The sites available for inspection, measurement, and sampling are too widely or otherwise inappropriately spaced to outline the coal completely or to establish its grade throughout.

  3. “Inferred coal” is coal for which quantitative estimates are based largely on broad knowledge of the geological character of the deposit and for which there are few, if any, samples of measurements. The estimates are based on an assumed continuity or repetition for which there is geologic evidence; this evidence may include comparison with deposits of similar type. Bodies that are completely concealed may be included if there is specific geologic evidence of their presence.

The categories of coal resources refer only to the probability of their existence and may be applied either to coal in the ground or to recoverable coal.

The following table sets out the estimated recoverable reserves, which total 1,073 million tons.

LocalityMeasured RecoverableIndicated RecoverableInferred Recoverable
 tons (000)
Bituminous
Buller31,8955,12910,400
Murchison166501,380
Reefton9513,1148,130
Garvey Creek1322,6305,000
Greymouth2,57110,43332,940
Pike River--15,000
Shag Point-1050
 35,56521,96672,900
Sub-bituminous
Northland755003,000
Maramarua15,67236,40024,000
Huntly94,32546,25075,000
Rotowaro13,2721,3001,820
Glen Massey143454,000
Whatawhata59100200
Kawhia394505,750
Mangapehi-3,000-
Tatu-Ohura3,0961,10012,000
Waitewhena40090011,000
Mokau--60,000
Collingwood581301,000
Heaphy River--1,000
Charleston1,7553,3615,088
Inangahua201008,000
Fletcher Creek60-2,930
Punakaiki--2,000
Kaitangata1,672500500
Ohai5,9618,46089,940
Orepuki--1,000
 136,607102,596308,228
Lignite
Canterbury142-2,000
North Otago240-2,000
Central Otago244-15,000
Green Island211-3,000
Kaitangata11,00019,00041,908
Pomahaka--60,000
Mataura Valley5,03320,650215,550
 16,87039,650339,458
            Totals189,042164,212720,586

Coal Consumption—The approximate distribution of coal consumption during each of the latest 6 years is shown in the following table. The total quantity is based on actual production in each year plus imports and minus exports.

User196419651966196719681969
*Sales by private mines to domestic consumers included in ‘other consumers’.
 tons (000)
Railways166141120994913
Gasworks258260241248227169
Electricity generation586433491228253603
Households476482344*301*291*279*
Factory industries—      
    Meatworks114113121128123127
    Dairy factories328324299287313276
    Pulp and paper mills1421321251119994
    Cement works213217233190197205
    Other factories196185174154152161
Other consumers298335455488405348
            Total consumption2,7772,6222,6032,2342,1092,275

Summary of Operations—The following table summarises coal-mining operations.

YearOutputPersons Ordinarily Employed
UndergroundOpencastTotalUnderground MinesOpencast MinesTotal
SurfaceUnderground
tons (000) 
Prior to 1966......163,277............
19661,5021,0912,5958182,1453963,359
19671,3719982,3707952,0734113,279
19681,3478782,2247351,9443663,045
19691,2351,0912,3266711,5943312,596
19701,1591,1892,3486191,3533252,297
            Totals......175,140............

In 1970 the State operated 16 of the 68 underground mines in operation and these produced 855,638 tons of coal; 10 of the 40 opencast mines were operated by the State and they produced 570,442 tons of coal. The loss on operations of State coal mines in 1970 was $1,646,051, without charging interest on loan capital.

Derived Products—Low-temperature carbonisation works, using the Lurgi process, at Rotowaro, 70 miles south of Auckland produced, during 1970, 17,214 tons of carbonettes, 310,105 gallons of tar and oil, and 2,159 tons of char from 33,247 tons of slack coal, which was part of the output of a group of local State mines.

The Sockburn plant, near Christchurch, produced 39,108 gallons of tar and 6,378 tons of coke during 1970.

Mercer Power Station—This station, of 180,000 kW capacity, if working at full capacity, can burn up to 700,000 tons of coal a year. Two-thirds of the coal is provided from the Kopuku opencast coalfield about 7 miles distant from the station, and the remainder from the Huntly coalfield.

PETROLEUM AND NATURAL GAS—Prospecting and mining for petroleum in New Zealand is governed by the Petroleum Act 1937, the Petroleum Regulations 1939, and the Continental Shelf Act 1964. These give the Minister of Mines the jurisdiction to grant petroleum prospecting and mining licences on (a) land and in marine areas including territorial waters, and (b) the continental shelf; for the former there are 329 current prospecting licences covering 139,378 square kilometres and for the latter 32 licences covering 989,178 square kilometres.

Activity in the search for petroleum is being maintained. Geological and geophysical work (including seismic surveys) is being conducted by several licence holders in various areas throughout New Zealand. Since the current search commenced a few years ago a number of deep wells have been drilled and the following are capable of commercial production.

Name of Well and LocalityDepth in FeetDate CompletedResult
Kapuni No. 1 (Taranaki)13,040October 1959Gas, condensate
Kapuni No. 2 (Taranaki)13,762January 1962Gas condensate
Kapuni No. 3 (Taranaki)12,457June 1962Gas/condensate
Kapuni No. 4 (Taranaki)12,800October 1962Gas/condensate

Gas from the Kapuni field is treated for the removal of carbon dioxide and piped between Auckland and Wellington. It is used mainly as a premium household fuel although some will be used for the generation of electricity and for industry. Gas reserves are estimated to be sufficient for 25 years. Condensate from Kapuni provides some of the feedstock for the Whangarei refinery.

The Natural Gas Corporation Act 1967 established a corporation to purchase, transport and market natural gas. Construction of the 377 miles 8 5/8 in. trunk pipeline was completed and natural gas came into use in 1970 in nine North Island centres—Auckland, Hamilton, New Plymouth, Hawera, Wanganui, Palmerston North, Levin, Hutt Valley, and Wellington. (See Section 20B.)

For many years small quantities of petroleum have been produced at New Plymouth. During 1970 the company operating at New Plymouth produced from four wells 66,855 gallons of crude oil, and supplied 2,144,900 cubic feet of natural gas to the New Plymouth gas works. The total production of crude oil to 31 December 1970 was approximately 7,473,400 gallons.

Oil and gas were discovered off the Taranaki coast in 1969. Four wells were drilled, as shown below.

Name of Well and LocalityDepth in FeetDate CompletedResult
Maui 111,515June 1969Gas condensate/oil
Maui 211,700December 1969Gas/condensate/oil
Maui 311,159February 1970Gas condensate oil
Maui 412,858July 1970Oil

The commercial significance of hydrocarbons discovered in these wells varies. Discussions are taking place on the sale of gas from these wells, principally for the generation of electricity.

IRON RESOURCES—New Zealand's largest resources of potential iron ore are contained in the black sands of the western beaches—from Westport southwards in the South Island and from Wanganui to Muriwai in the North Island. Titanomagnetite sands make up most of the black sands in the North Island, but from Waikato Heads northwards the beach deposits also contain ilmenite in varying proportions. In the South Island beach sands, ilmenite is the chief iron-bearing material. These beach sands have been estimated to contain some 800 million tons of titanomagnetite, with a further 8.6 million tons of ilmenite in the North Island and 43 million tons in the South Island.

A process has been developed whereby the titanomagnetite sands can be smelted on a large scale economically to produce a good grade of steel. A steelworks has been constructed at Glenbrook, 36 miles south of Auckland, by New Zealand Steel Ltd., and the plant began production late in 1969 using ironsands deposits from the North Head of the Waikato River, 12 miles away. It is expected that production initially will be about 130,000 tons of steel a year (see Section 18).

There has been a small annual production of iron ore from the Onekaka deposits and certain small deposits in the North Auckland district, for use in gas purification, the preparation of stock licks, and in the brickmaking industry.

Near Waverley, 20 miles north of Wanganui, an ironsands mining unit produces titanomagnetite concentrates for direct export to Japan through off-shore bulk-loading facilities. N.Z. Steel Ltd. is planning a similar undertaking at Taharoa, near Kawhia.

URANIUM—in 1955 uranium-bearing minerals were discovered in the Buller Gorge. These deposits occur in steep, broken country which is heavily covered with bush, the area is subject to heavy rainfall and access is difficult. Prospecting work, however, has been disappointing and, so far, ore has not been found rich and extensive enough to be worked economically at present price levels. Prospecting work in the Buller area of the West Coast is continuing.

The Atomic Energy Amendment Act 1957 amended the Atomic Energy Act 1945 by adding several new provisions designed to encourage the search for and production of uranium or other substances which may be used for the production of atomic energy.

GOLD—The gold-mining industry, which in its early stages contributed greatly to the progress and settlement of New Zealand, declined in importance with the exhaustion of the more accessible alluvial-gold deposits and of ore from the zones of enrichment. Annual production is now almost confined to one dredge at Taramakau on the west coast of the South Island.

SILVER—Formerly most of the locally produced silver exported from New Zealand was obtained from the refinement of bullion from the quartz mines of the Hauraki goldfields, where gold and silver were found alloyed. Recent production in the area is contained in the lead sulphite concentrates exported to Japan. A small quantity of silver is won by the West Coast gold dredges.

TUNGSTEN—The principal ore of tungsten in New Zealand is scheelite, though a little wolfram is found in Otago and Stewart Island, but not in economic quantities.

The scheelite—bearing quartz-veins are generally small and broken, while the scheelite is most erratically distributed in the veins, with the greatest concentration of scheelite situated close to the surface or at shallow depth. Access and transport present difficulties, and production costs are relatively high. Although the price of tungsten ores has improved, scheelite mining is on a small scale. Mining is confined to the Glenorchy and Macrae's Flats fields in Otago. There has been renewed interest in prospecting both these fields and a complete re-assessment of their potential is being made.

COPPER—A deposit of copper ore near Parakao contains azurite and malachite, forms of carbonates of copper, as well as tentorite, an oxide of copper. It has been used as an additive to fertilisers. Another deposit of copper ore was worked at Pupuke. It is estimated that the total production of copper ore over the years to the end of 1970 amounted to 8,068 tons, valued at $359,441.

Prospecting has been carried out for copper ore at Moke Creek near Queenstown, and Coppermine Island near Whangarei, as well as a number of other localities, by mining companies currently engaged in the renewed study of the country's mineral resources without uncovering significant deposits.

MANGANESE—Manganese ores are found in many localities, chiefly in the older sedimentary rocks. Prior to 1960 there was some production from deposits at Bombay, Moumoukai, and Otau, all in the Auckland district. Deposits are, however, generally small and shallow and capable of producing only limited tonnages of ore.

MERCURY—Cinnabar, the principal ore of mercury, is widely distributed in New Zealand, but only in a few localities is it found in quantities of economic importance. The most promising deposits of mercury ore in New Zealand are those of the Puhipuhi district and further investigation work has been carried out in this area.

LEAD AND ZINC—An ore-bearing reef of lead and zinc is being mined near Te Aroha, producing lead-copper sulphide and zinc sulphide concentrates for export to Japan.

TIN—Cassiterite in the form of “stream tin” occurs in small deposits near Port Pegasus, Stewart Island, and these have been worked to some extent.

PLATINUM—Platinum occurs in several places, associated generally with gold in gravel, but quantities produced have been insignificant.

SILICA—At Parengarenga, in northern Northland there are large deposits of pure quartz (silica) sand. Over 70,000 tons from here and 10,000 tons from Mt. Somers in Canterbury, are used each year, mainly for glass manufacture.

There are lump silica deposits in Southland of a high quality suitable for the production of ferro-silicon and probably silicon metal.

DIATOMITE—Diatomite is a light powdery material used as a source of silica and as a filtering agent. It is worked in the Rotorua-Taupo volcanic zone and at Middlemarch, Otago.

BENTONITE—Deposits of bentonite occur at Porangahau in the Hawke's Bay District, and at Mangatu, near Gisborne. There are deposits of non-swelling bentonite at Coalgate in Canterbury which are, however, modified to produce swelling bentonite suitable for pelletising ironsands, and use in drilling and as a filler.

HALLOYSITE—Halloysite a clay used in ceramics, and as a filler in the paper industry. It has been mined in Northland since the Second World War and used in the expanding china-ware industry of Auckland and investigations into an expanding use of this clay as a high-grade filler are proceeding.

SULPHUR—Prospecting proved a 6-million-ton deposit of sulphur at Rotorua in the Taupo area in 1968, but exploitation has still to be established as feasible.

PERLITE—Perlite is a volcanic glass expanded by heating; it is used as an insulator and in light-weight concrete. There are deposits in the Rotorua-Taupo area.

ASBESTOS—Chrysotile asbestos occurs at several points in the massive serpentines of Nelson and Otago but the only deposits of importance so far located are those of Upper Takaka in the Nelson district. In 1955 production of asbestos was resumed after a temporary cessation but was discontinued in 1963. Current work is aimed at finding a market for the high proportion of very short fibre found in the ore.

PHOSPHATE—The occurrence of phosphate has been reported from many localities in New Zealand but so far the deposits of Clarendon and Milburn have proved to be the only ones of economic importance and the more favourable sections of the deposits have been exhausted.

SERPENTINE—Serpentine is a magnesium-rich rock used as a fertiliser additive. Deposits are being mined at Piopio, near Te Kuiti, and North Cape, in the North Island, and Lee Valley, Collins Valley and Mossburn, in the South Island. To the end of 1970, 2,552,336 tons of serpentine had been mined.

GREENSTONE—The mineral nephrite, the “pounamu” of the Maori, a deep-green semi-transparent mineral with dark opaque patches, more popularly known as one of the varieties of “greenstone”, occurs as rounded segregations in the talc or talc-serpentine rocks of the Griffin Range of north Westland. The principal supply was obtained from the gravels of the Arahura and Taramakau Rivers, and from gold-sluicing claims of the Kumara district. At the present time the main source of supply is from a deposit of greenstone boulders in Olderog Creek, a tributary of the Arahura River. The boulders are reduced in size by a portable diamond trepan saw and airlifted by helicopter. Some of this has been cut and polished in New Zealand for personal and other small ornaments; the remainder has been exported. With the decline in sluicing operations this mineral has been in short supply.

KAURI GUM—Production of kauri gum has been at a comparatively low level in recent years. The quantity exported annually is now less than 100 tons.

PEAT WAX—There are an estimated 10,000 acres of moorland peat on the Chatham Islands with an average thickness of 14 feet. This peat contains peat wax derived from a particular plant which grew in the area. The peat wax is being investigated for commercial application in carbon paper, polishes, varnishes, cosmetics, and explosives.

SALT—At Lake Grassmere, in Marlborough, salt is being produced by the solar evaporation of sea water. The low rainfall, long hours of sunlight, and the wind conditions make this locality the most suitable one in New Zealand for this purpose. Salt was first harvested in 1952.

Production of salt in the latest 6 years is shown in the following table.

YearSalt ProducedValue
 tons$(000)
196534,1701,080
196635,4501,000
196755,2001,214
196855,0001,155
196948,518464
197051,959364

STATE AID TO MINING—State aid to mining in New Zealand is given in several forms—viz. (a) geological survey and bulletins; (b) detailed investigation of the occurrence and development of economic minerals; (c) schools of mines; (d) financial aid to prospecting and for access roads to mining fields; (e) research by Chemistry Division of the Department of Scientific and Industrial Research.

Geological Survey—Imperative to long-term assessment of New Zealand's mineral resources is an understanding of the country's geology. In New Zealand almost all Government geological work is carried out by the New Zealand Geological Survey, a scientific institution founded in 1865, which since 1926 has been a branch of the Department of Scientific and Industrial Research. Mines, Works, and other Government departments consult the Geological Survey on geological problems, and do not themselves maintain a geological staff.

The survey's principal work is to prepare geological maps of New Zealand and to determine the country's geological structure and geological history. Along with this, the survey studies and helps to assess the country's mineral deposits, geothermal steam, and underground water resources, and gives advice on geological problems encountered in State and private civil engineering projects, such as the construction of hydro-electric dams, bridges, tunnels, roads, and building foundations.

The Geological Survey has issued regional geological maps on a scale of 1 mile to the inch, covering about one-third of the country. Maps (scale 1:250,000), informally known as the “Four mile” series, are available for the whole country. One-mile maps and bulletins will continue to be issued at intervals for areas of special economic or scientific importance. The first sheets of a new detailed series of maps, at 1:25,000 scale, have been issued. They cover Hamilton City and parts of Auckland. Surveys are currently in progress to produce similar maps for Wellington, Christchurch, and Dunedin. Geological mapping has also been carried cut in New Zealand's island territories and in the Ross Dependency.

Mineral Resources Surveys Generally—The Economic Geology Section of Geological Survey is responsible for the investigation of potentially valuable deposits, coupled with closer study of the changing overseas economic emphasis. The work is largely concerned with the implementation of the Mineral Resources Council's recommended programme. A new inventory of New Zealand's minerals is now available, and a publication Industrial Minerals and Rocks, containing articles of interest to engineers, mining companies, and local bodies, is produced annually. Field studies are made by the geologists, and laboratory examination of ores by the petrology specialists. Chemical analysis is usually done by the Chemistry Division, Department of Scientific and Industrial Research. The Petrology Section makes free identification of rocks and minerals forwarded by Mines Department, prospectors, and others.

Metallic Minerals—In earlier years, when gold was of major importance, the survey reported on all major goldfields. Deposits of ores of iron, copper, tungsten, manganese, chrome, uranium, aluminium, and other metals have also been investigated over the years, and the survey took complete responsibility for the raw material geological investigations for the new steel industry. Geological Survey has recently completed detailed surveys of the ilmenite-zircon-gold sand deposits near Westport, of the important mineralisation areas in north-west Nelson, of a disseminated low-grade copper deposit at Coppermine Island off Whangarei, and of scheelite lodes at Glenorchy in Otago.

Coal—Coal is still New Zealand's most important mineral, apart from constructional materials, and mapping the coalfields in detail has been one of the survey's major undertakings in economic geology. Work has proceeded in co-operation with Mines Department and with the Coal Research Association. Detailed maps and bulletins on Greymouth, Reefton, Kaitangata, and Ohai coalfields have been published, while those for the Waikato field will be the next to be issued. Although the mapping of the coalfields is largely complete, survey geologists continue to help with the large number of day-to-day problems in the coalfields and undertake constant revision. A major revision, involving presentation in map form, of coal estimates is currently being made.

Oil—The Government does not undertake oil exploration. Oil companies however draw on survey maps and bulletins for basic information about the country's stratigraphy and geological structure which enables them to narrow down areas deserving more detailed examination. Close and mutually beneficial co-operation has usually developed between survey geologists and paleontologists and those of oil companies. Copies of oil company reports and maps continue to be deposited with the Government in terms of the Petroleum Act 1937. The Geological Survey is the national repository of collections of rocks, fossils, and drill cores collected by the oil companies, and has appointed a petroleum geologist to the staff who advises company geologists on all oil regions.

Paleontological and stratigraphic information by the survey helped the search for oil in Taranaki, which was rewarded by the discovery and development of large reservoirs of natural gas at Kapuni and more recently off shore in the Maui field. The collections of fossils and drill cores held from earlier Taranaki oil-exploration bores greatly helped prediction of the type, age and thickness of strata the drills would penetrate. Geological Survey micro-paleontologists are assisting oil companies in interpreting the stratigraphic progress of off-shore oil wells and provided a complete service for many recent drill-holes, both on shore and off shore.

Constructional Materials and Other Non-metallic Minerals—As far as is possible with the staff available, the survey advises Ministry of Works and local authority engineers, contractors, and other users on where rock materials for road metal, aggregate, building stone, sand, etc., can be obtained. A major aggregate survey has been launched in co-operation with Ministry of Works. Marl, limestone, and pozzolana for cement manufacture, perlite, bentonite, clays, talc, mica, and magnesite are other non-metallic minerals in whose utilisation the survey has played a part. Current aid. to industry given by the survey includes detailed projects on north-west Nelson deposits of wollastonite, asbestos, dolomite, and talc magnesite; the limestone resources of Auckland and Otago have been assessed recently; North Auckland sands and halloysite clays have been the subject of recent New Zealand Geological Survey report series.

CENSUS OF MINING AND QUARRYING—A census of mining and quarrying was taken for the production year 1968-69. Statistics for that year are shown in the following table.

ItemType of Mining or QuarryingTotal, incl. Part-Time Operating
Sand, Gravel, Rock, etc.LimestoneCoalOther, Including Clay
*One owner may operate several mines, e.g., the Government operates many coal mines.
Type of organisation*     
    Registered company197592632392
    Individual or partnership or co-operative58163412168
    Government or local authority101122140
            Totals356766146700
Nature of business—     
    Underground mines operated--641176
    Surface mines or quarries operated9178737641,332
    Productive bores33
            Totals91787101781,411
Employment—     
    Average number of persons engaged (excludes working proprietors)1,8642762,7422395,283
    Salaries and wages paid (includes bonuses, overtime, etc.) persons engaged $(000)4,9236697,63569614,011
    Overtime hours worked h(000)489343553615
    Number of working proprietors69159615244
Production (values as at quarry floor or mine head)—     
    Sand, gravel, rock, clay, etc. $(000)19,95858-6520,373
    Limestone $(000)282,428-152,527
    Coal $(000)64-12,874-12,943
    Other $(000)15483,0743,245
            Totals, values $(000)20,0522,54012,8823,15439,086
Production volumes—     
    Sand, gravel, rock, clay, etc. cu yd(000)18,41240-5019,088
    Limestone tons(000)201,560-81,643
    Coal tons(000)24-2,287-2,312

Chapter 18. Section 18 MANUFACTURING

Table of Contents

HISTORICAL DEVELOPMENT—The function of the early manufacturing industries in New Zealand was to supply locally the immediate needs of the small scattered communities for food, clothing, building materials, and home furnishings and to provide shipping with ropes, spars, and repairs. These handicraft activities grew into factories as the settlements expanded and as there developed more opportunities for the organisation and specialisation of labour, and for the more complex processing of domestic or imported raw materials. Flour mills, flax mills, ropewalks, and sawmills appeared in the early eighteen forties followed by breweries, brick kilns, cooperages in the mid forties and, later in that decade, lime kilns, ship and boat yards, soap and candle works, and tanneries.

By 1867, the first year in which statistics of factory production were collected in conjunction with the population census, manufacturing establishments included grain mills, breweries, biscuit factories, a bone-manure works, brick and tile yards and potteries, candle and soap works, coachbuilding workshops, fellmongeries, tanneries, wool-scouring works, flax works, aerated water and cordial factories, iron and brass foundries, lime kilns, malt kilns, engineering workshops, a patent slip, a petroleum works, rope and cordage works, sawmills, sash and door factories, ship and boat yards, and a woollen mill. The factories of this period were still primarily concerned with the satisfaction of the needs of the limited local markets.

The development boom of the eighteen seventies, the rapid rise in population, and the better communications between internal markets encouraged further factory expansion. There was to some extent a natural protection from overseas competition in the high freight rates on imports. Other factors which assisted in this expansion were the admission of certain raw materials free of duty, the imposition of a tariff on some finished goods, and the granting of bounties for new factories by central and provincial governments. These were followed by protection by way of tariff in 1888 when the home market was shrinking and capital and labour were beginning to leave the colony. Footwear and clothing factories, machinery, and metal industries were protected by this tariff. A wider protective Customs tariff was imposed in 1895. During the depressed years of the eighteen eighties low wage costs enabled some New Zealand manufacturers to export their products, but this was partly attributable also to the special suitability of some New Zealand products, such as farm implements, to the needs of other developing communities overseas.

The first shipment of refrigerated meat in 1882 opened the way for the establishment and growth of the meat-freezing and butter and cheese industries. Ten years after this first shipment, 21 meat-freezing works and 104 butter and cheese factories had been established.

The recovery from the long depression, the resumption of large-scale immigration at the beginning of the present century, the spectacular development of meat-freezing and dairy factories, and the breaking in of new land, especially in the North Island, all contributed to the revival of a strong internal demand which stimulated manufacturing growth.

Auckland early established itself as the predominant manufacturing province in New Zealand, but in the general prosperity following the gold boom of the sixties, there was a spectacular increase in manufacturing activity in Otago, which led Auckland until the nineties. Canterbury was the next most important manufacturing province. Today, however, Auckland has clearly re-established its predominance and is followed by Wellington and Canterbury.

With the rising population and increased export income during the first decade of this century, manufacturing continued to expand at a steady rate. The growth continued to be concentrated on industries processing farm products for export and those supplying the more simple goods, housing materials and equipment, repairs, and supplies for farmers. In this period the electrical, wire-work, sheet-metal, and motor-vehicle industries had their beginnings.

Developments in the nineteen twenties included the expansion of the vehicle industry (particularly motor and cycle assembly), sawmilling, and the metalworking, furnishings, and apparel industries. These developments carried forward the tendency for industries processing farm products to be less dominating in value of production and employment compared with other types of industry.

During the depression of the nineteen thirties the total volume of factory output declined with the contraction of New Zealand's export income and the drop in internal demand. While prices fell the output of factories processing farm products rose, but not sufficiently to offset the loss in volume from other manufacturing industries. The rapid fall in purchasing power caused the farmer to produce more, but the impact of the depression on the factories processing “non-farm” materials meant a heavy reduction in the output of consumer goods, building materials, and agricultural and dairy machinery and implements. By 1934-35, however, the volume of factory production had been restored to the 1929-30 level.

Apart from metalworking and vehicle factories, which had improved their position significantly, industry emerged from the depression in much the same pattern as before.

The recovery of manufacturing after the depression was primarily the result of better export prices, more public development, and an expansionist monetary policy, all of which resulted in the re-engagement of most of the unemployed.

There had been little time for any protective effect of exchange control and import selection to stimulate industrial expansion between the date these measures were introduced (December 1938) and the outbreak of war in September 1939. It was the war and its shortages which changed the manufacturing pattern and gave great encouragement to industrial development. The engineering and apparel industries, which contributed so much to war needs, made the greatest progress.

Production expanded in response to the need to replace imports that the United Kingdom and other countries could no longer supply and to provide uniforms, weapons, equipment, and provisions for New Zealand and allied armed forces.

One protective effect of the war and post-war periods and their restricted supply of imports was that domestic industry was often enabled to attain its optimum (New Zealand) output quickly without a difficult competitive struggle with imports.

Post-war Development—The pattern of New Zealand industry changed—again from 1949-50 with the exemption from import control of many items. Factory expansion was sustained by a high level of internal demand, by a widening of the range of products, and to some extent by the restriction of imports for a short period of exchange control. In this period the volume of production in the food, footwear, other wearing apparel, and made-up textile goods groups increased slowly in response to population growth, while leather industry production fell as a result of competition from imports and synthetics. Spectacular increases in production came from new developments in the pulp and paper and the rubber industries. However, as in past years it was the engineering factories that contributed most to the growth of manufacturing after 1949-50. The expansion in this field was stimulated especially by increasing mechanisation on farms, the high level of investment in New Zealand, the “rising demand for consumer durables, and the increased imports of motor vehicle components.

The growth in production has been assisted by increases in manpower engaged and capital investment in new buildings and machinery. A measure of the increase in capital employed is that the value of land and buildings, plant, and machinery at the end of the production year for each person engaged was $1,170 in 1949-50, $2,600 in 1959-60, and $5,180 in 1969-70.

Successive annual increases in the volume of production took place in the following years: 1959-60, 3.5 percent; 1960-61, 9.8 percent; 1961-62, 5.1 percent; 1962-63, 4.5 percent; 1963-64, 10.4 percent; 1964-65, 13.0 percent; 1965-66, 6.8 percent; 1966-67, 5.9 percent. However in 1967-68 there was a decrease of 1.2 percent. In 1968-69 there was an increase of 3.2 percent, and for 1969-70, an increase of 9.1 percent.

The greater use of machinery in manufacturing during the last 20 years is illustrated also by the continuing rise in the average horsepower employed for each person engaged in manufacturing. In 1949-50 the average was 3.42 horsepower; in 1959-60, 4.78 horsepower; and in 1969-70, 6.26 horsepower. This expansion has been facilitated by developments in electric power generation and industrial techniques.

The value of factory production rose from $635 million in 1949-50, to $1,411 million in 1959-60, more than doubling in the decade; while the value of production of $3,149 million achieved in 1969-70 also represented more than double for that decade. Value added in manufacture increased at an ever faster rate from $205 million in 1949-50 to $533 million in 1959-60 and $1,282 million in 1969-70.

Estimates for April 1971 indicate that 25 percent of the total labour force was directly engaged in manufacturing. This figure represented 27.5 percent of the male labour force and 22 percent of all female labour. (Note: From April 1971, estimates of the industrial distribution of the total labour force have, for the first time, been made according to the newly-revised “New Zealand Standard Industrial Classification”. As a result, comparisons with most earlier estimates for industrial groups are not possible.)

Small factories continue to be typical of manufacturing in New Zealand. In 1969-70, 62 percent of the factories employed 10 or fewer people, a reflection of the fact that, partly as a result of the geographical configuration of the country, many factories supply small local markets. At the other end of the scale, in the same year, only 1.5 percent of factories had staff in excess of 200. The majority of the smallest manufacturing units are involved in the production of transport equipment, machinery, and wood products, while the largest plants are engaged in the manufacture of food and paper.

Statistics over the past decade show a trend towards larger manufacturing units, which have increased in number at a proportionately more rapid rate than the total number of factories.

Some of the major industries are mentioned later in this section. Others include wire drawing and galvanising; the production of wire rope, aluminium cable, and telephone and underground power cable; the manufacture of TV tubes, 11 KV switchgear, electric hoists, electric motor starters, and fractional horsepower electric motors, as well as electronic controls for a variety of equipment. The manufacture of transport equipment and machinery has expanded to cover turbo-prop top-dressing aircraft, utility farm vehicles, bicycles, pneumatic and steel-tyred road rollers, self-propelled hydraulically operated excavators, post-hole diggers, and hydraulic equipment and attachments. Further items now made in New Zealand include oil-fired kilns, control valves, thermostats, press brakes, disc brake pads, high-speed twist drills and numerous others. In the chemical and allied industries, New Zealand factories produce PVC compounds and dry blends, besides such PVC products as sheeting, flooring, roofing, and rainwater goods; a range of formaldehyde resins used in the manufacture of adhesives and related products; acrylic emulsions and compounds; many industrial and domestic chemical materials including synthetic detergents; and various weed killers and insecticides. The packaging industry makes moulded pulp products as well as several types of plastic film, the most recent projects involving cast polypropylene and the manufacture of irradiated polyethylene (‘shrink film’). Textured synthetic yarns, warp-knitted and foam-backed fabrics have been added to the products of the textile industry in recent years. An oil refinery and sheet glassworks have been in operation for some years. Gin and whisky distilleries have been established and brandy has been produced experimentally.

RECENT MAJOR DEVELOPMENTS—The following paragraphs summarise certain of the major industrial developments which have recently taken place.

Pulp and Paper—New Zealand Forest Products Ltd. is well advanced with its $55 million pulp and paper project involving the installation at its Kinleith plant of a sixth papermaking machine and the extension of the existing pulp mill and associated facilities. The number six machine is expected to begin production in March 1973. The work at Kinleith is part of a major expansion project affecting also the company's Whakatane and Penrose mills. Spread over 5 years, the total cost in terms of 1969 prices will amount to $105 million, representing the largest outlay on development and expansion by an individual company in New Zealand's industrial history.

Early in 1971 Tasman Pulp and Paper Co. Ltd. released details of an $88 million expansion project under which more than $46 million is being spent on extending the annual capacity of the kraft pulp mill at Kawerau from approximately 105,000 tons, of which more than 55,000 tons is exported, to 230,000 tons of which 160,000 tons will be exported. The remaining sum will cover the installation of a third newsprint machine which, with its capacity of 130,000 tons, will raise the company's total output of newsprint to 345,000 tons per annum. The pulp mill expansion is due for completion early in 1973 and the new papermaking machine is expected to be in production by the beginning of 1975.

Carter Oji Kokusaku Pan Pacific Ltd. was formed in March 1971 to build and operate at Whirinaki, near Napier, a $12 million mill to produce sawn timber and refiner groundwood pulp for export to Japan. The New Zealand participant. Carter Consolidated Ltd., holds a 60 percent share in the new company, the remainder of the equity being taken up equally by two Japanese pulp and paper companies, which have undertaken to purchase the entire output of the mill, worth a minimum of $250 million over a period of 20 years. The mill is scheduled to commence operation in March 1973.

Particle Board—New Zealand Particle Board Ltd., a joint venture between New Zealand Forest Products Ltd. and Henderson and Pollard Ltd., has almost completed the construction at Kumeu of a $3.7 million particle board plant with a capacity of 35 million square feet annually. A substantial proportion of this production will be available for export when the mill opens in the latter half of 1972.

Steel—New Zealand Steel Ltd. was formed in July 1965, and began production at Glenbrook, south of Auckland, of a range of galvanised coil and sheet from imported black coil in November 1968. The company's first steel was smelted from scrap iron in September 1969 and the first billet from New Zealand ironsands was made 2 months later. However, as commissioning problems have taken longer to eliminate than was expected, volume production has not yet been achieved. The most recent major project undertaken by the company was the commissioning of a steel pipe mill towards the end of 1971. The Glenbrook plant is currently producing steel ingots, billets, fiat and corrugated galvanised sheet, and bright and galvanised pipe.

Pacific Steel Ltd., Otahuhu, processes both the billets produced by New Zealand Steel Ltd. and scrap steel collected throughout New Zealand. With the recent completion of its $8 million expansion programme, the Otahuhu company is manufacturing wire rod as well as a range of other merchant bar products.

Aluminium—New Zealand Aluminium Smelters Ltd. was formed following the signing of an agreement by the New Zealand Government, Comalco Industries Pty. Ltd. of Australia, Showa Denko KK, and Sumitomo Chemical Co. Ltd. of Japan. Construction of a primary aluminium smelter, at Tiwai Point, near Bluff, was completed early in 1971. The first furnace was commissioned by New Zealand Aluminium Smelters Ltd. in April 1971 and the first potline, comprising 204 furnaces with a total yearly capacity of 73,000 tons of aluminium reached full production in November 1971, by which date the plant represented an investment of some $80 million. Expansion of capacity to 110,000 tons per annum is already under way, but the commissioning of the additional plant will depend on the growth in the world demand for aluminium.

Recent developments in the aluminium semi-fabricating industry include the establishment of two new companies in which Comalco Ltd. is associated with Alex Harvey Industries Ltd. and L. J. Fisher and Co. Ltd. in the extrusion, fabrication, and anodising of aluminium products for the New Zealand and overseas markets.

Alcan (N.Z.) Ltd. doubled its aluminium extrusion capacity by the installation in May 1971 of a second press, a high speed 1650 ton unit which, with ancillary equipment and services, cost about $1 million. A second expansion project being undertaken by the company at the Wiri plant involves the installation of a $3.5 million mill for the production of thin-gauge foil.

McKechnie Bros (N.Z.) Ltd., New Plymouth, has also extended its facilities for extruding aluminium sections. During 1970, the company commissioned New Zealand's first copper tube mill.

Tanning—Four groups of companies are engaged in or investigating major projects involving the tanning of sheep and lamb pelts to the dry crust stage for export. Each group comprises one or more established New Zealand freezing or tanning companies, in association with an American or British tannery.

Textiles—Over the last decade the carpet industry has exhibited one of the highest growth rates of any industry, increasing its volume of production by over 170 percent. Exports of carpet have risen from little more than 400 square yards in 1960 to well over 2 million square yards, worth more than $7.5 million, in the year ended June 1971. Exports of carpet yarn brought in a further $2 million in the latter period.

Considerable interest has been shown overseas, particularly in Australia and in the United States, in New Zealand-made all-wool carpeting, drapes, and upholstery fabrics.

Nylon has been extruded and spun by two New Zealand plants since 1965, and in 1969 one of these mills began producing polyester yarn. Substantial increases in production capacity are planned for late 1972 to meet increasing demand on both the domestic and export markets.

Several extruders for the manufacture of polypropylene yarn have been or are being installed to provide material for the production of sacks, bags, woolpacks, cordage, and floor coverings.

TRENDS IN INDUSTRIAL DEVELOPMENT: Horizontal and Vertical Integration—A feature of New Zealand industry in recent years, and one which directly contributes towards the increasing size of industrial establishments, is the trend towards both horizontal and vertical integration of existing units, characterised by mergers, amalgamations, and takeovers. Benefits have accrued as a result of many of these movements, which have permitted improved economies of scale and therefore lower manufacturing costs, and a better utilisation of distribution facilities leading to lower selling expenses. This trend has substantially altered the structure of the food-processing industry including the brewing industry, and major changes have also occurred in the plastics and aluminium industries, amongst others.

Rationalisation of Production—This trend, too, has resulted partly from an attempt to gain improved economies of scale. Some rationalisation has followed mergers and takeovers within New Zealand when, for example, two or more factories each making a wide range of goods have been able to concentrate on narrower complementary ranges, maintaining reasonable consumer choice while increasing the throughput of individual products.

Overseas Investment—Industrial expansion and rationalisation has frequently been associated with the investment of overseas capital, usually accompanied by specialised skills and technical advances. Typically, the industries in which overseas companies are most interested are based on New Zealand natural resources which provide development opportunities less readily available in the more highly industrialised countries of Europe and North America. Since resource-based industries usually develop on a large scale, they are invariably export-oriented and in many cases the overseas companies providing technology and in some cases part of the finance are also able to arrange long-term export markets.

Indigenous Resources—The trend towards the development and expansion of resource-based industries previously mentioned is of considerable significance. Traditionally, the only substantial resource-based New Zealand industries have been those engaged in processing farm products, meat, milk, and wool. Apart from these industries, in the period of almost 20 years following the end of the Second World War, the growth of manufacturing industry was, in the ma, dependent on imported materials and components. The radio and television industry is a good example of growth of this type, and others are to be found in the domestic appliance, petroleum products, and engineering industries.

The turning point in the use of indigenous resources came with the developments in the forest industry where expansion has reached almost boom proportions during recent years. The industry is now a major earner of overseas exchange, the principal exports being pulp, paperboard, newsprint, and other papers. Logs, sawn timber, chips, and processed building boards are also sold overseas in substantial quantities.

Many new industries dependent on indigenous resources are being established to process basic minerals. A steel manufacturing plant is now smelting indigenous ironsands and there are good prospects in the next few years for the establishment of industries to process primary metals from ilmenite, titanium, scheelite, and silicon. An important natural gas field has recently been brought into commercial production, and the industrial potential of a major off-shore field is currently being examined. Developments continue to take place in farm produce, one example being the manufacture of dried lucerne pellets for export.

Financial Infrastructure—Increasing sophistication in the types of financial institutions and the scope of their activities is another trend influencing recent industrial development. As already mentioned, direct investment by overseas companies has materially assisted the growth of particular industries but the increasing rate of expansion in the economy has emphasised the need for the greater availability of capital for development generally.

The Development Finance Corporation, described more fully later in this section, was made more effective by legislation enacted in 1970. At the beginning of 1972, the corporation obtained from the World Bank a loan of more than NZ$7 million for sub-lending to development projects undertaken by the private sector.

Established finance companies have extended their activities considerably, especially in the short-term money market and Government approval has recently been given to overseas banking institutions interested in setting up offices in New Zealand. Consent has also been given for several merchant banking groups to commence operation in this country. These groups, comprising New Zealand companies in association with large overseas finance houses, will help to provide a greater variety of financial services besides facilitating the raising of money overseas to lend out to developing businesses.

EXPORT EARNINGS—Goods manufactured in New Zealand are finding increasingly larger outlets in overseas markets. Wood pulp and paper is the largest single export item in this category, accounting for about 23 percent of the total export earnings from manufactured goods. Other manufactured products making significant contributions to export earnings are machinery and transport equipment, wood products, clothing and textiles, and foodstuffs such as soluble coffee, chocolate products, soups, and processed vegetables. Exports in the foodstuffs group doubled in 1970.

A report released by the National Development Council's Targets Advisory Group in 1971 contained a preliminary reassessment and evaluation of targets for export growth in the next decade. Growth in “Other Manufacturing” output is expected throughout the 1970s to average just over 6.5 percent a year in volume terms, with export volume growing at around 10 percent a year (excluding major projects such as those of N.Z. Steel Ltd. and N.Z. Aluminium Smelters Ltd.). In terms of actual prices, exports are projected to reach $155 million in 1972-73. Further growth to $231 million by 1975-76 is seen, with progressions to $345 million in 1978-79 and $517 million in 1981-82. These figures compare with a growth rate of about 3 percent a year in the volume of farm exports, and an average annual increase of 5.2 percent in the overall volume of exports in the same decade.

IMPORT CONTROL—Most items not made in New Zealand are already exempt from control, and licences are issued freely for essential products such as plant and equipment. A number of agricultural products, including meat, butter, and cheese are also exempt from import licensing. Only about a third of imports by value in the 1971-72 period were subject to import licensing and these were mainly types of goods produced in New Zealand.

It is the Government's policy to replace import licensing by tariffs as far as is practicable as the main measure of protection for New Zealand industry. The Government in the 1971 budget announced its decision to institute a major review of the remaining items under import control over the following 5 years, at the same time recognising that in some instances it may be necessary to retain import licensing. The review is being carried out bearing in mind the recommendations of the National Development Conference, particularly Recommendation 209A, which is concerned with the level of protection which should be afforded manufacturing industry so as to promote steady industrial development, increased manufactured exports, full employment, and, at the same time, encourage competition, efficiency, and reasonable prices to other sectors and consumers.

It is intended that the review of licensing controls will proceed as far as possible on an industry basis to avoid a fragmentary approach. Priority in selecting industries for review will, wherever possible, be given to those which already have unrestricted access to raw materials and other inputs; those in which the existing level of protection appears to be high; and those; which are significant in the cost structure of export industries.

REGIONAL DEVELOPMENT—Partly in response to recommendations of the National Development Council on plans for increasing economic growth rates, considerable attention has been focused on the need for an evaluation of regional development in New Zealand. The concept of regional development is seen not as a scheme for the redistribution of existing industries, but rather as a programme for achieving a more balanced growth rate throughout the country by the fuller utilisation of the resources of each region.

In 1969 the Government commissioned the New Zealand Institute of Economic Research (Inc.) to investigate in depth regional economic development with special reference to the manufacturing sector. The report was released by the Minister of Industries and Commerce in September 1970 and referred to the National Development Council for consideration. The National Development

Council report was published at the beginning of 1972, and accepted by the Government as a broad basis for a constructive and positive regional development policy. The Department of Industries and Commerce has been made responsible for regional development policy and the co-ordination of relevant research.

AIDS TO DEVELOPMENT—Described very briefly below are some of the bodies which provide assistance of various types to manufacturing industry.

Development Finance Corporation—Established as an independent body in 1964, the Corporation provides a source of financial assistance for new or expanding industries. Borrowers would normally be engaged in the production and related fields, such as manufacturing or serving of basic industry. Extractive industries, such as fishing, forestry, and mining, are also eligible for assistance. The functions and powers of the corporation were extended in 1970 so that it is no longer a lender of last resort. It may assist in the setting up or expansion of projects overseas of benefit to New Zealand, and also participate in the reorganisation of industry to increase efficiency and productivity.

Industrial Design Council—Established in 1967 under the Industrial Design Act with the object of improving the quality, efficiency, and appearance of New Zealand-made goods, the council's function is to aid industry by promoting the appreciation, development, and use of industrial design.

Inventions Development Authority—The general functions of the authority are to promote the development, manufacture, or exploitation of inventions with the object of improving the quality, efficiency, or range of goods available for use in New Zealand or for export.

Industrial Research and Development Grants Scheme—This was established in 1969 with the aim of increasing company expenditure on research and development by providing grants based on the increase, during a grant year, of a company's industrial research and development expenditure over its similar expenditure during a base year.

A number of liaison committees have been established to promote development in particular fields of industry. The main objective of the Advisory Committee on the Heavy Engineering Industry is to facilitate and encourage the maximum contribution of the capital goods industry to the development needs of the economy. The Electronics Advisory Committee has been active in formulating recommendations on standardisation of communications equipment, and the establishment of a service to assist research organisations in making new developments available to industry. Following a recommendation by the National Development Council, the Advisory Committee on Productivity Studies was convened to suggest policies for the continued growth in the productivity of manufacturing industries.

Other organisations exist principally to aid exporters. The Export Guarantee Office facilitates the export of manufactured goods by removing some of the financial uncertainties involved in export trade. The New Zealand Overseas Trading Corporation Ltd. helps established and potential exporters in developing a higher standard of export practice, while the Engineering Export Association of New Zealand Inc. is developing and expanding the export of New Zealand engineering, architectural, and other types of technical expertise.

There are also several bodies providing technical and advisory services for industry. Further details of these organisations are to be found under Section 7, Education and Science.

SCOPE OF STATISTICS—The statistics of industrial production collected annually by the Department of Statistics covers registered factories employing at least two persons (including the working proprietor) engaged in the manufacture, assembly, repair, or treatment of articles.

Bread bakeries and ready-mixed concrete establishments were surveyed as separate industries for the first time for 1962-63, but they have been excluded from group and national totals to maintain comparability with previous years.

Commencing with the 1968-69 production year, paper bag and paper sack manufacturers as well as plastic manufacturers were surveyed as separate industries.

Industrial activities not covered by the survey of the Department of Statistics set out in this section are: cake and pastry kitchens; boot repairers; bespoke tailors; dressmakers; milliners; abattoirs; railway workshops; naval dockyard; all one-man factories.

The exclusion of these activities from the scope of the statistical inquiry, and also of all persons engaged in factories in a purely distributive capacity, reduces the total manufacturing labour force from that quoted by the Department of Labour (290,200) to the figure recorded in these statisticsfor 1969-70 of 241,650. Although the annual census of factory production covers only 83 percent of the labour force classified by the Department of Labour as “manufacturing” the percentage of the total production covered would be larger, as all but the very smallest establishments are included.

The year covered by these statistics is generally the year ending 31 March, but factories are permitted to furnish returns covering their financial year most closely corresponding to this period. In the case of the important semi-primary industries—butter, cheese, and other milk products, and meat freezing and preserving—the years correspond with the production seasons ending in May and September respectively.

GENERAL SUMMARY—The factory production table in the Statistical Summary section of this volume gives a long time-series of leading statistics.

Following an increase of 3.2 percent in volume in 1968-69 there was a provisional increase of 9.1 percent in 1969-70 to give a record volume of production in manufacturing. The total value of production was $3,149 million in 1969-70 or 12.8 percent more than the 1968-69 total of $2,790 million. Net output increased by 13.9 percent from $814.3 million in 1968-69 to $927.1 million in the latest year and manufacturers' surplus increased by 11.1 percent (from $265.4 million to $295.9 million). The number of persons engaged, including working proprietors, was 241,650, an increase of 12,576 or 5.5 percent on the total of 229,074 in 1968-69. Total salaries and wages paid (including drawings of working proprietors) during 1969-70 amounted to $608.4 million compared with $527.8 million in the previous year. This was an increase of 15.3 percent.

Factory statistics by local authority administrative areas showing the number of establishments and accompanying main statistics are published in New Zealand Industrial Production available in Government bookshops.

The following table gives the main statistics by statistical areas for the year 1969-70.

Statistical AreaNumber of EstablishmentsPersons EngagedSalaries and Wages PaidCost of MaterialsValue of ProductionNet Output (Net Value Added)
    $(000)  
Northland3094,48811,72295,251128,92021,138
Central Auckland2,97380,926202,958539,168958,172308,430
South Auckland - Bay of Plenty1,39624,82265,603236,285403,603106,498
East Coast1172,4025,91220,37132,4249,015
Hawke's Bay4359,88226,24397,872159,68245,469
Taranaki3556,46816,24884,086117,77623,499
Wellington1,99546,262117,049361,128604,595178,957
Marlborough1131,5263,4968,00813,4283,809
Nelson2643,8138,71330,28345,91513,534
Westland881,1942,6865,97311,5523,689
Canterbury1,53037,76391,915228,210406,454135,903
Otago59914,82234,37981,802147,82947,947
Southland3997,28221,48978,617118,47629,211
            Totals10,573241,650608,4121,867,0543,148,829927,102

Information as to the character of organisation of the establishments engaged in factory production during 1969-70 is given in the following table. Co-operation is characteristic of certain industries engaged in the processing of farm products, mainly butter and cheese manufacturing.

Character of OrganisationNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidCost of Materials Used or Operated UponValue of Manufactures or ProductsNet Output
TotalPer Establishment
  $(m)$(m)$(m)$(m)$(m)$
Private registered company7,866154,1373751,0211,78257072,464
Public registered company97568,708185547980301308,718
Individual9303,806811241010,753
Partnership4432,4065918715,801
Co-operative association2529,0862626832028111,111
Local authority and State1073,50710102511102,804
            Totals10,573241,6506081,8673,14992787,676

In the next table the statistics for the year 1969-70 are reclassified by employment districts.

Employment DistrictNumber of FactoriesPersons EngagedSalaries and WagesCost of MaterialsValue of ProductionNet Output (Net Value Added) TotalOutput (Net Value Added)
MalesFemalesMalesFemales
*Includes figures previously shown under Ashburton Employment District.
 No,No,No,$(000)$(000)$(000)$(000)$(000)percent
Whangarei3094,02846011,08363895,251128,92021,1382.28
Auckland2,97355,47825,448165,59737,361539,168958,172308,43033.27
Hamilton82910,5892,08227,6142,822138,203204,83947,6435.14
Tauranga2152,1674975,38161728,80141,3788,7530,94
Rotorua3548,4331,06827,7281,46169,381157,57950,1805.41
Gisborne1171,8085945,06085220,37132,4249,0150.97
Napier1762,6948407,6951,17935,33458,29414,7531.59
Hastings2054,8671,05515,0051,55358,40595,75829,7023.20
New Plymouth3485,2991,11314,6311,51183,608117,07123,3222.52
Wanganui2603,5141,0659,4741,25437,18057,37815,0771.63
Palmerston North5157,1352,62818,9523,38683,505126,21631,0243.35
Masterton1542,2886416,34783324,31037,7239,6341.04
Lower Hutt42711,6824,09835,7246,944157,736255,72070,8227.64
Wellington6989,1764,50328,1016,93062,908133,70253,5135.77
            Totals, North Island7,580129,15846,092378,39367,3411,434,1612,405,174693,00874.75
Blenheim1131,1803463,0504468,00813,4283,8090.41
Nelson2222,7656106,90279628,35841,0097,0130.76
Greymouth1301,3512813,3183827,89816,4585,3380.58
Christchurch*1,33024,7159,42869,73013,000198,012360,187124,55013.43
Timaru1993,0205918,42973630,18446,21911,3311.22
Oamaru631,4132933,2144059,90115,6734,1370.45
Dunedin5379,5013,6242,9484,83171,915132,20443,8334.73
Invercargill3996,72855420,74774178,617118,47629,2113.15
            Totals, South Island2,99350,67315,727141,33921,339432,893743,655234,09425.25
            Totals, New Zealand10,573179,83161,819519,73288,6801,867,0543,148 829927,102100.00

A further summary of the operations of factories is given below for the three latest years,

Item1967-681968-691969-70
Number of establishments 10,39710,50110,573
Persons engaged 225,738229,074241,650
Production costs—    
    Salaries, wages$(000)495,878527,809608,412
    Materials$(000)1,492,8631,662,3261,867,054
    Other expenses$(000)307,898334,870377,480
            Total costs$(000)2,296,6382,525,0042,852,946
Value of production$(000)2,538,3492,790,4483,148,829
Manufacturers' surplus$(000)241,711265,444295,882
Net output (net value added)$(000)756,657814,263927,102
Overtime worked by wage earnersh(000)31,73833,08438,563
Volume index for industry: Base 1956-57(=1000)1,9682,0302,215
Premises and plant—    
    Value at end of year—    
        Land and buildings$(000)646,147691,011789,891
        Plant, machinery, and equipment$(000)343,411358,538426,298
        Transport equipment$(000)31,35032,03235,198
    Capital expenditure during year—    
        Land and buildings$(000)32,36342,30966,891
        Plant, machinery, and equipment$(000)67,50079,384120,654
        Transport equipment$(000)13,04712,23215,352
Coal consumption as fueltons(000)870884863

The following table gives a summary of some of the principal production statistics for the year 1969-70 classified by individual industries. Totals for the industrial groups to which these industries belong are also shown.

IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of ProductionNet Output (Net Value Added)
Food Manufacturing Industries   $(000) 
Meat freezing and preserving4325,28381,597502,094100,973
Ham and bacon curing361,2533,20824,8846,259
Sausage casings92456172,443905
Ice cream165131,22511,1111,764
Butter and cheese1462,5106,787170,4347,360
Milk products other than butter and cheese671,7404,78054,6095,787
Fruit and vegetable preserving282,7696,49834,0509,026
Fish preserving162385563,974877
Grain milling389412,22730,1954,781
Biscuits81,3182,58914,6785,168
Cocoa, chocolate, and sugar confectionery452,2924,33922,7307,731
Feeds for animals and fowls445201,42621,0023,474
Food preparations, n.e.i.571,9634,71045,06810,133
            Totals55341,585120,559937,273164,239
Beverage Industries     
Winemaking553939517,2012,221
Distilling, rectifying, and blending of spirits41173141,882492
Brewing of ale and stout, and malting171,4954,67336,87915,844
Aerated waters and cordials508191,8049,0773,805
            Totals1262,8247,74155,03922,362
Tobacco Manufactures     
Tobacco, cigars, and cigarettes51,1472,50423,9356,144
Manufacture of Textiles     
Woolscouring238392,81360,5293,975
Woollen milling194,4869,47630,22012,630
Other spinning and weaving mills262,9397,76635,59112,729
Hosiery and other knitting mills815,59210,51744,13715,054
Phormium flax1094198679253
Linen flax1286112566
Textiles, n.e.i.291,3263,44821,9125,462
            Totals18915,30434,278193,19450,170
IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of ProductionNet Output (Net Value Added)
Manufacture of Footwear, Other Wearing Apparel, and Made-up Textiles$(000)
Leather gloves and apparel7122234883296
Men's and boys' outerwear1083,5445,75519,1877,333
Women's and girls' outerwear2545,6388,83229,00011,550
Underclothing461,6562,4188,7762,948
Hats, caps, and millinery496621,0923,0231,351
Corsetry251,5772,2387,3723,276
Neckties41733141,205501
Shirts and pyjamas461,8202,7168,9773,276
Wearing apparel, n.e.i.1275,0947,96527,55110,463
Fur coats and necklets2718635410,75482
Footwear (other than rubber)1085,33710,88132,65713,906
Canvas goods476351,0943,9571,486
Made-up textiles (other than wearing apparel)701,0021,6376,7782,354
            Totals91827,44645,532150,43959,223
Manufacture of Wood and Cork (Except Manufacture of Furniture)     
Sawmills3505,88615,55862,93221,585
Planing mills and timber preservation1722,3695,79737,77310,884
Joinery3944,37411,27843,30014,952
Wooden containers364561,2235,2381,255
Plywood and veneer159442,81911,9685,056
Wood products, n.e.i.796741,6425,6372,492
            Totals1,04614,70338,316166,84856,225
Manufacture of Furniture and Fixtures     
Furniture4034,82911,26036,05314,318
Mattresses204871,0385,2051,604
Venetian blinds171684072,160684
            Totals4405,48412,70543,41816,606
Manufacture of Paper and Paper Products     
Pulp, paper, and paperboard63,68213,86486,79028,105
Cardboard boxes, cartons, and containers422,3715,92835,87810,443
Paper bags and paper sacks179172,23716,5664,455
Paper products, n.e.i.511,8734,12427,4858,449
            Totals1168,84326,152166,72051,451
Printing, Publishing, and Allied Industries     
Printing and publishing827,43619,94357,70331,866
Job and general printing3706,96717,66653,19824,705
Service industries for printing trade608702,4135,2463,173
            Totals51215,27340,022116,14859,744
IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of ProductionNet Output (Net Value Added)
Manufacture of Leather and Leather Products (Except Footwear)$(000)
Tanning138772,36211,2643,729
Fellmongery81323614,470521
Leather goods861,2792,2968,0883,332
            Totals1072,2885,01923,8227,582
Manufacture of Rubber Products     
Motor vehicle tyres and tubes31,0764,36719,8447,905
Rubber goods (other than motor vehicle tyres and tubes)342,1345,55618,7397,347
Vulcanising and tyre retreading859122,22912,0445,349
            Totals1224,12212,15250,62720,601
Manufacture of Chemicals and Chemical Products     
Chemical fertilisers151,1593,89250,9637,566
Vegetable and animal oils and fats284441,2108,6442,745
Ink113137683,6511,770
Soap155361,3688,6722,904
Paint and varnish348952,40619,9225,533
Pharmaceuticals, toilet goods, and cosmetics401,3582,67022,5547,279
Chemical products, n.e.i.862,1245,32539,98611,411
            Totals2296,82917,639154,39139,207
Manufacture of Products of Petroleum and Coal     
Petroleum and coal products184001,39169,4448,178
Bituminous paving and roofing materials322637317,0192,049
            Totals506632,12276,46410,227
Manufacture of Non-metallic Mineral Products (Except Products of Petroleum and Coal)     
Structural clay products369652,7587,0883,587
Pottery, china, and earthenware119972,3435,6283,889
Cement57422,28215,3656,757
Glass and glass products471,9405,14417,0348,310
Concrete products2392,5166,45927,25312,311
Lime843037094,0321,372
Fibrous plaster643428292,315925
Non-metallic mineral products, n.e.i.218672,59913,2803,711
            Totals5078,67223,12491,99540,861
IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of ProductionNet Output (Net Value Added)
 $(000)
Basic Metal Industries     
Basic metal industries872,7618,91756,73913,312
Manufacture of Metal Products (Except Machinery and Transport Equipment)     
Sheet-metal working2146,42617,33070,69026,791
Wire working609052,39412,2594,057
Nail making61573623,092685
Electroplating and metal polishing798752,1435,7663,108
Metal products, n.e.i.3726,87718,33171,02128,891
            Totals73115,24040,561162,82763,533
Manufacture, Assembly, and Repair of Machinery (Except Electrical Machinery)     
Agricultural and pastoral machinery1131,2753,01922,7176,225
Machinery, n.e.i.82116,34345,316148,73362,003
            Totals93417,61848,335171,45068,229
Manufacture of Electrical Machinery, Apparatus, Appliances, and Supplies     
Range making59552,1797,8542,724
Radio and television assembly and manufacture272,0124,43218,5375,728
Electrical machinery, appliances, n.e.i. and repairs2926,25114,83567,77921,871
            Totals3249,21821,44694,17030,322
Manufacture of Transport Equipment     
Boat building and ship repairing851,3894,09910,3315,328
Motor vehicle assembly183,97810,386109,95620,863
Motor body building761,7454,17214,4185,600
Repairs to motor vehicles2,88721,44148,666158,07862,130
Aircraft manufacture, maintenance and repair392,3257,77215,6309,024
Perambulators62013491,014522
Transport equipment, n.e.i.361,5103,82714,2656,698
            Totals3,14732,58979,271323,692110,165
Miscellaneous Manufacturing Industries     
Optical, surgical, and dental, etc., equipment322977152,153972
Jewellery1009012,0286,5942,939
Brushes and brooms114819993,8341,418
Toys and sports goods431,1122,2497,5993,136
Plastics1544,81812,90354,53722,109
Manufacturing industries, n.e.i.901,4323,12014,9196,326
            Totals4309,04122,01489,63836,901
            Grand Totals10,573241,650608,4123,148,829927,102

ESTABLISHMENTS AND EMPLOYEES—In recent years the shortage of labour in the principal centres has resulted in branch factories and workrooms being opened in secondary towns to tap the labour resources in those areas. The 1969-70 survey covered 10,573 factories, the largest number included in any year and a 21 percent increase on the 8,745 establishments in 1959-60.

The following table shows the number of factories in each statistical area.

Statistical AreaNumber of Factories
1965-661966-671967-681968-691969-70
Northland281299296317309
Central Auckland2,6942,8102,8542,8792,973
South Auckland - Bay of Plenty1,2331,3421,3461,3831,396
East Coast122124119124117
Hawke's Bay412435424434435
Taranaki366367366356355
Wellington1,9462,0332,0112,0181,995
Marlborough107110111113113
Nelson246262257256264
Westland114107969988
Canterbury1,4611,4991,5141,5081,530
Otago565596593603599
Southland398410410411399
            Totals9,94510,39410,39710,50110,573

An analysis of the 1969-70 totals by industrial groups in the various statistical areas is given in the next table,

Industry GroupNorthlandCentral AucklandSouth Auckland - Bay of PlentyEast CoastHawke's BayTaranakiWellington
 Number of Factories 1969-70
Food2099817215388
Beverages45013213613
Tobacco manufactures-1--1-1
Textiles168626150
Footwear, other wearing apparel, and made-up textile goods54314451917205
Wood and cork products (except furniture)43162216154744148
Furniture and fixtures5157441201380
Paper and paper products-41632132
Printing, publishing, etc,8157424178150
Leather and leather products (except footwear and apparel)-49514214
Rubber products3291834724
Chemicals and chemical products2921417756
Petroleum and coal products1103-1318
Non-metallic mineral products, n.e.i.3589648301675
Basic metal manufactures1363-2219
Metal products (except machinery and transport equipment)10319594239134
Machinery (except electrical)25232139123437182
Electrical machinery and appliances510643316767
Transport equipment13963457845164115545
Miscellaneous products22111814794
            Totals3092,9731,3961174353551,995
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal, N.Z.
 Number of Factories 1969-70
Food11204833630553
Beverages172951126
Tobacco manufactures-2----5
Textiles-3-32146189
Footwear, other wearing apparel, and made-up textile goods452137386918
Wood and cork products (except furniture)21623315555451,046
Furniture and fixtures37179228440
Paper and paper products-1-1974116
Printing, publishing, etc.384683112512
Leather and leather products (except footwear and apparel)1--2254107
Rubber products1212154122
Chemicals and chemical products15-28133229
Petroleum and coal products---104-50
Non-metallic mineral products, n.e.i.6244793542507
Basic metal manufactures---192387
Metal products (except machinery and transport equipment)11121113315731
Machinery (except electrical)111841425444934
Electrical machinery and appliances-5-46197324
Transport equipment4780294062041613,147
Miscellaneous products24264174430
            Totals113264881,53039939910,573

The number of factories and persons engaged are shown together in the following table, classified by industrial groups. Persons engaged include proprietors actively participating in their own businesses but exclude all persons engaged in selling and distribution. Figures for persons engaged refer to the average number over the whole year.

Industry GroupNumber of FactoriesNumber of Persons Engaged
1967-681968-691969-701967-681968-691969-70
Food58656055338,73239,91841,585
Beverages1281301262,6302,6582,824
Tobacco manufactures3351,1541,0181,147
Textiles18718918913,18513,87115,304
Footwear, other wearing apparel, and made-up textile goods94891391827,01226,30327,446
Wood and cork products (except furniture)1,1101,0911,04614,01914,38914,703
Furniture and fixtures4834414405,4275,3435,484
Paper and paper products1101131168,0608,3088,843
Printing, publishing, etc.50850951214,75814,78815,273
Leather and leather products (except footwear and apparel)1001031072,1022,2012,288
Rubber products1261211223,7433,8404,122
Chemicals and chemical products2222292296,4396,6116,829
Petroleum and coal products535250695658663
Non-metallic mineral products, n.e.i.5565255078,3488,2438,672
Basic metal manufactures8890871,9342,1422,761
Metal products (except machinery and transport equipment)70970573114,14914,38815,240
Machinery (except electrical)87690093415,35315,96517,618
Electrical machinery and appliances3233383248,7088,7049,218
Transport equipment2,8853,0943,14731,74031,76532,589
Miscellaneous products3963954307,5507,9619,041
            Totals10,39710,50110,573225,738229,074241,650

Persons engaged are shown in the table below for the year 1969-70 classified into working proprietors, managerial and clerical, professional, and technical staff, and wage earners.

Industry GroupWorking Proprietors, Managers, Clerical, Professional, TechnicalWage-earning EmployeesAll Persons Engaged
MalesFemalesMalesFemalesMalesFemalesTotal
Food4,2051,36231,1064,91235,3116,27441,585
Beverages4832221,8003192,2835412,824
Tobacco manufactures97664155695126351,147
Textiles1,0485977,0426,6178,0907,21415,304
Footwear, other wearing apparel, and made-up textile goods1,5311,2424,05620,6175,58721,85927,446
Wood and cork products (except furniture)2,04440212,03022714,07462914,703
Furniture and fixtures7432473,8586364,6018835,484
Paper and paper products1,0784015,6341,7306,7122,1318,843
Printing, publishing, etc.2,0231,4549,2142,58211,2374,03615,273
Leather and leather products (except footwear and apparel)248951,0498961,2979912,288
Rubber products6162032,7135903,3297934,122
Chemicals and chemical products1,3386553,3641,4724,7022,1276,829
Petroleum and coal products183224154359865663
Non-metallic mineral products, n.e.i.1,4483756,3475027,7958778,672
Basic metal manufactures5311112,070492,6011602,761
Metal products (except machinery and transport equipment)2,27771510,7161,53212,9932,24715,240
Machinery (except electrical)2,81185613,38057116,1911,42717,618
Electrical machinery and appliances1,3825495,0002,2876,3822,8369,218
Transport equipment5,5061,93924,24390129,7492,84032,589
Miscellaneous products1,2865644,5012,6905,7873,2549,041
            Totals30,87812,077148,95349,742179,83161,819241,650

Further information is given in the following table on persons engaged in 1969-70, Totals in each industrial group are shown by statistical areas,

Industry GroupNorthlandCentral AucklandSouth Auckland - Bay of PlentyEast CoastHawke's BayTaranakiWellington
Food1,4198,5933,5871,1773,9502,0406,513
Beverages331,1262783725275391
Tobacco manufactures-50--584-427
Textiles94,76383208555123,086
Footwear, other wearing apparel, and made-up textile goods16712,0941,863844287025,274
Wood and cork products (except furniture)3892,5385,147893834111,510
Furniture and fixtures212,733306425666713
Paper and paper products-3,0333,145347641,419
Printing, publishing, etc.1965,2939431635853254,269
Leather and leather products (except footwear and apparel)-1,0182882747341
Rubber products21995169175231870
Chemicals and chemical products842,60933782032282,025
Petroleum and coal products17513857-49210
Non-metallic mineral products, n.e.i.7313,2046554120987953
Basic metal manufactures21,66331-15364296
Metal products (except machinery and transport equipment)788,042578192841492,998
Machinery (except electrical)2536,4102,1741024897183,319
Electrical machinery and appliances793,343594142792581,905
Transport equipment8128,0724,2823951,1919047,909
Miscellaneous products195,209565260381,834
            Totals4,48880,92624,8222,4029,8826,46846,262
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal. N.Z.
Food442955445,6983,6823,48541,585
Beverages126842302163452,824
Tobacco manufactures-86----1,147
Textiles-38-4,1232,27315415,304
Footwear, other wearing apparel, and made-up textile goods230901495,1821,1166727,446
Wood and cork products (except furniture)1035625601,78957165114,703
Furniture and fixtures115841,033237425,484
Paper and paper products-13-5722163318,843
Printing, publishing, etc.94179541,8971,00726815,273
Leather and leather products (except footwear and apparel)3--533243402,288
Rubber products41071,89229254,122
Chemicals and chemical products1270-7024301216,829
Petroleum and coal products---5218-663
Non-metallic mineral products, n.e.i.61397291,5435112518,672
Basic metal manufactures---31066142,761
Metal products (except machinery and transport equipment)715172,01580211015,240
Machinery (except electrical)153106602,53286343917,618
Electrical machinery and appliances-17-2,011677419,218
Transport equipment3419932184,5291,7571,18632,589
Miscellaneous products5320201,048161129,041
            Totals1,5263,8131,19437,76314,8227,282241,650

The sex distribution among the persons engaged shows a considerable preponderance of males—in 1969-70 for every female engaged, there were three males. In the smaller districts there are few industries employing female labour to any great extent. The male preponderance is considerably smaller in the four main districts, where female labour is in great demand mainly on account of the importance of the clothing and textile industries. In 2 industrial groups the number of females exceeded the number of males—viz., the tobacco group where there were 134 females to every 100 males, and the footwear, other wearing apparel, and made-up textiles group where there were 391 females per 100 males. Individual industries in the other groups with more females than males were—biscuits; cocoa, chocolate, and sugar confectionery; hosiery and other knitting mills; leather goods; and pharmaceuticals, toilet goods, and cosmetics. The table on the previous page shows the average number of males and females engaged according to industry groups for the year 1969-70.

Further information is available in the table below on the extent to which females were engaged in factories in New Zealand for 1969-70. This table gives by statistical areas the number of males per 100 females engaged, and the total persons engaged per 1,000 of population.

Statistical AreaMalesFemalesTotalNumber of Males per 100 FemalesTotal Population at 1 April 1970Total Persons Engaged per 1,000 of Population
Northland4,0284604,48887695,40047
Central Auckland55,47825,44880,926218673,852120
South Auckland - Bay of Plenty21,1753,64724,822581415,90060
East Coast1,8085942,40230447,40051
Hawke's Bay7,8662,0169,882390131,90075
Taranaki5,3371,1316,468472101,90063
Wellington33,46612,79646,262262551,20084
Marlborough1,1803461,52634130,60050
Nelson3,1306833,81345868,70056
Westland9862081,19447423,80050
Canterbury27,74410,01937,763277390,96297
Otago10,9053,91714,822278182,60081
Southland6,7285547,2821,214106,60068
            All areas179,83161,819241,6502912,820,81486

A classification of the establishments, according to the number of persons engaged, is now given.

YearFactories With Persons Engaged Numbering—Total
10 or Under11-2021-5051-100Over 100
 Number of Factories
1954-555,3501,4731,0203102138,366
1959-605,2421,6211,1083122678,550
1964-655,8931,8281,2944093299,753
1969-706,4661,8461,38250637310,573
 Number of Persons Engaged
1954-5527,20621,43231,65021,80851,479153,575
1959-6026,92623,75534,10521,66665,521171,973
1964-6529,62426,50440,39928,09186,432211,050
1969-7031,83826,98543,31135,772103,744241,650

The classification according to the number of persons engaged shows clearly that, judged by the standards of highly industrialised communities, the average size of the industrial unit in New Zealand is small. Factories employing 10 persons or under accounted for 61 percent of the total number of factories in 1969-70,

SALARIES AND WAGES—The figures relating to the amounts paid as salaries and wages include amounts paid as bonuses and for overtime. also amounts drawn in lieu of salary by working proprietors. The amounts received by male and female employees (inclusive of all groups—executive, clerical, professional and technical, and wage earning), and the average amount received per employee of each sex, are set out below.

YearMalesFemalesBoth Sexes
TotalAverageTotalAverageTotalAverage
 $(000)$$(000)$$(000)$
1961-62274,9481,95848,1181,020323,0641,722
1962-63290,5922,02049,2621,034339,8541,774
1963-64313,5462,10455,0381,094368,5841,850
1964-65350,7222,22461,2701,148411,9921,952
1965-66387,0462,34267,9841,181455,0302,042
1966-67419,6702,46873,0601,233492,7302,149
1967-68422,8762,51073,0021,275495,8782,197
1968-69451,9862,63675,8221,316527,8092,304
1969-70519,7322,89088,6801,435608,4122,518

The averages shown relate to all persons engaged, irrespective of age, industry, status, and personal occupation, and year-to-year comparisons may also be affected by changes in any of these factors. The figures do, however, give an indication of the increased earnings of factory workers in recent years.

The amount of salaries and wages paid in each industrial group and in all industries during the latest three years is given hereunder.

Industry GroupSalaries and Wages Paid
1967-681968-691969-70
 ($000)
Food95,954105,608120,559
Beverages6,4586,7347,741
Tobacco manufactures2,2202,0882,504
Textiles26,06629,53334,278
Footwear, other wearing apparel, and made-up textile goods39,80139,80645,532
Wood and cork products (except furniture)31,65233,88438,316
Furniture and fixtures11,28611,68912,705
Paper and paper products21,02622,90126,152
Printing, publishing, etc.34,49035,44240,022
Leather and leather products (except footwear and apparel)3,9774,2755,019
Rubber products9,40810,29112,152
Chemicals and chemical products14,75715,76517,639
Petroleum and coal products1,9432,0172,122
Non-metallic mineral products, n.e.i.19,69620,26923,124
Basic metal manufactures5,3536,3008,917
Metal products (except machinery and transport equipment)33,65335,44140,561
Machinery (except electrical)37,03439,74648,335
Electrical machinery and appliances17,96218,72021,446
Transport equipment67,16569,93979,271
Miscellaneous products15,97617,36022,014
            Totals495,878527,809608,412

In the following table an analysis is made of the 1969-70 totals of salaries and wages paid according to statistical areas in which the industries were carried on.

Industry GroupNorthlandCentral AucklandSouth Auckland Bay of PlentyEast CoastHawke's BayTaranakiWellington

*To avoid disclosure of details of individual establishments, figures have been included in those for miscellaneous products.

†Net total without figures from other groups to avoid disclosure of details.

‡Including amounts drawn by working proprietors.

 Salaries and Wages Paid 1969-70
 $(000)
Food4,14624,2109,7253,20112,2026,36119,423
Beverages633,162779*6651731,141
Tobacco manufactures- -*--*-*
Textiles*10,940220*1,542*6,763
Footwear, other wearing apparel, and made-up textile goods23220,9402,6051195871,0688,885
Wood and cork products (except furniture)8736,83314,0982009489363,874
Furniture and fixtures396,858588*5461351,615
Paper and paper products-7,52811,97786**3,532
Printing, publishing, etc.49614,1472,2643991,44281311,460
Leather and leather products (except footwear and apparel)-2,31450*58*706
Rubber products563,11140836113612,976
Chemicals and chemical products*6,312977*7686085,242
Petroleum and coal products*376159-*22572
Non-metallic mineral products, n.e.i.1,9169,0271,6121095142232,628
Basic metal manufactures*5,75381-**768
Metal products (except machinery and transport equipment)20321,5041,571506903518,073
Machinery (except electrical)61618,6995,8742471,2101,6719,259
Electrical machinery and appliances1927,2931,292346385994,968
Transport equipment1,76520,88310,0708912,5741,89419,825
Miscellaneous products1,12413,0681,2545401,7451,3345,340
            Totals11,722202,95865,6035,91226,24316,248117,049
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal, N.Z.
Salaries and Wages Paid 1969-70
 $(000)
Food1,1861,97111817,0929,00411,921120,559
Beverages*153*843484*7,741
Tobacco manufactures-*----2,504
Textiles-59-8,9554,88144534,278
Footwear, other wearing apparel, and made-up textile goods322132*8,7391,6028845,532
Wood and cork products (except furniture)2201,2891,3774,7551,2831,63138,316
Furniture and fixtures20120*2,1934849412,705
Paper and paper products-*-1,2884401,03626,152
Printing, publishing, etc.2084531324,8922,61370340,022
Leather and leather products (except footwear and apparel)*--1,140554935,019
Rubber products***5,208706712,152
Chemicals and chemical products*168-1,7251,06844817,639
Petroleum and coal products---13649-2,122
Non-metallic mineral products, n.e.i.1281,146713,7351,35466123,124
Basic metal manufactures---891*378,917
Metal products (except machinery and transport equipment)*354*5,3782,09226140,561
Machinery (except electrical)3492471356,6712,2011,15748,335
Electrical machinery and appliances-41-4,7091,58010021,446
Transport equipment8552,27743511,1014,0472,65479,271
Miscellaneous products2073024172,4635749522,014
            Totals3,4968,7132,68691,91534,37921,489608,412

A further analysis of salaries and wages paid is given in the table below for 1969-70, and shows the amounts paid to working proprietors, managers, clerical, professional and technical staff, and those paid to other employees, i.e., wage earners. As mentioned earlier, drawings in lieu of salaries are included for proprietors actively engaged in the business. Males and females are distinguished throughout.

The following statement shows the average earnings of males and females for the past 11 years.

YearProprietors Actively EngagedManagers, OverseersAccountants, ClerksProfessional, TechnicalWage-earning EmployeesTotals
MalesFemalesMalesFemalesMalesFemalesMalesFemalesMalesFemalesMalesFemales
 Average Salary or Wage
 $$$$$$$$$$$$
1959-602,0041,3042,7181,5861,8541,028......1,7069001,804928
1960-612,0901,3782,8481,7341,9421,074......1,7869501,890980
1961-622,1321,3882,9541,7702,0121,114......1,8529921,9581,020
1962-632,2601,3683,0361,7502,0741,1482,4841,3901,9041,0002,0201,034
1963-642,3121,4623,1681,8362,1661,1962,5661,3821,9801,0622,1041,094
1964-652,4501,4823,3581,9062,2801,2522,6961,4362,0921,1142,2241,148
1965-662,6641,6573,5292,0212,3761,3042,7911,5152,2051,1422,3421,181
1966-672,6911,5973,7142,0612,5231,3642,9571,5512,3221,1932,4681,233
1967-682,5341,5593,7192,0572,6061,4023,0171,6211,2322,3612,5101,275
1968-692,7601,6693,8942,0132,7071,4753,2391,7432,4781,2642,6361,316
1969-703,0611,7264,2402,2162,9531,6043,5431,8782,7231,3792,8901,435
Industry GroupWorking Proprietors, Managers, Clerical, Professional, TechnicalWage-earning EmployeesAll Persons Engaged
MalesFemalesMalesFemalesMalesFemalesTotal
Salaries and Wages Paid 1969-70
    $(000)   
Food15,4092,28996,1216,740111,5309,029120,559
Beverages1,8533865,0324706,8858567,741
Tobacco manufactures4191151,1318381,5509532,504
Textiles4,3791,02319,4789,39823,85710,42134,278
Footwear, other wearing apparel, and made-up textile goods5,9702,37210,29926,89116,26929,26345,532
Wood and cork products (except furniture)6,97663030,38332737,35995738,316
Furniture and fixtures2,6043768,90182511,5051,20112,705
Paper and paper products4,94970317,9932,50722,9423,21026,152
Printing, publishing, etc.7,6152,25326,3113,84333,9266,09640,022
Leather and leather products (except, footwear and apparel)9421722,7071,1983,6491,3705,019
Rubber products2,2963528,63487110,9301,22312,152
Chemicals and chemical products5,2081,2469,2891,89614,4973,14217,639
Petroleum and coal products814481,191702,0051182,122
Non-metallic mineral products, n.e.i.4,88364416,71388421,5961,52823,124
Basic metal manufactures2,0282116,598818,6262928,917
Metal products (except machinery and transport equipment)8,7641,26928,1792,34836,9433,61740,561
Machinery (except electrical)10,6381,36135,35298445,9902,34548,335
Electrical machinery and appliances5,09091612,2773,16317,3674,07921,446
Transport equipment18,3562,65756,6761,58275,0324,23979,271
Miscellaneous products5,0041,03712,2713,70217,2754,73922,014
            Totals114,19620,063405,53668,617519,73288,680608,412

MOTIVE POWER—A supply of cheap motive power is a material element in industrial development. New Zealand industries were formerly handicapped in this respect, long railway hauls and, in some instances, sea carriage being involved in the transport of coal from the mines to the factories. The development of the country's electric power resources (as described in Section 20a) has been a major factor in industrial growth, especially as the rates compare very favourably with those in more highly industrialised countries.

The following table shows the number and aggregate horsepower of each class of engine used in factories.

Class of Engine1965-661966-671967-681968-691969-70
Electric No.234,965246,623254,894262,837271,728
            hp1,193,8831,262,3281,298,6001,386,7121,485,174
Steam No.241224210200182
            hp14,76612,90712,62712,52111,887
Petrol and light oil No.901998941913947
            hp18,12820,13918,84719,51022,168
Heavy oil No.219211206169161
            hp15,70515,46215,21812,94010,982
Other No.5557526291
            hp2,3792,1342,0412,4441,694
            Totals No.236,381248,113256,303264,181273,109
            hp1,244,8611,312,9701,347,3331,434,1271,531,905

The figures relating to horsepower represent the rated horsepower of engines ordinarily in use for driving factory plant. Steam boilers and engines for generating electric power in own works are excluded.

The following table shows the types and rated horsepower of engines ordinarily in use in the various industries during 1969-70.

Industry GroupRated Horsepower of Engines in Use
ElectricSteamPetrol and Light OilHeavy OilOtherTotal
Food319,8982,5611,4431,8055325,712
Beverages19,80124442--20,087
Tobacco manufactures3,319----3,319
Textiles53,10918618--53,313
Footwear, other wearing apparel, and made-up textile goods20,0174214-20,064
Wood and cork products (except furniture)179,0121,9125,7055,130529192,288
Furniture and fixtures18,1394512118,161
Paper and paper products296,609450164160-297,383
Printing, publishing, etc.30,583-1308763331,622
Leather and leather products (except footwear and apparel)9,307-2-289,337
Rubber products33,818-3--33,821
Chemicals and chemical products75,8181241146733476,457
Petroleum and coal products20,9195,9541,024-12028,017
Non-metallic mineral products, n.e.i.111,4813042,9292,150197117,061
Basic metal manufactures58,820-825--59,645
Metal products (except machinery and transport equipment)63,73441,5131789965,528
Machinery (except electrical)60,016233,37353711064,059
Electrical machinery and appliances22,480-3127-22,538
Transport equipment53,552674,8053623858,698
Miscellaneous products34,7421241--34,795
            Totals1,485,17411,88722,16810,9821,6941,531,905

CONSUMPTION OF COAL—During the year 1969-70, 907,000 tons of New Zealand coal were used in industries covered by the statistics of factory production. Comparable figures for the 2 previous years were: 1967-68, 913,000 tons, and 1968-69, 923,000 tons. It is important to note that the factory production statistics exclude the activities of the gas-making industry and electrical generation and supply stations. These two industries used 169,000 and 603,000 tons of coal respectively in 1969-70.

The following table shows for the year 1969-70 the consumption of coal by industrial groups.

Industry GroupTons of Coal Used
Food422,383
Beverages9,856
Tobacco manufactures-
Textiles38,622
Footwear, other wearing apparel, and made-up textile goods1,049
Wood and cork products (except furniture)1,037
Furniture and fixtures180
Paper and paper products94,366
Printing, publishing, etc.63
Leather and leather products (except footwear and apparel)4,303
Rubber products19,017
Chemicals and chemical products14,607
Petroleum and coal products43,444
Non-metallic mineral products, n.e.i.246,300
Basic metal manufactures6,816
Metal products (except machinery and transport equipment)2,199
Machinery (except electrical)348
Electrical machinery and appliances-
Transport equipment199
Miscellaneous products1,926
            Total906,715

Approximately 84 percent of the amount of coal used is accounted for in three groups: food, paper and paper products, and non-metallic mineral products. Individual industries using more than 10,000 tons of coal in 1969-70 were as follows.

IndustryCoal Used
 tons
Milk products276,000
Cement205,000
Meat freezing and preserving127,000
Pulp, paper, and paperboard94,000
Petroleum and coal products43,000
Structural clay products26,000
Woollen milling21,000

MATERIALS—The value of materials used does not afford a very satisfactory basis of comparison as between one industry or industrial group and another, for the reason that the changes wrought during the process of manufacture vary considerably in degree. An example of the wide differences which may occur in the ratio of cost of materials to value of goods produced will be seen in the food group and the wood and cork products (except furniture) group. The values shown for materials used include the cost of containers and packing but exclude fuel costs.

Totals for the latest year show that the cost of materials used in food manufacture was $699 million, and the goods produced were valued at $937 million, while the materials used in the manufacture of wood and cork products cost $88 million and finished goods produced were valued at $167 million.

The cost of materials used in each industrial group and in all industries for each of the latest 3 years was as follows.

Industry GroupCost of Material Used
1967-681968-691969-70
 $(000)
Food597,428660,149698,818
Beverages19,95020,81124,875
Tobacco manufactures13,96814,42015,831
Textiles80,572108,786125,205
Footwear, other wearing apparel, and made-up textile goods65,26967,48978,097
Wood and cork products (except furniture)69,89378,29888,105
Furniture and fixtures19,75120,46422,478
Paper and paper products59,66967,53478,797
Printing, publishing, etc.31,78631,75536,634
Leather and leather products (except footwear and apparel)9,01711,37514,262
Rubber products15,28817,60622,301
Chemicals and chemical products75,51888,25096,914
Petroleum and coal products53,78562,52161,366
Non-metallic mineral products, n.e.i.22,72824,43129,279
Basic metal manufactures16,84522,42935,564
Metal products (except machinery and transport equipment)60,67066,66579,317
Machinery (except electrical)59,12265,61083,338
Electrical machinery and appliances43,62445,05652,651
Transport equipment150,130156,296183,173
Miscellaneous products27,85032,37940,048
            Totals1,492,8631,662,3261,867,054

A large proportion of the total cost of materials is accounted for by the food group, which includes the primary produce processing industries dealing with meat freezing and preserving and the manufacture of butter, cheese, and other milk products. In the latest year, for example, the cost of materials used by this group, $699 million, represented 37 percent of the total cost of materials used by all industries, $1,867 million. For this reason, variations in the prices received for primary produce have a very marked effect on this total.

PRODUCTS—The value of products is based upon the valuation of goods at the factory door. It is the selling value at the factory to customers of all goods made or processed during the year after deducting all costs of selling and distribution.

In making use of the gross value of products it must be borne in mind that the figures include the value of raw materials operated upon, which value in recent years constitutes approximately three-fifths of the value of products. Where the products of one industry—for example, sawmilling—are treated again in other industries, such as furniture making, joinery, etc., part of the value of the timber shown as products of the former industry appears again as the materials of the latter industry and enters into the value of furniture and joinery made. Duplication of this kind is found in many industries.

The following table shows the gross value of production for each industrial group and for all industries.

Industry GroupValue of Production
1967-681968-691969-70
 $(000)
Food803,869887,623937,273
Beverages46,07446,58855,039
Tobacco manufactures20,05020,97923,935
Textiles132,825167,551193,194
Footwear, other wearing apparel, and made-up textile goods125,991129,070150,439
Wood and cork products (except furniture)135,163150,037166,848
Furniture and fixtures38,31539,72943,418
Paper and paper products131,427146,291166,720
Printing, publishing, etc.96,37399,757116,148
Leather and leather products (except footwear and apparel)15,99619,40123,822
Rubber products36,51842,13550,627
Chemicals and chemical products122,517141,258154,391
Petroleum and coal products68,70377,89576,464
Non-metallic mineral products, n.e.i.74,85878,75491,995
Basic metal manufactures29,66936,11456,739
Metal products (except machinery and transport equipment)127,076136,856162,827
Machinery (except electrical)124,608137,948171,450
Electrical machinery and appliances78,35080,56494,170
Transport equipment264,894278,581323,692
Miscellaneous products65,07673,31789,638
            Totals2,538,3492,790,4483,148,829

A similar analysis by statistical areas, but limited to the year 1969-70, is now given.

Industry GroupNorthlandCentral AucklandSouth Auckland Bay of PlentyEast CoastHawke's BayTaranakiWellington
 Value of Production 1969-70
    $(000)   
Food43,670197,468139,04522,11078,61267,009138,800
Beverages29523,7894,805*4,1528077,107
Tobacco manufactures-*--*-*
Textiles*61,9063,601*13,239*42,373
Footwear, other wearing apparel, and made-up textile goods71571,4358,3153202,0153,26528,209
Wood and cork products (except furniture)3,58231,43265,0529835,0743,58715,611
Furniture and fixtures13523,5192,049*1,6913275,342
Paper and paper products-45,19681,087457**20,917
Printing, publishing, etc.1,14744,0416,1267843,7351,68432,531
Leather and leather products (except footwear and apparel)-11,602161*467-2,637
Rubber products38711,7802,24717359840311,979
Chemicals and chemical products*50,78911,892*7,21911,92943,061
Petroleum and coal products*5,649754-*17412,281
Non-metallic mineral products, n.e.i.10,02831,9577,8645882,52875410,006
Basic metal manufactures*40,019211-**3,734
Metal products (except machinery and transport equipment)85186,0197,2952405,3431,46431,907
Machinery (except electrical)1,30264,36117,2059035,0535,58234,114
Electrical machinery and appliances85932,3364,169782,0143,85619,976
Transport equipment5,96571,09137,5792,7198,4216,335117,713
Miscellaneous products59,98753,7834,1483,06919,52310,60226,297
            Totals128,920958,172403,60332,424159,682117,776604,595
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotals

*To avoid disclosure of details of individual establishments, figures have been included in those for miscellaneous products.

†Net total without figures from other groups to avoid disclosure of details.

 Value of Production 1969-70
    $(000)   
Food6,33812,7041,684104,14354,49371,198937,273
Beverages*869*8,1393,612*55,039
Tobacco manufactures-*----23,935
Textiles-189-43,15014,98910,475193,194
Footwear, other wearing apparel, and made-up textile goods1,107467*28,6254,971303150,439
Wood and cork products (except furniture)8356,2196,21517,3705,3345,554166,848
Furniture and fixtures56308*7,8491,80330743,418
Paper and paper products-*-9,1132,0075,027166,720
Printing, publishing, etc.4831,06629114,1188,2821,860116,148
Leather and leather products (except footwear and apparel)*--5,2022,69566823,822
Rubber products***21,99745632550,627
Chemicals and chemical products*1,038-11,2737,7714,894154,391
Petroleum and coal products---1,365535-76,464
Non-metallic mineral products, n.e.i.4146,94019412,4195,5752,72791,995
Basic metal manufactures---2,825*7456,739
Metal products (except machinery and transport equipment)*1,197*20,0247,2111,158162,827
Machinery (except electrical)1,0601,00032127,7208,6844,146171,450
Electrical machinery and appliances-132-24,9715,45832194,170
Transport equipment2,41812,8701,34436,04412,0659,128323,692
Miscellaneous products7169161,50210,1061,88931089,638
            Totals13,42845,91511,552406,454147,829118,4763,148,829

NET OUTPUT (NET VALUE ADDED)—This consist of the rewards to the factors of production, i.e., salaries and wages, interest on borrowed capital, and manufacturers' surplus. These three items are the components of national income or its companion aggregates net national and net domestic output. Net output (net value added) replaces the former added value which consisted of the difference between the value of production and the cost of materials.

The following table covering the manufacturing industry demonstrates how each concept is arrived at.

Components1964-651965-661966-671967-681968-691969-70
    $(million)  
Value of production2,1852,3742,4842,5382,7903,149
    Less Costs of materials1,3441,4161,4661,4931,6621,867
Added value8419581,0171,0451,1281,282
    Less Other expenses166185206217238271
    Less Depreciation charges546470727684
Net output (Net value added)622709741757814927
    percent  
Contribution of manufacturing industry to net domestic output (income)20.321.421.721.621.622.4

The next table on net output for 1969-70 classifies factories into several net output groupings, giving a general picture of size distribution.

GroupEstablishmentsPersons EngagedSalaries and Wages PaidCost of Materials UsedValue of ProductionNet Output
TotalPer Person Engaged
Net Output $No.No.$(000)$(000)$(000)$(000)$
Under 5,0007212,0453,8377,41411,8892,3191,134
5,000- 9,9991,6675,62411,69419,20237,11612,4542,214
10,000- 19,9992,43913,27429,62356,421104,94235,3682,664
20,000- 29,9991,37612,35128,19163,715111,88833,6292,723
30,000- 39,9998019,51121,47750,57787,30527,7652,919
40,000- 99,9991,99738,89188,906307,303477,974123,2303,169
100,000- 199,99976631,63771,255200,601344,447106,7123,373
200,000- 499,99950638,74495,410280,094488,604153,1863,954
500,000- 999,99916425,14564,598190,866343,215111,3104,427
1,000,000-1,999,9997221,61259,881190,817319,39493,2974,317
2,000,000-4,999,9995331,22694,474307,313508,865147,1524,712
5,000,000 and over1111,59039,066192,732313,19080,6806,961
            Totals10,573241,650608,4121,867,0543,148,829927,1023,837

The analysis of net output (net value added) for 1969-70 by statistical areas now follows.

Industry GroupNorthlandCentral AucklandSouth Auckland - Bay of PlentyEast CoastHawke's BayTaranakiWellington

*To avoid disclosure of details of individual establishments, figures have been included in those for miscellaneous products

†Net total without figures from other groups to avoid disclosure of details.

 Net Output 1969-70
 $(000)
Food4,57835,18712,2374,68622,9237,21523,157
Beverages968,4362,144*1,4014193,499
Tobacco manufactures-*--*-*
Textiles*17,780293*1,843*9,916
Footwear, other wearing apparel, and made-up textile goods26728,3423,5311348411,35210,860
Wood and cork products (except furniture)1,1089,68521,7803121,4961,2725,593
Furniture and fixtures859,049814*6971481,893
Paper and paper products-13,80525,557124**6,547
Printing, publishing, etc.67421,6793,6145181,9321,04517,202
Leather and leather products (except footwear and apparel)-3,46467*80*1,089
Rubber products1904,228949462341344,652
Chemicals and chemical products*14,8782,467*1,0772,25011,930
Petroleum and coal products*1,702232-*292,087
Non-metallic mineral products, n.e.i.4,34914,4893,5692111,1083164,188
Basic metal manufactures*7,56696-**989
Metal products (except machinery and transport equipment)29733,1412,705861,31558112,958
Machinery (except electrical)65426,0188,2264961,6522,14613,140
Electrical machinery and appliances21610,7341,902407249156,439
Transport equipment2,29826,50013,9861,0503,4372,42633,260
Miscellaneous products6,32521,7462,3281,3114,7103,2539,558
            Totals21,138308,430106,4989,01545,46923,499178,957
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal, N.Z.
 Net Output 1969-70
 $(000)
Food1,0632,09616322,23713,36715,331164,239
Beverages*400*3,5061,753*22,362
Tobacco manufactures-*---*6,144
Textiles-84-13,0255,56057450,170
Footwear, other wearing apparel, and made-up textile goods419167*10,9222,04111959,223
Wood and cork products (except furniture)3121,7721,8836,9461,8422,22556,225
Furniture and fixtures22148*2,92271110216,606
Paper and paper products-*-2,5936571,51251,451
Printing, publishing, etc.2716162097,5263,3551,10259,744
Leather and leather products (except footwear and apparel)*--1,8796961677,582
Rubber products***9,68519017420,601
Chemicals and chemical products*302-3,1751,37594039,207
Petroleum and coal products---464143-10,227
Non-metallic mineral products, n.e.i.1463,215785,8422,3351,01640,861
Basic metal manufactures---1,197*4613,312
Metal products (except machinery and transport equipment)*576*8,3623,03242763,533
Machinery (except electrical)35840017810,0423,2801,63768,229
Electrical machinery and appliances-51-7,3701,79913230,322
Transport equipment8783,26953214,1764,8493,506110,165
Miscellaneous products3414386474,03596320336,901
            Totals3,80913,5343,689135,90347,94729,211927,102

The development of factory production in New Zealand is clearly portrayed in the following diagram, which also shows the relationship between cost of materials, net output, and value of production.

EXPENSES OF OPERATION—Total operating costs of factories for the year 1969-70 amounted to $2,853 million, of which salaries and wages accounted for $608 million, cost of materials for $1,867 million, and other expenses for $377 million, while value of production totalled $3,149 million.

The table below shows the principal items comprised in the figure for expenses of operation, other than salaries and wages and costs of materials, by industry groups for the year 1969-70.

Industry GroupCoalElectricityCoke, Gas, Oils, etc.InsuranceInterest on Loans, etc.DepreciationRentRepairs and MaintenanceOtherTotal
 $(000)
Food4,2417,0873,9463,3324,28018,8271,93615,69619,15078,495
Beverages1014493633917542,1172531,0873,0418,556
Tobacco manufactures-9034104114749193106552,075
Textiles4451,5247478061,3775,0741,0963,2624,86619,196
Footwear, other wearing apparel, and made-up textile goods117761236329182,0502,5731,3785,57514,037
Wood and cork products (except furniture)121,9383381,7191,6094,2559065,3947,95824,127
Furniture and fixtures2301393603296628134621,6964,663
Paper and paper products1,0034,9872,5761,5621,90110,3098485,6119,57438,372
Printing, publishing, etc.18131357258324,3971,4581,79910,44020,602
Leather and leather products (except footwear and apparel)37154941371303352003316902,108
Rubber products1767482983462551,7753281,1362,9197,980
Chemicals and chemical products1611,1134478181,0815,0436403,0357,01319,351
Petroleum and coal products-407149165561,4431398901,6774,926
Non-metallic mineral products, n.e.i.2,8552,0141,8757737645,3433834,2054,40622,619
Basic metal manufactures661,0615264412,1742,8921641,0001,71310,038
Metal products (except machinery and transport equipment)181,4815591,1621,2834,3751,9942,2968,09321,261
Machinery (except electrical)51,1414191,4471,7673,8481,7312,1329,16021,651
Electrical machinery and appliances-8712525157042,3367541,1065,36111,901
Transport equipment31,8265141,9261,8315,1703,9263,30613,68132,185
Miscellaneous products161,0392606186502,8231,3551,6984,88013,339
            Totals9,15529,82113,69517,97822,80883,82321,51556,134122,550377,480

CAPITAL ASSETS—Fixed capital employed in manufacturing industry is obtained from figures of manufacturers' fixed assets. In those cases where the factory premises, or in some cases, even the plant, is not owned by the manufacturer, but is rented, an estimate of the value of the rented asset has been obtained by capitalising the annual rental shown. Approximations in the figures for fixed assets are also made where one building houses two or more factories carrying on different industries, necessitating an apportionment as between the industries. In most instances, too, fixed assets are stated at their book value, and this may be an overstatement due to insufficient allowance having been made for depreciation, obsolescence, etc., or an understatement owing to appreciated site value, excessive allowance for depreciation, or currency depreciation resulting in the assets being understated in terms of their present earning capacity or replacement cost. It is necessary to bear in mind these limitations to the accuracy of the figures of fixed assets appearing in the following table which shows the values of these assets for each of the last 3 years together with an analysis by principal industries for 1969-70. For the year 1969-70 information is also shown by industry groups of the amounts expended during the year by way of capital additions and alterations, together with totals for all industries for the 2previous years. These latter amounts cannot be taken as the total capital expended by New Zealand manufacturers during the year, as they do not include capital expenditure of firms not yet in production.

Industry GroupCapital Additions and Alterations During the YearValue at End of Year (Including Estimated Value of Rented Assets)
Land and BuildingsPlant, Machinery and EquipmentTotalLand and BuildingsPlant, Machinery and EquipmentTotal
   $(000)   
Totals—      
    1967-6832,36367,50099,863646,147343,411989,558
    1968-6942,30979,384121,693691,011358,5381,049,548
1969-70—      
    Food16,72324,98541,707170,437101,830272,267
    Beverages1,7882,0673,85520,9089,76530,673
    Tobacco manufactures3596189772,7892,7295,518
    Textiles3,1759,34612,52134,46924,25258,721
    Footwear, other wearing apparel, and made-up textile goods1,0582,1213,17940,42612,11252,538
    Wood and cork products (except furniture)3,3834,3817,76437,42720,84858,275
    Furniture and fixtures40245785816,4192,73219,151
    Paper and paper products7,90316,25924,16249,11055,062104,172
    Printing, publishing, etc.1,4735,9637,43740,68824,79065,479
    Leather and leather products (except footwear and apparel)2524126644,7921,3456,136
    Rubber products9661,6132,57911,1976,41217,610
    Chemicals and chemical products2,3904,5896,97940,48821,57862,066
    Petroleum and coal products1869081,0955,8058,38614,191
    Non-metallic mineral products, n.e.i.1,3653,7135,07728,38421,10449,489
    Basic metal manufactures14,42924,20138,63025,10235,39860,501
    Metal products (except machinery and transport equipment)1,5274,4826,00949,49020,51270,002
    Machinery (except electrical)2,1784,3396,51746,47716,01862,495
    Electrical machinery and appliances1,2762,1013,37724,0888,91333,001
    Transport equipment3,5733,7597,331111,47218,941130,413
    Miscellaneous products2,4884,3416,82629,92013,57043,490
            Totals, 1969-7066,891120,654187,545789,891426,2981,216,189

MANUFACTURERS' STOCKS—A quarterly survey of manufacturers' stocks is conducted by the Department of Statistics. The survey is based on a sample of 1,200 factories selected from the 1964-65 Census of Manufacturing and allowance is made in the sampling procedures for the opening of new factories and the closing of established factories since the 1964-65 census. The combined stocks of manufacturers in the sample represent over 75 percent of the total manufacturers' stocks at the 1964-65 census, and appropriate estimation methods are used to derive statistics for all factories.

The following table compares in summary form the results of the quarterly surveys. In presenting the results, the chief seasonal industries—meat processing and dairy products manufacture—have been segregated to assist in the interpretation of movements in stock holdings. The heading “Materials” includes work in progress, fuel, and miscellaneous supplies.

As at—Total StocksMovement in Stocks at Annual IntervalsPercentage Movement in Stocks at Annual IntervalsStocks Seasonally Adjusted
MaterialsFinished GoodsTotalMaterialsFinished GoodsTotalMaterialsFinished GoodsTotalMaterialsFinished Goods
 $(m)$(m)$(m)$(m) Including$(m) Primary$(m) Producepercent Processingpercent Industriespercent$(m)$(m)
1964—31 Mar218.1134.5352.6- 19.8+ 18.0+ 37.8+ 10.0-15.5+12.0......
1966-31 Mar262.0174.7436.7+ 34.8- 26.261.0- 15.3-17.6+ 16.2......
1967—31 Mar284.5196.9481.4- 22.6- 22.2+ 44.7+ 8.6- 12.7+ 10.2......
1968—31 Mar283.3243.8527.1- 1.2- 47.0+ 45.8- 0.4+ 23.9+ 9.5......
1969—31 Mar314.2252.7566.9+ 30.9+ 8.9+ 39.8+ 10.9- 3.6- 7.5......
1970—31 Mar347.7274.9622.6+ 33.5+ 22.2+ 55.7+ 10.7- 8.8+ 9.8......
30 Sep379.7256.0635.7+ 39.1+ 30.2+ 69.3- 11.5-13.4+ 12.2......
31 Dec390.0261.9651.9+ 56.7+ 12.3+ 69.0- 17.0- 4.9+ 11.8......
1971—31 Mar408.3316.7724.9+ 60.6+ 41.8+ 102.3+ 17.4- 15.2+ 16.4......
30 Jun425.1297.9723.0+ 56.8+ 9.7+ 66.6+ 15.4- 3.4+ 10.1......
30 Sep454.1278.7732.8+ 74.4+ 22.7+ 97.1+ 19.6+ 8.9+ 15.3......
Excluding Primary Produce Processing Industries
1964—31 Mar207.279.7286.9+ 19.7+ 8.7+ 28.4+ 10.5+ 12.3+ 11.0205.881.2
1966—31 Mar251.697.5349.1+ 35.2+ 8.1+ 43.3+ 16.3+ 9.1+ 14.2249.999.3
1967—31 Mar273.3112.9386.2+ 21.7+ 15.4+ 37.1+ 8.6+ 15.8+ 10.6271.4115.0
1968—31 Mar272.4134.3406.7+ 0.8+ 21.4+ 20.6- 0.3+ 19.0+ 5.3270.5136.8
1969—31 Mar302.5145.0447.5+ 30.1+ 10.7+ 40.8+ 11.0+ 8.0- 10.0300.4147.8
1970—31 Mar334.6166.2500.8+ 32.0+ 21.2+ 53.2+ 10.6+ 14.6+ 11.9330.6170.3
30 Sep364.8179.5544.3+ 37.9+ 21.9+ 59.8+ 11.6+ 13.9+ 12.3359.4172.4
31 Dec375.6171.9547.5+ 56.8+ 15.5+ 72.3+ 17.8+ 9.9+ 15.2385.0174.8
1971—31 Mar394.4180.5574.8+ 59.8+ 14.2+ 74.0+ 17.9+ 8.6+ 14.8391.6181.2
30 Jun411.5194.1605.6+ 55.7+ 28.3+ 84.0+ 15.7+ 17.1+ 16.1410.3195.9
30 Sep439.2212.3651.5+ 74.4+ 32.8+ 107.2+ 20.4+ 18.3- 19.7431.8210.9

More detailed information on stocks is given in the next table showing by industry groups comparative stock figures at the end of September.

Industry GroupStocks at 30 SeptemberIncrease or Decrease in Stocks September 1970 to September 1971
19701971
MaterialsFinished GoodsTotalMaterialsFinished GoodsTotalMaterialsFinished GoodsTotal
Primary Produce Processing Industries  $(million)    percent 
Meat freezing, ham, bacon, and casings10.8255.1866.0011.0341.2352.26+ 1.94- 25.28- 20.82
Dairy4.1421.2725.423.8825.1929.07- 6.28+ 18.43+ 14.36
            Totals14.9776.4591.4214.9166.4181.32- 0.40- 13.13- 11.05
Other food27.6228.9456.5631.0632.9163.97+ 12.45+ 13.72+ 13.10
Beverages6.236.8313.067.368.6616.03+ 18.14+ 26.79+ 22.74
Tobacco manufactures18.85-18.8519.54-19.54+ 3.66-+ 3.66
Textiles30.048.8438.8931.6911.2342.92+ 5.49+ 27.04+ 10.36
Clothing19.419.9029.3119.1012.6931.79- 1.60++ 28.18+ 8.46
Footwear5.761.807.566.141.878.00+ 6.60+ 3.89+ 5.82
Wood manufactures13.4814.7428.2316.7916.1432.93+ 24.55+ 9.50+ 16.65
Furniture and fixtures7.251.388.647.991.859.85+ 10.21+ 34.06+ 14.00
Paper and products24.0512.2336.2826.1616.9043.06+ 8.77+ 38.18+ 18.69
Printing, publishing14.671.9516.6216.093.3919.48+ 9.68+ 73.85+ 17.21
Leather and products3.611.354.965.151.806.95+42.66- 33.33+ 40.12
Rubber products6.766.4613.228.066.7114.77+ 19.23- 3.87+ 11.72
Chemicals and products24.0424.0248.0629.1628.4057.56+ 21.30+ 18.23+ 19.77
Petroleum, coal products2.141.633.772.601.884.48+ 21.50+ 15.34+ 18.83
Non-metallic mineral products9.1313.2622.3911.4313.8125.23+ 25.19+ 4.15+ 12.68
Basic metal products10.921.9012.8213.192.0515.24+ 20.79+ 7.89+ 18.88
Metal products26.2311.1337.3633.7414.2748.00+ 28.63+ 28.21+ 28.48
Machinery34.308.3442.6451.518.6360.14+ 50.17+ 3.48+ 41.04
Electrical products28.5311.5240.0529.9711.5541.52+ 5.05- 0.26+ 3.67
Transport equipment40.284.4444.7158.635.8564.48+ 45.56+ 31.76+ 44.22
Miscellaneous11.438.8420.2613.8011.6925.50+ 20.73+ 32.24+ 25.86
            Totals364.75179.50544.25439.17212.28651.45+ 20.40+ 18.26+ 19.70
            Grand totals, all manufacturing industries379.72255.95635.67454.08278.70732.78+ 19.58+ 8.89+ 15.28

VALUE AND VOLUME INDICES—The next table gives index numbers of net output, value of production, and volume of production.

Production YearNet Output (Net Value Added)Value of ProductionVolume of Production
*Provisional.
 Base: 1956-57 (= 1000)
1951-52731716806
1952-53742771800
1953-54825823848
1954-55927915941
1955-56980973994
1956-571,0001,0001,000
1957-581,0931,0711,070
1958-591,1581,0951,130
1959-601,3121,1721,169
1960-611,4091,2571,283
1961-621,5681,3401,349
1962-631,6511,3961,410
1963-641,8921,5981,557
1964-652,0701,8151,759
1965-662,3611,9721,879
1966-672,4682,0631,991
1967-682,5192,1081,968
1968-692,7112,3182,030
1969-703,0862,6152215*

The table which follows sets out, by industry groups, index numbers of value of production, net output, and volume of production. It is not possible to arrive at volume of production index numbers for all the groups, for technical reasons, and consequently some have been omitted, but the total index number for the year is calculated in such a way as to include the groups which cannot be assessed separately. The index is based on 1956-57 (= 1000).

Industry GroupValue of ProductionNet OutputVolume of Production
1968-691969-701968-691969-701968-691969-70*

(1)Indices not available for the groups, but allowed for in compiling total index.

*Provisional.

Food1,8801,9852,6832,7561,6951,763
Beverages2,2472,6552,8593,3941,5641,671
Tobacco manufactures1,7271,9712,0282,4581,7641,885
Textiles2,7703,1943,4134,0803,1803,775
Footwear, other wearing apparel, and made-up textile goods1,6351,9061,7372,0561,3451,466
Wood and cork products (except furniture)2,0552,2862,1172,2921,3851,517
Furniture and fixtures1,9152,0931,8201,971((1))((1))
Paper and paper products3,2773,7344,4254,7383,0713,410
Printing, publishing, etc.2,3902,7822,4722,9261,9502,215
Leather and leather products (except footwear and apparel)2,3722,9122,6783,1781,8181,865
Rubber products1,9942,3962,4492,8842,1702,636
Chemicals and chemical products2,6132,8562,7282,9242,0712,279
Petroleum and coal products16,14115,84411,21710,207((1))((1))
Non-metallic mineral products, n.e.i.2,1252,4832,2832,8141,7902,027
Basic metal manufactures5,3428,3934,4316,603((1))((1))
Metal products (except machinery and transport equipment)3,2763,8983,2473,933((1))((1))
Machinery (except electrical)2,6423,2843,1353,825((1))((1))
Electrical machinery and appliances3,7674,4033,7114,3573,3523,672
Transport equipment2,3182,6932,3312,727((1))((1))
Miscellaneous products6,1867,5636,7048,107((1))((1))
            All Groups2,3182,6152,7113,0862,0302,215

OVERTIME—Details of overtime worked in factories by wage-earning employees are summarised in the tables given, which show, by industry groups, the hours worked during the latest 3 years. The averages given are calculated on the basis of the total number of wage earners engaged irrespective of the number who actually worked overtime.

Industry GroupTotal Overtime Hours Worked by Wage Earner (Both Male and Female)
1967-681968-691969-70
 (000)
Food9,91410,35810,759
Beverages664582624
Tobacco manufactures206189253
Textiles1,7772,1832,634
Footwear, other wearing apparel, and made-up textile goods8117761,129
Wood and cork products (except furniture)1,7191,9532,319
Furniture and fixtures525608646
Paper and paper products1,7431,6942,121
Printing, publishing, etc.1,3101,3251,473
Leather and leather products (except footwear and apparel)170218237
Rubber products553539739
Chemicals and chemical products859855940
Petroleum and coal products11395109
Non-metallic mineral products, n.e.i.1,5491,6551,803
Basic metal manufactures461516635
Metal products (except machinery and transport equipment)2,2932,5083,005
Machinery (except electrical)2,3482,4132,948
Electrical machinery and appliances8808391,171
Transport equipment2,8852,5513,412
Miscellaneous products9571,2291,604
            >Totals31,73833,08438,563

The next table shows, by industry groups, the hours of overtime worked during 1969-70 by male and females separately.

Industry GroupTotal Overtime Hours Worked by Wage EarnersAverage Overtime Hours Worked by All Wage Earners
MalesFemalesMalesFemales
 (000)(000)  
Food10,094665325135
Beverages6091433848
Tobacco manufactures15599371174
Textiles2,12850630277
Footwear, other wearing apparel, and made-up textile goods46566411532
Wood and cork products (except furniture)2,2982119134
Furniture and fixtures6202716142
Paper and paper products1,897224337130
Printing, publishing, etc.1,27919513975
Leather and leather products (except footwear and apparel)1904818153
Rubber products7083126153
Chemicals and chemical products8815926240
Petroleum and coal products1045250122
Non-metallic mineral products, n.e.i.1,7574627791
Basic metal manufactures6269302194
Metal products (except machinery and transport equipment)2,741264256173
Machinery (except electrical)2,87672215126
Electrical machinery and appliances1,01915120466
Transport equipment3,299113136126
Miscellaneous products1,212393269146
            All groups34,9553,60823573

SUMMARY OF OPERATIONS—The following table, by assembling data from previous pages, affords an analysis of production costs in 1969-70, together with the value of production for each industry group and for all industries. In addition, by virtue of the complete details collected annually of the cost structure of goods produced in manufacturing industries, it is possible to give information on the surplus available to manufacturers prior to payment of dividends, taxation, and other appropriations. The only exception occurs in the case of co-operative dairy companies, which do not purchase milk and cream in the way that other manufacturers purchase raw materials. They collect the milk and cream from their shareholders, process it, and pay out to these shareholders the whole of the profits of the sales of the products, less amounts paid to reserves. Manufacturing surplus shown by these companies is therefore confined to the amount of these transfers to reserves and any undistributed profits.

In quite a number of cases, articles produced are transferred at cost to separate selling departments and warehouses, or to retail stores run by the same company or establishment. Where this is apparent, the company concerned is asked to substitute a commercial value for its production. The same procedure holds where a company controls more than one factory, and transfers the products of one to the other for further processing. It must be recognised that estimated values have to be accepted in many transactions of this type.

Industry GroupProduction CostsValue of ProductionManufacturing Surplus
Salaries and WagesCost of All Materials UsedOther Expenses of OperationTotal
   $(000)   
Food120,559698,81878,495897,873937,27339,400
Beverages7,74124,8758,55641,17255,03913,867
Tobacco manufactures2,50415,8312,07520,41023,9353,526
Textiles34,278125,20519,196178,678193,19414,515
Footwear, other wearing apparel, and made-up textile goods45,53278,09714,037137,666150,43912,773
Wood and cork products (except furniture)38,31688,10524,127150,548166,84816,300
Furniture and fixtures12,70522,4784,66339,84643,4183,572
Paper and paper products26,15278,79738,372143,322166,72023,398
Printing, publishing, etc.40,02236,63420,60297,258116,14818,889
Leather and leather products (except footwear and apparel)5,01914,2622,10821,39023,8222,433
Rubber products12,15222,3017,98042,43450,6278,194
Chemicals and chemical products17,63996,91419,351133,904154,39120,487
Petroleum and coal products2,12261,3664,92668,41576,4648,049
Non-metallic mineral products, n.e.i.23,12429,27922,61975,02291,99516,973
Basic metal manufactures8,91735,56410,03854,51956,7392,220
Metal products (except machinery and transport equipment)40,56179,31721,261141,138162,82721,689
Machinery (except electrical)48,33583,33821,651153,324171,45018,126
Electrical machinery and appliances21,44652,65111,90185,99894,1708,172
Transport equipment79,271183,17332,185294,629323,69229,063
Miscellaneous products22,01440,04813,33975,40189,63814,237
            Totals608,4121,867,054377,4802,852,9463,148,829295,882

LIST OF CERTAIN COMMODITIES PRODUCED IN RECENT YEARS—The following is a list of certain commodities produced in New Zealand during the latest 4 years available.

Commodity1966-671967-681968-691969-70
Toasters No.63,86274,99774,10177,283
Irons No.62,72566,56273,20564,902
Radiators, electric No.213,253219,876171,863222,679
Vacuum cleaners No.82,00855,61653,21762,928
Washing machines (clothes) No.51,33343,76444,04947,374
Refrigerators (home and commercial and freezers) No.68,564x69,562x100,922x106,818
Electric ranges No.52,43247,41351,48955,709
Electric rangettes No.7,0723,9833,4732,688
Radios, including radiograms, etc. No.81,53674,92476,128112,039
Television sets No.96,67846,36945,16244,956
Blankets, woollen Pairs241,214285,000228,000206,000
Floor coverings (textile top coverings) sq yd(000)5,4845,3027,1757,743
Mattresses—    
Innerspring—    
    Single No.98,85093,02387,23796,920
    Double No.29,21328,97636,53840,132
    Soft filled—    
    Single No.49,17838,48738,25635,274
    Double No.11,47311,09411,1529,813
    Infants No.9,3608,34610,44113,152
Venetian blinds No.97,16575,13465,91862,591
Roller (Holland) blinds No.199,602157,251171,337174,937
Newspapers produced—    
    Dailies thousand327,328333,096335,982332,945
    Other than dailies thousand56,29463,00257,19157,893
Hot-water bottles No.464,753282,000244,000277,000
Soap—    
    Toilet ton4,5304,1854,3934,880
    Bar ton4,2003,8354,2223,672
    Powder and flake ton13,48514,32912,92712,815
Household and industrial cleaners—    
Synthetic detergents—    
    Powders and pastes cwt73,02670,50093,94859,907
    Liquid gal(000)1,9521,9832,9272,794
Other cleaners, etc.—    
    Powders and pastes cwt21,53622,21729,68619,096
    Liquid gal(000)441462603561
Paints and enamels gal(000)3,6433,6353,7313,935
Lacquers gal(000)365320366379
Tooth paste cwt17,62618,62018,48920,296
Furniture and floor polish cwt19,38026,43824,55124,301
Shoe polishes and cleaners cwt4,6224,4274,9375,381
Water heaters—    
    Under 10 gallons No.10,4168,85714,05710,495
    10 gallons and over No.42,15246,52437,79234,329
Sinks: stainless steel No.55,72856,81530,88431,204
Sink tops: stainless steel No.26,40824,73619,70018,427
Wheelbarrows No.21,95024,52528,00524,738
Lawnmowers (hand and power) No.84,18663,33558,86378,217
Prams, pushchairs, strollers—    
    Cane (inc. dolls) No.4,4523,6291,1301,313
    Other than cane (inc. dolls) No.29,76726,13525,66730,285
Toothbrushes No.(000)2,7573,2203,8854,394

DETAILS OF CERTAIN PRINCIPAL INDUSTRIES—The principal statistics regarding leading factory industries for the last 3 years available are set out in the following pages. Fuller details are given in the annual Statistics of Industrial Production.

Item1967-681968-691969-70

In addition 1,266,000 bundles were produced in the sausage casings industry in 1967-68, 1,473,000 bundles in 1968-69, and 1,398,000 bundles in 1969-70.

†Includes products of establishments classified in other industries.

*Decreases mainly because of changed system of valuation in two establishments.

†Includes products establishments classified in other industries.

*Includes chocolate sold for further manufacturing purposes.

†Includes products of establishments classified in other industries.

*Includes production by establishments classified in other industries.

*In addition in 1967-68, 147,000 gallons; in 1968-69 125,000 gallons; and in 1969-70 206,000 gallons were recorded by establishments classified in other industries.

†Includes two factories responsible for drying and shredding of green tobacco leaf.

*Includes production by establishments classified in other industries.

*Includes production by establishments classified in other industries,

*Other principal products withheld to avoid disclosure of figures for individual establishments,

*Principal products shown for this industry include the production of establishments classified in other industries.

*Includes production of establishments classified in other industries.

†Effective running footage,

*Includes production of establishments in other industries.

*Principal products shown for these industries include the production of establishments classified in other industries.

*Includes assembled vehicles from the motor-body building industry,

*Includes production of establishments classified in other industries.

Meat Freezing and Preserving   
Number of establishments444543
Persons engaged No.22,18623,63025,283
Production costs—   
    Salaries, wages $(000)60,78869,72581,597
    Materials $(000)286,677329,565365,821
    Other expenses $(000)28,08331,87036,916
    Totals $(000)375,547431,159484,334
Value of production $(000)396,146457,319502,094
Net output (net value added) $(000)82,93397,278100,973
Overtime worked by wage earners h(000)5,9636,5307,001
Volume index. Base: 1956-57 (= 1000)1,5821,6291,671
Principal products—   
Meat—   
        Lamb carcasses No.(000)24,53225,00425,061
        cwt(000)6,3286,5746,475
Mutton carcasses No.(000)6,6996,2886,557
        cwt(000)2,7682,4392,577
        Boned mutton cwt(000)183183123
        Mutton and lamb pieces cwt(000)271347399
        Beef quarters, bone in cwt(000)828803827
        Beef cuts cwt(000)8771,3131,559
        Boneless beef cwt(000)1,4951,4111,608
        Bobby veal cwt(000)166177179
        Other veal cwt(000)707358
Pork cwt(000)349273305
        Edible offals cwt(000)1,0831,0541,115
    By-products—   
        Runners (not processed) No.(000)6,3234,8935,250
        Casings* bundles(000)6,7186,6196,629
        Woolly sheepskins No.(000)174192354
        Pelts No.(000)33,37234,01334,216
        Cow hides No.(000)666795900
        Ox and bull hides No.(000)482542633
Bobby calf hides No.(000)1,1431,2441,235
        Other calf hides No.(000)495853
        Wool lb(000)84,17684,08381,138
    Boiling-down products—   
        Tallow cwt(000)1,5361,5981,660
        Neatsfoot oil gal(000)236245169
    Organic fertilisers and stock foods   
        Meatmeal cwt(000)548463513
        Meat and bone meal cwt(000)750958918
        Livermeal cwt(000)8636
        Bonedust cwt(000)859366
        Blood manure cwt(000)128107110
Blood and bone cwt(000)474461422
Manure mixture cwt(000)181218
        Other manures and meals cwt(000)2414131
    Canned and other preserved meats, pastes, extracts, and miscellaneous cannings cwt(000)130138117
Ham and Bacon Curing
Number of establishments393636
Persons engaged No.1,2291,2691,253
Production costs—   
    Salaries, wages $(000)2,6552,8593,208
    Materials $(000)14,87216,12616,886
    Other expenses $(000)1,7881,7591,787
    Totals $(000)19,31520,74521,880
Value of production $(000)20,90622,39824,884
Net output (net value added) $(000)4,3224,5646,259
Overtime worked by wage earners h(000)256357314
Volume index. Base: 1956-57 (= 1000)9599931,035
Pigs dealt with—   
    Carcasses No.(000)349315290
    Cost $(000)9,73810,14510,188
Principal products—   
    Ham and bacon cwt278,158260,492273,603
    Frozen pork cwt22,1259,8566,899
    Smallgoods cwt252,784297,679324,657
    Lard (edible) cwt9,1465,1964,797
Butter, Cheese, and Other Milk Products
Number of establishments—   
    Butter and cheese165158146
    Other milk products706668
Persons engaged No.4,7124,5304,250
Production costs—   
    Salaries, wages $(000)11,39411,48211,567
    Materials $(000)206,385210,731194,134
    Other expenses $(000)17,33118,80118,533
    Totals $(000)235,110241,015224,235
Value of production $(000)237,839243,141225,043
Net output (net value added) $(000)14,67914,35413,147
Overtime worked by wage earners h(000)1,5541,4401,446
Volume index. Base: 1956-57 (= 1000)1,3661,4411,296
Milkfat used—   
    For creamery butter lb(000)450,852485,002425,594
    For cheesemaking lb(000)98,60584,95386,978
    For whey buttermaking—   
    Recoveries from own whey lb(000)3,3181,2311,887
    Whey fat purchased lb(000)4,1343,4683,802
    Second grade creamery milkfat lb(000)8721,043
    Total for whey butter lb(000)7,5394,7016,732
Principal products—   
    Creamery butter ton244,435263,985231,855
    Whey butter ton3,1492,8503,012
    Cheese ton110,03494,16188,960
    Condensed and evaporated milk, and whole and blended milk powder ton19,92322,35324,062
Skim-milk powder ton146,345135,508110,411
    Buttermilk powder ton22,67023,61823,800
    Casein ton43,73764,60261,268
Ice Cream
Number of establishments191616
Persons engaged No.538561513
Production costs—   
    Salaries, wages $(000)1,0121,2491,225
    Materials $(000)4,9004,7997,501
    Other expenses $(000)1,3671,6731,858
    Totals $(000)7,2797,72210,584
Value of production $(000)10,1198,698*11,111
Net output (net value added) $(000)3,8932,392*1,764
Overtime worked by wage earners h(000)7210042
Volume index. Base: 1956-57 (= 1000)2,0212,1802,828
Main materials used—   
    Milk gal(000)1,478862311
    Cream gal(000)258303329
    Ice-cream mixture cwt7,47419,1628,227
    Butter cwt31,26130,61678,254
    Skim-milk powder cwt35,42627,60953,400
    Sugar cwt84,30587,940128,956
Principal products—   
    Bulk ice cream gal(000)3,0793,0115,574
    Ice cream, cartoned, wrapped, chocolate-coated, etc. gal(000)5,1985,5505,893
    Frozen confections, ice lollies, etc. $(000)8241,2571,604
Grain Milling Number of establishments383938
Persons engaged No.1,0201,000941
Production costs—   
    Salaries, wages $(000)2,1272,1272,227
    Materials $(000)12,56622,32323,301
    Other expenses $(000)1,8942,1082,273
    Totals $(000)16,58726,55727,802
Value of production $(000)18,55028,40130,195
Net output (net value added) $(000)4,2754,1704,781
Overtime worked by wage earners h(000)13293134
Volume index. Base: 1956-57 (= 1000)1,5271,4841,520
Main materials used—   
    Wheat bushel(000)10,21510,46310,481
    Oats bushel(000)567513467
Principal products—   
    Flour short ton224,833227,716228,414
    Wholemeal, wheatmeal short ton8,0746,9926,789
    Bran and pollard short ton62,25763,85563,932
Breakfast cereals—   
    Oatmeal, rolled oats short ton5,8735,5674,724
    Other (including cereals in biscuit, flake and puff form) short ton13,01911,20313,918
Biscuits
Number of establishments888
Persons engaged No.1,1981,2341,318
Production costs—   
    Salaries, wages $(000)2,1362,2292,589
    Materials $(000)5,9967,1337,742
    Other expenses $(000)1,5821,7141,891
    Totals $(000)9,71511,07612,222
Value of production $(000)11,21413,31914,678
Net output (net value added) $(000)3,7244,5995,168
Overtime worked by wage earners h(000)258238273
Volume index. Base: 1956-57 (= 1000)1,2721,3941,455
Main materials used—   
    Flour short ton12,75113,79814,006
    Sugar ton4,1294,5384,709
    Chocolate cwt26,10032,55429,283
    Margarine, lard, confectionery fat cwt61,14464,76369,468
Biscuits manufactured ton20,17621,82622,671
Cocoa, Chocolate, and Sugar Confectionery
Number of establishments484345
Persons engaged No.2,3272,3762,292
Production costs—   
    Salaries, wages $(000)4,0604,2324,339
    Materials $(000)9,93811,60712,474
    Other expenses $(000)2,1522,2682,636
    Totals $(000)16,14918,10719,449
Value of production $(000)19,74021,24222,730
Net output (net value added) $(000)7,7387,4287,731
Overtime worked by wage earners h(000)331372353
Volume index. Base: 1956-57 (= 1000)1,6711,7981,770
Main materials used—   
    Sugar ton14,37113,49713,604
    Cocoa beans cwt69,62172,55870,196
    Cocoa butter cwt18,98317,41112,074
    Glucose cwt80,72079,03679,291
    Nuts cwt27,00934,97536,799
Confectionery manufactured—   
    Chocolate and chocolate-coated* ton12,97712,69812,387
    Sugar ton10,89710,8528,734
Potato crisps and sticks cwt25,88729,76130,307
Fruit and Vegetable Preserving
Number of establishments332828
Persons engaged No.2,7302,6432,769
Production costs—   
    Salaries, wages $(000)5,5885,5666,498
    Materials $(000)17,30418,00819,931
    Other expenses $(000)4,6245,8766,111
    Totals $(000)27,51629,44932,540
Value of production $(000)31,26332,90434,050
Net output (net value added) $(000)10,1029,9469,026
Overtime worked by wage earners h(000)1,006870793
Volume index. Base: 1956-57 (= 1000)2,6762,9323,445
Main materials used—   
    Fruit (fresh) ton33,28236,73636,666
    Vegetables and tomatoes (fresh) ton76,20679,012142,905
    Sugar ton7,4936,3337,407
Principal products—   
    Canned fruit cwt429,159464,810424,952
    Canned beans in sauce cwt88,94575,400103,058
    Canned peas cwt92,44758,83471,424
    Canned green beans cwt28,38222,52120,905
    Other canned vegetables (not tomatoes) cwt137,804127,580155,121
    Tomato soup gal612,287439,067506,480
    Pickles and sauces* gal1,297,046987,3841,141,152
    Jams, jellies, and conserves cwt80,28082,11795,823
    Canned spaghetti in sauce cwt112,582105,922118,326
    Canned tomatoes (whole and halves) cwt25,56030,57829,452
Quick-frozen vegetables—   
    Peas cwt284,349306,325401,693
Beans cwt52,35158,50369,361
    Other cwt55,432122,613140,435
Brewing of Ale and Stout, and Malting
Number of establishments171717
Persons engaged No.1,4781,4251,495
Production costs—   
    Salaries, wages $(000)4,0624,1064,673
    Materials $(000)13,41913,74515,613
    Other expenses $(000)5,0395,1195,832
    Totals $(000)22,51922,97126,117
Value of production $(000)32,11031,88436,879
Net output (net value added) $(000)13,99313,38615,844
Overtime worked by wage earners h(000)567469496
Volume index. Base: 1956-57 (= 1000)1,3931,3781,457
Main materials used—   
    Malt bushel(000)1,7161,6611,748
    Hops cwt6,7936,7407,254
    Sugar cwt164,605169,437176,007
Beer produced for sale gal(000)67,98267,15270,405
Stout produced for sale gal(000)421436422
Aerated Waters and Cordials
Number of establishments515350
Persons engaged No.702747819
Production costs—   
    Salaries, wages $(000)1,4061,5181,804
    Materials $(000)2,9333,0544,032
    Other expenses $(000)1,3011,3501,419
    Totals $(000)5,6405,9237,255
Value of production $(000)6,8707,2059,077
Net output (net value added) $(000)2,7822,9503,805
Overtime worked by wage earners h(000)634159
Volume index. Base: 1956-57 (= 1000)1,6921,6771,980
Main materials used—   
    Sugar ton8,1157,8489,224
    Fruit extracts and juices gal(000)89102106
Aerated waters made gal(000)12,28911,95414,175
Cordials made* gal(000)406461520
Tobacco, Cigars, and Cigarettes
Number of establishments335
Persons engaged No.1,1541,0181,147
Production costs—   
    Salaries, wages $(000)2,2202,0882,504
    Materials $(000)13,96814,42015,831
    Other expenses $(000)1,4601,6492,075
    Totals $(000)17,64818,15720,410
Value of production $(000)20,05020,97923,935
Net output (net value added) $(000)4,6935,0696,144
Overtime worked by wage earners h(000)206189253
Volume index. Base: 1956-57 (= 1000)1,7731,7641,885
Tobacco leaf used in manufacture lb(000)13,71713,16513,765
Cigarettes made million4,6514,6755,082
Tobacco made lb(000)3,1622,8432,547
Woollen Milling
Number of establishments212019
Persons engaged No.3,9063,9084,486
Production costs—   
    Salaries, wages $(000)7,2677,9299,476
    Materials $(000)10,92311,91813,987
    Other expenses $(000)3,9534,3484,053
    Totals $(000)22,14324,19527,516
Value of production $(000)23,44524,73130,220
Net output (net value added) $(000)9,0919,03312,630
Overtime worked by wage earners h(000)759728855
Volume index. Base: 1956-57 (= 1000)2,3842,4022,921
Main materials used—   
Wool fibres—   
    Greasy and slipe wool lb(000)12,75915,51318,246
Scoured wool lb(000)1,0951,6102,079
    Tops, noils lb(000)1,5981,4211,563
    Woollen and worsted yarn lb(000)814648724
Non-wool fibres—   
    Artificial and synthetic lb(000)1,4511,6911,742
    Other lb(000)4996246
Principal products—   
    Woollen cloth yd(54 in. 000)1,2431,3911,860
    Worsted cloth yd(54 in. 000)1,3461,0681,373
    Flannel yd(54 in. 000)189122173
    Blankets pairs(000)285228206
    Rugs No.(000)967387
    Yarn produced for sale or transfer—   
    Fingering lb(000)2,1502,1922,215
    Machine knitting lb(000)2,8012,3173,826
Hosiery and Other Knitting Mills
Number of establishments818081
Persons engaged No.4,9504,9765,592
Production costs—   
    Salaries, wages $(000)8,7139,10710,517
    Materials $(000)17,66419,18424,104
    Other expenses $(000)4,3854,8515,415
    Totals $(000)30,76233,14240,035
Value of production $(000)34,29537,24044,137
Net output (net value added) $(000)12,65213,61715,054
Overtime worked by wage earners h(000)343407561
Volume index. Base: 1956-57 (=1000)2,7672,9913,532
Clothing
Number of establishments675650659
Persons engaged No.20,00419,24520,164
Production costs—   
    Salaries, wages $(000)27,75927,48431,331
    Materials $(000)46,90248,50556,063
    Other expenses $(000)7,4747,8288,912
    Totals $(000)82,13483,81696,306
Value of production $(000)89,08890,826105,090
Net output (net value added) $(000)35,16634,98940,698
Overtime worked by wage earners h(000)433355532
Volume index. Base: 1956-57 (= 1000)1,3411,2681,365
Footwear
Number of establishments115109108
Persons engaged No.5,1495,1655,337
Production costs—   
    Salaries, wages $(000)9,2929,38510,881
    Materials $(000)12,45412,83515,046
    Other expenses $(000)3,3743,4273,932
    Totals $(000)25,11925,64729,858
Value of production $(000)26,43827,15432,657
Net output (net value added) $(000)10,79111,04913,906
Overtime worked by wage earners h(000)316361521
Volume index. Base: 1956-57 (= 1000)1,5931,5531,768
Main materials used—   
    Upper leather sq ft(000)9,5589,01910,397
    Sole leather lb(000)1,6611,5721,874
    Synthetic soling material lb(000)2,0231,8652,125
    Ready-made soles—leather, rubber, and other pair(000)2,9872,9603,054
    Ready-made heels—leather, rubber, wood, and other pair(000)2,5902,4162,326
Felt sq yd(000)11579101
Crepe rubber lb(000)410410494
Sawmills
Number of establishments383366350
Persons engaged No.5,5855,7915,886
Production costs—   
    Salaries, wages $(000)13,08214,26915,558
    Materials $(000)22,87925,86829,462
    Other expenses $(000)10,75611,52712,536
    Totals $(000)46,71851,66457,556
Value of production $(000)51,80657,64662,932
Net output (net value added) $(000)18,84420,93221,585
Overtime worked by wage earners h(000)659787905
Volume index. Base: 1956-57 (= 1000)1,1241,2191,277
Rough-sawn timber produced ft bm (000)657,488712,336746,449
Planing Mills and Timber Preservation
Number of establishments181178172
Persons engaged No.2,2422,3172,369
Production costs—   
    Salaries, wages $(000)4,8345,0115,797
    Materials $(000)21,71922,43823,195
    Other expenses $(000)2,8783,3034,053
    Totals $(000)29,43130,75133,045
Value of production $(000)32,99635,00137,773
Net output (net value added) $(000)8,6029,53610,884
Overtime worked by wage earners h(000)230215306
Rough-sawn timber used in manufacture ft bm (000)178,234164,385162,951
Dressed timber produced—   
    Floorboards ft bm (000)32,51931,40627,316
    Weatherboards ft bm (000)23,96019,44619,237
    Other ft bm (000)87,65192,69689,470
Joinery work done $(000)2,5322,7962,538
Joinery
Number of establishments421418394
Persons engaged No.4,2624,2224,374
Production costs—   
    Salaries, wages $(000)9,4719,68011,278
    Materials $(000)17,63020,46124,534
    Other expenses $(000)3,4153,6504,202
    Totals $(000)30,51633,79040,014
Value of production $(000)33,89137,52943,300
Net output (net value added) $(000)13,21013,77614,952
Overtime worked by wage earners h(000)575619719
Timber used in manufacture ft bm(000)96,365110,292119,145
Dressed timber produced—   
    Floorboards ft bm(000)8,7499,7428,831
    Weatherboards ft bm(000)2,4063,6622,935
    Other ft bm(000)8,64114,89713,015
Flush panel doors* No.380,962408,986442,001
Joinery and other woodwork $(000)27,77728,93436,175
Furniture
Number of establishments439403403
Persons engaged No.4,6984,7144,829
Production costs—   
    Salaries, wages $(000)9,90510,38411,260
    Materials $(000)15,53116,61518,053
    Other expenses $(000)3,3943,6613,970
    Totals $(000)28,83030,66133,283
Value of production $(000)31,33333,06236,053
Net output (net value added) $(000)12,69113,07414,318
Overtime worked by wage earners h(000)448517550
Pulp, Paper, and Paperboard
Number of establishments766
Persons engaged No.3,3863,4213,682
Production costs—   
    Salaries, wages $(000)11,38212,03413,864
    Materials $(000)22,08825,01530,098
    Other expenses $(000)23,38024,76229,584
    Totals $(000)56,85061,81173,546
Value of production $(000)69,41375,82986,790
Net output (net value added) $(000)25,52527,25628,105
Overtime worked by wage earners h(000)9339011,032
Volume index. Base: 1956-57 (= 1000)2,7862,9373,316
Principal products—   
    Newsprint ton195,546199,599204,137
    Other paper ton119,392134,991167,761
    Paperboard ton56,01361,95670,601
    Fibreboard sq yd(000)10,10611,57612,414
    Wood pulp for sale ton105,44196,419117,742
Cardboard Boxes, Cartons, and Paper Bags
Number of establishments565759
Persons engaged No.2.8152,9453,288
Production costs—   
Salaries, wages $(000)5,9696,8708,165
Materials $(000)23,78927,12032,863
Other expenses $(000)3,8875,0325,411
        Totals $(000)33,64439,02346,439
Value of production $(000)38,11744,02752,444
Net output (net value added) $(000)10,96112,55314,897
Overtime worked by wage earners h(000)584569837
Paper used in manufacture ton54,54158,75457,163
Cardboard ton20,92123,94629,531
Corrugated and laminated paperboard ton19,26417,61025,939
Cardboard boxes, cartons, made* $(000)28,88730,91236,017
Paper bags and paper sacks, made* $(000)7,1567,4797,902
Printing and Publishing
Number of establishments878382
Persons engaged No,7,1217,2537,436
Production costs—   
Salaries, wages $(000)17,34318,16119,943
Materials $(000)12,66112,67513,945
Other expenses $(000)10,17910,91412,173
        Totals $(000)40,18341,75046,061
Value of production $(000)47,12650,78857,703
Net output (net value added) $(000)24,49727,45831,866
Overtime worked by wage earners h(000)535554642
Volume index, Base: 1956-57 (= 1000)1,6531,5601,692
Newsprint used ton67,51170,53476,009
Other paper used ton5,6774,6734,880
Job and General Printing
Number of establishments365370370
Persons engaged No.6,8856,7566,967
Production costs—   
Salaries, wages $(000)15,21215,25117,666
Materials $(000)18,36718,25521,543
Other expenses $(000)6,3096,4317,472
        Totals $(000)39,88839,93746,682
Value of production $(000)45,24344,63753,198
Net output (net value added) $(000)20,92720,34824,705
Overtime worked by wage earners h(000)706699751
Volume index, Base: 1956-57 (=1000)2,5512,4712,921
Newsprint used ton5,3205,7335,915
Other paper used ton23,82924,92128,802
Cardboard used ton6,7515,9566,852
Corrugated and laminated paperboard used ton614868961
Cellulose film used ton615122141
Tanning
Number of establishments111313
Persons engaged No.758811877
Production costs—   
Salaries, wages $(000)1,6921,9602,362
Materials $(000)3,6825,1416,509
Other expenses $(000)7538801,105
        Totals $(000)6,1287,9809,976
Value of production $(000)6,8069,07111,264
Net output (net value added) $(000)2,4083,0943,729
Overtime worked by wage earners h(000)99137153
Volume index, Base: 1956-57 (= 1000)1,0871,3921,527
Principal products*   
Leather—   
Hide—   
Bends lb(000)1,4151,407884
Shoulders lb(000)480454509
Bellies lb(000)525472471
Chrome and other sides sq ft(000)6,4827,3898,608
Tanned woolly skins sq ft(000)......4,174
Rubberware
Number of establishments393637
Persons engaged No.3,0123,0533,210
Production costs—   
Salaries, wages $(000)7,9088,4669,923
Materials $(000)12,24114,37517,837
Other expenses $(000)5,1235,2555,653
        Totals $(000)25,27228,09633,413
Value of production $(000)28,79232,79538,583
Net output (net value added) $(000)11,49813,24715,252
Overtime worked by wage earners h(000)447411544
Volume index, Base: 1956-57 (= 1000)1,9162,0202,389
Main materials used—   
Natural rubber lb(000)11,91312,66714,784
Synthetic rubber lb(000)19,01719,55324,668
Latex $(000)488693837
Principal products—   
Motor-vehicle tyres No.(000)1,1291,2131,398
Motor-vehicle tubes No.(000)861800907
Camelback lb(000)6,6466,92810,837
Milking rubberware   
Bicycle tyres and tubes $(000)3,4513,6763,308
Battery containers   
Rubber and canvas footwear   
Chemical Fertilisers
Number of establishments161515
Persons engaged No.1,1661,1521,159
Production costs—   
Salaries, wages $(000)3,2613,4063,892
Materials $(000)29,82835,23437,624
Other expenses $(000)5,6725,6326,128
        Totals $(000)38,76144,27347,644
Value of production $(000)41,85948,05450,963
Net output (net value added) $(000)6,8047,6877,566
Overtime worked by wage earners h(000)328351359
Volume index, Base: 1956-57 (= 1000)1,6721,8061,918
Main materials used—   
Rock phosphate ton858,518963,2451,012,061
Serpentine rock ton90,15769,72863,647
Sulphur ton173,896196,514204,282
Carbonate of lime ton46,66764,64881,142
Nitrate of soda ton1,2191,6071,703
Potash ton108,945131,807162,587
Principal products—   
Serpentine superphosphate and mixtures ton218,145187,340165,969
Basic and reverted superphosphate and mixtures ton38,44236,12938,666
Straight superphosphate and mixtures ton1,090,2651,484,5951,598,784
Aerial superphosphate and mixtures ton273,93386,82087,291
Other (including ground rock) ton13,25621,09924,981
Superphosphate content of above ton1,377,1241,574,2351,660,892
Soap Manufacture
Number of establishments141715
Persons engaged No.496518536
Production costs—   
Salaries, wages $(000)1,1861,2471,368
Materials $(000)4,0274,3664,501
Other expenses $(000)1,3251,4991,549
        Totals $(000)6,5387,1127,418
Value of production $(000)8,3778,6278,672
Net output (net value added) $(000)3,2893,0672,904
Overtime worked by wage earners h(000)826287
Volume index, Base: 1956-57 (= 1000)1,4691,4861,502
Main materials used—   
Tallow ton12,40712,22711,950
Other oils and fats ton1,2951,2321,135
Caustic soda ton2,2382,4132,220
Soda ash ton2,7702,6312,586
Perfumes $(000)294334369
Principal products—   
Soap—   
Toilet ton4,1854,3934,880
Bar ton3,8354,2223,672
Powder and flake ton14,32912,92712,815
Candles ton157180170
Sandsoap ton142159160
Paint and Varnish
Number of establishments323434
Persons engaged No.891883895
Production costs—   
Salaries, wages $(000)2,2032,2742,406
Materials $(000)10,40111,50812,575
Other expenses $(000)1,6571,7421,879
        Totals $(000)14,26215,52416,860
Value of production $(000)16,62018,65619,922
Net output (net value added) $(000)4,6255,4625,533
Overtime worked by wage earners h(000)706567
Volume index, Base: 1956-57 (= 1000)1,4481,4631,561
Main materials used—   
White lead cwt4,7299,2959,730
Titanium dioxide (in terms of 100%TiO2) cwt79,97282,97387,449
Other pigments and extenders cwt125,713133,640143,454
Linseed oil gal(000)318322316
Solvents gal(000)2,0612,0512,208
Resins cwt128,533135,970129,167
Principal products—   
Paints and enamels gal(000)3,6353,5883,935
Lacquers gal(000)320366379
Varnishes gal(000)192236292
Pharmaceuticals, Toilet Goods, and Cosmetics*
Number of establishments394040
Persons engaged No.1,3281,3791,358
Production costs—   
Salaries, wages $(000)2,2702,4192,670
Materials $(000)10,33813,43113,236
Other expenses $(000)1,7582,2432,133
        Totals $(000)14,36518,09418,039
Value of production $(000)18,51322,74022,554
Net output (net value added) $(000)6,4897,1567,279
Overtime worked by wage earners $(000)414656
Principal products—   
Pharmaceutical products $(000)6,8787,9266,987
Toilet preparations and cosmetics—   
Dentifrices $(000)1,3941,5601,605
Cosmetic creams and lotions $(000)1,0801,2411,129
Hair dressing $(000)2,4093,0653,747
Powder, face and talcum $(000)699756793
Lipstick $(000)349344439
Structural Clay Products
Number of establishments373836
Persons engaged No.1,0991,034965
Production costs—   
Salaries, wages $(000)2,7302,5252,758
Materials $(000)7869651,040
Other expenses $(000)2,6882,5082,596
        Totals $(000)6,2045,9986,394
Value of production $(000)6,8426,6007,088
Net output (net value added) $(000)3,4773,2533,587
Overtime worked by wage earners h(000)289273274
Volume index, Base: 1956-57 (= 1000)1,2111,2721,209
Clay used—   
Purchased ton54,41142,54555,307
From own quarry ton214,574231,296157,627
Principal products—   
Firebricks* No.(000)2,6792,7032,863
Building bricks including hollow blocks No.(000)43,69441,40836,240
Glazed pipes and fittings—   
4 in, and below ft†(000)6,2815,8606,986
Over 4 in, but not exceeding 6 in, ft†(000)650998734
Above 6 in, ft†(000)486919
Field tiles and fittings—   
4 in, and below ft†(000)8,6896,5027,250
Over 4 in, but not exceeding 6 in, ft†(000)1,6471,6471,124
Above 6 in, ft†(000)30296107
Pottery, China, and Earthenware
Number of establishments101111
Persons engaged No.830858997
Production costs—   
Salaries, wages $(000)1,7141,8072,343
Materials $(000)5017101,046
Other expenses $(000)7831,048731
        Totals $(000)2,9993,5654,121
Value of production $(000)3,2894,0185,628
Net output (net value added) $(000)2,1082,4073,889
Overtime worked by wage earners h(000)124133166
Principal products—   
Insulators and refractory insulator elements $(000)680664747
Crockery, artware and novelties, stone-ware $(000)1,7242,2083,519
Other earthenware including sanitary-ware $(000)8231,0131,232
Cement
Number of establishments655
Persons engaged No.862766742
Production costs—   
Salaries, wages $(000)2,1882,2162,282
Materials $(000)2,1162,2322,122
Other expenses $(000)7,0286,9396,650
        Totals $(000)11,33211,38711,055
Value of production $(000)14,41314,89115,365
Net output (net value added) $(000)5,3735,8536,757
Overtime worked by wage earners h(000)233240248
Volume index, Base: 1956-57 (= 1000)1,6361,6621,697
Principal materials—   
Limestone ton(000)656680693
Clay, marl, cement rock ton(000)777759792
Gypsum ton(000)293233
Cement made ton(000)773774792
Concrete Products
Number of establishments272245239
Persons engaged No.2,2862,2662,516
Production costs—   
Salaries, wages $(000)5,1795,2876,459
Materials $(000)7,9918,37411,014
Other expenses $(000)3,5123,5064,186
        Totals $(000)16,68217,16821,658
Value of production $(000)19,70520,35627,253
Net output (net value added) $(000)8,4458,71312,311
Overtime worked by wage earners h(000)330408485
Volume index, Base: 1956-57 (= 1000)1,4971,5231,867
Materials used—   
Portland cement ton124,874127,308144,182
Sand, shingle yd727,440727,684784,645
Reinforcing ton11,72812,80516,372
Marble chips ton10,92613,52814,325
Pumice yd38,07922,35836,290
Principal products*   
Roofing tiles and ridges No.(000)4,8447,0826,198
Fencing posts No.(000)1,5181,3021,243
Telegraph and power poles No.(000)342827
Housing bricks and blocks No.(000)23,61722,34128,704
Pipes ton119,592134,584162,122
Prestressed concrete beams No.3,6214,07910,449
Plywood and Veneer
Number of establishments121215
Persons engaged No.825932944
Production costs—   
Salaries, wages $(000)1,8962,3872,819
Materials $(000)3,1514,3294,958
Other expenses $(000)1,7871,6042,080
        Totals $(000)6,8348,3209,857
Plywood and Veneer
Value of production $(000)7,63710,10011,968
Net output (net value added) $(000)2,9264,2475,056
Overtime worked by wage earners h(000)134186198
Volume index, Base: 1956-57 (= 1000)1,5102,0702,429
Species of logs used—   
Rimu ft(000) (h. Dahl)6,7777,9189,395
Radiata pine ft(000) (h. Dahl)12,11913,66430,157
Other ft(000) (h. Dahl)2,701x3,385x2,454
Veneer produced (1/10 in, basis) sq ft(000)167,196199,244203,463
Plywood made (3/16 in, basis) sq ft(000)40,50951,32455,136
Particle board sq ft(000)8,83313,92721,992
Range Making*
Number of establishments665
Persons engaged No.1,031987955
Production costs—   
Salaries, wages $(000)2,1482,1152,179
Materials $(000)3,9323,5883,971
Other expenses $(000)1,0191,1471,201
        Totals $(000)7,0996,8507,352
Value of production $(000)7,4447,0377,854
Net output (net value added) $(000)2,5252,3402,724
Overtime worked by wage earners h(000)9688136
Volume index, Base: 1956-57 (= 1000)1,6311,5901,615
Principal products—   
Domestic electric ranges No.47,41351,48955,709
Domestic electric rangettes No.3,9833,4732,688
Radio and Television Assembly and Manufacture*
Number of establishments292727
Persons engaged No.1,8841,8792,012
Production costs—   
Salaries, wages $(000)3,6103,7454,432
Materials $(000)8,9088,81911,077
Other expenses $(000)1,6061,5821,789
        Totals $(000)14,12514,14617,298
Value of production $(000)14,32814,78818,537
Net output (net value added) $(000)4,0194,5615,728
Overtime worked by wage earners h(000)9997146
Volume index, Base: 1956-57 (= 1000)3,1023,1173,971
Principal products—   
Radios—   
Car and portable No.52,14956,75992,199
Table No.8,3434,7422,209
Radiograms No.14,43214,62721,631
Television sets No.46,36945,16244,956
Motor-vehicle Assembly
Number of establishments181818
Persons engaged No.3,6663,4803,978
Production costs—   
Salaries, wages $(000)9,1598,34110,386
Materials $(000)66,48065,96384,279
Other expenses $(000)4,5175,2334,895
Totals $(000)80,15779,53899,560
Value of production $(000)86,87286,389109,956
Net output (net value added) $(000)15,98715,24920,863
Overtime worked by wage earners h(000)726362907
Volume index, Base: 1956-57 (= 1000)1,3101,2241,593
Vehicles assembled—   
Cars* No.48,87244,62453,389
Vans No.3,2822,9584,839
Trucks No.3,3632,9976,852
Motor-body Building
Number of establishments868176
Persons engaged No.1,6231,6201,745
Production costs—   
Salaries, wages $(000)3,5733,6064,172
Materials $(000)6,0576,4797,601
Other expenses $(000)1,2171,2741,417
        Totals $(000)10,84711,35913,189
Value of production $(000)11,62212,59514,418
Net output (net value added) $(000)4,5135,0265,600
Overtime worked by wage earners h(000)174167193
Main materials—   
Timber ft bm(000)1,5411,2761,493
Plywood sq ft(000)1,0991,0691,160
Paints and oils gal(000)394042
Iron and steel ton4,8364,7765,562
Trimmings $(000)425390362
Hardware $(000)811967913
Glassware $(000)163148168
Motor bodies built—   
Buses No.219203179
Vans No.360372321
Trucks—   
Cabs No.5366100
Trays No.669566587
Caravans No.2,5082,8522,695
Repairs to Motor Vehicles
Number of establishments2,6092,8342,887
Persons engaged No.21,22821,37121,441
Production costs—   
Salaries, wages $(000)41,70344,35048,666
Materials $(000)65,80971,32577,630
Other expenses $(000)16,17217,41919,599
        Totals $(000)123,684133,095145,895
Value of production $(000)133,446144,670158,078
Net output (net value added) $(000)52,61257,12862,130
Overtime worked by wage earners h(000)1,2361,2691,384
Sheet-metal Working
Number of establishments200211214
Persons engaged No.5,8896,0196,426
Production costs—   
Salaries, wages $(000)13,45514,74617,330
Materials $(000)26,50430,79635,264
Other expenses $(000)7,1517,8469,193
        Totals $(000)47,11053,38761,787
Value of production $(000)54,03961,41070,690
Net output (net value added) $(000)20,82423,20726,791
Overtime worked by wage earners h(000)9531,2521,431
Volume index, Base: 1956-57 (= 1000)3,0062,9353,156
Metal Products, n.e.i.
Number of establishments362353372
Persons engaged No.6,4146,4876,877
Production costs—   
Salaries and wages $(000)15,89216,25218,331
Materials $(000)26,06926,81733,456
Other expenses $(000)8,0658,3699,232
        Totals $(000)50,02551,43761,019
Value of production $(000)56,08857,66171,021
Net output (net value added) $(000)22,47722,96828,891
Overtime worked by wage earners h(000)1,0539451,225
Agricultural and Pastoral Machinery
Number of establishments118114113
Persons engaged No.1,1861,1841,275
Production costs—   
Salaries, wages $(000)2,5102,6863,019
Materials $(000)9,32611,34315,120
Other expenses $(000)1,2491,3051,499
        Totals $(000)13,08515,33319,638
Value of production $(000)13,77116,05822,717
Net output (net value added) $(000)3,3143,5256,225
Overtime worked by wage earners h(000)8099144
Plastics
Number of establishments132134154
Persons engaged No.3,9574,2394,818
Production costs—   
Salaries, wages $(000)9,20110,16812,903
Materials $(000)16,18619,74724,234
Other expenses $(000)6,7937,3872,566
        Totals $(000)32,18037,30239,704
Value of production $(000)38,97445,44154,537
Net output (net value added) $(000)16,32918,59022,109
Overtime worked by wage earners h(000)7329891,307
Machinery, n.e.i.
Number of establishments758786821
Persons engaged No.14,16714,78116,343
Production costs—   
Salaries, wages $(000)34,52437,06045,316
Materials $(000)49,79554,26768,218
Other expenses $(000)15,03916,54620,152
        Totals $(000)99,359107,873133,686
Value of production $(000)110,836121,891148,733
Net output (net value added) $(000)47,23752,38862,003
Overtime worked by wage earners h(000)2,2682,3142,804
Principal products*   
Washing machines No.43,76444,04947,374
Refrigerators (home, commercial, and freezers) No.69,562x100,922x106,818
Industrial machinery—   
Mining, quarrying $(000)1,6471,0921,734
Road construction $(000)2,5171,6811,888
Logging, sawmilling, woodworking $(000)2,4783,2724,363
Refrigeration $(000)3,8833,8384,405
Heating, air-conditioning $(000)4,3264,4755,705
Dairy factory $(000)3,0782,7532,674
Pumping $(000)2,2841,5782,144
Other $(000)22,22615,45915,847
Lawnmowers—hand and power No.63,33558,86378,367
Repairs to machinery $(000)17,94517,54317,477
Petroleum and Coal Products
Establishments No.181818
Persons engaged No.412395400
Production costs—   
Salaries and wages $(000)1,2681,3151,391
Materials $(000)49,99058,49257,444
Other expenses $(000)4,1693,1143,827
        Totals $(000)55,42762,92162,662
Value of production $(000)62,39171,15269,444
Net output (net value added) $(000)8,2399,5508,178
Overtime worked by wage earners h(000)595257
Principal products—   
Premium gasoline gal(000)192,391234,842238,721
Regular gasoline gal(000)121,720115,23191,435
Automotive gasoil gal(000)127,470133,804131,546
Marine diesel oil gal(000)12,95116,69119,655
Light fuel oil gal(000)45,87651,17650,078
Heavy fuel oil gal(000)76,90280,70487,373
Export fuel oil gal(000)25,42035,77425,148
Bunker fuel gal(000)20,67119,00316,091
Bitumen gal(000)18,27724,29822,873
Power station fuel gal(000)16,76615,18422,048

NOTE—More detailed information on individual industries is given in the annual Statistics of Industrial Production obtainable from Government bookshops, or alternatively available for reference at major public libraries.

Details of some of the more important individual industries for the year later than in the preceding tables are given in the notes of the month in the Monthly Abstract of Statistics. Also in the same publication up-to-date monthly or quarterly production totals are given in the tables.

Chapter 19. Section 19 BUILDING CONSTRUCTION AND HOUSING

Table of Contents

GENERAL—For many years there has been a fairly steady long-term increase in the building of houses and flats to meet the housing needs of a growing population, while the expansion of industry, trade, and commerce has led to extensive construction of factories, shops, warehouses, and offices. The erection of more multi-storey buildings, including blocks of flats, in the inner city areas has been a feature of building construction in recent years.

Twenty years ago two-thirds of the value of building permits related to new houses and flats; now this proportion has been reduced to two-fifths of the total annual value of over $500 million or from about 5 percent to about 4 percent of the gross national product. In National Development Council planning it is projected that 4.88 percent of the gross national product in 1978-79 should be represented by the building of new houses and flats.

Nearly 350.000 of the present 810,000 dwellings (that is, 40 percent of the total housing stock) have been built since the National Housing Conference in 1953. The standard house is about 1,030 sq ft in area, is single-storeyed, and normally built of timber; fittings are of a reasonably high standard, especially in the kitchen. It now costs over $7,000 to build, and stands on a section costing more than $3,000 on average.

Approximately 90 percent of the dwellings completed annually are built for private home ownership, with most of the balance being erected by Government agencies for rental purposes.

Since 1937 the State, using the services of private contractors, has been building rental dwellings. At 31 March 1971, 73,692 of these houses and flats had been built and, since 1950, 23,540 of them had been sold to the occupiers. About 1,400 of these dwellings are now built each year and let to applicants in difficult housing circumstances with an income of not more than $2,600 a year plus a discretion operated in certain circumstances. Some 387 houses were also built by the State in 1970-71 for the accommodation of Government employees.

Under the Urban Renewal and Housing Improvement Act 1945 local authorities can take action to rebuild decadent central city areas. Urban renewal schemes are in progress at Auckland, Wellington, and Christchurch, assisted with Government finance.

ECONOMIC IMPORTANCE OF BUILDING AND CONSTRUCTION INDUSTRY—The industry makes a fairly large contribution to total national output. It supplies between 62 and 67 percent of all fixed capital formation. About two-thirds of this (i.e., from 40 to 42 percent of total fixed capital formation) is in buildings, and a percentage analysis by sectors of ownership and types of building is as follows for 1970-71.

Type of BuildingCentral GovernmentLocal GovernmentPrivate SectorTotal
 percent
Houses and flats2.10.746.148.9
Hotels and motels0.30.43.34.0
Hospitals0.34.50.35.1
Factories-0.19.09.1
Commercial buildings2.70.69.913.2
Education buildings5.7-0.76.4
Miscellaneous3.01.58.813.3
            Total14.17.878.1100.0

While the overall investment pattern emphasises the key part played by residential buildings (houses and flats) in annual building programmes, and the level of this investment has increased steadily in line with increasing population, the proportion of total capital investment in residential building has declined steadily for 10 to 15 years. Throughout this time there has been a higher rate of increase in investment in other types of buildings. Whereas residential building accounted for 63 percent of building investment in 1955-56, by 1970-71 it was under 45 percent. Although residential building is likely to remain a dominant building group, the trends reflect the development of a more complex and sophisticated economy. This is emphasised by the growth in factories, commercial buildings, office blocks, motels, schools, universities, etc.

Within the residential field a trend has developed away from houses to flats. Whereas new flat units comprised 5.5 percent of all residential units built in 1960-61, the percentage rose to 31.4 by 1970-71. The greatest demand for flats has been in the main urban centres, Auckland and Wellington, and in these areas the trend has been towards multi-unit buildings. This is having important affects on specialist groups within the industry. The industry employs 8 to 9 percent of the total labour force on “on-site” works, and its position as a large market for goods from other sectors also strongly influences employment in these sectors. For example, the concrete and other non-metallic mineral products industry in the manufacturing sector employs up to 6,000 workers and the metal products industry approximately 39,000 workers. In the forestry sector, builders' woodwork has over 5,000 workers, and sawmilling and plywood 12,000. In varying degrees these industries and others rely on the building and construction industry to absorb their output.

In June 1966 the Government introduced a building programme under the Economic Stabilisation Act in terms of which the issue of building permits for works of an estimated value of more than $60,000 could be deferred for periods of up to 3 years. These building controls were removed on 8 March 1968. Regulations came into force on 7 October 1968 requiring construction work costing more than $20,000 to be registered with the Building Projects Registration Authority at the working drawing stage.

Building programming was reintroduced on 27 April 1970 and intensified in October 1970 as one of several measures to deal with growing pressure on the economy. It operates as an extension of the registration scheme by preventing local authorities from issuing permits for buildings costing more than $100,000 without the consent of the Minister of Works.

BUILDING INDUSTRY ADVISORY COUNCIL—Evolving from a committee formed in 1965, there is a Building Industry Advisory Council which is a full sector committee of the National Development Council. Its functions have become: (a) to advise Government through the Minister of Works on matters affecting the building and construction industry; (b) to advise the National Development Council on planning aspects of the building and construction sector; (c) to maintain an overall and continuing review of the industry and advise the industry on the likely effects of building trends.

The membership of the council consists of six representatives from sectors of the industry, namely contractors, architects, professional engineers, workers, and suppliers, plus one representative each from Treasury and Ministry of Works. Members have been appointed by the Minister of Works on the recommendation of organisations within the building industry.

COMMISSION OF INQUIRY—A Commission of Inquiry into Housing met in 1970 to reappraise and establish future long-term requirements of housing. It reported in May 1971 (parliamentary paper H.51).

It recommended that planning should be on the basis that about 300,000 new dwellings will be needed in the decade to December 1980 and stated that an increased demand for high-rise flats could be expected in Auckland and Wellington when strata title legislation is enacted. More town houses and terraced houses in central urban areas were advocated.

TRENDS IN AVERAGE COSTS—The following table illustrates trends in the cost of building activity over a period. (Source: Ministry of Works.)

Type of BuildingCost at End of Year
1950195519601965196919701971
 $$$$$$$
State rental house (976 sq ft)4,3445,1645,5286,1646007,4508,990
Buildings (reinforced concrete) of similar size and type50,20057,60064,20073,40080,00096,000102,700

CENSUS OF BUILDING AND CONSTRUCTION—The latest census of the activities of the building and construction industry shows that the total value of work done in the production year 1968-69 was $814 million compared with $704 million 5 years earlier. If subcontracts and other identifiable intra-industry transactions are deducted, the value of work done became $697 million for 1968-69 and $612 million for 1963-64. The recession in the building and construction industry and the economy generally during 1968 was reflected in the census results for 1968-69.

The reduced activity in the industry in 1968-69 was also reflected in the capital expenditure of the industry. In 1963-64 expenditure by the industry on capital goods for its own use, such as plant and machinery, motor vehicles, and land and buildings, was $40 million; in 1968-69, despite higher prices, it was only $36 million.

Of the total production for 1968-69 of $814 million, $537 million or 66 percent was represented by work on buildings (involving construction, alteration, repair, maintenance, or demolition); $138 million was for work on roads, railways, bridges, tunnels, dams, drains, wharves, and jetties; $27 million was land drainage, sewerage, river protection, irrigation works, water supply, and well drilling; $24 million was for earthmoving, reclamation, site development, aerodromes, and airstrips; $2 million was for the removal of overburden from mines and quarries; and of the remaining $86 million, the most important components were power development, and work on transmission and telecommunication lines.

One of the main purposes of this 5-yearly Census of Building and Construction was to examine the structure of the industry. Of the total gross output of $814 million in 1968-69, private firms were responsible for output to the value of $637 million both as main and subcontractors. Government departments used their own staff for a value output of $101 million, while local authorities did work to the value of $61 million on their own behalf. Private owner-builders not normally engaged in building and construction undertook $15 million of their own building work.

Of the total output of private firms, $192 million in 1968-69 was done on behalf of the Government and local authorities compared with $141 million in 1963-64.

PRIVATE CONTRACTORS—The business of private contractors in building and construction in 1968-69 is summarised in the following table. Further information is given in Building and Construction 1968-69, report of the Department of Statistics (available at Government bookshops).

Nature of BusinessUnitsPersons EngagedSalaries and WagesWorking ProprietorsMaterialsValue of Work Done
As Main ContractorAs Sub-ContractorTotal
 No.No.$(m)No.$(m)$(m)$(m)$(m)
Building contractor4,57923,98759.33,452133.2338.015.5353.5
Civil engineering contractor3987,89027.211830.792.99.7102.6
Shop and office fitter301480.4111.21.40.92.3
Electrical contractor8763,5718.739517.516.916.733.6
Plumber and drainlayer1,2553,9299.483324.122.321.944.1
Painter1,1713,0557.31,0745.511.68.119.7
Plasterer2991,1052.82392.22.05.37.4
Roofing contractor646201.5185.61.17.78.8
Bricklayer3339502.42794.12.26.78.9
Glazier926881.6164.52.74.97.7
Flooring contractor1123690.9562.51.92.84.7
Earth mover2111,0612.91121.09.71.811.5
Road sealer354071.192.34.41.05.4
Other2912,6217.211010.314.612.126.7
            Totals9,74650,401132.86,722244.5521.8115.2637.0

GOVERNMENT CAPITAL ASSISTANCE ON NEW HOUSING—The following table gives the Government's total capital assistance on new housing in the latest 3 years and includes both direct expenditure by Government departments and money advanced by way of mortgages and loans by the State Advances Corporation and the Department of Maori and Island Affairs, and amounts advanced in capitalisation of family benefits payable under social security. Expenditure on new housing by hospital boards, education boards, etc., is not included.

Expenditure1968-691969-701970-71
 $(000)
Land purchase and development, State house construction, etc.15,12115,71013,302
Expenditure by Housing Division for other departments1,8073,5923,899
Department of Maori and Island Affairs5,0725,2245,193
Department of Lands and Survey6174905,521
State Advances and rehabilitation loans paid out for new urban houses47,13147,17545,864
State Advances and rehabilitation loans paid out for new rural houses1,4291,6052,059
State Advances loans paid to local authorities for rural housing, pensioners' housing, etc.4,9983,8083,867
Department of Health subsidies paid to local authorities for pensioners' flats1,008786984
Advances under capitalisation of family benefits6,3528,3099,840
            Totals83,53586,69990,530

HOUSES AND FLATS COMPLETED—Statistics of completed houses and flats include any new flats which are created by the conversion of existing buildings. All houses and flats completed by the Government are included.

Statistics of completions are given in the following table.

Year Ended 31 MarchHouses and Flats Completed
195116,400
195216,300
195316,100
195416,600
195518,500
195619,200
195719,200
195818,600
195919,600
196021,600
196123,500
196224,300
196322,100
196421,100
196523,500
196626,038
196724,704
196823,256
196921,764
197022,280
197122,840

The following table shows details, for the latest 10 years, of blocks of flats and flats created by conversions. These figures do not include motels or holiday flats as these are included in commercial buildings with hotels, etc.

Year Ended 31 MarchBlocks of FlatsNumber of Flats in BlocksFlats Created by ConversionsTotal Flats
19624201,5774702,047
19635452,0124042,416
19641,0133,3757524,127
19651,5895,4621,0596,521
19661,5685,6751,2486,923
19671,4805,2691,1006,369
19681,3494,5869505,536
19691,6054,8969155,811
19702,0516,0947636,857
19712,5657,4496508,099

PROJECTIONS OF PERMANENT PRIVATE DWELLINGS—Projections of permanent private dwellings for each year up to 1980 were published by the Department of Statistics as a supplement to the October 1969 Monthly Abstract of Statistics.

A projection is an objective calculation of the effects of the continuance of certain carefully defined trends. It is not a forecast or a target, but provides background information for anyone who wishes to make forecasts or set targets.

The following table shows projections of permanent private dwellings up to 1980, assuming 31 December 1968 head-of-household rates increase by 0.837 percent* a year from 1968 onwards.

Year Ended 31 MarchProjected
Permanent Private Dwellings at End of YearIncrease During YearLosses Through Demolitions, Conversions, Fires, etc.Total New Dwellings Needed

*This was the average annual increase in occupancy rates for all head-of-household categories combined between the 1961 Census and 31 December 1968. Another available projection (not given here) assumes that 31 December 1968 head-of-household rates continue unchanged and gives a lower annual pattern of increase.

A lower population increase than projected and a lesser variation in occupancy rates have had a combined effect of reducing the projected number of dwellings required by 4,500 in 1971, 5,200 in 1974, and 6,000 in 1979.

 (000)(000)(000)(000)
1969 (base)841.9.........
 Assuming Net Immigration of Zero Each Year
1970861.819.95.425.3
1971882.520.75.526.2
1972903.921.45.727.1
1973926.122.25.828.0
1974949.022.96.028.9
1975972.823.86.129.9
1976997.424.66.330.9
19771,022.925.56.431.9
19781,049.226.36.632.9
19791,076.527.36.734.0
19801,104.628.16.935.0
Assuming Net Immigration of 5,000 Each Year
1970864.122.25.427.6
1971886.922.85.628.4
1972910.423.55.729.2
1973934.724.35.930.2
1974959.825.16.031.1
1975985.725.96.232.1
19761,012.526.86.333.1
19771,040.227.76.534.2
19781,068.828.66.735.3
19791,098.429.66.936.5
19801,128.930.57.137.6

BUILDING PERMITS—The prime source of these statistics is building permits issued by local authorities. To enable a complete picture of building activity to be shown, construction commenced by Government departments, hospitals, and education boards is included, even though permits are not actually taken out.

The value shown represents in the majority of instances the total contract price or estimated cost of the building. A permit for a large building may involve work spread over several years whereas in the permit statistics the value is shown entirely for the year or month in which the permit is issued. This qualification applies more particularly to large buildings.

The value placed on a building for the purposes of the permit is usually less than the actual cost. This applies particularly to large new buildings which take a considerable time to complete. In these cases the final cost, owing to wage increases, rising costs of materials, etc., may be greater than originally estimated. These rises are not apparent in building permit figures.

The values of building permits for the latest 5 years are analysed by types of building in the following table. Permits cover alterations and additions as well as new buildings.

Type of BuildingYear Ended 31 March
19671968196919701971

*Includes ancillary buildings.

†Includes alterations and additions.

Dwellings$(million)
New houses147.8137.0147.6156.0168.7
New flats28.324.627.436.647.4
Houses and flats (alteration and additions)26.725.727.128.635.3
Other Buildings     
Hotels and boarding houses12.19.517.322.920.5
Hospitals*20.57.313.211.726.2
Factories39.628.230.241.546.1
Commercial buildings59.948.256.262.067.9
Schools*24.716.736.632.733.0
Miscellaneous (including churches, sports, and entertainment buildings)31.933.139.956.168.5
            Totals391.5330.3395.4448.0513.6

In the following table the numbers of permits for new houses and flats over a period of 11 years are shown along with permit values.

Year Ended 31 MarchPermits for New Houses and FlatsValue of New HousesValue of New FlatsValue of Other New Buildings*Total Value All Buildings (Including Alterations and Additions)
HousesFlats
*Permits issued for new buildings erected on sites where there were already one or more existing buildings were previously classified as “alterations and additions"; now they are included in the classification of new buildings.
   $(million)$(million)$(million)$(million)
196123,0501,347139.15.9...269.4
196220,8171,577131.07.6...259.2
196318,6242,012120.19.1...274.2
196418,3883,375123.716.1...294.6
196519,8955,462138.826.5...357.7
196620,2575,675149.127.3124.9381.7
196718,7775,269147.828.3138.2391.5
196816,7794,586137.024.6103.5330.3
196917,4214,896147.627.4149.2395.4
197016,9906,094156.036.6182.0448.0
197116,2307,449168.747.4186.2513.6

The average permit value for houses and flats in 1970-71 was $9,123, compared with $8,343 in 1969-70 and $7,835 in 1968-69.

During the year ended 31 March 1971 there were permits issued for 2,565 blocks of flats, totalling 7,449 individual units. The preceding table includes flats on an individual basis.

The following diagram illustrates building-permit figures for new houses and flats.

Sector of Ownership—Permit values for the main groupings of building activity are analysed below according to sector of ownership.

Sector of OwnershipCommercial BuildingsHouses and FlatsSchools and Hospitals
1969-701970-711969-701970-711969-701970-71
 $(million)
Private enterprise48.750.324.529.61.00.9
Households*0.30.4177.1207.22.34.0
Central Government10.913.616.910.833.331.1
Public corporations0.50.20.1---
Local government1.53.32.63.67.823.1
Sector of OwnershipFactoriesMiscellaneousAll Buildings
1969-701970-711969-701970-711969-701970-71
*Including non-profit organisations.
   $(million)   
Private enterprise40.545.746.151.0160.8177.5
Households*--9.510.9189.2222.5
Central Government0.20.210.116.471.572.1
Public corporations--2.81.03.41.2
Local government0.70.310.69.823.240.1

GEOGRAPHICAL LOCATION—The following table shows for selected areas the building permit values for the March year 1970-71. (The areas do not conform with urban areas.)

AreaNew Houses and FlatsTotal (All Permits) Value
NumberValue
  $(000)$(000)
Auckland City7267,49229,215
Takapuna2953,3885,066
Birkenhead2602,4033,683
East Coast Bays3233,5934,447
Mount Albert2521,4066,014
Mount Eden3381,4853,113
Mount Roskill2001,8893,286
One Tree Hill221822,784
Mount Wellington1781,2114,610
Onehunga2261,5104,275
Howick2192,1132,559
Papakura2322,1772,715
Papatoetoe2421,5192,912
Manukau1,64915,78129,676
Waitemata County1,48013,84921,614
Auckland, Combined7,17063,997137,298
Wellington City8458,40532,330
Porirua1461,3973,043
Tawa1201,6502,192
Upper Hutt1541,4063,400
Lower Hutt3754,2099,268
Petone342561,370
Hutt County5456,32910,069
Wellington-Hutt Combined2,24324,02062,330
Christchurch City1,1648,75130,863
Paparua County3062,6286,104
Waimairi County5335,47510,030
Christchurch Combined2,15318,31249,472
Dunedin Combined4954,65616,410
Whangarei2332,0675,236
Hamilton1,0348,26620,634
Tauranga6015,45312,186
Rotorua4403,5017,043
Gisborne1931,4843,307
Napier4093,6127,531
Hastings3462,9416,668
New Plymouth3613,49110,095
Wanganui1381,1503,745
Palmerston North4504,09916,227
Masterton1151,1293,007
Nelson2742,1593,445
Blenheim1871,5322,592
Timaru1661,7513,795
Invercargill4423,7777,882

WORK PUT IN PLACE—The Department of Statistics makes a survey of building work put in place. In contrast to the statistics based on building permits, these figures show the gross value of actual work done. It should be noted that there are varying time lags between the issue of the building permit and the commencement of building. The actual work for which a permit is issued can be extended over a number of time periods. Also, the total value of this work may differ considerably from the value estimated on the building permit.

Year Ended 31 MarchDwellings
New Houses and FlatsAlterations and AdditionsTotal
GovernmentOtherTotal

*Includes alterations and additions.

†And ancillary buildings.

‡Includes churches, sports, and entertainment buildings.

§Value of work actually put in place.

 $(million)Value of Work Put in Place§
196616.0167.9183.826.8210.6
196717.1160.2177.328.0205.4
196814.6149.2163.726.7190.4
196912.4155.3167.728.2195.8
197014.9174.9189.830.4220.2
197112.9202.0214.934.5249.3
Year Ended 31 MarchOther Buildings*Grand Total
Hotels, Boarding-housesHospitalsFactoriesCommercial BuildingsSchoolsMiscellaneousTotal
$(million)Value of Work Put in Place§
196611.17.647.562.918.627.8175.4386.1
196713.910.439.560.520.732.7177.6382.9
196814.813.437.054.019.932.8171.7362.1
196913.515.032.547.821.134.3164.2360.1
197019.712.334.459.325.349.5200.5420.7
197123.115.153.166.732.267.8258.1507.4

EMPLOYMENT—The level of employment in the building and construction industrial group as shown in the Department of Labour's half-yearly survey has varied considerably during the last 10 years. The number employed in the group was fairly constant (approximately 56,000) during 1961 to 1963 but rose sharply during the next 3 years reaching 64,600 in 1966. There was a sharp decline in 1968 when the number of full-time employees fell to approximately 59,300, but a rise was experienced in 1969 and 1970. The number of employees in the building and construction industrial group engaged in the building of houses and flats has fallen steadily in the last 3 years; from approximately 15,600 in 1961 to approximately 13,100 in 1970, or as a percentage of all employees in the building and construction industrial group, from 27.8 percent in 1961 to 21.3 percent in 1970. Presumably this fall is due, in part, to increased productivity in the sector as a result of new or improved methods of construction and better materials and equipment.

BUILDING MATERIALS—Most materials with the exception of some steel and galvanised iron are produced in New Zealand and current production is meeting demand. Although supplies of imported materials are restricted under the system of import licensing, building operations have not been seriously hampered by lack of supplies. Expansion still continues in the quantity and range of materials and fittings manufactured in New Zealand.

Production of Principal Building Materials—The following table shows the production of principal building materials for the latest 11 years.

Production YearRough-sawn Timber*Dressed Timber (from Rough-sawn)Building SheetPlywoodWall-boardPaints, etc.
Paints and EnamelsVarnishesLacquers

Source: New Zealand Forest Service, for years ended 31 March.

‡Includes fibrous plasterboard.

†Asbestos cement and cement sheet.

 ft bm (million)sq ft (million)gal (thousand)
1959-60693.8128.431.643.1153.13,033118256
1960-61714.1144.433.848.0170.83.134115264
1961-62692.6157.031.349.3188.43,016130270
1962-63643.4160.228.351.4170.33,096126294
1963-64666.0154.030.152.9168.73.321136346
1964-65736.2176.831.254.2192.93,636138370
1965-66756.9185.034.656.6197.53,617157345
1966-67747.6176.033.657.1181.03,643166365
1967-68674.9165.732.640.5190.53,635192320
1968-69732.6172.535.151.3202.03,731236366
1969-70765.0161.436.155.1218.53,935292379
Production YearConcrete Roofing TilesBricks and BlocksDrainpipes, Salt Glazed, 6 in. and BelowCement
Building Bricks ClayConcrete
BricksBlocks
*In millions of effective running feet.
No. (million)tons (000)
1959-6011.450.90.510.12.76575.4
1960-6111.056.40.612.52.88619.6
1961-6211.260.50.512.43.09647.9
1962-639.446.81.412.23.06653.2
1963-649.850.20.816.05.82*754.1
1964-658.851.70.819.56.95*786.5
1965-665.952.40.425.56.89*841.1
1966-675.250.80.624.27.33*859.0
1967-684.842.50.123.56.93*772.5
1968-697.140.30.122.26.86*774.3
1969-706.236.10.228.57.72*792.2

HOUSING FINANCE—The chief agency providing finance for housing in New Zealand is the State Advances Corporation, a wholly Government-owned institution described in detail in Section 30b. For the year ended 31 March 1971 the State Advances Corporation authorised loans valued at $49.5 million for new urban dwellings, of which $11.1 million was initially at the 3 percent interest rate. Loans of $29.6 million were authorised for the purchase of existing houses, of which $3.8 million was initially at 3 percent.

The Family Benefits (Home Ownership) Act 1964 provides for payment in a lump sum of the social security family benefit, the capitalised benefit to be applied towards the provision of a family home, for essential alterations, or for repayment of encumbrances on a family home. The scheme became operative on 1 April 1959. Benefits in respect of any number of children may be capitalised provided the aggregate advance does not exceed $2,000. Family benefit advances totalling $105.8 million were authorised in the first 12 years of the scheme by the State Advances Corporation to applicants holding eligibility certificates issued by the Social Security Commission.

The State Advances Corporation operates two Housing Mortgage Guarantee Schemes in respect of housing loans on first mortgage granted by approved lenders, including trustee lenders, where the amount advanced does not exceed 90 percent of value. The maximum loan which may be advanced is $13,500 and the maximum effective interest rate is 7 percent. Under the first scheme, which is confined to approved institutional lenders, the corporation guarantees the amount lent above the institution's normal lending limit (usually two-thirds of value). The second scheme, for which any lender may qualify, provides for the guarantee of the full amount of the loan advanced. Fees are charged according to the amount guaranteed and the degree of risk. The loans must be on a table or similar basis (i.e., repayable over a specified period) and for the purpose of building, buying, altering, or refinancing a house or flat.

Home lay-by accounts in the Post Office Savings Bank and trustee and private savings banks qualify for a subsidy, known as a suspensory free deposit, of $10 for the first $200 when the money is used to acquire a new home to be occupied by the depositor. At 31 March 1971 there were 1,484 accounts open (see Section 29).

Further information on housing finance is contained in Section 30b—State Advances Corporation.

ROLE OF LOCAL AUTHORITIES—The housing policy of the Government includes the provision of loans to local authorities through the State Advances Corporation for pensioner, rural, and community accommodation.

Pensioner Housing—Since 1951 Government has encouraged local authorities to meet the housing needs of pensioners rather than provide such accommodation itself. To this end a scheme of subsidies was introduced, the balance of the cost being found by way of a loan to the local body with interest at 3 1/2 percent and a term up to 40 years on a table basis. The combination of subsidy and low interest rate is directed at keeping rents within reasonable levels—the current maxima are $3.50 and $4.50 for single and double units respectively.

The policy is administered by the Health Department, which establishes the need for pensioner accommodation in a particular locality and administers the subsidy. The State Advances Corporation provides technical services and administers the loan. The present subsidy offered is up to 50 percent of the cost of erection—with a maximum of $3,000 per unit. A subsidy of up to $1,000 per flat is available for the cost and development of land. It is required that the accommodation provided be let only to elderly persons with a housing need.

At 31 March 1971 Government subsidies of $10,510,805 had been granted to local authorities and also loans of $13,779,923 to provide 9,030 flats. (These subsidies now include those granted to religious and welfare organisations—see Section 5a.)

Rural Housing—The Rural Housing Act 1939 has as its object the provision of more houses on farm properties. Loans are made to county councils (and other local bodies within whose boundaries farmlands are situated) for readvancing to farmers for the erection of, or additions or alterations to, dwellings. The State Advances Corporation is responsible for the supervision and general administration of the Act. Interest to local bodies is currently at 4 3/4 percent; the rate charged to the farmer is 5 1/4 percent; the maximum advance in respect of any one house is $8,000. Persons receiving loans are principally owners of economic farms.

Government policy has for many years been directed at ensuring housing of good standard in rural areas, and active encouragement has been given to county councils to increase participation in the scheme. During the year ended 31 March 1971, 61 county councils uplifted loans of $1,760,394 in respect of 301 houses. A total of $23,228,842 has been authorised since the scheme was introduced.

Community Housing—The State Advances Corporation has authority to grant loans for general housing purposes, i.e., for the benefit of the community in general. The interest rate is 5 percent; loan terms are for up to 40 years on a table basis. Proposals must involve a definite scheme for the erection of not less than three houses. The substantial proportion of assistance provided has been in the metropolitan areas (e.g., in Wellington the city council's building programme has been largely financed from this source). The emphasis is on moderate-cost accommodation.

Urban renewal is also financed under the community housing scheme—but at 3 1/2 percent. The area concerned must first be declared a reclamation area; any loss on land purchase and demolition is eligible for a Government subsidy (administered by the Ministry of Works). The Freeman's Bay scheme in Auckland and the Nairn Street project in Wellington are examples.

Since 1960 over $13.5 million has been authorised for community housing schemes.

Borough councils are authorised under the Municipal Corporations Act to provide loans for housing purposes, to subdivide for such purposes any land vested in a council and not held by it in trust for any particular purpose other than housing; and to sell or lease allotments for housing purposes. Local authorities may also apply to the Local Authorities Loans Board for blanket authorities for the purchase of land for subdivision for housing purposes. Local authorities are encouraged to play a prominent part in the housing of their citizens.

MAORI HOUSING—In addition to the facilities of the State Advances Corporation, financial assistance towards the building of houses, including the purchase of building sites, additions, repairs to existing dwellings, and for the purchase of houses, is available to Maoris and other Polynesians under the Maori Housing Act 1935, the lending authority being the Board of Maori Affairs.

The Maori and Island Affairs Department also arranges for the construction of the houses in many cases and provides a free plan service. Finance through the department up to set loan limits, rebated interest rate, and capitalisation of family benefits, is similar to loans granted by the State Advances Corporation. Where the applicant does not qualify for the special interest concession the finance is made available at an interest rate of 5 5/8 percent.

All applications for State tenancies are dealt with by the State Advances Corporation, although assistance with applications is often given by the department's staff.

From the inception of the scheme to 31 March 1971, the department has provided finance to enable 15,277 families to build new houses, 622 to purchase existing houses, and 6,211 to make additions to or repair their houses. A further 8,444 Maori families have obtained houses or rental flats from the State Advances Corporation and the Maori Trustee. A Maori household averages 5.5 persons so that the combined figure, including additions or repairs, of 24,473 houses, means a total of some 134,591 Maori people have been provided with better housing in a space of 32 years.

The Government has also provided accommodation for single young Maori people in urban areas. It has built rental flats for girls in Auckland, Wellington, Christchurch, and Whangarei. It has provided hostels for boys at Auckland and Christchurch and by the provision of subsidy has encouraged church organisations to establish hostels in a number of cities. Through the agency of the Maori Trustee, hostel and flat accommodation for both boys and girls has been provided in many of the main centres. In these ways the accommodation needs of over 1,000 young Maori people are now being met, many of whom are enrolled on the department's vocational training courses operated in conjunction with the technical institutes.

Accommodation for Maori pensioners has been provided in Kaikohe, Paihia, and Te Kao.

STATE HOUSE CONSTRUCTION—A programme of building State rental houses and flats was commenced in March 1937. These are allocated to tenants on the basis of income and need. Since 1950 there has been an income limit on applicants for tenancies for these dwellings.

The Housing Division of the Ministry of Works acquires and develops land to provide sites for houses and flats and arranges contracts for their construction. These activities are covered by the Housing Act 1955.

The totals of State rental units completed and handed over for occupation in the latest 11 year are shown in the following table. Up to 31 March 1971 there were 73,692 units completed.

YearNumber of Units
1960-612,148
1961-621,972
1962-631,948
1963-641,562
1964-651,622x
1965-661,334
1966-671,469
1967-681,489
1968-691,534
1969-701,241
1970-711,194

Planning of New Urban Areas—Such has been the demand for State development in Auckland and Wellington that it has been necessary to acquire large areas of land in these metropolitan areas, which, when developed over a number of years, has resulted in the creation of new towns. These have been comprehensively planned, and developed sites have been made available for central commercial, industrial, and administrative areas as well as civic and neighbourhood amenities. At present the three existing instances of development at this scale are Porirua City, near Wellington, and Otara and Mangere townships within Manukau City, south of Auckland.

In accordance with continuing Government policy the planning of these towns and State development generally has recognised the need to conserve land and gain as much return from the installation of municipal services as possible. For these reasons, particular attention has been paid to subdivisional pattern and, where appropriate, medium-density housing to an acceptable level has been introduced. In addition, a measure of building of medium and high-density residential accommodation has been undertaken in inner city areas in Auckland and Wellington.

Recognising the need for some degree of social diversification in State developed areas, it has been the policy for a number of years to make available for sale to the public for private housing some sections surplus to the need of the rental housing programme.

State Services Housing—State Services houses are houses for Government departments and the armed forces. The total number of such houses erected by the State Housing Division to 31 March 1971 was 12,925. This includes houses built at the sites of major construction jobs, such as electric power schemes.

Finance—The cost of the State housing programme, including the acquisition and development of land, is financed from the Housing Construction vote in the Works and Trading Account, i.e., out of national development loan moneys.

The following table shows the annual expenditure from the Housing Construction vote.

Year Ended 31 MarchState HousingState ServicesLand Purchase and DevelopmentAdministration and GeneralTotal
*Additional expenditure charged directly to the departments concerned is shown in the succeeding table.
$(000)
196112,430926,4161,29020,228
196211,63868*5,3261,35418,386
196310,35464*4,0942,14016,652
196410,76472*3,9601,84016,636
196510,102122*3,3521,88615,462
19669,394136*3,2921,86414,686
196711,234124*2,7841,89816,040
196810,8651232,7691,92215,680
19699,849893,2921,89015,120
197010,2761343,2642,03615,710
19718,8032,3952,10413,302

The next table shows the annual total expenditure by the Housing Division in the latest 6 years.

YearVote, “Housing Construction"On Behalf of Other Departments*Total
Construction, Land Purchase and Development, AdministrationLand Development, MuruparaOn Behalf of Other Departments (Charged Direct)Total
*Expenditure on behalf of other departments charged meantime to vote, “Housing Construction”.
$(000)
1965-6614,5361413614,6865,66620,352
1966-6715,792112415,9174,66220,579
1967-6815,557-12315,6803,33319,013
1968-6915,031-8915,1201,80716,928
1969-7015,576-13415,7103,59219,302
1970-7113,302--13,3023,89917,201

Room Content of Units (State Houses and State Services Housing)—The types of units according to number of bedrooms in units built during the 2 latest years, also the totals from 1937 to date, are shown in the following table.

Number of Bedrooms1969-701970-71Totals to Date
Number of UnitsPercentage of TotalNumber of UnitsPercentage of TotalNumber of UnitsPercentage of Total
One bedroom or bed-sitting room362.3201.24,8315.6
Two bedrooms1459.21288.125,35729.3
Three bedrooms1,18775.51,20176.049,51657.1
Four or more bedrooms20513.023214.76,9138.0
            Totals1,573100.01,581100.086,617100.0

Sheathing Materials Used (State Houses and State Services Housing)—The sheathing materials used in the number of units built in the 2 latest years, also the totals from 1937 to date, are shown in the following table.

Materials1969-701970-71Totals to Date
Weatherboards64960049,046
Brick veneer29331214,872
Concrete block veneer2302296,003
Other sheathing including asbestos cement products40144016,696
            Totals1,5731,58186,617

Land Acquisition—During 1970-71 a total of 21 developed unit sites was purchased as a charge against the Housing Construction vote, also 29 acres of undeveloped land estimated ultimately to yield 126 unit sites. Approximately one-half of these sections are intended for State rental house building, the balance being for private home building.

State Rental Housing Tender Prices—The following table shows typical tender prices being accepted in the four main centres at the end of the last 11 financial years for similar types of three-bedroom State rental houses of equivalent floor space. In each case the house is a typical single unit on a flat section, built in weatherboards with a tiled roof. The price includes drainage, fencing, paths, toolshed, revolving clothes line, and letterbox. The cost of the section is not included. The figures in parentheses represent the cost per square foot.

YearAucklandWellingtonChristchurchDunedin
 $ $$ $$ $$ $
1960-616,338 (6.04)6,134 (5.84)5,500 (5.24)6,218 (5.92)
1961-626,334 (6.03)6,278 (5.98)5,472 (5.21)6,172 (5.88)
1962-636,298 (6.00)6,316 (6.02)5,452 (5.20)6,182 (5.88)
1963-646,306 (6.01)6,330 (6.03)5,686 (5.42)6,234 (5.94)
1964-656,726 (6.41)6,888 (6.56)6,104 (5.81)6,632 (6.32)
1965-666,942 (6.61)7,178 (6.83)6,434 (6.12)6,758 (6.42)
1966-676,894 (6.58)7,372 (7,03)6,488 (6.19)6,990 (6.67)
1967-686,366 (6.06)6,830 (6.50)6,273 (5.97)6,586 (6.27)
1968-696,753 (6.43)7,264 (6.92)6,669 (6.35)7,124 (6.78)
1969-707,184 (6.84)7,675 (7.30)6,759 (6.43)7,661 (7.29)
1970-718,304 (7.90)8,603 (8,19)7,566 (7.20)8,836 (8.41)

JOINT FAMILY HOMES—The Joint Family Homes Act 1964 makes provision for a form of ownership by which a family home will belong not to the husband and wife separately but to both of them so that it may pass to the survivor on the death of one of them. It is possible to settle flats as family homes. There are substantial benefits resulting from settlement under the Act. In the event of claims by creditors or an assignee in bankruptcy, the property is protected up to a sum of $8,000. Further, on the death of one of the spouses there is an exemption of $8,000 from estate duty. Settlements under the Act are exempt from gift and stamp duty.

Under the Family Benefits (Home Ownership) Act 1964 there is a condition attaching to capitalisation of the benefits that the home, if not in the sole name of the wife, be settled as a joint family home.

Joint family homes under the Joint Family Homes Act registered for the last 11 years are shown in the following table.

Year Ended 31 MarchHomes Settled
196116,368
196216,012
196314,683
196413,056
196513,224
196614,149
196712,738
196813,278
196914,040
197014,545
197115,232

CENSUS INFORMATION: Nature of Dwelling—The following table shows the nature of dwellings at the censuses at 1966 and 1971.

Numbers of DwellingNumbersPercentage of Total Inhabited Dwellings
1966197119661971
*Estimate only.
Inhabited dwellings—    
    Permanent private dwellings—    
        Private house626,580 86.5 
        Private house, partly sublet1,162 0.2 
        Flat74,999 10.4 
        Dwellings combined with shop, rooms attached to offices, etc.5,820 0.8 
        Bach7,484 1.0 
        Other59 -- 
            Totals716,104800,500*98.9 
    Mobile and temporary dwellings—    
        Mobile residence (including caravans)1,035 0.1 
        Other (including tents)134 -- 
            Totals1,169 0.1 
    Non-private dwellings—    
        Hotel, boardinghouse, apartment house, hostel5,317 0.7 
        Public or private hospital533 0.1 
        Camp525 0.1 
        Other796 0.1 
            Totals7,171 1.0 
            Grand totals, inhabited dwellings724,444809,837100.0100.0
    Uninhabited dwellings—    
        Occupants temporarily away14,97918,116......
        Untenanted dwelling26,27226,184......
        Bach (weekend or summer dwelling)29,53432,446......
            Totals70,78576,476......
    Building—    
        Dwellings in course of erection10,6679,182......

In 1966 the average number of occupants per permanent private dwelling was 3.52, compared with 3.56, 5 years earlier.

Unoccupied dwellings are restricted to buildings intended for human habitation, e.g., houses' flats, cottages, etc., and the category omits unoccupied caravans, tents, etc.; it also excludes unoccupied dwellings which are both deserted and dilapidated.

Rents—In the following table the average weekly rent for unfurnished five-roomed dwellings is given for selected cities with the largest numbers of rental dwellings in 1966. State rental houses are included in the figures and would have a moderating effect on the rents. The average weekly rent for the 47,362 unfurnished five-roomed dwellings in New Zealand was $6.29, while it was $7.08 for the 33,378 such dwellings in centres of over 2,000 population.

CityNumber of Five-roomed Dwellings LetAverage Weekly Rent
  $
Auckland2,4438.16
Manukau9957.10
Lower Hutt1,6417.11
Porirua1,2766.72
Wellington1,4849.72
Christchurch2,2367.48
Dunedin1,3046.45
Hamilton1,2567.10
Palmerston North1.0026.95
Gisborne5446.40
Napier6526.45
Hastings5676.69
New Plymouth6576.73
Wanganui7316.36
Timaru4946.61
Invercargill6317.19

The numbers and average weekly rents according to the number of rooms in all rented dwellings and also in flats separately are shown in the following table. (These are also from the 1966 Census.)

Nature of DwellingNumber of RoomsTotal, Including
123456
All Dwellings (including flats)
    Number   
Furnished1,0514,3306,3685.8814.4251,61924,476
Unfurnished2,46110,09922,50238,75547,36212,071137,271
Partly furnished6362,7003,9343,7632,9181,17815,682
All rented dwellings4,14817,12932,80448,39954,70514,868177,429
Weekly Rent
 $$$$$$$
Furnished7.3310.1211.6711.9011.7313.9011.58
Unfurnished4.136.488.127.066.296.886.88
Partly furnished6.009.1310.3110.7210.7011.5410.28
All rented dwellings5.247.849.087.956.978.047.84
Nature of DwellingNumber of RoomsTotal, Including Other
123456
Flats   Number   
Furnished7693,7374,8472,8371,02333913,772
Unfurnished2,0327,60613,48410,6133,48952938,054
Partly furnished4352,2222,9911,7905291488,199
All rented flats. 3,23613,56521,32215,2405,0411,01660,025
Weekly Rent
 $$$$$$$
Furnished8.0910.5812.6314.5816.3918.4012.73
Unfurnished4.286.969.589.758.3410.168.71
Partly furnished7.029.6610.9912.0413.0114.4410.88
All rented flats5.568.4110.4810.9210.4713.559.94

Tenure of Dwelling—The following table classifies the inhabited permanent private dwellings according to tenure.

Tenure19611966
Number of DwellingsPercent of Total SpecifiedNumber of DwellingsPercent of Total Specified
Renting or leasing153,72824.3177,42924.9
Free dwelling provided with job34,0875.435,3875.0
Loaned without payment8,5861.47,9191.1
Owned with table mortgage166,63626.3213,80730.0
Owned with flat mortgage86,35913.780,88511.3
Unspecified mortgage4330.1226--
Owned without mortgage181,79328.8197,08527.7
Not specified2,085...3,366...
            Totals633,707100.0716,104100.0

In the following table the tenure of inhabited permanent private dwellings in 1966 is related to the occupational status of the head of the household.

Occupational Status of Head of HouseholdTenureTotal Dwellings
Renting or LeasingRent Free*Owned
With MortgageWithout Mortgage

*Includes free dwelling with job, and dwellings loaned without payment.

†Includes dwellings where tenure unspecified.

Employer5,5103.32933,94418,72161,948
Worker on own account6,3364,13329,05616,11456,019
Wage or salary earner134,04929.434204,34167,333436,542
Unemployed9031016575802,261
Assisting relative47152046
Not specified15832133191537
            Totals, actively engaged146,96037,036268,146102,959557,353
Retired or independent means9.8142,70210,72152,23775,877
Dependent on public or private support20,6553,56816,05141,88982,875
        Totals not actively engaged30,4696,27026,77294,126158,751
        Total heads177,42943,306294,918197,085716,104

In the following table the tenure of the preceding dwellings in 1966 is related to the income level of the head of the household.

Income Group of Head of HouseholdTotal HouseholdsTenure
Renting or LeasingRent Free*Owned
With MortgageWithout Mortgage

*Includes free dwelling with job, and dwellings loaned without payment.

†Includes cases where income of head of household was not specified.

$Percentage of Households
Under 600124,15523.34.418.354.0
600-1,39950,89027.77.521.843.0
1,400-2,199192,22631.88.537.921.8
2,200-2,999196,43426.54.952.915.7
3,000-3,99973,44718.85.357.718.2
4,000-7,99960,2769.85.957.027.3
8,000 and over14,9855.83.651.738.9
            Totals716,10424.96.141.427.6

Amenities of Dwellings—The next two tables present the various amenities in permanent private dwellings and show whether they were used solely by the occupants of a dwelling or shared by occupants of other dwellings.

AmenityNot SharedSharedNilNot Specified
19611966196119661961196619611966
 Number of Dwellings
Hot water service588,447697,4006,4197,26837,5457,9461,2963,490
Bath or shower607,385697,0617,8495,65017,9089,6905653,703
Flush toilet552,512667,5787,8255,68472,88640,7544842,088
Refrigerator509,461651,7601,9231,999121,17658,8771,1473,468
Telephone...584,735...3,395...123,215...4,759
Washing machine488,253620,1875,8009,486137,60781,2122,0475,219
Television set...452,033...1,132...252,939...10,000
Radio...667,340...979...44,220...3,565
Vacuum cleaner...636,217...3,592...72,287...4,008
 Percentage of Dwellings
Hot water service93.197.91.01.05.91.1......
Bath or shower96.097.81.20.82.81.4......
Flush toilet87.393.51.20.811.55.7......
Refrigerator80.591.40.30.319.28.3......
Telephone...82.2...0.5...17.3......
Washing machine77.387.31.01.321.711.4......
Television set...64.0...0.2...35.8......
Radio...93.7...0.1...6.2......
Vacuum cleaner...89.3...0.5...10.2......
Means of Cooking—1966Number of DwellingsPercentage of Total Specified
Electric range, stove560,23478.4
Electric cooker, stovette1,6520.2
Electric range and coal, wood, coke, range20,8882.9
Electric range and gas range3,4000.5
Gas range72,98810.2
Gas cooker, stovette1590.0
Gas range and coal, wood, coke, range2,7690.4
Coal, wood, coke, range51,5597.2
Oil range or stove3260.0
Oil, other103--
Other4290.1
Not specified1,087...
No means5100.1
            Totals716,104100.0

At the 1966 Census 44.5 percent of dwellings were healed mainly by open fireplaces, 38.6 percent by electric fires or radiators, 5.6 percent by space heaters, and 2.6 percent by kerosene heaters or radiators.

In 1966, 90.4 percent of all inhabited permanent private dwellings had piped water, while 9.5 percent depended on rainwater tanks, and only 0.1 percent had no water laid on.

In the following table the possession of selected household amenities is related to the income of the head of the household.

Income of Head of HouseholdTotal HouseholdsAmenities*
RefrigeratorWashing MachineTelephoneTelevision

*Including a very small percentage of households sharing facilities.

†Including cases where income of the head of the household was not specified.

$Percentages
Under 600124,15582.370.972.547.6
600 - 1,39950,89086.078.778.049.9
1,400 -2,199192,22689.687.976.559.9
2,200 -2,999196,43495.094.584.870.4
3,000 - 3,99973.44797.696.593.174.4
4,000 - 7,99960,27698.697.297.976.9
8.000 and over14,98599.097.899.080.4
Totals716,10491.387.982.163.3

Materials of Outer Walls—The following table gives an analysis showing the materials of which the outer walls of inhabited permanent private dwellings were constructed. Flats are included individually and not as blocks. Therefore part of the increase, for instance, in brick and concrete construction, is accounted for by a lesser number of buildings than indicated by the increase in number of dwelling units.

Material of Outer WallsNumber of Dwellings
195619611966
Wood411,370431,318455,213
Stone1.1212,4568,910
Concrete, including concrete blocks17,86922,51028,347
Concrete and wood1,0872,0393,093
Brick, including hollow brick47,42065.17194,100
Brick and wood3,3326,1578,818
Brick and other material3,4017,0356.263
Wood and iron3,7213,3142,507
Wood and proprietary wallboard2,3697,3351.593
Iron3,8623,0832,554
Asbestos2,0112,1762,684
Proprietary wallboards of asbestos type26,25047,96346,954
Roughcast27,94425,55537,045
Other materials3,9226,81716,238
Not specified7,3737781,785
            Totals563,052633,707716,104

Although the number of houses and flats with outer walls of wood increased by slightly fewer than 24,000 between the 1961 and 1966 Censuses, as a percentage of all inhabited permanent private dwellings they decreased from 68.1 to 63.6.

Houses and flats with outer walls constructed of concrete, brick, and roughcast increased both in number and as a percentage of the total between 1961 and 1966, thus continuing the post-war trend.

Materials for Roofs—Most dwellings (69.5 percent) in 1966 were roofed with sheet or corrugated iron with tiles the next popular choice (22.6 percent).

Numbers of Rooms and Occupants—The following table classifies inhabited permanent private dwellings in 1966 according to the number of rooms and the number of occupants.

Number of RoomsNumber or Occupants
12345678 and OverTotal DwellingsAverage Per Dwelling
14,741713220104512713215,8901.3
211,2578,4512,2581,04042221610913023,8831.9
314,82821,4059,5786,1073,0891,6538941,09858,6522.6
424.99650,41328,04022,38911,4395,7102,6822,990148,6592.9
521,39961,13250,00662,22047,44925,06610,5978,444286,3133.8
68,32524,52120,70924,66620,52713,6237,1337,534127,0384.1
72,2946,7776,5187,9667,1394,9742,6922,50740,8674.3
87462,2622,2232,6052,4901,8349801,01114,1514.4
92237097428808336103683434,7084.4
101063233173833322921671642,0844.5
11 and over683132782682832371 161441,7074.5
Not specified401511337331233147751172,1523.5
            Totals89,384177,530121,226128,95994,28754,38925,82624,503716,1043.5

Of the total number of dwellings (where number of rooms was specified) 562,010, or 78.7 percent had either 4, 5, or 6 rooms and of these 344,096 were occupied by either 2, 3, or 4 persons.

The number of dwellings with only 1 occupant increased from 72,004 in 1961 to 89,384 in 1966, a rise of 24.1 percent; those living alone in dwellings of 3 rooms rose from 11,157 to 14,828; those in 4 rooms from 19,897 to 24,996; and those in 5 rooms from 17,003 to 21,399. A large proportion of those persons living alone were widows.

TENANCY—The Tenancy Act 1955 administered by the Department of Labour governs rents and conditions of possession of certain private tenancies in existence before 18 November 1961. All private tenancies entered into since that date and all business premises without exception are no longer governed by the Act. Where the Act applies, a landlord or tenant may apply to a rents officer or the Magistrate's Court to fix a fair rent, effect certain repairs, prevent oppressive conduct, or have the tenancy freed from controls under the Act.

Chapter 20. Section 20 ENERGY

20 A—ELECTRIC POWER

GENERAL—New Zealand's natural resources of lakes and fast-flowing rivers have been systematically harnessed for hydro-electric development, providing a relatively cheap source of energy which is continually replenished by nature. New Zealand's dependence on hydro-electric generation is similar to that of Canada, but Norway and Sweden generate proportionately more of their electricity from water sources.

An important factor governing future plans for electric power development is that the remaining hydro potential is mainly in the lower half of the South Island and the preponderance of population in the North Island. In 1965 the inter-island transmission link began transmitting electricity from Benmore to Haywards, but this link is limited in capacity and in any case by the end of the century the South Island consumers are likely to require all the output from hydro generation in the South Island.

At Wairakei, in New Zealand's thermal region, natural steam is being used to drive the turbines. Coal is being used at Meremere steam station south of Auckland. A large station is being built at New Plymouth to use as fuel either natural gas or oil.

An oil-fired steam station has operated since 1967 at Marsden, near Whangarei, and gas turbines have been generating at Otahuhu since mid-1968. Except for additional gas turbines, most future North Island stations will be steam stations using natural gas, oil, nuclear fuel, and possibly coal and geothermal energy.

HISTORICAL DEVELOPMENT—Electricity supply in New Zealand was pioneered by local bodies and private enterprise. Reefton had hydro-electric supply as early as 1888, and Wellington in the following year opened a water-powered plant, using water from the city mains, but later switched to steam generation. Auckland and Christchurch, using steam-generating stations, and Dunedin, using hydro plant, all had supplies extensively developed before the advent of Government supply. Many smaller communities also had local supply, mostly produced from local steam stations, although in some cases hydro plant was installed to take advantage of local water resources.

The first Government station was opened at Lake Coleridge in 1914, and its capacity was increased in four stages up to 1930. In the North Island the Government purchased the Waihi Goldmining Company's station at Horahora on the Waikato River. This station was enlarged and by 1927 was supplying power as far north as Henderson and Takapuna. Mangahao station near Shannon was completed in 1925; one of the Waikaremoana stations (Tuai) and Arapuni both began operating in 1927. Between 1920 and 1930 the capacity of the State generating system grew by 135,590 kW and the number of consumers in New Zealand increased from 58,449 to 284,235. In the early 1920s steam stations were still producing up to 60 percent of the total electricity but by the 1930s they produced as little as 1 percent in some years, as they were gradually relegated to standby stations.

In the 1930s the Waitaki hydro station was commissioned and the Government acquired two small hydro stations—Arnold from the Grey Electric Power Board and Monowai from the Southland Power Board. With the latter the Government also took over the responsibility for distribution in Southland.

In spite of the difficulties, capacity was increased during the war years. Some existing stations extended, and new ones opened at Piripaua (the second Waikaremoana station), at Cobb in north-west Nelson and, towards the end of the war, at Highbank in Canterbury. Gates were built in 1941 to control the outflow from Lake Taupo.

After the war plans were pushed ahead for the development of the potential of the principal power source in the North Island, the Waikato River. Work had proceeded on Karapiro, the second Waikato station, during the war and its first power was produced in 1947 (the old Horahora station was submerged in the lake formed behind the dam). In 1952 Maraetai, the largest station on the Waikato, began producing electricity, and in 1956 Whakamaru was completed, followed by Atiamuri in 1958. Both Ohakuri and Waipapa stations began operating in 1961 and Aratiatia station in 1964.

Development in other areas included the commissioning of Kaitawa, the third Waikaremoana station, in 1948, and the installation of further machines at Waitaki. Control works were built at Lakes Pukaki and Tekapo to ensure an adequate water supply to the Waitaki station in the winter. Incorporated in the control works at Lake Tekapo is a single machine power station which was commissioned in 1951. The largest station built up to that time in New Zealand began operating at Roxburgh on the Clutha River in 1956. Meanwhile work proceeded on the Benmore station which was completed in 1966. Another station on the Waitaki, at Aviemore, located between the Waitaki and Benmore stations, began operating in July 1968.

Matahina on the Rangitaiki River in the Bay of Plenty produced its first electricity in January 1967.

The Manapouri scheme uses the waters of Lakes Manapouri and Te Anau, taking advantage of the 600-ft head between Manapouri and the sea. Intakes at the West Arm of Manapouri lead the water into vertical penstocks to the turbines 700 ft underground and it is discharged into Deep Cove at Doubtful Sound through a 6-mile tunnel.

A large proportion of Manapouri's output supplies the Bluff aluminium smelter and the remainder is fed into the national grid. Four generators began operating in 1969 and the remaining three in 1971 to give a total of 700MW.

The Manapouri scheme was the subject of an agreement between the Government and Comalco in 1960 but subsequent agreements were negotiated in 1963, 1966, and 1969. As the land concerned lies within Fiordland National Park the agreement required statutory authority which was conferred in the Te Anau - Manapouri Development Act 1963. Under the 1969 agreement the Government built the power station and has yet to build the Te Anau control works and the Mararoa Dam at Manapouri and clear the shoreline of Lake Manapouri. This work is scheduled to be finished in 1975. The actual formula devised for Comalco to pay for the electricity has varied between agreements and remains complicated; Comalco pays for the capacity to supply electricity, not for the electricity itself, plus the operating costs of that capacity; the price is based on capital charges. A sinking fund for the civil engineering works covers 80 years while the fund for equipment allows for a depreciation period of 40 years.

The 1966 agreement provided that Lake Manapouri be raised from its natural level of 583 ft above sea level to an operating level of 610-620 ft while the minimum lake level was set at 575.5 ft. Consequent on a campaign by conservationists opposed to the raising of the lake level the Government appointed a commission in 1970 to inquire into the proposal. In 1971 the Government announced its decision to refrain from raising the lake level at present, but to construct a dam to control the lake at its natural level of 583 ft, the construction being such as to permit, if necessary, the extension of the dam in the future to allow for the raising of the lake beyond its natural level if this is authorised by Parliament. Lake Te Anau which feeds Lake Manapouri through the Upper Waiau River is to be controlled by a dam near its outlet to provide operating levels between 653.6 and 668 ft; this represents an increase of 5 ft on its natural level.

The purpose, planning, and the development of the Manapouri project are fully described in parliamentary paper D.7, 1967, as well as the Report of the Commission to Inquire into the Proposal to Raise the Level of Lake Manapouri for the Purpose of Generating Electricity (parliamentary paper D.8, 1970) and a report by the Institute of Economic Research on the Manapouri-Bluff Project commissioned by Comalco and published in October 1971.

The installed capacity of Maraetai power station on the Waikato River was doubled by the building of a second powerhouse for five additional machines which were commissioned in 1970-71. The yearly output from Maraetai has not been increased although useful peak-time capacity has been added.

Thermal Generation—The first thermal station built by the New Zealand Electricity Department came into operation in 1958 at Meremere beside the Waikato River, 40 miles south of Auckland. This station burns coal which is transported from the Maramarua opencast mines by aerial cableway, and from the Huntly mines by road and rail.

At Wairakei, a few miles north of Taupo, geothermal steam has been harnessed for the generation of electricity. The first machine began producing electricity in 1958 and the last machine (the thirteenth) was installed in 1963. Bores which are 4, 6, and 8 in. in diameter have been drilled to depths varying between 570 ft and 4,000 ft.

Marsden power station was commissioned in 1967 using oil from the nearby refinery, and a Otahuhu gas turbines went into service in 1968.

Construction Projects:Hydro—A catchment area of more than 1,000 square miles in the central volcanic uplands of the North Island is being tapped for hydro-electric power development. Known as the Tongariro scheme, this complex development involves drawing upon the headwaters of certain rivers and tributaries, and diverting part of their flow from one watershed to another. In February 1971, southerly flowing waters of the Wanganui catchment were diverted to flow north to feed into Lake Taupo. When the whole project is completed about 1974 it will increase the capacity of the eight existing power stations on the Waikato River by about 18 percent. Also included in the scheme is a 200 MW power station being built at Tokaanu. The total output from the development will be equivalent to one-third of the present output from the Waikato stations.

In July 1968 Government approved in principle the total development of the Upper Waitaki Valley for hydro-electric use. The scheme involves controlling the outflows of Lakes Tekapo and Pukaki and to a limited extent Lake Ohau, and directing the stored waters through canals to four power stations named Tekapo B, Ohau A, Ohau B, and Ohau C; the diverted waters will eventually reach the Waitaki River at Lake Benmore. The total capacity of the new stations will be about 850 megawatts; also the extra storage provided by the scheme will allow the output from existing Waitaki stations to be increased. Work has begun with the construction of a township at Twizel, and on the Tekapo B project.

Thermal—A 600 MW thermal station is being built at New Plymouth and is scheduled to produce its first electricity in late 1973. Fuel will be natural gas or oil, depending on negotiations. An oil-fired power station of 133 MW is planned for Evans Bay, Wellington, with construction to commence in 1973 for commissioning in 1976-77 to coincide with the growth in demand for power by the aluminium smelter at Bluff. Future plans include one natural-gas-fired power station in the Auckland area, assuming a successful agreement as to the price of natural gas. Beyond the first natural-gas-fired station, there could be a second larger one south of Auckland. A nuclear programme will be embarked upon earlier if natural gas is not used, otherwise it is expected that nuclear fuel would not be used until the mid-1980s.

INTER-ISLAND TRANSMISSION—In 1965, at the same time as Benmore power station was commissioned, the transmission systems of the North and South Islands were linked by a high-voltage direct-current transmission line and undersea cables. It was considered more economical to transmit electricity from the lower half of the South Island which has abundant hydro resources, rather than develop less attractive North Island schemes or build extra thermal stations.

This scheme not only involved the laying of submarine cables for 25 miles in Cook Strait, but also the construction of a 354 mile, 500 kV direct-current transmission line from Benmore to Fighting Bay on the southern side of Cook Strait, and from Oteranga Bay on the northern side to Haywards substation; complex converting equipment had also to be installed at each end of the system. Considerable world-wide interest has been shown in this scheme, which was the largest of its type outside the USSR. The World Bank made a loan of $23.2 million to meet the overseas costs of this project.

PLANNING FOR ELECTRIC POWER—Forward planning is continually under review by a series of specialised committees to ensure that future demands are met. The Power and Finance Utilisation Committee of the Electrical Supply Authorities Association, on which the New Zealand Electricity Department is represented, collates detailed estimates of unit consumption and peak demand in each area for a period of 5 years in advance. These estimates, which are revised and extended each year, show when and where power will be required in all parts of New Zealand. The Committee to Review Power Requirements then considers the estimates. (This committee has as chairman the General Manager of the New Zealand Electricity Department, the Assistant General Manager, a representative of the supply authorities, a representative of the Treasury, and the Government Statistician as members.) Its function is to combine and project the supply authority estimates for a further 5 years for the North and South Island requirements and for New Zealand as a whole, also comparing them with the New Zealand requirements as arrived at by statistical methods. A Planning Committee on Electrical Power Development in New Zealand, which consists of members of the New Zealand Electricity Department, Ministry of Works, Treasury, and supply authority representatives, with the General Manager of the New Zealand Electricity Department as chairman, considers the findings of the Review Committee.

The Planning Committee recommends what projects it considers should be proceeded with, and when, in order to meet the estimated needs. The review and planning reports are submitted to the Minister of Electricity who tables them in the House of Representatives.

Estimates made in 1971 by the Power Planning Committee of progressive generation were as follows (in million kWh): 1971-72, 15,364; 1972-73, 17,315; 1973-74, 18,811; 1974-75, 20,512; 1975-76, 22,032; 1976-77, 23,261; 1977-78, 25,356; 1978-79, 27,586; 1979-80, 29,119; 1980-81, 30,753.

There has been a great upsurge in the consumption of electric power. Power generated to meet the demand doubled between 1961 and 1971 to reach 13,706 million kilowatt hours a year. In the same period generating capacity of power plants has nearly doubled to reach 3.91 million kilowatts. Projected power requirements are expected to more than double again by 1981 to reach 30,753 million kilowatt hours. To meet the estimated power needs the generating capacity must be increased to 6.6 million kilowatts by 1981.

FINANCE FOR ELECTRICITY—Up to 1961 some $606 million had been expended in generation, transmission, and distribution, of which the Government share was $435 million. By 1971 the capital invested by the Government had risen to $1,029 million, and with the further expenditure by the electrical supply authorities on distribution, the total capital outlay had increased to $1,383 million. By 1981 the provision of barely sufficient generating capacity to meet the expected power needs could call for a further expenditure by Government of some $1,000 million. The this must beadded the capital needs of the electrical supply authorities who must also increase the capacity of their distribution systems in step with the increasing power demand. In all probability the capital investment in 1981 in all branches of the electrical supply system will be over $2,300 million. Since 1961 a direct contribution has been made from revenue towards capital requirements.

LEGISLATION—Under the Electricity Act 1968 the New Zealand Electricity Department is responsible for preparing plans to meet the expected demand for electric power and for controlling the State generating and transmission systems. In general, hydraulic investigation and civil engineering are carried out by the Ministry of Works to the requirements of the New Zealand Electricity Department. The New Zealand Electricity Department is responsible for the overall functional design of each station, detailed design and installation of all turbines, generators, and associated electrical and mechanical equipment, for the design and installation of equipment at substations, for the survey, design, and construction of transmission lines, and for the operation and maintenance of the networks which supply electricity in bulk to the distributing authorities.

ELECTRIC POWER BOARDS AND SUPPLY AUTHORITIES—Under the Electric Power Boards Act 1925, boards control constituted electric power districts. Of the 41 electric power boards actively functioning at 31 March 1971, 15 had generating stations of a total rated generation capacity of 36,392 kW. There were also 26 municipal electric supply authorities, 8 of them having generating stations of a total rated generating capacity of 78,590 kW. Two Government departments, New Zealand Electricity and Tourist and Publicity, act as distributing authorities for Southland and Rotorua respectively. The licensed areas under the control of the boards and other authorities cover almost all the inhabited parts of the country. More than 99 percent of New Zealand's population enjoy the benefits of electricity in the home; only a few thousand people in more isolated and less accessible parts of the country lack this amenity.

The supply of electricity to remote areas presents difficulties because of the high cost of reticulation in relation to the revenue from power sold. A Rural Reticulation Council can make a levy of up to 1/2 percent of the gross revenue of all supply authorities and Government-owned electrical undertakings to subsidise the annual cost of supply in remote areas. The Rural Reticulation Council was set upunder the Electricity Act 1945, and up to 31 March 1971 had approved subsidies on 9,608 route-miles of line to supply some 15,034 consumers. At this date 9,113 miles of line were completed and 14,328 consumers connected. The total capital expenditure was estimated at $16,124,291 and the subsidy approved for the year amounted to $392,737.

PUBLIC SUPPLY STATIONS—The following table covers all stations whose output is fully or partially available to the public supply system as at 31 March 1971, their installed capacity, static head where applicable, and annual energy generation. Stations are State-owned unless otherwise indicated.

Name of StationInstalled capacity at 31 March 1971Static HeadAnnual Energy Generation Year Ended 31 March 1971Annual Load Factor
Number of UnitsMW

*Owned by Dunedin City Council.

†Owned by other supply authorities and industries.

††Four units commissioned 1969. All seven units in commission later in 1971. Comalco's entitlement is 480 MW of continuous power.

‡No. 6 unit commissioned September 1970.

§Excludes capacity of generating plant owned and operated by industries.

   ftmillionpercent
  Hydro kWh 
Arapuni8157.8175782.856.81
Karapiro390.0100485.356.94
Maraetai10360.0200816.935.53
Whakamaru4100.0124447.948.69
Atiamuri484.081244.735.95
Waipapa351.053240.550.38
Ohakuri4112.0115335.234.08
Aratiatia390.0110249.133.57
Matahina272.0200363.555.69
Mangahao519.289666.136.46
Waikaremoana—     
    Kaitawa232.0443122.845.27
    Tuai352.0676249.6
240.0370161.8 
Cobb632.01,950154.551.56
Arnold23.14225.387.57
Coleridge934.5490130.237.74
Highbank125.233071.231.02
Waitaki7105.070468.549.11
Aviemore4220.0122800.539.36
Benmore6540.03022,155.844.14
Manapouri††4400.05801,171.042.53
Tekapo125.2100137.562.28
Roxburgh8320.01501,228.242.88
Monowai36.015427.749.42
Waipori*1165.2-129.8-
Auxiliary2039.1-199.3-
            Sub-totals 3,075.3 11,265.7...
  Thermal   
Meremere7210.0 773.948.54
Wairakei13192.6 1,185.288.20
Marsden2240.0 389.619.12
Otahuhu6180.0 74.46.74
Auxiliary§1110.7 17.0-
            Sub-totals 833.3 2,440.0...
            Totals 3,908.6 13,705.7...

ANNUAL GENERATION—During the year ended 31 March 1971 a total of 13,706 million kWh was generated by public utilities, of which 11,266 million kWh (82 percent) was generated by water power, 2,349 million kWh by steam plant, 74 million kWh by gas-turbine plant, and 20,852 kWh by oil plant. A further 16.9 million kWh was purchased by public authorities from generating stations operated by industrial establishments and fed into the supply system, making a total of 13,706 million kWh available for distribution. By far the major portion of the generation is undertaken by Government-owned plants which, in the period under review, generated 10,937 million kWh by the use of water power, 2,349 million kWh by use of steam power, and 74 million kWh by use of gas-turbine power.

REVIEW OF OPERATIONS—The following table gives information concerning generation and distribution by Government establishments, local authorities, and electric power boards for the year ended 31 March 1971.

ItemGovernment EstablishmentsElectric Power BoardsAll Establishments*

*Includes 12 city councils, 12 borough councils and 2 county councils.

†Excluding stocks and materials.

Establishments No.274194
Persons engaged No.4,8405,64612,606
Salaries and wages paid $(000)17,27318,72242,966
Consumers No.43,846773,6631,109,577
Prime movers—   
    Hydro bhp(OOO)4,207404,358
    Thermal bhp(000)989111,004
            Totals bhp(OOO)5,196515,362
Generators (capacity)—   
    A.C. kW(000)3,794363,909
Revenue—   
    Sales of power—   
        Retail $(000)8,500101,594151,190
        Bulk and interchange $(000)86,9864,56391,551
        Other (including rates) $(000)5641,9463,259
            Total revenue $(000)96,051108,102246,000
Expenditure—   
    Power purchased (including inter-change) $(000)1,34866,28491,706
    Generating costs $(000)12,41421413,146
    Transmission and distribution costs $(000)5,74311,50421,425
    Management and general $(000)7,8568,75919,981
    Capital charges $(000)59,49115,91681,105
            Total expenditure $(000)86,852102,676227,364
Capital expenditure   
            Total expenditure to date $(000)1,018,776242,1961,350,814
    Expenditure during year $(000)68,68917,59293,144
Generation—   
    Hydro Million kWh10,93713811,266
    Steam Million kWh2,349-2,366
    Oil/gas Million kWh74 74
Totals Million kWh13,36013813,706
Retail sales Million kWh8967,83511,745

Employment—Details concerning the number of employees and the salaries and wages paid to them are given in the following table for the year ended 31 March 1971.

Category of StaffPersons EngagedSalaries and Wages Paid
MalesFemalesTotalCharged to Operation and ManagementCharged to CapitalTotal
 No.No.No.$(000)$(000)$(000)
Managerial and clerical2.8599413,84612,92668311,411
Wage earners8,5701908,76022,0787,27929,357
            Totals11,4291,17712,60635,0047,96242,966

Capital Expenditure—The following table gives capital expenditure during 1970-71 and total outlay to 31 March 1971.

ItemExpenditure During Year*Total Capital Outlay to 31 March 1971*
*Accumulated adjustments due to audit during year.
Generating system—$(000)$(000)
    Head works, pipelines, etc.58,032499,034
    Powerhouse buildings, cottages, etc.-15,228118,772
    Generating plant and machinery, etc.8,770158,033
Transmission and distribution lines, substations, land and houses32,699477,969
Public lighting4786,872
Office and store buildings, workshops, garages, houses, service buildings3,19933,121
Loose tools, meters, instruments, furniture, trucks, motorcars, equipment2,78737,090
Miscellaneous (cost of raising loans, loan conversion premiums, surveys, preliminary expenses, interest during construction)1,63617,078
Stock and materials (including trading department stocks)3,18632,153
Other items not capable of inclusion above7712,846
    Total capital outlay96,3301,382,967

Additions to the capital value of all electrical systems during 1970-71 totalled $125,531,000 while deductions, i.e., sales and amounts written off, amounted to $29,201,000. The previous table shows for each item the net expenditure only during the year.

General Balance Sheet as at 31 March 1971—The next table summarises the balance sheet at 31 March 1971 for all establishments.

Liabilities
 $(000)$(000)
Capital raised—  
    Original amount of current loans1,017,784 
    Less amounts repaid169,047 
    Balance owing on 31 March 1970 848,736
Temporary loans 1,184
Sundry creditors—  
    Bank overdraft 1,307
    Other 28,454
Reserves—  
    Loan repayment reserve 116,750
    Capital expenditure out of revenue 10,250
    Sinking fund reserve 8,815
    Depreciation reserve 168,471
    Renewal fund reserve 6,328
    General and other reserves 170,009
    Surplus in Appropriation Account 18,162
    Total 1,469,467
Assets
Total capital expenditure 1,350,814
Stocks and materials 32,153
Sundry debtors 38,703
Cash in hand and bank balances—  
    Loan accounts 2,407
    Other 8,785
Investments—  
    Loan accounts 2,687
    Other 33,863
Deficit in Appropriation Account 55
            Total 1,469,467

Power—The following table sets out the number of units generated and their disposal. The excess generation of certain local factories, which is bought in for public supply, is given in the column “other sources”.

Year Ended 31 MarchGenerated for Public SupplySold RetailNonproductive
N.Z. Electricity DepartmentSupply AuthoritiesOther SourcesTotal
 million kWh
196710,9793231411,3169,6021,714
196811,2653192111,6059,8931,712
196911,8313292512,18510,4541,732
197012,6033012112,92611,0691,856
197113,3603291713,70611,7451,960

Analysis of Units Retailed—The following table gives a classification of power retailed according to the various purposes for which it was sold. In this table “domestic” includes domestic water-heating units, and “commercial” both commercial and dairy water-heating units.

Year Ended 31 MarchDomesticCommercial and IndustrialStreet LightingTramways and Trolley BusesElectric RailwaysOther PurposesTotal
million kWh
19675,5603,90887212339,602
19685,6974,06589212019,893
19695,9924,312931830810,454
19706,1874,740971728-11,069
19716,4545,1471001727-11,745

The following diagram portrays the growth in the use of electric power, and shows also the principal purposes for which the power was employed.

Revenue—Revenue is derived chiefly from the sale of power, and in 1970-71 this source was 97.9 percent of the total. The following table sets out the revenue from all sources (excluding bulk sales) for the latest 5 years.

Year Ended 31 MarchSale of Power (Retail)Profits from TradingMiscellaneousTotal*
*Excluding revenue from interchange of power.
 $(000)$(000)$(000)$(000)
1967107,1413591,925109,425
1968120,2403362,091122,667
1969136,1473502,334138,832
1970143,2544192,619146,292
1971151,1905322,727154,448

Expenditure—Of the total expenditure of $135,780,485 (excluding cost of interchange of power in bulk) recorded in the year ended 31 March 1971, 74.4 percent represented overhead costs (comprising management expenses and capital charges), while operating expenses of prime costs stood at 25.6 percent.

Power may be sold more than once in bulk before reaching the retailing authority, and in these tables the revenue from such interchange of power between authorities is set off against the cost, the net figure for cost of power purchased representing the cost to the industry of purchases from outside sources. In this connection mention may be made of certain contracts existing between the Government and some local authorities, whereby the latter are required to maintain their plants and, whenever called upon, to operate them to supplement the State electricity supply. The units so generated, often by fuel plants, are purchased by the Government and resold, in most cases to the generating authority, for distribution.

The table following gives an analysis of expenditure, excluding the cost of bulk interchanges.

ItemYear Ended 31 March
1968196919701971
*Does not include the interchange of power between supply authorises.
 $(000)$(000)$(000)$(000)
Operating Expenditure
Cost of power purchased*111166148123
Cost of generation3,9133,1453,6614,698
Fuel2,2223,0586,0275,692
Repairs and stores1,0011,9952,4502,757
Cost of transmission and distribution15,07716,53217,88720,890
Public (street) lighting362450470534
            Totals22,68625,34730,64334,694
Miscellaneous Expenditure
Cost of management12,60613,94315,73619,490
Losses from trading48313636
Other expenditure and insurance223174177455
            Totals12,87714,14815,94919,981
Capital Charges (Including Taxation)
Interest34,21737,80039,29241,150
Sinking Fund2,0561,3392,7472,804
Renewals2,7992,7063,1363,269
Depreciation14,17215,89818,13919,310
Loan repayment12,15214,56413,92214,572
            Totals65,39672,30877,23681,105
            Grand totals100,959111,803123,829135,780

The distribution of the expenditure per unit sold retail is given hereunder.

ExpenditureYear Ended 31 March
1968196919701971
 centscentscentscents
Operating expenses0.2290.2420.2770.295
Miscellaneous expenses0.1300.1350.1440.170
Capital charges0.6610.6920.6980.690
            Totals1.0201.0701.1191.156

20 B—GAS

HISTORY—Gas was produced from coal as an early source of light and heating in New Zealand. The first gasworks was erected in Auckland in 1862 and at that time Auckland had a European population of about 25.000. By 1916 there were 56 establishments engaged in the marketing of gas to the public. Since that date the numbers of gas undertakings has steadily declined because of the difficulties associated with coal carbonisation and the growth of electricity usage. The number of consumers has been steadily decreasing over the years and there has been an approximate reduction of 28 percent in the last 10 years. In this period total gas sales have risen by 45 percent. The increased demand came from the industrial sector. The loss of consumers from the gas industry was viewed with concern both by the Government and those authorities who have to satisfy the energy demand.

A Gas Council was established in 1958. The main function of the Gas Council is to preserve and expand the gas industry, which it can do by way of subsidies and arranging finance to assist the industry. The Gas Council has pursued its basic policy of promoting efficiency and confidence in the industry, and much new plant has been installed.

The oil consortium, Shell B.P. and Todd Oil Services Ltd., discovered natural gas at Kapuni in 1959 and the development of this find has followed the formation of the Natural Gas Corporation of New Zealand. This corporation was set up by the Government in 1967 and is operating the gas purification equipment and the pipeline to supply and sell gas along the pipeline routes to undertakings previously producing coal gas, namely, Auckland, Hamilton, New Plymouth, Hawera, Wanganui, Palmerston North, Levin, Hutt Valley, and Wellington. Natural gas supply to these centres took place in 1970 and 1971. The gas treatment plant at Kapuni cost over $5 million and the pipelines and compressors over $16 million. In the period to 31 March 1971 there was a trading loss by the Natural Gas Corporation of $112,974; this was increased by interest and depreciation to $1,466,786. Since then natural gas has been supplied to the Otara power station which could double the income from gas sales.

Gas is now expected to compete more successfully with other forms of energy and to arrest the drift away by domestic consumers and to receive an increased usage in industry. Those gas undertakings not receiving a piped supply of natural gas will continue to receive financial incentives which are provided by the Gas Council to help them to convert to more efficient, acceptable techniques of gas manufacture and consumer service.

GAS SUBSIDY—Gasworks receive a gas sales subsidy from the Government at the rate of 25c per 1,000 cu ft of gas sold up to 150 million cu ft, and thereafter at 16 2/3 c per 1,000 cu ft for gas produced from coal: the same rate applies to oil-reformed gas but is limited to 30 percent of total annual sales. There are also subsidies on coal used by gasworks.

Annual average prices of gas in the four main centres are shown in the following table. The average price per 1,000 cu ft for all consumers in 1970-71 was $1.43 compared with $1.40 in 1969-70.

YearAucklandWellingtonChristchurchDunedin
 $$$$
1929-300.700.690.700.63
1939-400.720.610.640.59
1949-500.880.680.680.62
1959-601.341.050.880.74
1966-671.521.270.960.90
1967-681.511.351.031.08
1968-691.491.431.091.07
1969-701.521.511.121.13
1970-711.501.491.191.16

GAS PRODUCTION—There follows an analysis of production statistics.

Item1969-701970-71
Works No.2424
Value of land and buildings $(000)3,4243,411
Value of machinery, plant, and equipment $(000)18,01918,498
Value of transport equipment $(000)324351
Capital additions during year—  
    Land and buildings $(000)5523
    Machinery, plant, and equipment $(000)4,7281,820
    Transport equipment $(000)103113
Persons engaged—  
    Males No.1,060960
    Females No.120116
    Totals No.1,1801,076
Salaries and wages paid—  
    To males $(000)3,0753,299
    To females $(000)152228
    Totals $(000)3,2273,527
Motive power—  
    Engines in use No.580570
    Total horsepower hp5,4945,374
Materials used—  
    Coal tons(000)169152
    $(000)2,2211,963
    Oil gal(000)11,8789,932
    $(000)1,2801,067
Products-  
    Gas available for distribution cu ft(m)6,4836,779
    Gas sold retail cu ft(m)4,9095,015
    Value (including subsidies) $(000)7,9578,138
    Coke tons(000)4844
    $(000)721698
    Tar gal(000)1,8061,233
    $(OOO)342211
    Other residuals $(000)108116
Total expenditure $(000)9,52410,072
Total revenue $(000)9,3299,441
Consumers No.117,137114,813

Chapter 21. Section 21 MARKETING

21 A—MARKETING OF FARM PRODUCE

DEPENDENCE ON AGRICULTURAL AND PASTORAL EXPORTS—Products of animal origin average annually over 80 percent of the total value of New Zealand exports, and agricultural exports of grass seed and fruit can be added to raise even higher the value of exports of farm produce. New Zealand is the largest exporter in the world of butter and (in some years) of meat, and is also one of the leading exporters of wool and cheese. Exports of milk powder and casein have grown rapidly since 1947 and approach in value traditional exports such as tallow and hides and skins. The maintenance and expansion of overseas markets for pastoral products must remain a fundamental objective, for if the moderate rate of expansion set as a goal by the National Development Conference is to be achieved, export receipts must rise by between 5 and 7 1/2 percent a year, and over half of the increase must come from the pastoral sector.

The following table of exports by value indicates the relative importance of farm products.

Year Ended 30 JuneDairy ProduceMeatWoolHides, Pelts, and SkinsTotal Exports*
ButterCheeseMilk Powder, etc.CaseinTotal (including Other)

*Of New Zealand produce.

†Provisional.

 $(million)
1966109.641.722.020.0195.4196.7231.940.0756.8
1967109.445.129.818.6205.3205.0174.133.6717.6
1968112.247.430.318.1210.3260.7158.239.1804.6
1969114.842.623.121.7204.7309.4212.455.4968.9
1970x109.744.331.425.8214.1368.9204.248.71,064.5
1971112.047.934.130.2227.9391.2188.650.61,107.1

The countries of destination for some of the main exports for 1969-70 are shown in the following table on a percentage basis.

Country of DestinationButterCheeseLambBeef and VealMuttonWool
United Kingdom89.974.486.16.616.419.9
United States0.411.14.455.6 11.2
Japan-6.81.81.668.211.9
Canada--0.622.91.01.0
France--0.1-0.28.9
Belgium-0.20.2-0.28.4
West Germany0.20.60.6-0.47.5
Italy--0.3--6.4
Other9.56.86.013.113.624.8
            Totals100.0100.0100.0100.0100.0100.0

GENERAL MARKETING SITUATION: Meat—Most meat produced in the world is supplied to domestic markets, and only about 5 percent of world output enters into international trade. Among the few countries with large exportable surpluses are Australia, New Zealand, Argentina, Uruguay, the Netherlands, Denmark, and the Irish Republic. The chief flows of trade are to Western Europe, in particular the United Kingdom (which accounts for over one-third of world trade) and, more recently, the United States and Japan. The United Kingdom continues to be by far the largest market for lamb; New Zealand's lamb exports are heavily dependent on this market. Although the Common Market countries are substantial importers of beef and veal, the pattern of trade has been greatly affected by the beef and veal regulations of the common agricultural policy; intra-community trade has increased whereas entries from third countries have been severely reduced.

For some years New Zealand has made a drive for supplementary markets for its increased production and now lists over 100 countries as buyers of its meat. Of these three may be regarded as major markets. They are the United Kingdom which is currently taking about 84 percent of New Zealand's lamb; Japan, which is taking about 50 percent of New Zealand's export mutton production; North America (United States and Canada) which is taking about 75 percent of the beef and veal exports. In the late 1950s a strong demand developed in the United States for manufacturing grades of beef. This was a result of changes in the composition of the American beef herd which in the main is grain-fed and carries more fat than the consumer requires. The trimmings need to be supplemented with the lean-type beef that New Zealand (and Australia among, others) can provide. But since 1968 the New Zealand producers and exporters have had to contend with what is termed a “voluntary quota agreement” which applies to all United States imports of fresh, chilled, or frozen meat except lamb. Under this system New Zealand, along with other suppliers, has agreed to restrict the tonnage of quota meats shipped for arrival in the United States during the calendar year to a pre-set quota figure. If any country exceeds its quota a trigger point could be reached forcing the United States administration to introduce a global quota. Under the terms of the agreement New Zealand was able to send 104,500 tons of quota meat to the United States in 1971, with an additional allocation of 9,000 tons in the last quarter because of a shortfall from other suppliers, New Zealand has had no difficulty in meeting the level agreed under the voluntary quota system. In fact, because this is New Zealand's highest price beef market, the New Zealand Meat Board has determined that only beef and veal should be sent under the quota arrangement, and has implemented a procedure for equitably restricting the level of shipments by each exporter within the industry. The allocation for 1972 is 112,000 tons.

Imports into the United States of some classes of fresh, chilled, or frozen meat are shown in the following table. (Source: Commonwealth Secretariat.)

Country of ExportBeef and VealMutton and Lamb
196819691970196819691970
 tons(000)
New Zealand9110010861010
Australia198219235323327
Canada201925---
Republic of Ireland252931---
Mexico293035---
Other countries566361---
            Total imports419460505384337
United States production9,6339,6439,928269245246

Canada now ranks as New Zealand's second biggest customer for beef and veal. There has been an upsurge in demand from Canada for New Zealand beef, which can be related to a decline in domestic production. Shipments in the year ended September 1971 totalled 29,300 tons compared with 38,800 tons in the preceding year.

In Japan there is a demand for mutton which is used mainly for processing into sausage-type foods. Shipments in the year ended September 1971 totalled 59,700 tons compared with 64,700 tons in the preceding year. The decline in mutton shipments to Japan in the last 2 years has been offset by the revival of sales of this type of meat to the U.S.S.R.; in the year ended September 1971 shipments to this market totalled 16,700 tons of mutton and 6,300 tons of quarter beef.

A strong emphasis in market diversification has been placed on lamb, spurred by the possibility of Britain joining the European Economic Community, whose member countries have traditionally protected their agriculture by tariff.

A major step in the lamb diversification programme was taken in 1960 with the establishment of the Meat Export Development Company, an organisation charged with the responsibility of the orderly development of New Zealand lamb marketing in the United States and Canada. All New Zealand lamb sales to these countries are controlled by this company whose directorate is composed of nominees of the New Zealand Meat Producers Board and representatives of the freezing companies. The head office of the company (known as Devco or Medco) is in Wellington while the North American operations are controlled from Chicago.

Since 1966 a lamb diversification scheme has been in operation with the further intention of lessening dependence on the United Kingdom. The scheme was implemented by the Market Development Committee which consists of representatives of the Meat Board and the meat export trade. Each year the committee sets a percentage of lamb exports to be sold in markets other than the United Kingdom and it levies exporters 2.5 cents per lb on the shortfall below the target figure. The diversion target was set at 10 percent in the first season of the scheme, 12 percent the second season, 13 1/2 percent in 1968-69, 15 percent for the 1969-70 season, 15 1/4 percent for the 1970-71 season, and 22 percent for the 1971-72 season.

Several promising markets are developing for lamb, despite tariff and other restrictions in many countries. Shipments to Europe in 1970-71 included 14,640 tons to Greece, 3,248 tons to West Germany, 2,228 tons to the Netherlands and 1,257 tons to Italy. There was a decline in shipments to Japan from the peak of 5,800 tons in 1969-70 to just over 3,000 tons in 1970-71.

Wool—New Zealand is one of the largest exporters of wool in the world. Most of the wool is auctioned in New Zealand and buyers come from all the main importing countries to make their purchases of wool. A small percentage of wool produced is shipped to England for sale. Prices fluctuate according to the demand for wool. The threat of competition from synthetic materials is such that the International Wool Secretariat is actively promoting advertising, merchandising, and research. World wool production and wool utilisation were approximately in balance until 1966 when consumption fell behind production.

World wool production increased steadily, particularly in Australia, New Zealand, and the Soviet Union, reaching a peak of 2.777 million metric tons in the 1968-69 season. This growth reflected improvements both in carrying capacity per acre (number of sheep) and in wool production per sheep. Of the increase, probably over two-thirds stemmed from the upward trend in sheep population and the remainder from improved output per head of sheep. Since the 1968-69 record level, world production has shown a downward trend although New Zealand production reached its highest level to date in the 1970-71 season. Since the Second World War there has been no significant change in the broad geographical distribution of production which remains concentrated in Australia, New Zealand, Argentina, South Africa, and Uruguay—all of which export on a large scale—and in the United States and the Soviet Union, neither of whose clips enters the international market to any significant extent. These countries account for 77 percent of world production; of the world total Australia alone produces 33 percent, and with New Zealand, Argentina, and South Africa some 56 percent.

The distribution of wool production does not, of course, coincide exactly with the distribution of the sheep population, since the production of wool or yield per sheep varies considerably. While there is undoubtedly scope for improvement in a number of the lower yielding countries, the yields, which are averages over the sheep populations as a whole, are determined by the type of pasture, breed of sheep, average age of flock, and age of the sheep at slaughter. Variations in yield between countries, therefore, do not necessarily reflect variations in efficiency, but rather differences in pastoral conditions and objectives in farming.

Sheep numbers and wool production for selected countries are shown in the following table. (Source: Commonwealth Secretariat.)

CountrySheep NumbersWool Production
196819691970*1968-691969-701970-71*
*Provisional.
  (million)(thousand metric tons greasy)
Australia166.9174.6180.1883.6982.0904.5
New Zealand60.559.960.3332.0327.9333.9
Argentina44.045.044.3180.1175.5175.1
South Africa36.637.935.9142.4145.1117.9
Uruguay22.721.719.982.179.872.6
United States22.121.220.396.688.586.6
United Kingdom28.026.626.554.047.244.5
U.S.S.R.138.5140.6130.7415.0390.1415.0
Whole world948.0958.0946.02,776.92,768.72,731.1

Dairy Produce—Although New Zealand's exports of dairy produce to markets outside the United Kingdom have grown in recent years New Zealand is still largely dependent on the United Kingdom as a market for her dairy produce. Between 1968 and 1970 New Zealand's efforts to develop new markets were hindered by expanded EEC dairy surpluses entering international markets at low subsidised prices.

Diversification of markets by New Zealand have been impeded by the severe and pervasive restrictions imposed by governments on access, especially on the entry of dairy products into all the main industrial countries. These restrictions have been designed to keep prices high in order to support the incomes of domestic farmers. The high prices, by restricting consumption and stimulating production, have created surpluses some commodities. Disposal of these surpluses at cut rates, with Government support, in such free markets as have existed, has further limited the opportunities for profitable diversification.

New Zealand has had very little success in GATT or in other international organisations in its attempts to negotiate improved conditions of access for agricultural products in world markets outside Britain.

In 1970 total world production of butter by 26 of the main producing countries of the world amounted to 4.3 million tons. In the same year world exports by 16 of the leading exporters amounted to about 739,000 tons, that is, only about 17.2 percent of world production entered into international trade. Of this quantity 388,400 tons came onto the United Kingdom market. Total international trade in butter outside Europe is relatively small in relation to total world production and relatively small surpluses in large producing countries when exported via subsidies can have a most disturbing effect on the world trade in dairy products. The EEC in particular, has a major effect on world dairy prices simply because of its size. Subsequent to the EEC's build-up of butter surpluses in the late 1960s the level of the EEC's dairy production is now more in balance with EEC demand. This is due to the implementation of measures to reduce production and also seasonal and social factors. However, there is still no automatic limitation on production. It is essential for New Zealand to maintain strong and consistent pressure in international councils to achieve a stable balance between supply and demand in international trade. A significant step was made in 1971 when the EEC undertook in the Luxembourg Agreement “to make every effort to promote the conclusion of an international agreement on dairy produce; and to pursue a trade policy which will not frustrate New Zealand's efforts to diversify”. In 1970, the GATT minimum international selling price for skim-milk powders of $180 a ton was established, and in 1971 negotiations for the establishment of minimum prices for butter and anhydrous milkfat continued.

Butter and Cheese—Britain has restricted imports of butter since 1 April 1962. Each year a quota was set for butter imports after consultations were held with the countries receiving a quota. However, due to severe supply shortages in 1971, Britain suspended the 1971-72 butter quota; initially from April to September and then later from September to the end of March. Recent butter allocations are set out in the following table.

March YearTotal AllocationNew Zealand Share
 tons(000)
1967-68470184
1968-69462176
1969-70397170
1970-71425176
1971-72422173

In 1968 there was serious oversupply of the cheese market in the United Kingdom and cheese suppliers were asked in August 1968 to limit their shipments to the British market. Out of a “quota” of total imports of 135,750 tons for the year ended 31 March 1972, New Zealand was allocated 75,000 tons. However, owing to supply shortages, this voluntary restraint cheese scheme was abandoned on 20 September 1971.

The amounts guaranteed by the Luxembourg Agreement in each year of the transition period are as follows.

YearButlerCheeseMilk Equivalent
percenttonspercenttonspercent
197396163,2009067,50095
197492156,4008060,00090
197588149,6006054,00083
197684142,8004030,00077
197780136,0002015,00071

Skim-milk Powder—The world production of skim-milk powder has expanded over recent years. The skim-milk powder output of 11 West European countries and Australia, New Zealand, Canada, and the United States, rose from 2.1 million tons in 1966 to 2.7 million tons in 1968, but eased to 2.5 million tons in 1970.

In 1968 world skim-milk powder prices dropped sharply but since late 1969 prices have moved upward. The price for New Zealand skim-milk powder ex-store in United Kingdom rose from $180 a ton in May 1970 to nearly $400 a ton by September 1971. These high prices in 1971 have resulted from a decline in EEC and world production which led to the total removal in 1971 of the EEC's export subsidies for skim-milk powder. Meanwhile, world demand has continued to expand.

The world's major exporters of skim-milk powder in 1970 were the United States (280,600 tons), France (263,500 tons), West Germany (140,700 tons), Canada (132,700 tons), and New Zealand (124,200 tons). The quantity for the United States includes both commercial exports and those for food aid.

Japan's import demand tapered off in 1970 to 61,000 tons from the level of 96,000 tons reached in 1967.

In recent years, New Zealand's exports to South-east Asia and Central and South America have increased heavily with the growth in trade to milk reconditioning plants. New Zealand's share in the growth, especially in South-east Asia, has been due to three main advantages over other suppliers—nearness to the market, regularity as a supplier, and ability to supply the specialised range of skim-milk powders required to produce reconditioned milk.

Of New Zealand's total skim-milk powder exports of 124,200 tons for the year ended 30 June 1971 the Philippines, Japan, Malaysia, and Thailand together took 51 percent, while Chile and Peru took 17 percent. Exports to the United Kingdom represented only 2 percent of the total.

Casein—Lactic casein, which is produced from the residual skim milk in butter manufacture, is being put to an increasing range of uses. It is used as high-grade protein in sausage and other food fillings, as the bulk material for various types of pharmaceutical drugs, and in the manufacture of high quality paper.

The chief countries exporting and importing casein are shown in the following table. (Source: Commonwealth Secretariat.)

Country of Export196819691970
*Years ended 30 June of following year.
 tons (000)
New Zealand*49.961.069.2
Australia*26.029.826.5
France21.316.011.2
Argentina18.911.97.0
Poland10.78.2--
United States50.249.156.0
Japan25.424.125.3
West Germany14.818.416.3
United Kingdom9.48.88.0
Italy7.610.511.2

Since 1970, due to the high prices of skim-milk powder there has been a world decline in the availability of liquid skim milk for casein (much more skim-milk powder than casein can be produced from a given quantity of skim milk). The result has been a marked rise in prices of casein, e.g., from I $250 a ton in May 1970 to $420 a ton in May 1971. These high prices, together with the withdrawal of major suppliers from the market, could lead to a growth in the use of substitutes, especially in the paper-coating industry.

Diversification of Markets—New Zealand's dairy exports to markets outside the United Kingdom have steadily increased. In 1955, only 13 percent of the value of New Zealand's total dairy exports went to countries outside the United Kingdom, but by 1970 this had risen to 27 percent. In terms of value, dairy exports to markets outside the United Kingdom have risen from $18 million in 1955 to $91 million in 1970. The greatest increases have been in anhydrous milkfat and skim-milk powder to South-east Asia and Central and South America, in cheese to Japan and the Caribbean, and in casein to the United States and Europe. It is expected that the future long-term growth in markets for New Zealand dairy produce will be predominantly outside the United Kingdom, although New Zealand will remain heavily dependent on the United Kingdom as a bulk outlet for her milkfat products.

TRADE AGREEMENTS WITH THE UNITED KINGDOM—The United Kingdom has always been New Zealand's main export market for farm products. The British consumer has had virtually unrestricted availability of New Zealand supplies of butter, cheese, and lamb as a result of the mutually advantageous trading arrangements made between Britain and New Zealand over a long period, which reflect close political and economic connections between their people and governments. The arrangements, renewed and extended in 1958 and 1966, provided a basis for the encouragement of New Zealand producers to specialise in the output, especially for the British market, of pastoral products which skills, climate, and resources have enabled New Zealand to produce with unmatched economic efficiency.

In return for providing an assured market for this New Zealand produce, Britain obtained an assured source of reasonably priced food in war and peace, valuable preferences in the sale of manufactured goods in the New Zealand market, and considerable earnings from the provision of shipping, insurance, and other services related to the two-way trade between the two countries.

New Zealand's trading relations with the United Kingdom are governed by a number of formal commitments. Under the Ottawa Agreement of 1932 New Zealand undertook to maintain a preferential tariff on imports from the United Kingdom, while the United Kingdom for its part was obliged to grant duty-free entry for practically all New Zealand products and maintain specified duties on some foreign imports.

In 1958 the provisions of the Ottawa Agreement were reviewed. The new agreement, which came into force on 25 November 1958, gave new flexibility to New Zealand's international trading and negotiating position. It was agreed that the levels of preferences in favour of the United Kingdomset by the 1932 agreement could be modified but the basic principle was retained to ensure that the close and mutually economic partnership between the United Kingdom and New Zealand would continue. All the existing rights and preferences for New Zealand goods entering the United Kingdom were preserved.

In 1966 further negotiations were carried out for the revision and extension of our trade arrangements with Britain. The final text of the new agreement was signed in New Zealand on 24 November 1966. Britain agreed to admit until 30 September 1972 without restriction of quantity, imports of New Zealand beef, veal, lamb, mutton, cheese, skim and buttermilk powders, casein, and chilled and frozen pork. In 1961 New Zealand had voluntarily waived a similar right of unrestricted access for butter in favour of a quota system designed to protect the price of New Zealand butter against dumped and subsidised supplies. In 1966 Britain agreed to continue the quota system and give New Zealand a share of any growth in total imports. In 1971 the United Kingdom imposed a duty of £28 a ton on all imported mutton and lamb; for beef and veal there is a variable levy scheme related to home prices from week to week. For New Zealand lamb the duty is being applied in three stages, namely, £9.33 a ton from 1 July 1971, £18.67 a ton from 1 January 1972 and £28 a ton from 1 February 1973. The duty on mutton is half that on lamb.

In return for concessions to guarantee a market for farm products in 1966 New Zealand guaranteed duty-free entry for certain British goods with margins of preference for some other goods. It has been estimated that, in 1969-70, 84 percent of Britain's exports to New Zealand ($234 million out of $278 million) enjoyed a preference. The average margin of preference was 21 percent and the value of preferences was $59 million. These trade agreements have been of considerable importance because of New Zealand's dependence on the United Kingdom market.

EUROPEAN ECONOMIC COMMUNITY—The Rome Treaty establishing the European Economic Community (EEC) came into force on 1 January 1958. The member countries are Belgium, France, West Germany, Luxembourg, Italy, and the Netherlands. These countries entered into negotiations which resulted in the abolition of customs duties within the Common Market on 1 July 1968. On the same date the separate customs tariff of the six countries gave way to a single tariff—the external customs tariff of the Community. By that date also much of the common agricultural policy was in operation, although some final negotiations had still to take place.

The EEC, while maintaining a generally outward-looking policy in respect of tariffs on industrial products, and continuing as a substantial importer of many agricultural products, adopted a policy of high support prices, restrictive import regimes, and subsidised disposal of exports in respect of several products of interest to New Zealand, especially dairy products. For butter, production outpaced consumption to such an extent that, despite substantial disposals overseas, stocks rose. However, there has been a growing import requirement for meat, despite rising prices and the growth of domestic beef, poultry, and pigmeat output.

In 1970 because of changed political circumstances in Europe, Britain again was able to engage the Six in serious discussions about the “enlargement” of the Community. The prospects of the negotiations succeeding this time seemed good, and the New Zealand Government therefore embarked upon an extensive campaign to ensure the adequate protection of New Zealand's vital interests.

The danger facing New Zealand was that should Britain, in joining the EEC, accept the common agricultural policy without special arrangements to protect the major items of New Zealand's agricultural trade with Britain, the pastoral industries in particular and the economy in general would be severely damaged.

In response to a request by the Government, the Monetary and Economic Council produced in June 1970 an independent assessment of the possible effect on New Zealand. The council pointed out that if the EEC's common agricultural policy for dairy products was applied to the British market without even a transitional arrangement for New Zealand, an almost immediate loss of $150 million a year in export earnings from butter and cheese would have occurred. It also predicted that further large losses would be inevitable as the production of other commodities for sale in markets outside Britain would have been rendered uneconomic for the New Zealand dairy industry.

The sudden loss of this amount of export income would have provoked a balance-of-payments crisis and the rate of importation of the materials required to sustain other sectors of the nation's economy could not have been achieved. Unemployment and a rapid increase in emigration wereseen by the council as an inevitable sequel. When, after a considerable period of time and the expenditure of large amounts of capital in restructuring, the economy had been adjusted to the loss of the United Kingdom dairy market, the prospect was that New Zealand would have suffered a net loss in population and living standards.

The council went on to examine the consequences of a complete phasing out of New Zealand's dairy exports to the United Kingdom over a transitional period. It concluded that while the results of a phased exclusion would be less severe, the economy would still suffer serious damage; even if an estimated $266 million were invested in restructuring there would be a substantial loss in real income and a strong tendency to emigrate. The council emphasised that the consequences outlined for dairy products would be seriously compounded were the EEC to adopt a restrictive regime for sheepmeats.

It was to avoid these harsh effects that the Government formulated a detailed political and economic case for special arrangements. The Government sought, as the basis of a special arrangement, the provision for continuing access at remunerative prices for our exports of butter, cheese, and lamb. Before the formal negotiations between Britain and the EEC commenced, the New Zealand Government engaged in discussions with the British Government and listed the requirements which were regarded as necessary to safeguard New Zealand's vital interests. These requirements were as follows:

  1. That New Zealand should be able to continue to sell at remunerative prices the quantities of butter and cheese for which it currently received assured access to the British market.

  2. That guarantees of access should not terminate with the transitional period, but that there should be a continuing arrangement subject to periodic review.

  3. That, in the event of the Community adopting a common regulation for sheepmeats, New Zealand should continue to have access for lamb sales on a satisfactory basis.

When the formal negotiations opened in June 1970, the British Government accepted this “statement of claim” for dairy products as the basis for their submission to the Community. In respect of lamb, no negotiations with the EEC were scheduled because of the absence of a common Community regulation. The New Zealand Government accordingly sought from the United Kingdom an understanding that they would not agree to the introduction of a sheepmeats policy which would damage New Zealand's interests.

Negotiations between Britain and the Community formally opened on 21 July 1970. However it was not until a decisive negotiating session held in Luxembourg from 21-23 June 1971 that Britain succeeded in negotiating a special arrangement for New Zealand butter and cheese.

The principal elements of this are set out.

1. Immediately upon accession, the United Kingdom will introduce the common organisation of the market for dairy products. The special arrangements in favour of New Zealand will take the form of derogations from the market organisation rules.

A particular consequence of this is that, immediately upon accession, intra-Community trade must benefit from the Community preference and imports from third countries will be subject to the import arrangements under the market organisation, subject to the special procedures which will be laid down within the framework of the derogations.

2. Just as the present Community has already done, the enlarged Community will make every effort to promote the conclusion of an international agreement on dairy products in order to improve the conditions existing on the world market as soon as possible.

3. There will be a transitional derogation for New Zealand dairy products. The rate at which the quantitative guarantees will be reduced is fixed for the first 5 years, subject to paragraph 6 below. Thus, the guaranteed quantity of butter will be reduced by the same percentage each year and the guaranteed quantity of cheese will be reduced to 90 percent, 80 percent, 60 percent, 40 percent, and 20 percent in 1973, 1974, 1975, 1976, and 1977 respectively.

4. In 1977 the quantitative guarantee admitted for New Zealand dairy products will be 80 percent of the quantities guaranteed before the transitional period for butter and 20 percent for cheese, which represents, expressed as milk equivalent, 71 percent of the quantities guaranteed before the transitional period.

The price level guaranteed to New Zealand will be the average of that which it enjoyed in the United Kingdom market during 1969, 1970, 1971, and 1972.

5. From 1978 onwards, no further quantitative guarantee will be laid down for cheese.

6. During the first 5 years, the council will, if necessary, be able to make adjustments between butter and cheese on the condition that the tonnage expressed as milk equivalent corresponding to the total quantities provided for the two products for the year in question is respected.

7. During the third year after the United Kingdom's accession, the institutions of the enlarged Community will review the butter situation in the light of the supply and demand position and trends in the major producing and consuming countries of the world, particularly in the Community and in New Zealand.

The following considerations, inter alia, will be taken into account during this examination:

  1. Progress towards an effective world agreement on milk products to which the Community and the other important producing and consuming countries would be parties.

  2. The extent of New Zealand's progress towards diversification of its economy and exports. The enlarged Community will seek to pursue a trade policy which will not frustrate these efforts.

8. In the light of this examination the council, on a proposal by the Commission, will decide on suitable measures for ensuring, beyond 31 December 1977, the continuation of the derogation system for New Zealand, and for determining the details of this system.

9. The quantitative guarantees will be laid down for the United Kingdom market only.

To this end, New Zealand will guarantee the respect of a c.i.f. price at the frontiers of the United Kingdom.

For its part, the Community will apply to these products a special levy, based on this c.i.f. price and depending on the United Kingdom market price at which the New Zealand products are sold. This price must make possible the effective marketing of the quantities fixed in the export guarantees granted to New Zealand, without, however, compromising the market for products from the enlarged Community. Fuller information may be obtained from the New Zealand Government's parliamentary report (New Zealand and the European Economic Community.)

The special arrangement for New Zealand was only one of the major issues negotiated at the Luxembourg meeting. Sufficient progress was made on the question of Commonwealth sugar, Community finance, the reserve role of sterling, transitional measures for industry and agriculture, to ensure the subsequent success of the negotiations. The negotiations by Norway, Denmark, and Ireland, have proceeded in parallel to those of the United Kingdom. On the basis of the arrangements then negotiated, the British Government sought parliamentary approval in principle to Britain's entry into the Community from 1 January 1973. The Government won the vote in the British House of Commons on 28 October 1971 by a substantial majority.

Preparations for the signing of the Treaty of Accession progressed rapidly and the Treaty was signed in January 1972. The Luxembourg Agreement on New Zealand has been incorporated in the Treaty by means of a Protocol, which closely reflects the language used in the original Luxembourg text.

The actual and potential surpluses of dairy products which occasion so much concern to New Zealand are in fact a very small proportion of total production and consumption in the EEC. It is recognised within the Community that, in the long-run interests of their own taxpayers and consumers, some elements of the agricultural policies currently being followed are in need of reform. It seems probable that relatively minor changes could deal with the Community's own dairy products problems in a manner consistent with their own fundamental objectives for the agricultural sector and with the protection of New Zealand's vital interests in the British market.

The EEC has not yet implemented a common agricultural policy for sheepmeats. This reflects the low consumption in most member countries. The comparative importance of Britain's sheepmeat consumption suggests that Britain should have an important and liberal influence on policy in the event of enlargement. It would be severely detrimental to New Zealand if the effect of any such policy were to restrict access and reduce overall net returns from the sale of Iamb to an enlarged EEC

EUROPEAN FREE TRADE ASSOCIATION (EFTA)—On 27 May 1959 Sweden invited Austria, Denmark, Norway, Portugal, Switzerland, and the United Kingdom ("The Seven") to join with her in exploring the possibility of forming a free trade area. Discussions began in Stockholm in June 1959, and a Convention for a European Free Trade Association, agreed by Ministers of the Seven on 20 November 1959, became effective on 3 May 1960. Tariffs on industrial goods originating in the area were abolished in 1966, and special arrangements are in force in relation to agriculturalproduce and fish. Finland was included as an associate member. In March 1970, Iceland became the eighth full member of EFTA. Of particular interest to New Zealand was the fact that the Nordic members of EFTA accorded Iceland preferential entry arrangements for mutton and lamb.

Now that Norway, Denmark, and Britain seem ready to join the EEC, it is clear that the future of EFTA is limited. Consequently the non-applicant EFTA states, Austria, Finland, Iceland, Portugal, Sweden, and Switzerland, have been holding discussions with the EEC, with a view to concluding a trading arrangement with an enlarged EEC. The exports of these non-applicant EFTA states to an enlarged EEC as a proportion of their total exports are significant, varying from 38 percent for Iceland to over 60 percent for Sweden. There is a recognition both on the part of the EFTA countries concerned and the EEC that some sort of arrangements will have to be made, but at this stage it is unclear what the details will be.

UNITED KINGDOM MARKET: Dairy Produce—New Zealand's important position in the supply of butter, cheese, and milk powder to the United Kingdom market is illustrated in the following table, showing imports into the United Kingdom, by country of export. Domestic production of butter in the United Kingdom is relatively small in comparison with total supplies. Domestic cheese supplies, on the other hand, are comparatively large, as is also the domestic output of milk powder. (Source: Commonwealth Secretariat.)

Country of ExportButterCheeseMilk Powder
19381969197019711938196919701971196919701971
     tons(000)      
New Zealand1301901561448269657022207
Australia90596532121211723-
Denmark11893836919910---
Netherlands3612131710141417212
Other countries102567110541505561243030
            Total imports476410388367146154154165505439
United Kingdom production2056626543119128154126125148

The following table shows the comparative figures for consumption of butter and margarine in the United Kingdom. (Source: Commonwealth Secretariat.)

Product193819641965196619671968196919701971
 lb per head
Butter24.119.719.420.020.519.319.219.318.0
Margarine10.013.312.012.011.711.311.811.812.9

Meat—The following table shows the imports of meat into the United Kingdom from the principal countries, by country of export. (Source: Commonwealth Secretariat.)

Country of ExportMutton and LambBeef and VealAll Meats*
19381969197019711938196919701971196919701971
*Including pig-meat, offal, bacon and ham.
 tons(000)
New Zealand18432729130552151514370333347
Australia95243232115173131588584
Argentina45---35412358381315838
Denmark-----211303290288
Ireland, Republic64298985102104127142170
Other countries22-2268965561213158161
            Totals3463623273485893391,2622491,2021,0651,088
United Kingdom production2112022232266048579339362,0292,1561,954

THE ORGANISATION OF MARKETING—In a country such as New Zealand which is very dependent upon overseas trade, the efficient organisation of marketing of primary produce takes on a special importance.

Marketing Authorities—Since about 1950 the principle has been accepted that producers should be predominantly responsible for the marketing of their products. The major statutes under which specific marketing authorities operate are the Dairy Board Act 1961, the Meat Export Control Act 1921-22 and the Amendment Acts 1956 and 1971 (for the Meat Producers Board), and the Meat Export Prices Act 1955, the Wool Commission Act 1951, the Milk Act 1967, the Apple and Pear Marketing Act 1948, and the Primary Products Marketing Act 1953 (safeguards citrus fruit, honey, and eggs).

Dairy Produce—The New Zealand Dairy Board acquires and markets all New Zealand butter, cheese, milk powder, and casein intended for export, and regulates the marketing of butter and cheese in New Zealand. The New Zealand Dairy Board is a statutory authority operating under the Dairy Board Act 1961 and acts as the administrative body for the industry and as its export marketing agency. Of the board's members, 11 are elected by the co-operative companies and 2 are appointed by the Government. The board acquires all export dairy products from the manufacturing companies, sells the goods overseas, and returns the proceeds, less marketing costs, to the companies.

The board sells its produces throughout the world, and is currently exporting to over 90 countries. Sales are made in the United Kingdom through the board's own sales organisation. In other markets, the board sells through local agents, or in the case of some buyers it sells direct, on a contract basis. The board carries out extensive advertising and publicity of New Zealand produce in the United Kingdom and other markets. Authority for the board to issue bonds, stocks, and securities to the general public, subject to the prior consent of the Minister of Finance was provided for in the Dairy Board Amendment Act 1967. This measure was designed to extend the board's powers to assist capital development programmes of dairy companies.

Meat—The New Zealand Meat Producers Board was constituted in 1922 under the provisions of the Meat Export Control Act 1921-22 to protect the national and producers interests. The board obtains funds by the imposition of a levy on all meat exported (except canned meats and offals) the levy being at present 0.075c per pound. The board's main functions are:

  1. To ensure that all export meat is graded to a standard;

  2. To negotiate shipping freight rates, organise shipping, and allocate space;

  3. To organise advertising and allied promotional work.

The board has engaged in most activities in the export trade in the interests of the producer. It is the mechanism through which policy in the interests of the trade is formulated.

Prior to 1971 the board's power to participate in the purchase and sale of meat in any country outside New Zealand was limited under the terms of the Act to the establishment of markets in those countries where no substantial market for New Zealand meat previously existed and to the expansion and maintenance of those markets. An amendment to the Act passed in October 1971 extended the board's power to enable it to buy any meat derived from sheep and sell in or export to any country.

There is provision for this to be extended by Order in Council to cover meat derived from any other stock; the board's previous powers with regard to the sale of these meats in developing markets has been maintained. A sizeable proportion of lambs were purchased by the board in the 1971-72 season.

The board has had a major influence on meat marketing policy through the regulation of shipments, control over quality, and the development of markets through promotion in which it is investing some $3 million a year.

In its market support activities the board is the only organisation in the world promoting the sale of meat on a genuinely international scale. To this end it has established in its major markets a network of market consultants assisting the board through its overseas offices which are in London, New York, and Tokyo.

While the trade has retained the role of direct marketing, the administrative and promotional work of the board has served to ensure that the long-term interests of the industry are not ignored. This function embraces all activities in moving meat and by-products from producer to consumer in the quickest and most efficient manner with due regard to the stability of prices and markets.

Wool—By the Wool Commission Act 1951 there was established a Wool Commission with the principal function of assuring minimum prices for greasy, scoured, and growers' slipe wool in accordance with the table of minimum prices (effective only after agreement with the Minister), for New Zealand wool sold in New Zealand or the United Kingdom at auction sales approved by the commission. The commission is also the statutory collecting agent for the Wool Board's levy on growers, which is at the rate of 1.55c a kilogram.

From the operations of the Joint Organisation set up to clear stocks of wool accumulated during the Second World War, the Wool Commission received an initial capital fund of $53 million consisting of profits from the Joint Organisation of about $40 million and also the balance of $13 million remaining from contributory charges paid by woolgrowers. The initial capital of the commission was augmented by interest earnings on investments, and by profits on the resale of wool bought in at the floor prices. It accumulated fairly steadily until the 1966-67 season when it was heavily drawn upon. At 30 June 1966 the commission's capital funds amounted to $73.7 million, most of which was invested in Government stock; at 30 June 1967 the capital was $70.7 million, most of which was invested in wool stocks; by 30 June 1970 the capital had been reduced to $52.2 million, three-fifths of which was represented by wool stocks; and by 30 June 1971 wool stocks represented two-fifths of the capital of $48.2 million.

A substantial fall in demand for crossbred wools began towards the end of 1966, primarily as a result of economic restraints in several European countries and a marked reduction in speculative demand for wool in face of increased volume and sharply reduced prices of man-made fibres; lesser factors tending to reduced demand for wool were change of fashion, the effect of continually extending central heating facilities, and changes in quality of wool offered. To maintain stability in the market, the Wool Commission was forced to buy 39 percent of the wool offered at auction in the 1966-67 season. This amounted to 645,786 bales and cost $62.8 million. (The Wool Commission announced that it proposed to hold these stocks until they could be disposed of in an orderly fashion at satisfactory prices.)

After buying a further 60,000 bales in the early part of the 1967-68 season, the funds of the Wool Commission were exhausted by mid-November 1967 and arrangements were made with the Government to borrow from the Reserve Bank against wool held in stock the amount required to make supplementary payments to growers. Since the reduction of the buying-in price in 1967-68 the commission has bought little wool.

The commission began its programme of stock disposal in 1967-68 when 16,800 bales of wool bought earlier that season were sold at auction. Up to 31 October 1971, the Wool Commission had sold 492,300 bales of stock for a total return of $45.6 million; the original cost of the wool sold was $48.1 million and the cost of storage and insurance amounted to $2.5 million. The total stock remaining at 31 October 1971, including purchases to date in the 1971-72 season was 236,000 bales. All disposals have taken place publicly through the auction system, and prices realised for stock wool have generally been equivalent to those for new clip wool.

A Wool Marketing Corporation has been proposed by the Wool Board. It would be a grower-controlled acquisition authority paying full market price for wool in competition with other buyers. The proposed new organisation is designed to overcome the deficiencies in the auction system whereby there is a fragmented supply from 40,000 growers to 100 private merchants, several large merchant securers, and 42 brokers' stores.

Apples and Pears—Apples and pears are purchased from growers by the New Zealand Apple and Pear Marketing Board. This board was set up in 1948, in terms of the Apple and Pear Marketing Act 1948, to acquire and market the apple and pear crop. Under the Apple and Pear Marketing Amendment Act 1967 there has been set up an Apple and Pear Prices Authority whose function it now is to determine each season the average price to be paid for apples and pears. This price is a New Zealand average, and within it prices to growers vary for the different varieties, grades, and sizes. Most apples and pears of standard grade arc purchased by the board with private sales by growers limited by regulations. Growers may sell direct to consumers in lots of not more than two cases, or with permission of the board, to retailers in specified localities. Manufacturers may be licensed by the board to purchase their requirements direct from growers (although in some cases the board itself purchases fruit and resells it to the factory). Growers may also be permitted by the board to sell at municipal markets established under the Municipal Corporations Act 1954.

The board decides what proportion of the fruit is to remain in New Zealand and what proportion is to be exported, and arranges for the storage and release of varieties according to their condition and keeping capacity, in order to make fruit available for as long a period as possible during the year. The board determines the wholesale prices at which fruit is sold in New Zealand by authorised wholesalers to retailers. If in any season the total receipts from sales of fruit by the board exceed the amount which the board is required to pay to growers in accordance with the declared average price, the surplus, after deduction of costs and expenses incurred by the board is apportioned between a reserve fund and the growers. The board may distribute up to 50 percent of the surplus among growers, or such greater proportions as the Minister approves. The balance is added to the reserve fund. If sales in any season realise less than the amount the board is required to pay, the deficiency is met from the reserve fund. The reserve fund, which has been built up from profits derived almost solely from exports, has been invested in a chain of modern cool stores and mechanical equipment designed for the improved handling of fruit.

Financial results for recent seasons are shown in the following table.

SeasonProfit or LossBoard's ShareGrowers' ShareReserve Fund at End of Season

*It was agreed that the growers' share be invested in a processing factory.

†Retained by board to offset previous seasons' losses.

 $(000)$(000)$(000)$(000)
1959-60609609*-2,875
1960-61- 270- 270-2,605
1961-624723232,628
1962-63- 139- 139-2,489
1963-64-1,248-1,248-1,241
1964-65439439-1,680
1965-66-1,823-1,823-- 143
1966-671,3651,365-1,222
1967-685013941071,616
1968-699617532082,369
1969-70-1,410-1,410-959
1970-712931691241,128

A committee of inquiry into the sale of apples and pears on the local market reported to Parliament on 4 October 1961—see parliamentary paper H.29A. The committee supported continuance of the existing form of marketing with minor variations.

Potatoes—The Potato Board, with equal representation of growers and merchants and an officer of the Public Service as an advisory member, was established by the Potato Growing Industry Act 1950. Its principal function is to ensure that an adequate supply of main-crop potatoes shall be available for consumption. Its powers include the making of contracts between growers and the board for main-crop potatoes, and the appointment of wholesalers authorised to purchase from growers and to sell potatoes in respect of which contracts have been made with the board. In June 1956 the Government announced that it would guarantee the overdraft of the Potato Board to enable the board to guarantee a certain schedule of minimum prices to contract growers for any potatoes unsold at the end of the season. The purpose is to encourage the growing of an adequate supply of potatoes.

Milk—The New Zealand Milk Board was set up in 1953. It operates the national milk scheme and engages in other activities for the purpose of ensuring an adequate supply and efficient distribution of milk. The legislation is contained in the Milk Act 1967.

The board may make a levy on milk to finance its operations but while a subsidy on milk is payable from the Consolidated Revenue Account the rate of levy requires the approval of the Minister of Agriculture.

Retail prices are fixed by Order in Council. The price for the milk to the producer is fixed by the Minister of Agriculture after consultation with the Milk Board. Intermediate margins, such as those for pasteurising and bottling milk and to vendors for its delivery, are fixed by the Milk Prices Authority. The total cost at the present time exceeds the amount paid by the consumers, the balance being met by subsidy. It is the function of the Milk Board to administer the whole town milk scheme on behalf of the Government which, however, retains a direct interest by virtue of the substantial sum paid in subsidy.

Eggs—The Egg Marketing Authority, which was established in 1953, consists of eight members—five producer members of the New Zealand Poultry Board and three Government representatives. The principal function of the authority is to regulate and control the marketing and distribution of eggs and egg pulp in New Zealand and elsewhere in accordance with the regulations, to ensure as far as possible sufficient supplies of eggs and their equitable distribution in the general interests of producers and consumers.

The New Zealand Egg Marketing Authority operates principally through licensed distributors in the various districts who, on commission, receive and resell eggs or, as directed by the authority, manufacture egg pulp for the use of bakers and pastrycooks. Eggs are subject to price control. A subsidy, at present at the rate of 3.33c per dozen, is paid by the Government in respect of eggs received at authorised egg floors (as the licensed distributors are known). This is to offset floor charges and distribution costs which would otherwise be passed on to the consumers.

Imported Citrus Fruits and Bananas—The importation and marketing of imported citrus fruits, bananas, pineapples and grapes are the responsibility of a registered company, Fruit Distributors Ltd., representing trade interests. The operations of the company are defined and restricted by an agreement between it and the Government. There are two Government members on the company's board of directors.

New Zealand Lemons and Oranges—The Citrus Marketing Authority was established in 1953 to market fresh lemons, either directly or through agents, throughout New Zealand and to process unmarketable but otherwise sound fruit into by-products, such as fruit juice and lemon peel. The authority has a membership of six, five of whom are nominees of the New Zealand Citrus Council and represent the producers, and one appointed by the Minister of Agriculture as the Government member who also protects the interests of consumers.

The Citrus Marketing Authority controls the assembly and distribution of New Zealand lemons, and also New Zealand grown sweet oranges. The entire output of fruit, which comes under the jurisdiction of the authority, is sold at agreed prices to Fruit Distributors Ltd. The authority operates processing and packing facilities at Kerikeri, and Tauranga.

Honey—The Honey Marketing Authority, set up in 1953, undertakes the task of packing and marketing honey within New Zealand and for export. A levy is made at the rate of 0.833c per pound on honey sold locally and the funds paid into the Honey Industry Account, which is administered by the authority for the benefit of the industry in general.

The authority comprises four members elected by beekeepers, and one member appointed as Government representative. One of the functions of the Government representative is to watch the interests of the consumer.

TRANSPORT AND OVERSEAS MARKETS—Primary produce forms the bulk of New Zealand's exports and it comes to hand for shipment in seasonal cycles. These are most pronounced for lamb, and apples and pears, but apply also to a marked extent to mutton, beef, wool, and related produce. Butter, cheese, and other dairy produce become available throughout the year but production is considerably higher in the 6 months October to March than in the remainder of the year. The peak season for all the animal products is much the same, being roughly November to May, while there is a shorter concentrated season for fruit in March and April.

This seasonality presents shipping problems in the marketing process. In addition, the bulk of the commodities are perishable and require continuous refrigeration throughout the period of at least 2 to 3 months between production and consumption. The demand for shipping space lags a little behind the season, generally building up in January and declining in June. A realisation of the demands that increased production was making on transport, storage, handling, and shipping services led in 1964 to the setting up of an Export and Shipping Council, an independent body whosemain purpose is to improve the efficiency and economy of New Zealand's export trade as it relates to transport services. Shipping has received special attention as shipping costs absorb a substantial portion of market realisation.

The council is representative of producer boards, freezing companies, transport interests, harbour boards, the Associated Chambers of Commerce, the Federation of Labour, and the Manufacturers' Federation. It has been successful in bringing into effect many of the recommendations of the streamlining report on ports, shipping, transport, and other services, produced as a result of consultations between the producer boards and the main shipping lines. The council works through committees concerned with the following subjects: peak shipping requirements; packages and cargo handling; port facilities; and transport.

PRICES OF PRIMARY PRODUCTS: Wool—Statistics of greasy wool sold at auction in New Zealand (compiled from information supplied by the New Zealand Wool Commission) are shown in the following tables. The first table gives total quantities and values as recorded at sales, no attempt being made to allow for variations in quality or in the relative quantities of the various types of wool sold from season to season. Besides price movements, therefore, the average value per pound of wool sold shown in this table includes variations on account of these additional factors. Under the Wool Commission Act 1951 the Wool Commission prepares a table of minimum prices for various classes of wool, which becomes effective by agreement with the Minister of Agriculture. Where wool does not realise the minimum price, the commission may supplement the sale price so as to increase it to the minimum price, or alternatively, may buy such wool at a price not greater than the minimum price. After the start of the 1967-68 season the commission decided not to purchase unless auction prices were below a determined price, but also decided to make supplementary payments to enable growers to receive the average minimum price of 55.12 cents a kilogram. Supplements were paid on half the offering; the total cost was $8.5 million. The buying-in price was retained for the 1968-69 season, but the average minimum price to growers was set at 49.05 cents. For 1969-70 the average minimum price remained at 49.05 cents but there was no fixed buying-in price; the commission announced that it would operate on levels that might vary up to, but not exceeding, the grower level of 49.05 cents. For the 1970-71 season the minimum price was reduced to 46.30 cents a kilogram and the flexible buying-in policy continued. For 1971-72 season the minimum price became 46 cents with the conversion to metric weights.

The following table shows weight, sale value, and average value per kilogram of greasy wool sold at auction.

SeasonWeight of Greasy Wool SoldSale ValueValue per KilogramAverage Minimum Price per Kilogram of Greasy Wool
*See latest statistical information.
 Metric Tons (000)$ (million)cc
1956-57161.57162.6100.6055.12
1957-58168.01127.075.6260.63
1958-59184.29122.166.2760.63
1959-60185.61132.282.0360.63
1960-61190.92141.674.1260.63
1961-62192.05138.271.9860.63
1962-63201.44158.578.7060.63
1963-64196.81199.1101.1760.63
1964-65201.03155.677.4064.31
1965-66230.97176.676.4664.31
1966-67242.13156.964.7766.14
1967-68244.85123.450.4255.12
1968-69234.28144.961.8149.05
1969-70224.12126.656.4849.05
1970-71218.22116.653.4246.30
1971-72***46.00

In the next table details of a wool price index on base: average over all sales 1963-64 season (= 1000) are given. This index has been compiled in an attempt to eliminate all but the price factor in movements of average wool values. A description of the make-up of this index is given in a supplement to the December 1964 issue of the Monthly Abstract of Statistics.

SeasonIndex Numbers* Base: 1963-64 (= 1000)
*Based on price on floor, clean.
1947-48466
1948-49473
1949-50689
1950-511,584
1951-52749
1952-53840
1953-54903
1954-55886
1955-56832
1956-57985
1957-58750
1958-59663
1959-60812
1960-61745
1961-62731
1962-63788
1963-641,000
1964-65780
1965-66775
1966-67683
1967-68533
1968-69650
1969-70603
1970-71560

Dairy Produce—The following table shows the London wholesale prices in decimal currency (which applied from 15 February 1971) for butter and cheese at the end of March for the last 11 years.

End of Last Week in MarchButter FinestCheese
Cartoned (Rindless-white) FinestCrated (White Waxed) Finest
40 lb60 lb
£ per cwt
196214.2511.5512.3012.18
196315.7511.5512.3012.18
196416.7512.0512.5512.50
196517.5013.0513.5513.50
196615.0012.8013.5513.40
196715.0012.8013.5513.40
196815.0012.8013.5513.40
196915.0012.8012.0511.90
197015.0011.3012.0511.90
197117.5014.0514.8014.65
197227.5024.0524.0524.05

Basic Prices for Dairy Produce—Basic prices (then known as guaranteed prices) for butter and cheese were introduced by the Government on 1 August 1936 to give stability to the dairy industry, and the Primary Products Marketing Act 1936 set out the principles which underlay the fixing of the price. (See the 1961 and earlier issues of the Yearbook.)

Under the Dairy Board Act 1961 prices for butter are fixed by the Dairy Products Prices Authority after taking into account the following matters:

  1. The necessity in the public interest of maintaining the stability and efficiency of the dairy industry.

  2. The amount which butter and cheese acquired by the board is realising and the market prospects for the coming year.

  3. The state of the Dairy Industry Account, the Dairy Industry Reserve Account, and the Dairy Industry Capital Account.

  4. Any submissions made by the Dairy Board.

  5. Any other matters deemed relevant.

The price fixed for butter in any season must not vary by more than 5 percent from the maximum price fixed for the previous season.

The authority must consult with the Minister before it fixes any prices. The members of the authority are appointed by the Governor-General on the recommendation of the Minister of Agriculture, and comprise three representatives of the Government, three members nominated by the Dairy Board, and a chairman approved by the board before appointment.

The price of cheese is fixed by the Dairy Board in relation to the price fixed by the prices authority for butter, together with an allowance related to the returns from milk powder and casein. The objective is to ensure that suppliers of whole milk for manufacture into cheese will, on average, receive a return equivalent to the average return they would have received had the milk been manufactured into butter plus milk powder and butter plus casein.

The Dairy Board may authorise the distribution to dairy companies of up to 50 percent of any surplus achieved in a trading year; part or all of the balance may also be distributed at the discretion of the Minister of Agriculture. There was a substantial surplus in the 1971-72 season; the Government and the Dairy Board agreed to limit the payout to 50c a lb as part of the Government's stabilisation measures.

The prices in cents per pound of butter and cheese for export paid to dairy factories are now given.

Season Ended 31 MayCreamery Butter (Finest Grade 93-93 1/2 pt)Cheese (First Grade 92-92 1/2 pt)
*Advance price.
 cents per lb (gross weight)
1962-6324.71914.953
1963-6425.70715.572
1964-6526.58416.663
1965-6625.90217.820
1966-6725.88417.860
1967-6824.59017.040
1968-6924.67016.820
1969-7024.81017.530
1970-7126.05020.320
1971-7227.35025.800
1972-7328.72023.840*

The prices quoted in the preceding table were designed to enable average dairy companies to pay to suppliers the following amounts in cents per pound of milkfat used for butter or cheese manufacture. Also given is the actual average net revenue per pound of milkfat supplied.

SeasonPrice Per Pound of Milkfat Used for—
Butter-making (Basic Price)Cheese-making (Final Price)Butter-making (Average Net Revenue)Cheese-making (Average Net Revenue)

*Plus 1.25c surplus payment at end of season.

†Plus 833c surplus payment at end of season.

‡Plus 1.20c surplus payment.

§Plus 6.00c surplus payment at end of season.

 cents per lb
1960-6126.66731.66726.96532.128
1961-6226.66731.66726.92431.740
1962-6326.66730.83326.98931.219
1963-6426.667*30.833*27.11331.853
1964-6528.25034.08328.68435.348
1965-6628.25037.59228.67238.217
1966-6728.25037.62528.53738.148
1967-6826.59035.05026.77735.242
1968-6926.59032.62026.94233.615
1969-7026.59033.61026.85334.072
1970-7127.85037.94028.22039.370
1971-72§29.05050.210  

Where a factory receives whole milk and makes butter, the residual skim milk can be manufactured into any of several products, the main ones being skim-milk powder and casein. Production of milk powder and casein has been growing rapidly to meet the needs of growing markets. The increasing value of these “by-products” is reflected in the greater return per pound of milkfat (about 8c per lb) paid to whole milk suppliers, compared with suppliers who separate off the cream on the farm. The supply of whole milk, which is collected in stainless steel tankers, has become increasingly popular with farmers. Four-fifths of all milkfat processed is now collected as whole milk. Production of dairy factories is shown in Section 14A, Farming.

Meat—The Imported Meat Trade Association in the United Kingdom compiles weekly London wholesale meat prices, the basis of quotation being “ex-hooks to retailers at Smithfield market”. The next table gives prices for New Zealand meat at the end of the last week in March. Approximately 40 percent of the value of all New Zealand exports of frozen and chilled meat is generally accounted for by lamb, and the two first-quality weight grades quoted in the table usually account for approximately 20 percent and 35 to 40 percent respectively of all lamb carcasses exported. Beef accounts for 40 percent of the total exports of frozen and chilled meat (by value), but mutton comprises only about 5 percent of the total value of frozen-meat exports.

End of Last Week in MarchLambMuttonBeef
First QualitySecond QualityEweBoneless Cartoned Ox G.A.Q.
28 lb and Under29 to 36 lb37 to 42 lb28 lb and Under29 to 36 lb57 to 64 lbRumpsSilverside

*Prior to 1968 10 cents equalled 12 pence; from 1968 10.7 cents equalled 12 pence following devaluation, or 5 new pence from February 1971 when the United Kingdom changed to decimcal currency.

†No quotation, no significant sales.

cents per pound equivalent
196217.517.1-17.517.116.217.19.2....
196316.7-17.516.2-17.116.716.7-17.516.78.7....
196421.2-21.720.419.2-19.621.7-22.120.4-20.8......
196522.121.2-21.721.2-21.721.7-22.521.7-22.112.9....
196622.9-23.320.8-21.219.223.3-23.721.7..41.7-42.537.5
196720.8-21.720.4-20.820.020.8-21.220.4-20.8..38.3-39.238.3-39.2
1968*24.0-24.524.0-24.524.023.6-24.023.6-24.015.653.4-55.245.4-46.3
196924.9-25.824.5-25.424.024.5-24.924.5-24.912.545.4-46.342.7-43.6
197026.7-27.626.7-27.625.426.7-27.126.7-27.116.960.5-62.343.6-44.5
197132.030.026.329.126.513.563.9
197234.832.230.432.530.462.8

Schedule Prices—A schedule of buying prices is issued each week by the meat operators in New Zealand. The Meat Producers Board keeps a close watch on the prices being received for the meat and all by-products and on processing costs to ensure that the schedule prices give a just and equitable return to the producers. The producers have a choice on how to sell their export meat. They can sell on schedule, on owner's account, on a pool account system, on the basis of prices received from a nominated ship, or they can sell to a producer co-operative.

The opening schedules for the last four seasons are given below. The prices quoted are for dressed weights “on the hooks” at freezing works. The prices for lambs, wethers, and ewes are for bare meat only with an additional payment being made for both wool and pelt.

At the beginning of the 1971-72 season the New Zealand Meat Producers Board considered that the opening price schedules for lamb announced by the meat operators were not high enough in relation to expected market returns. Accordingly the board, after obtaining an amendment to theMeat Export Control Act to permit it to purchase and market lamb, issued its own schedule of prices which are given in the following table. The board bought nearly 10 million lambs up to 4 March 1972 at an outlay of more than $50 million.

Class of Meat1968-691969-701970-711971-72

*Includes special 4.5 cents premium.

†Under 500 lb.

‡New Zealand Meat Producers Board schedule prices.

   cents per pound 
Lamb—    
N.I. Prime (29/36 lb)14.721.8*20.912.4
S.I. Prime (29/36 lb)14.721.820.912.4
Wethers—Prime (49/56 lb)4.78.258.67.5
Ewes—Prime (49/56 lb)3.256.05.06.0
 dollars per 100 lb of beef (N.I.)
Beef—    
    Ox G.A.Q. (450-620 lb)18.0021.5022.5024.00
    Heifer G.A.Q. (over 400 lb)17.0020.5021.5020.50
    Cow G.A.Q. (400-500 lb)15.5019.5020.5022.00
    Boner cow, ox, and heifer (281 lb and over)17.0018.5020.0020.50
    Boner bull (551 lb and over)22.0024.0024.0025.50

Minimum Prices for Export Meat—The institution of a system of minimum prices for meat exported from New Zealand was provided for by the Meat Export Prices Act 1955. A Meat Export Prices Committee was established, and consists of two members of the Meat Board, the Secretary to the Treasury, the Director-General of Agriculture, and a chairman nominated by agreement between the Government and the producers. A schedule of minimum prices is fixed at the beginning of the season. Regard must be paid by the committee to the average level of the prices received for each class of meat during the preceding three seasons, the ruling level of minimum prices, and the committee may have regard to the market trend and future prospects for the sale of meat, prices ruling for other farm products, and the general level of costs, prices, and wages in New Zealand.

The following table gives the minimum prices which apply for the year ending 30 September 1972 for the North Island.

Class of MeatGrade of MeatMinimum Price per Pound f.o.b.
  c
LambPrime 29-36 lb14.0W
Wether muttonPrime 49-56 lb7.5
Ewe muttonPrime 49-56 lb5.5
Chilled beefOx 451-700 lb17.0
Ox and heifer quarter beefG.A.Q.: 451-700 lb17.0
Quarter cow beefG.A.Q.: 401-500 lb14.0
Boner cow, ox, and heiferAll weights, boned-out value20.0
Boner bull551 lb and over20.0
Veal (sides or quarters)Under 280 lb14.0
PorkersPrime 60-100 lb16.0
BaconersPrime 111-140 lb16.0

Deficiency Payments—Payments are made from the Meat Industry Reserve Account when the f.o.b. equivalents of the prices paid to farmers fall below the minimum price determined for any class of meat in the week to which the schedule relates. No deficiency payments were made from 1962-63 to 1970-71.

FARM INDUSTRY RESERVES—Farm industry reserves were built up during the Second World War when, in furtherance of the Government's stabilisation policy, farmers agreed that increases in overseas realisations for meat and dairy produce be paid into special funds for later use for the benefit of the industry concerned. The wool reserve account arose in the main from the profits derived from the sale of wartime surplus stocks, and in part from a levy on all wool sold at auctions.

The following table shows the balances in the various farm industry reserve accounts at given dates. The credit balance in the Dairy Produce Account was exhausted in 1950 and the Wool Commission Account was used to buy in wool in 1966-67.

YearDairy Account at 31 MayMeat Industry Reserve Account at 30 SepWool Commission Account at 30 June

*Most of this was invested in wool stocks.

†About three-fifths was represented by wool stocks.

‡About two-fifths was represented by wool stocks.

  $(000) 
1962-13,38086,33668,470
1963- 8,42888,08870,312
1964- 7,13089,48271,897
1965- 37390,94072,800
1966- 57893,49773,709
1967-11,19195,29670,700*
1968-12,84497,33759,630*
1969-16,00198,19255,835*
1970-20,123100,78652,200
1971-20,123102,66648,197

21 B—DOMESTIC TRADE

GENERAL—Domestic trade embraces retail and wholesale trade and part of the services field. The trend of retail trade is one of the most perceptive barometers of economic activity as it constitutes a large proportion of personal expenditures on consumer goods and services. The Department of Statistics has conducted Censuses of Distribution in 1953, 1958, 1963, and 1968. These censuses have covered retail trade, wholesale trade, and some service establishments. Quarterly and monthly sample surveys of retail and wholesale trade have been based on the Census of Distribution; these provide valuable economic indicators on the value of sales by the various types of stores and the value of stocks held.

The Census of Distribution for 1967-68 revealed retail trade sales of $2,100 million or an average turnover of $71,587 for each of the 29,331 stores. At 31 March 1968 there was one retail shop for every 94 persons, nearly one-half of them selling food and drink. A large proportion of the goods sold had earlier passed through wholesale stores, there being 3,778 such stores covered in the census with a total turnover of $1,591 million. The 3,653 service establishments covered in a limited survey at the census had total receipts of $83 million at an average of $22,661 per establishment. Notable exclusions from the census were petrol and oil sales, newspaper sales other than in shops, and sales by bread bakers, dealers in timber, bricks and roofing tiles, and milk vendors. A full report of the census is given in the publication Census of Distribution 1968.

In the following table the main results of the censuses of 1963 and 1968 for retail trade are set out.

Item19631968Percentage Increase
Number of stores27,68829,3315.9
 $(000)$(000) 
Sales1,515,8902,099,70738.5
Purchases1,160,6761,609,20238.6
Opening stocks233,178329,72041.4
Closing stocks235,972340,21144.2

Some other features of retail trade shown by the 1968 census together with comparative figures for 1963 are shown in the following table.

Store-type GroupNumber of StoresAverage Turnover per StoreAverage Labour Force per StoreTurnover per Unit of Labour ForceTurnover per Head of PopulationAverage Population per Store
*Includes cars and accessories, but not petrol and oil sales nor garage work, servicing, and maintenance.
   $ $$ 
Food and drink1,96813,99249,8553.813,136253.2197
 1,96313,41036,8283.610,242195.4188
Apparel1,9684,11940,8103.411,84361.0669
 1,9633,99238,2183.810,01260.4633
Furniture1,9681,57874,7774.815,42942.81,746
 1,9631,45167,2565.113,29438.61,742
Automotive*1,9681,344217,4755.638,530106.12,050
 1,9631,157173,4944.736,73079.42,184
Hardware1,9681,008118,4456.518,17843.32,733
 1,96385585,0505.415,61228.82,956
Chemists, etc.1,9681,16750,1013.912,81121.22,361
 1,9631,04937,9083.810,01015.82,409
Miscellaneous—       
    General, department and variety1,968832283,85722.512,63785.73,311
 1,963764221,36621.910,10267.03,308
Other1,9685,29177,4384.716,455148.7521
 1,9635,01057,7924.313,430114.6504
All retail stores1,96829,33171,5874.715,298762.194
 1,96327,68854,7484.512,304599.891

CENSUS OF DISTRIBUTION 1968: Retail Establishments—Of the 29,331 retail stores covered by the census, 20,624, or 70.3 percent, were situated in the North Island, and 8,707, or 29.7 percent, in the South Island.

The following table shows details by statistical areas. The figures quoted in parentheses are in each case the percentage of total.

Statistical AreasPopulation at 31 March 1968Number of StoresPurchases During 1967-68Turnover During 1967-68Stocks at Close of Year (March 1968)
 (000) $(000)$(000)$(000)
Northland94.71,06258,00574,03211,225
 (3.4)(3.6)(3.6)(3.5)(3.3)
Central Auckland644.16,771361,52576,49473,894
 (23.4)(23.1)(22.5)(22.7)(21.7)
South Auckland - Bay of Plenty403.94,236239,282309,17749,885
 (14.7)(14.8)(14.9)(14.7)(14.7)
East Coast47.142124,90431,8755,534
 (1.7)(1.4)(1.6)(1.5)(1.6)
Hawke's Bay128.31,36667,05688,07615,508
 (4.6)(4.7)(4.2)(4.2)(4.6)
Taranaki101.21,09357,46273,66211,791
 (3.7)(3.7)(3.6)(3.5)(3.5)
Wellington537.15,585326,850431,66069,632
 (19.5)(19.0)(20.3)(20.6)(20.5)
Marlborough30.234218,13022,7053,883
 (1.1)(1.2)(1.1)(1.1)(1.1)
Nelson68.379331,07341,0977,496
 (2.5)(2.7)(1.9)(2.0)(2.2)
Westland24.133010,32213,5992,157
 (0.9)(1.1)(0.6)(0.6)(0.6)
Canterbury386.04,015238,173307,83049,517
 (14.0)(13.7)(14.8)(14.7)(14.6)
Otago183.22,065100,302131,35122,529
 (6.6)(7.0)(6.2)(6.2)(6.6)
Southland106.91,16276,11798,15017,161
 (3.9)(4.0)(4.7)(4.7)(5.0)
            Totals2,755.129,3311,609,2022,099,707340,211
 (100.0)(100.0)(100.0)(100.0)(100.0)

In 1968 the principal centres of population (urban areas) included 63.2 percent of New Zealand's people, but contained 65.8 percent of all retail stores, with 71.1 percent of total sales or turnover.

The following table shows details by urban and rural areas. The figures in parentheses are in each case the percentage of total.

Location GroupPopulation at 31 March 1968Number of StoresTurnover During 1967-68Stocks at Close of Year (March 1968)

*Auckland, Wellington, Christchurch, Dunedin.

†Whangarei, Hamilton, Tauranga, Rotorua, Gisborne, Napier, Hastings, New Plymouth, Wanganui, Palmerston North, Nelson, Timaru, Invercargill.

‡Boroughs outside urban areas with population over 4,000.

 (000) $(000)$(000)
Main urban areas* (including Hutt urban area)1,235.013,068987,735158,014
 (44.8)(44.5)(47.1)(46.5)
Secondary urban areas (excluding Hutt urban area)505.86,240503,96785,448
 (18.4)(21.3)(24.0)(25.1)
Smaller centres244.23,876292,62848,926
 (8.9)(13.2)(13.9)(14.4)
Other urban141.32,891167,59927,665
 (5.1)(9.9)(8.0)(8.1)
Rural628.83,256147,77820,158
 (22.8)(11.1)(7.0)(5.9)
            Totals2,755.129,3312,099,707340,211
 (100.0)(100.0)(100.0)(100.0)

Leading results of the census relating to principal urban areas are shown in the following table.

Urban AreaPopulation March 1968Percentage of N.Z. Total PopulationNumber of StoresPercentage of N.Z. Total StoresTurnover During YearPercentage of N.Z. Total SalesStocks at Close of YearPercentage of N.Z. Total Stocks
     $(000) $(000) 
Auckland577,30021.06,18421.1439,14020.968,97020.3
Wellington173,2006.31,8666.4173,7778.327,7248.1
Hutt118,4004.31,0533.677,1583.711,9753.5
Christchurch256,3009.32,7369.3213,19010.234,78710.2
Dunedin109,8004.01,2294.284,4704.014,5594.3
Whangarei31,6001.14131.436,9551.85,4791.6
Hamilton68,0002.58082.882,1013.913,1723.9
Tauranga33,5001.25161.829,0111.44,9501.5
Rotorua35,3001.34181.436,8321.85,7461.7
Gisborne28,5001.03171.127,1921.34,7521.4
Napier39,9001.44511.526,6181.34,7481.4
Hastings39,2001.44491.533,1711.65,8631.7
New Plymouth35,8001.34541.533,1881.65,7361.7
Wanganui38,5001.44941.733,3591.65,6781.7
Palmerston North50,9001.86222.153,0222.59,0132.6
Nelson28,4001.03571.221,9061.04,1581.2
Timaru28,4001.03321.131,0241.55,3261.6
Invercargill47,8001.76092.159,5882.810,8283.2

The next table gives the number of stores and value of sales or turnover for boroughs with over 1,000 population not included in the 18 main urban areas of the preceding table.

BoroughNumber of StoresTurnover During 1967-68
  $(000)
Kaitaia856,343
Kaikohe705,294
Dargaville958,106
Helensville301,848
Pukekohe12913,069
Waiuku492,961
Tuakau322,196
Thames1236,582
Paeroa743,589
Waihi642,764
Te Aroha875,935
Huntly814,735
Morrinsville1106,901
Ngaruawahia431,760
Te Puke806,578
Matamata1056,325
Cambridge1048,071
Whakatane15010,945
Opotiki643,878
Te Awamutu15511,913
Putaruru896,905
Kawerau513,638
Murupara191,346
Otorohanga634,359
Te Kuiti916,085
Taupo1317,572
Taumarunui11310,178
Wairoa1007,993
Waipawa402,075
Waipukurau686,222
Dannevirke1116,919
Woodville331,105
Waitara663,834
Inglewood453,010
Stratford1047,906
Eltham432,186
Hawera14912,047
Patea361,532
Ohakune251,259
Raetihi321,769
Taihape594,155
Marton805,400
Fielding14012,051
Pahiatua673,810
Foxton492,048
Levin17911,263
Otaki693,009
Masterton24320,072
Carterton623,540
Greytown231,241
Featherston371,923
Martinborough261,569
Picton451,360
Blenheim20817,657
Motueka744,144
Richmond633,573
Westport904,280
Rangiora786,342
Kaiapoi642,941
Runanga14503
Greymouth1557,460
Hokitika662,972
Ashburton18618,911
Geraldine353,736
Temuka602,867
Waimate724,629
Cromwell301,172
Queenstown481,902
Oamaru17713,376
Alexandra554,463
Milton432,013
Balclutha707,033
Kaitangata9377
Gore15117,238
Winton472,920
Mataura271,248
Riverton281,173
Bluff421,820

Just under half the total number of retail stores were in the food and drink group—grocers, butchers, dairies, etc. This group accounted for 33 percent of the sales, the average turnover per store being $49,855. As against this, the automotive group, which accounts for only 4.6 percent of all retail stores handled 14 percent of the sales, with an average turnover of $217,475 per store.

The following table shows details by store-type groups.

Store-type GroupNumber of StoresNumber of Paid Employees on 9 April 1968Total Labour Force on 9 April 1968Average Labour Force per StoreSalaries and Wages Paid During 1967-68Turnover During 1967-68Average Turnover per Unit of Labour ForceStocks at Close of Year (March 1968)
MalesFemalesTotal
       $(m)$(m)$$(m)
Food and drink13,99217,67115,79033,46153,1023.853.9697.613,13639.9
Apparel4,1192,8677,37210,23914,1943.416.1168.111,84355.5
Furniture1,5784,4621,8656,3277,6484.813.0118.015,42927.6
Automotive1,3445,3541,0306,3847,5865.613.7292.338,53042.3
Hardware1,0084,2971,3675,6646,5686.511.7119.418,17828.9
Chemist, etc.1,1671,1822,3533,5354,5643.96.458.412,81110.4
Department, variety, and general stores8326,16011,80617,96618,68922.528.5236.212,63746.4
Miscellaneous5,29112,7766,90219,67824,9004.737.8409.716,45589.2
            Totals, all retail stores29,33154,76948,485103,254137,2514.7181.12,099.715,298340.2

The following table shows details by turnover size groups.

Amount of Total TurnoverNumber of StoresNumber of Paid Employees on 9 April 1968Total Labour Force on 9 April 1968Salaries and Wages Paid During 1967-68Turnover During 1967-68Stocks at Close of Year (March 1968)
MalesFemalesTotal
$     $(m)$(m)$(m)
Under 10,0003,0434361,1001,5365,3011.618.94.1
10,000- 19,9995,1961,5493,5065,05511,6616.477.613.9
20,000- 29,9994,8012,3624,3706,73212,7549.5118.720.1
30,000- 99,99912,56415,67417,09732,77148,05954.5658.797.3
100,000- 199,9991,9628,7545,09513,84915,38626.2267.443.5
200,000- 499,9991,21411,6206,39618,01618,64234.6369.061.4
500,000-1,999,99950611,0106,66717,67717,82434.1443.275.3
2,000,000-and over453,3644,2547,6187,62414.3146.224.6
            Totals, all retail stores29,33154,76948,485103,254137,251181.12099.7340.2

Of the 29,331 retail stores, 14,496 (49 percent) were operated by private registered companies, 8,234 (28 percent) were under individual ownership, 4,331 (15 percent) were run by partnerships, and 1,562 (5 percent) were run by public registered companies.

The following table shows details by type of organisation. The figures quoted in parentheses are in each case the percentage of total.

Type of OrganisationNumber of StoresTurnover During 1967-68Stocks at Close of Year (March 1968)
  $(000)$(000)
Private registered companies14,4961,166,588197,380
 (49.4)(55.6)(58.0)
Public registered companies1,562497,86192,641
 (5.3)(23.7)(27.2)
Individual ownership8,234200,69423,167
 (28.1)(9.6)(6.8)
Partnership4,331148,13714,741
 (14.8)(7.0)(4.4)
Other70886,42812,281
 (2.4)(4.1)(3.6)
            Totals29,3312,099,707340,211
 (100.0)(100.0)(100.0)

The number of multiple stores engaged in retail trade represented only 13 percent of the total stores, but accounted for 37 percent of the total turnover. A multiple store is defined as one of a group of four or more under common ownership.

Store-type GroupNumber of StoresTurnover During 1967-68Stocks at
Start of Year (April 1967)Close of Year (March 1968)
  Multiple Stores  
  $(000)$(000)$(000)
Food and drink1,190136,2756,5637,344
Apparel61239,89711,91812,884
Furniture32036,1578,1777,892
Automotive14091,56415,64414,482
Hardware20264,64615,06614,860
Chemists, etc.282,835356347
Miscellaneous1,268402,03582,35383,958
            Totals3,760773,409140,078141,767
  Other Stores  
Food and drink12,802561,29930,63332,525
Apparel3,507128,19840,43342,615
Furniture1,25881,84219,79619,721
Automotive1,204200,72327,01927,779
Hardware80654,74713,59514,085
Chemists, etc.1,13955,6329,51410,054
Miscellaneous4,855243,85748,65151,666
            Totals25,5711,326,298189,642198,445

The following table shows the disposition of the different methods of selling by store-type group and by location group. The figures quoted in parentheses are in each case the percentage of total.

GroupTurnover (1967-68) in the Form of—Total Turnover (1967-68)
CashCharge AccountHire Purchase Not Assigned to Finance CompaniesHire Purchase Assigned to Finance CompaniesInstalment and LaybyBudget Store Credit, etc.Other
    $(000)    
  Store-type Groups      
Food and drink617,93078,79072144560626697,574
 (48.8)(11.6)(0.1)(0.2)(-)(6.0)(0.7)(33.2)
Apparel138,27621,2972712344,8192,974223168,095
 (10.9)(3.2)(0.4)(0.4)(44.7)(29.6)(5.8)(8.0)
Furniture33,11655,11619,0477,9918535101,365117,998
 (2.6)(8.2)(28.4)(12.4)(7.9)(5.1)(35.7)(5.6)
Automotive143,17984,16819,57044,936726356292,287
 (11.3)(12.4)(29.1)(69.9)(0.7)(0.1)(9.3)(13.9)
Hardware25,82491,4245111,4301262553119,393
 (2.1)(13.5)(0.8)(2.2)(1.2)(0.2)(1.4)(5.7)
Chemists, etc.53,4464,962--448958,468
 (4.2)(0.7)(-)(-)(-)(0.5)(0.2)(2.8)
Department, variety, and General stores136,32076,79014,9122483,7793,736384236,169
 (10.8)(11.3)(22.2)(0.4)(35.1)(37.1)(10.1)(11.3)
Miscellaneous118,369264,56612,8019,3001,1252,1531,408409,723
 (9.3)(39.1)(19.0)(14.5)(10.4)(21.4)(36.8)(19.5)
            Totals, all retail stores1,266,460677, 1 1367,18564,28310,78410,0593,8232,099,707
 (100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)
    Location Groups    
Main urban areas (including Hutt urban area)659,229244,87738,79829,4468,0604,7342,590987,735
 (52.0)(36.2)(57.7)(45.8)(74.8)(47.1)(67.7)(47.1)
Secondary urban areas (excluding Hutt urban area)285,265177,59816,45319,2211,8442,765821503,967
 (22.5)(26.2)(24.5)(29.9)(17.1)(27.5)(21.5)(24.0)
Smaller centres153,353118,5137,74310,2875851,896251292,628
 (12.1)(17.5)(11.5)(16.0)(5.4)(18.8)(6.6)(13.9)
Other urban86,88273,1112,9454,007227308119167,599
 (6.9)(10.8)(4.4)(6.2)(2.1)(3.1)(3.1)(8.0)
Rural81,73163,0131,2461,3236735642147,778
 (6.5)(9.3)(1.9)(2.1)(0.6)(3.5)(1.1)(7.0)
            Totals, all retail stores1,266,460677,11367,18564,28310,78410,0593,8232,099,707
 (100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)

The following table shows, by the store-type group, average turnover and average labour force per establishment, turnover per unit of labour force and per head of population, and the approximate number of times stock was turned over each year.

Store-type GroupAverage Turnover per EstablishmentAverage Labour Force per EstablishmentAverage Turnover per Unit of Labour ForceTurnover per Head of PopulationNumber of Times Stock Turned Over per Annum
 $ $$ 
Food and drink49,8553.813,136253.1918.8
Apparel40,8103.411,84361.013.2
Furniture74,7774.815,42942.834.2
Automotive217,4755.638,530106.096.9
Hardware118,4456.518,17843.344.2
Chemist, etc.50,1013.912,81121.225.9
Miscellaneous105,4867.114,818234.444.9
            All retail stores71,5874.715,298762.126.4

Self-service Grocery Stores—As might be expected, self-service stores are most common among the larger establishments. A total of 88 percent of grocery stores with turnovers of $100,000 or more have self-service units, and 64 percent of those in the $60,000-$99,999 group. The percentages decline steadily with size of turnover to 15 percent of stores in the $10,000-$19,999 group and only 11 percent of those in the under $10,000 group.

Turnover SizeWith Self-service UnitsWithout Self-service UnitsPercentage of Self-service Units to Total Stores
Number of StoresTurnover During 1967 68Value of StocksNumber of StoresTurnover During 1967-68Value of Stocks
Start of YearClose of YearStart of YearClose of Year
$ $(000)$(000)$(000) $(000)$(000)$(000) 
Under 10,00014100162311473110612310.9
10,000- 19,99947789911012614,03944947015.3
20,000- 39,99941313,1321,1801,26293328,2212,5672,68630.7
40,000- 59,99956127,8312,3262,43367933,0112,5522,67145.2
60,000- 99,99965750,0574,0394,13037527,0232,0372,17163.7
100,000 199,99928237,0742,5772,951536,21547851484.2
200,000 and over15559,8063,4843,70945,09022519097.5
            Totals2,129188,78913,71414,6102,419104,3318,4148,82546.8

Wholesale Establishments—The total of 3,778 wholesale stores included in the tables accounted for a turnover of $1,590.6 million or an average turnover of $421,019 per store. Among businesses excluded from the census were oil companies and dealers in timber, bricks, and roofing tiles.

The principal centres of population (urban areas) contained 89.3 percent of wholesale stores with 95.0 percent of total turnover. Auckland and Wellington (including Hutt) urban areas together accounted for 47.3 percent of stores and 57.1 percent of turnover.

The following table shows the distribution of wholesale trade by statistical areas and by main location groups. The figures in parentheses are in each case the percentage of total.

AreaPopulation at 31 March 1968Number of StoresPurchases During 1967-68Turnover During 1967-68Stocks at Close of Year (March 1968)
 (000) $(000)$(000)$(000)
 Statistical Areas    
Northland94.76816,67620,0482,111
 (3.4)(1.8)(1.4)(1.3)(0.9)
Central Auckland644.11,079401,086517,61280,716
 (23.4)(28.6)(32.9)(32.6)(33.7)
South Auckland - Bay of Plenty403.929677,531102,26312,010
 (14.7)(7.8)(6.3)(6.4)(5.0)
East Coast47.1468,44110,7061,194
 (1.7)(1.2)(0.7)(0.7)(0.5)
Hawke's Bay128.314328,20235,6184,676
 (4.6)(3.8)(2.3)(2.2)(1.9)
Taranaki101.29021,85427,7003,938
 (3.7)(2.4)(1.8)(1.7)(1.6)
Wellington537.1999365,111487,96174,611
 (19.5)(26.4)(29.9)(30.7)(31.1)
Marlborough30.2344,7196,579946
 (1.1)(0.9)(0.4)(0.4)(0.4)
Nelson68.36714,15617,5242,344
 (2.5)(1.8)(1.2)(1.1)(1.0)
Westland24.1194,4845,675640
 (0.9)(0.5)(0.4)(0.4)(0.3)
Canterbury386.0573180,553235,39636,849
 (14.0)(15.2)(14.8)(14.8)(15.4)
Otago183.225668,92588,35915,122
 (6.6)(6.8)(5.6)(5.5)(6.3)
Southland106.910827,70435,1684,556
 (3.9)(2.8)(2.3)(2.2)(1.9)
            Totals, all wholesale stores2,755.13,7781,219,4411,590,608239,713
 (100.0)(100.0)(100.0)(100.0)(100.0)
Location Groups
Main urban areas (including Hutt urban area)1,235.02,494914,8121,201,317190,544
(44.8)(66.0)(75.0)(75.5)(79.5)
Secondary urban areas (excluding Hutt urban area)505.8880244,396310,74040,676
(18.4)(23.3)(20.1)(19.5)(17.0)
Smaller centres, other urban and rural1,014.340460,23478,5508,493
 (36.8)(10.7)(4.9)(5.0)(3.5)
            Totals, all wholesale stores2,755.13,7781,219,4411,590,608239,713
 (100.0)(100.0)(100.0)(100.0)(100.0)

The following tables show details of wholesale establishments by store-type groups.

Store-type GroupNumber of StoresNumber of Paid Employees on 9 April 1968Total Labour Force on 9 April 1968
MalesFemalesTotal
Food and drink8677,7742,59910,37310,894
Apparel3691,5649302,4942,759
Furniture2711,3315041,8352,004
Automotive3583,5279224,4494,543
Hardware4814,5409675,5075,713
Chemicals1611,7146682,3822,412
Miscellaneous1,27110,2433,43713,68014,355
            Totals, all wholesale stores3,77830,69310,02740,72042,680
Store-type GroupAverage Labour Force per StoreSalaries and Wages Paid During 1967-68Turnover During 1967-68Average Turnover per Unit of Labour ForceStocks at Close of Year (March 1968)
  $(000)$(000)$$(000)
Food and drink12.622,266462,93742,49536,168
Apparel7.55,858106,25838,51319,813
Furniture7.34,25581,75840,79713,762
Automotive12.79,743207,09745,58633,389
Hardware11.812,585171,40430,00234,496
Chemicals15.05,56093,61138,11816,535
Miscellaneous11.330,881467,54432,57085,550
            Totals, all wholesale stores11.391,1471,590,60837,268239,713

A classification by size of turnover shows that stores with under $40,000 turnover numbered 704 (18.6 percent), but accounted for only $13,980,000, or 0.9 percent of turnover. At the other end of the scale a total turnover of $882,865,000 (55.5 percent) as accounted for by only 376 stores (10.0 percent), which had a turnover of $1,000,000 or more.

Amount of Total TurnoverNumber of StoresNumber of Paid Employees on 9 April 1968Total Labour Force on 9 April 1968Salaries and Wages Paid During 1967-68Turnover During 1967-68Stocks at Close of Year (March 1968)
MalesFemalesTotal
$     $(000)$(000)$(000)
Under 10,0001496452116309156838218
10,000- 19,9992011881823705985782,896471
20,000- 39,9993545963359311,2651,70810,2461,911
40,000- 99,9997632,3988893,2873,7736,75451,6609,666
100,000-199,9996272,8819683,8494,1348,32789,10917,254
200,000-499,9998907,1992,0899,2889,57721,669269,90949,441
500,000-599,9991221,4013781,7791,8094,11763,77211,365
600,000-799,9991832,5448203,3643,4017,818122,79321,901
800,000-999,9991131,7784272,2052,2255,16196,52113,824
1,000,000 and over37611,6443,88715,53115,58934,859882,865113,664
            Totals, all wholesale stores3,77830,69310,02740,72042,68091,1471,590,608239,713

The following table shows a commodity analysis of wholesale trade.

Commodity GroupTurnover During 1967-68
AmountPercent of Total
 $(000) 
Groceries and small goods (including butter, bacon, etc.)206,37713.0
Meat (uncooked)37,5832.4
Fish (uncooked)9,9350.6
Fruit and vegetables57,3263.6
Other foods (bread, cakes, pastry, etc.)40,3802.5
Milk, ice cream, confectionery, soft drinks, etc.46,8702.9
Beer, wine, and spirits65,9714.1
Tobacco, cigarettes, and tobacconists' sundries63,3044.0
Medical and pharmaceutical goods45,6092.9
Toiletries and cosmetics17,6341.1
Men's and boys' wear30,1541.9
Women's, girls', and infants' wear39,9142.5
Drapery, dress-piece goods, millinery, haberdashery, etc.43,5612.7
Footwear18,6531.2
Furniture, beddings, soft furnishings, and household textiles29,6451.9
Floor coverings28,3231.8
Television sets and parts7,6810.5
Radios, radiograms, record players, and tape recorders4,4330.3
Musical instruments (including records)1,9940.1
Other household appliances and electrical goods40,5952.5
Domestic hardware, cutlery, china, glassware31,2262.0
Builders' hardware and materials (excluding timber, bricks, and roofing tiles)63,7404.0
Books, stationery, newspapers, etc.27,1911.7
Motor vehicles118,9117.5
Motor-vehicle parts and accessories (excluding petrol and oil)89,3525.6
Jewellery (including watches, clocks, and precious stones)9,6010.6
Coal, coke, and firewood16,3201.0
Sports goods (including toys and games)13,8270.9
Fertilisers and manures23,3351.5
Grain, bulk seed, and fodder29,0591.8
Florists' goods, seeds, plants, and garden supplies5,8360.4
Industrial machinery (heavy and electrical)54,5513.4
Agricultural machinery15,6301.0
Office machinery and equipment4,2850.3
Other machinery, machine tools, and hand tools, etc43,0882.7
Leather, luggage and harness9,1390.6
Paint, glass, and wallpaper29,1631.8
Photographic supplies and equipment7,1730.4
Plumbing equipment and piping33,4822.1
Printers' supplies, paper and inks11,0000.7
Rubber goods (excluding tyres and tubes)10,6180.7
Professional and scientific equipment7,2130.5
Other100,9236.3
            Totals, wholesale commodities1,590,608100.0

Service Establishments—Only a selected group of services was included in the Census of Distribution 1968. These were grouped in three broad divisions; personal, business and community, and other services.

Of the total number of service establishments, 81 percent provided services only, and in the remainder some secondary form of trading was also carried on.

Services covered by the census totalled 3,653 establishments of which 2,629, or 72 percent, were in the North Island and 1,024, or 28 percent, in the South Island.

The principal centres of population (urban areas) contained 74 percent of service establishments with 88 percent of the total turnover of such establishments.

The following table gives details of numbers and location of those services covered by the census.

ItemPersonal ServicesBusiness and Community ServicesOther ServicesTotal
Number of establishments No.2,6962646933,653
Sales or turnover during 1967-68 $(000)44,26527,04611,47182,782
Location of establishments—    
    Main urban areas (including Hutt urban area) No.1,2301793251,734
    Secondary urban areas (excluding Hutt urban area) No.72350179952
    Smaller centres No.3582387468
    Other urban No.284756347
    Rural No.101546152
Paid employees on 9 April 1968—    
    Males No.4,3438518796,073
    Females No.9,81644017810,434
    Totals No.14,1591,2911,05716,507
Total labour force on 9 April 1968 No.17,0461,5601,82320,429
Salaries and wages paid during 196 -68 $(000)16,5453,5062,07722,128

Service establishments are further analysed in the following table.

Amount of Total TurnoverNumber of EstablishmentsNumber of Paid Employees on 9 April 1968Total Labour Force 9 April 1968Salaries and Wages Paid During 1967-68Turnover During 1967-68
MalesFemalesTotal
$     $(000)$(000)
Under 2,0002673414432429350
2,000- 3,999652453263711,0463311,943
4,000- 5,999649616256861,3596363,216
6,000- 9,9997442109691,1792,0151,2235,702
10,000- 19,9996667481,2181,9662,7362,4349,189
20,000- 39,9993591,0911,1872,2782,6983,03610,021
40,000- 99,9991991,2601,5062,7662,9514,06812,017
100,000-199,999547861,3912,1772,2182,7377,481
200,000 and over631,8693,1715,0405,0827,63332,863
            Totals3,6536,07310,43416,50720,42922,12882,782

Special Analyses—Special analyses were taken out to show total retail trade by retail and service establishments and, at the same time, details were also obtained of total services provided.

The following table shows details of total services provided by retail and service establishments.

Type of ServiceNumber of Establishments Handling Service SpecifiedTurnover During 1967-68
Personal service provided by establishments classified as—$(000)
    Service establishments2,69643,237
    Retail stores7163,160
            Totals, personal services3,41246,398
Community and business services provided by establishments classified as—  
    Service establishments26427,004
    Retail stores88272
Totals, community and business services35227,276
Other services provided by establishments classified as—  
    Service establishments6939,533
    Retail stores1,89213,107
            Totals, other services2,58522,640
            Grand totals, all services6,34996,314

The following table shows details of retail trade as above by commodity groups.

Commodity GroupTurnover During 1967-68
AmountPercent of Total
 $(000) 
Groceries and small goods (including butter, bacon, etc.)275,37913.2
Meat (uncooked)104,5325.0
Fish (uncooked)7,7090.4
Fruit and vegetables53,9182.6
Other foods (baked and cooked foods, meals, etc.)65,7323.2
Milk, ice cream, confectionery, soft drinks, etc.63,2763.0
Beer, wine, and spirits139,1906.7
Tobacco, cigarettes, and tobacconists' sundries57,8112.8
Medical and pharmaceutical goods (including dispensing)37,6721.8
Toiletries and cosmetics24,7061.2
Men's and boys' wear68,0293.3
Women's, girls', and infants' wear97,6754.7
Drapery, dress-piece goods, millinery, haberdashery, etc53,1792.6
Footwear39,9921.9
Furniture37,9321.8
Floor coverings29,2111.4
Soft furnishings, bedding, and household textiles24,5911.2
Television sets and parts (excluding TV rental)15,2180.7
Radios, radiograms, record players, and tape recorders11,3170.5
Musical instruments (including records)7,5270.4
Other household appliances and electrical goods50,4082.4
Domestic hardware, cutlery, china, and glassware36,7701.8
Builders' hardware and materials (excluding timber, bricks, and roofing tiles)63,9073.1
Books, stationery, and newspapers, etc48,7002.3
Motor vehicles240,83711.5
Motor-vehicle parts and accessories (excluding petrol and oil)57,0282.7
Jewellery (including watches, clocks, and precious stones)14,0650.7
Coal, coke, and firewood5,5620.3
Bicycles, parts and accessories3,2970.2
Sports goods (including toys and games)19,7280.9
Fertilisers and manures42,6902.0
Grain, bulk seed, and fodder46,3912.2
Seeds, plants, and garden supplies10,1630.5
Florists' goods3,9530.2
Industrial machinery (heavy and electrical)16,3330.8
Agricultural machinery27,8951.3
Office machinery and equipment27,4911.3
Sewing machines and accessories2,8860.1
Other machinery, machine tools, hand tools23,7841.1
Souvenirs and novelties5,1750.2
Leather, luggage, and harness4,3830.2
Paint, glass, and wallpaper26,8681.3
Photographic supplies and equipment5,1860.2
Plumbing equipment and piping8,5660.4
Professional and scientific equipment1,8990.1
Rubber goods (excluding tyres and tubes)1,3390.1
Other goods76,9133.7
            Totals, retail commodities2,086,175100.0

The types of retail stores in 1968 are set out in greater detail in the following table.

Retail Store TypeNumber of Stores
Food and drink— 
    Baker, pastry-cook, etc.658
    Butcher1,957
    Delicatessen and poulterer122
    Confectioner129
    Dairy1,012
    Milk bar726
    Fish and chip shop495
    Fish shop209
    Fruiterer, greengrocer1,064
    Grocer4,548
    Hotel, chartered club (sales of beverages, etc.)1,530
    Restaurant, cafeteria, tearoom1,518
    Other food and drink24
            Total13,992
Apparel— 
    Footwear673
    Draper919
    Frocks and coats1,108
    Hosiery, lingerie, children's clothing, wool, corsets, millinery and haberdashery627
    Men's and boys' clothier692
    Other apparel100
            Total4,119
Furniture— 
    Furniture428
    Floor coverings and soft furnishings291
    Household appliances627
    Radio and/or television dealer232
            Total1,578
Automotive— 
    Cars, accessories, etc.1,121
    Other automotive223
            Total1,344
Hardware— 
    Hardware store214
    Builders' hardware248
    Paint and varnish240
    Crockery, glass and china168
    Plumbers' supplies27
    Other hardware111
            Total1,008
Chemicals— 
    Chemist1,139
    Other chemicals28
            Total1,167
Miscellaneous— 
    General store482
    Department and variety store350
    Bookseller, newsagent, and stationer1,142
    Coal and wood merchant127
    Electrical goods38
    Florist227
    Jeweller487
    Pawnbroker and second hand dealer301
    Seedsman and nurseryman221
    Tobacconist687
    Toys, novelties, etc.218
    Agricultural machinery and farm equipment153
    Leather goods and harness dealer127
    Music store118
    Office supply store126
    Sports goods dealer226
    Photographic dealer108
    Other miscellaneous985
            Total6,123
            Grand total29,331

The nature of the service establishments covered in the Census of Distribution 1968 is shown in the following table. It should be recognised that there are many other types of services.

Nature of ServiceNumber of Stores or Agencies
Personal services— 
    Cleaner (office, window, shop)237
    Funeral director and undertaker105
    Hairdresser and beauty salon1,715
    Laundry, dry cleaner, carpet cleaner, dyer374
    Photographer (portrait and commercial)265
            Total2,696
Community and business services— 
    Advertising agency85
    Chiropodist28
    Commercial artist93
    Private rental library and book club58
            Total264
    Other services— 
    Bicycle repairer13
    Blacksmith85
    Footwear repairer191
    Carpet fitter and sewer54
    Electrical repair shop173
    Gunsmith and locksmith14
    Tool repairer and sharpener50
    Watch and clock repairer113
            Total693
            Grand total3,653

Turnover figures for the major service establishments covered were as follows: advertising agencies, $24.8 million; laundries and drycleaners, $16.1 million; hairdressers and beauty salons, $12.0 million; office cleaners, etc., $8.4 million; photographers, $4.3 million; funeral directors, $3.4 million; electrical repairers, $4.6 million; commercial artists, $2.0 million; carpet fitters, $1.9 million; blacksmiths, $1.8 million; footwear repairers, $1.5 million; watch repairers, $0.8 million; tool repairers, $0.6 million.

QUARTERLY SURVEY OF RETAIL TRADE—A quarterly sample survey of retail trade was made by the Department of Statistics until the December quarter 1969 but was replaced by a monthly sample survey in January 1969 and the results of this sample aggregated to obtain quarterly figures.

The present sample survey excludes certain types of retail stores which were included in the Census of Distribution 1968; these store types are hotels, chartered clubs, wine and spirit merchants, and the complete automotive group. Besides the above exclusions, for purposes of the sample survey some changes in the grouping of store types apply. It is important to note the exclusion of motor vehicle sales, which have become fairly volatile as import control has been eased.

Retail Sales—The following table gives quarterly sales and also stocks at 31 March for store-type groups.

Quarter EndedButcher, Poulterer, etc.GrocerOther Food and DrinkFootwearOther ApparelFurniture and Soft FurnishingsHousehold Appliances, Electrical Goods, Radios, etc.Hardware, Builders' Hardware, Paints, etc.ChemistGeneral, Department, and VarietyOtherAll Groups
      $(million)      
1966—    Retail Sales       
Mar22.762.142.26.832.415.817.627.510.449.890.9378.2
Jun24.465.041.29.341.718.419.627.510.859.882.7400.3
Sep24.968.743.77.937.619.019.527.411.655.682.9398.8
Dec25.873.748.69.943.821.020.432.113.668.996.7454.3
1967—            
Mar23.769.346.27.433.915.417.027.711.451.589.0392.4
Jun24.771.745.79.340.817.517.528.711.258.781.6407.5
Sep24.275.747.87.434.316.316.227.511.453.180.6394.6
Dec24.983.052.79.741.418.519.532.613.768.491.3455.7
1968—            
Mar23.277.251.07.032.715.116.829.611.852.189.4405.9
Jun24.880.249.49.240.417.016.328.911.659.183.0420.0
Sep24.983.051.27.035.417.816.029.612.155.882.1414.9
Dec26.290.557.19.843.721.818.633.515.074.6102.8493.5
1969—            
Mar24.384.554.17.234.516.816.530.412.654.493.7428.8
Jun25.986.851.79.842.819.017.229.512.766.193.3454.8
Sep26.988.554.07.839.320.617.830.913.861.593.6454.8
Dec28.798.559.110.048.123.921.235.516.980.7113.8536.3
1970—            
Mar27.091.556.17.637.719.018.531.414.355.7108.9467.6
Jun29.894.555.510.449.024.422.334.215.068.8111.9515.9
Sep29.898.656.18.744.023.521.835.317.163.8113.4512.1
Dec31.0111.964.112.055.627.824.441.620.988.3127.8605.3
1971—            
Mar27.7102.760.49.041.723.119.534.916.662.1112.7510.3
Jun30.2106.060.012.853.525.021.036.316.976.3114.8553.0
Sep31.6111.461.79.848.627.821.038.118.970.9119.5559.1
Dec32.3123.570.213.260.030.022.643.823.394.4138.8652.2
Retail Stocks at 31 March
19661.221.45.212.150.515.617.924.38.645.171.5273.4
19671.222.85.513.853.416.018.225.49.645.180.1291.0
19681.224.25.713.354.415.717.727.19.945.981.9296.9
19691.325.86.013.352.916.219.129.010.646.185.6305.9
19701.428.76.414.557.718.219.230.512.055.692.8337.1
19711.630.07.015.762.520.818.333.013.363.098.0363.0

Retail Trade Statistics Adjusted for Seasonal Fluctuations and for Price and Population Changes—To facilitate direct comparisons between quarterly figures, seasonally adjusted values of retail trade turnover have been prepared. To do this, seasonal adjustment factors were calculated representing, for each quarter, an average over several years of the ratio of sales in this quarter to the trend value for the quarter (the trend values being calculated as appropriately centred moving averages).

A special price index has been prepared for the purpose of deflating the retail sales figures to give a series in dollars of constant purchasing power—i.e., the adjusted series shows the changes in the real volume of retail sales. The principal source of the prices used for this index are the commodity prices used in the Consumers' Price Index. The prices have been appropriately weighted and the whole index expressed on the base: year ended 31 March 1958 (=1000), so that application of the index to the original figures, both before and after seasonal correction, gives series in constant 1957-58 dollars.

The results of these calculations and adjustments are shown in the following table for all store types.

Quarter EndedIn CurrentIn Constant 1957-58
As RecordedSeasonally AdjustedBefore Seasonal AdjustmentSeasonally Adjusted
ValueIndex Number*ValueIndex Number*
*Base: Average quarterly values during the year ended March 195 = 1000.
   Total Sales   
 $(m)$(m) $(m)$(m) 
1969—Mar428.8450.71,843321.2337.71,381
Jun454.8461.71,888336.7341.81,397
Sep454.8474.51,940332.0346.51,417
Dec536.3485.41,984390.5353.41,445
1970—Mar467.6491.22,008334.4351.21,436
Jun515.9523.82,141363.2368.71,507
Sep512.1534.32,184352.4367.61,503
Dec605.3545.22,228401.7361.81,479
1971—Mar510.3541.22,212334.5354.71,450
Jun553.0559.22,286350.5354.01,447
Sep559.2581.12,376350.2364.01,488
Dec652.2586.82,399400.0359.91,471
Sales per Head of Population
 $$ $$ 
1969—Mar154.51162.391,491115.73121.691,117
Jun163.88166.381,528121.33123.181,131
Sep163.75170.861,569119.53124.771,146
Dec192.03173.801,596139.81126.521,162
1970—Mar166.42174.811,605118.99124.991,148
Jun183.36186.181,710129.10131.071,204
Sep181.79189.661,742125.07130.491,198
Dec213.28192.101,764141.54127.511,171
1971—Mar178.64189.481,740117.09124.171,140
Jun193.54195.711,797122.67123.911,138
Sep195.60203.271,866122.50127.341,169
Dec226.47203.741,871138.89124.901,147

Information on quarterly sales is presented graphically in the following diagrams.

QUARTERLY SURVEY OF WHOLESALE TRADE—In this survey stores are classified by store-type group according to the predominant type of commodity sold. The store-type figures therefore do not cover only sales of goods normally associated with the type of store listed, as there are many wholesale stores which handle a wide variety of commodities.

It should be noted that this survey has altered coverage of wholesale store types as compared with the coverage of the Censuses of Distribution. For this reason, and because of the lack of uniformity in the trading year for which firms supplied census returns, care should be exercised when comparing the survey statistics with the censuses.

Certain stores (about a third of the food and drink group) which by nature of their business have a low ratio of stock to total turnover, have been omitted to facilitate collection and compilation of data.

The following table shows, by store-type group, values of sales during the quarter and (in parentheses) the values of stocks held at the end of the quarter.

QuarterFood and DrinkApparelFurnitureAutomotiveHardwareChemicalsGeneral MerchantsMachinery (Agricultural, Heavy Electrical and Industrial)
 $(million)
1969—Mar112.032.822.270.157.030.923.529.1
 (44.8)(15.8)(39.1)(50.3)(23.6)(14.6)(35.1)(14.6)
Jun107.339.724.379.561.132.926.629.5
 (47.7)(28.5)(16.8)(41.9)(50.2)(21.5)(14.7)(35.8)
Sep113.143.028.589.363.732.827.335.7
 (49.5)(30.6)(19.0)(43.4)(48.7)(27.2)(15.3)(32.1)
Dec130.244.627.092.361.736.931.137.6
 (46.7)(33.5)(17.4)(45.8)(47.8)(25.5)(15.0)(36.2)
1970—Mar120.041.024.489.660.534.525.535.4
 (50.1)(34.1)(19.6)(52.1)(50.1)(26.4)(15.5)(35.3)
Jun118.946.330.5111.367.935.628.439.2
 (53.4)(33.5)(19.9)(56.6)(51.0)(25.2)(17.5)(39.8)
Sep127.447.135.0111.270.636.134.242.6
 (54.3)(35.1)(22.5)(58.7)(50.9)(27.7)(19.6)(43.4)
Dec149.451.136.4104.372.140.837.640.8
 (51.4)(35.5)(21.2)(64.2)(56.5)(28.2)(20.2)(43.7)
1971—Mar137.947.227.697.466.637.129.040.1
 (60.8)(34.6)(23.8)(63.5)(57.3)(30.0)(21.4)(46.7)
Jun141.750.031.5106.767.140.930.139.6
 (64.3)(36.8)(23.6)(71.4)(57.5)(28.7)(20.7)(51.1)
Sep142.754.833.2111.568.936.534.343.4
 (60.2)(40.1)(23.7)(76.2)(59.4)(30.8)(22.0)(49.9)
Dec163.149.733.2130.271.442.135.947.1
 (57.3)(41.0)(23.6)(77.7)(59.7)(28.9)(20.4)(50.4)
QuarterElectrical SuppliesPaper and StationeryGrain and SeedsRubber, Leather, and Canvas GoodsOffice, Printers' and Photographic SuppliesOtherAll Groups
    $(million)   
1969—Mar12.615.47.45.86.631.0456.3
 (13.1)(7.8)(3.6)(4.3)(8.6)(19.5)(308.9)
Jun15.115.37.86.46.133.3484.8
 (13.9)(8.6)(4.2)(4.5)(8.5)(20.4)(317.3)
Sep16.317.48.66.97.135.7525.4
 (15.0)(8.7)(4.2)(4.9)(9.2)(21.7)(329.3)
Dec15.316.87.77.18.942.8560.1
 (14.8)(9.2)(4.1)(5.1)(8.8)(21.2)(331.1)
1970—Mar15.017.67.76.27.234.3518.9
 (15.1)(8.9)(4.6)(5.7)(9.3)(20.8)(347.5)
Jun17.617.78.47.67.536.0572.8
 (14.9)(10.2)(4.9)(5.7)(9.6)(21.6)(363.6)
Sep18.018.79.47.98.337.5604.0
 (15.8)(11.3)(4.5)(5.4)(10.5)(23.9)(383.7)
Dec20.419.47.98.011.144.6643.8
 (18.7)(12.4)(4.3)(5.4)(11.4)(24.6)(398.2)
1971—Mar18.919.17.67.39.535.5580.7
 (19.2)(12.2)(4.3)(5.4)(11.5)(25.4)(416.2)
Jun24.117.68.78.110.346.4622.6
 (19.3)(12.5)(4.5)(5.4)(12.5)(31.6)(440.0)
Sep23.620.010.38.711.542.7642.0
 (19.9)(13.3)(4.3)(6.5)(13.7)(33.7)(453.5)
Dec24.920.88.18.611.558.9705.4
 (20.4)(13.1)(4.5)(6.2)(12.3)(28.7)(444.1)

For firms excluded from the continuing survey, the value of sales recorded in the Census of Distribution 1968 was $218.6 million, or 13.7 percent of total wholesale turnover.

INSTALMENT CREDIT TRADING—Instalment credit trading in New Zealand has been growing steadily in recent years in common with other developed countries. This growth generally is explained by common causes, including an increasing social acceptance and the development of borrowing facilities. There is an increasing tendency for consumer durables to be purchased on credit. Instalment credit allows high-priced goods to be acquired as opportunity or desire dictates, with less reference to the immediate cash position. Some people welcome the discipline of monthly credit repayments as a means of saving. Consumer credit is provided either by retailers or finance companies. A major activity of the finance companies is the financing of motor vehicles on hire-purchase; the Reserve Bank collects statistics in this field. A report by the Tariff and Development Board on instalment credit trading, published as parliamentary paper H.49, 1968, is a useful reference.

Though international comparative statistics are usually open to qualification in this field, instalment credit outstanding per head at 31 December 1965 (in NZ$) was: United States, 250; Canada, 206; Australia, 102; United Kingdom, 50; New Zealand, 40; West Germany, 26; France, 22. (The term instalment credit covers hire-purchase agreements, credit sales agreements, and budget accounts.) Source—parliamentary paper H.49, 1968.

Regulations to curb hire-purchase trade have existed in New Zealand since 22 July 1955. Restrictions in recent years are now set out.

CommodityDate EffectiveMinimum Deposit (Percent)Maximum Repayment Period (Months)
*Reduced by 3 months from 6 December 1968, except television sets.
New motorcars and light trucks17 Apr 196166 2/312
Secondhand cars and light trucks17 Apr 19615018
 1 Sep 19655012
 11 Feb 196766 2/312
 17 May 19685018*
Motor cycles11 Feb 19675012
 17 May 196833 1/318*
Furniture and furnishings3 May 1962524
 11 Feb 19671518
 22 Mar 19681024*
 19 Sep 19691024
 28 Mar 19721030
Other consumer goods3 May 1962524
 24 Apr 19642410
 11 Feb 19671518*
 19 Sep 19691024
 28 Oct 19701524
 28 Mar 19721030

A limited quarterly survey is made by the Department of Statistics of hire-purchase trade. It includes selected merchandising firms and finance corporations and for the 1967-68 March year surveyed business was estimated at 72 percent of hire-purchase sales recorded in the 1968 Census of Distribution. The following table shows the value of goods sold on hire-purchase as recorded by the businesses in the survey.

QuarterMotor VehiclesPlant and MachineryTelevision SetsOther Household and Personal GoodsTotal Sold on H.P.Total Owing Under H.P. Agreements*Percentage of Payments Overdue*
Sold on H.P.Cash PaymentH.P. FinancedSold on H.P.Cash PaymentH.P. financedSold on H.P.Cash PaymentH.P. FinancedSold on H.P.Cash PaymentH.P. Financed
*As at end of quarter.
       $(m)       %
1970—               
Mar22.111.011.03.60.92.70.50.10.47.41.16.433.588.44.0
Jun25.112.912.23.00.72.30.60.10.59.91.38.538.694.63.8
Sep29.615.014.64.41.23.20.60.10.510.32.18.244.997.33.5
Dec37.418.918.66.01.74.30.50.10.412.32.010.356.2108.53.6
1971—               
Mar32.216.615.65.81.34.50.40.10.38.41.66.846.7112.83.1
Jun29.414.814.67.31.75.60.50.10.49.61.48.246.8115.43.0
Sep37.919.818.17.72.75.00.40.10.39.71.58.155.7122.93.1
Dec41.621.620.010.03.46.60.40.10.312.11.910.264.1131.03.3

The average amount covered by hire-purchase agreements in the quarter ended 31 December 1971 was: motor vehicles, $1,023; machinery, $6,212; television sets, $235; other household and personal goods, $62.

Chapter 22. Section 22 EXTERNAL TRADE

22 A—GENERAL

GENERAL—New Zealand has always been heavily dependent on overseas trade for its development and progress. In the early days of colonisation the infant New Zealand farming industry found a ready market for basic foodstuffs, such as potatoes, grain, butter, and cheese, in Australia. Timber and gold temporarily constituted a sizeable proportion of exports, but the most consistent export was wool. Wool made up 22 percent of the value of exports in 1853, when trade statistics were first compiled; in the 1970s it accounted for over half the value; from 1880 to 1898 its share was from 40 percent to 50 percent; and from 1899 to 1964 wool consistently earned one-third of New Zealand's export receipts.

Real and lasting diversification of the exports of farm products was made possible by the introduction of refrigerated ships in 1882. This accentuated the development of New Zealand's economy as a complement to the United Kingdom economy, to the benefit of both. At first, exports of frozen meat increased more rapidly than those of butter and cheese; the early emphasis was on frozen mutton and lamb, with beef and veal becoming more significant later. The great expansion of exports of dairy produce also came later, notably after 1900, and was encouraged by the centralised factory production of butter. From 1913 onwards, pastoral farming accounted for over 80 percent of total exports. In 1870 only 52 percent of the exports went to the United Kingdom; by 1880 the proportion had increased to 75 percent. Australia, which had been New Zealand's main trading partner in the early years, was receiving only 21 percent of the exports by 1880 and 15 percent by 1890.

The United Kingdom has remained New Zealand's predominant market for exports and the biggest supplier of imported goods, although in recent years the United Kingdom's share of New Zealand's export trade has gradually been declining. In 1950 the United Kingdom took 66 percent of New Zealand's exports but by the year ended June 1971 its share had fallen to 35 percent. However, the United Kingdom has remained New Zealand's best export market, taking the bulk of New Zealand's lamb, cheese, and butter, and about one-fifth of the wool. The marketing of farm products is discussed in Section 21A.

New Zealand has traditionally enjoyed unrestricted access to the United Kingdom market for its agricultural exports, under the terms of the New Zealand - United Kingdom Trade Agreements of 1932, 1959, and 1966. However, in recent years New Zealand has supplied butter under an annual quota and cheese under a voluntary restraint system introduced to reduce the effects of a world oversupply of dairy products. The schemes have been successful in maintaining orderly market conditions. As a result of the shortage of world dairy products which has developed in 1971, the butter quotas and the system of voluntary restraint for cheese have been temporarily suspended.

Special arrangements to preserve New Zealand's access to the United Kingdom market for butter and cheese after that country's entry into the EEC have been negotiated, with the final terms being decided at a meeting of European ministers in Luxembourg in June 1971. The arrangement will give New Zealand guarantees of access and sale in the United Kingdom market for substantial quantities of butter and cheese during the period from 1973 to 1977. In 1973 the guaranteed quantities will be for 163,200 long tons of butter and 67,500 long tons of cheese, equal to 96 percent and 90 percent respectively of New Zealand's current entitlements under the butter quota system and the system of voluntary restraint for cheese. In 1977 the guarantees will be 136,000 tons (80 percent) for butter and 15,000 tons (20 percent) for cheese, a total of 71 percent of current entitlements in milk equivalent terms. The arrangement will be reviewed in 1975, when measures will be agreed to deal with the period from 1978 on.

The British Government has also expressed its confidence that there will continue to be adequate and remunerative access for lamb from traditional sources of supply after entry into the EEC and the New Zealand Government has accepted this assurance.

EXTERNAL ECONOMIC POLICY—The prospect of Britain entering the European Economic Community has in recent years lent special importance to New Zealand's efforts in the field of economic diplomacy. Although the negotiations on Britain's application were formally launched in Luxembourg on 30 June 1970, the discussion of New Zealand's special problem, its vital dependence on the British market for exports of dairy products and lamb, has been a continuing process over several years. The Government mounted a major operation to explain New Zealand's case both in Britain and in the countries of the Common Market. New Zealand's diplomatic and trade posts in Europe were strengthened to handle this work and, over the years, a programme of visits to New Zealand was organised for Ministers, senior officials, and journalists directly concerned with developments in the Common Market. The agreement relating to New Zealand dairy products negotiated in Luxembourg in 1971 has provided a respite, but continued efforts are required to ensure that New Zealand's position is understood during future reviews of the arrangement. The question of the conditions governing trade in New Zealand sheep meats with an enlarged EEC will also need close attention.

Access into the North American market is vitally important, although New Zealand's trade with the United States has been circumscribed by various quantitative restrictions imposed on beef, mutton, veal, and dairy products. The Government has in particular been concerned about the recent movement, in Congress and elsewhere, towards increased protection of the United States market, and this development has produced a need for even closer trade consultations.

New Zealand's economic and trade relations with Japan have become steadily closer. The volume of bilateral trade has increased and consultations between the two Governments at the Ministerial and the official level on international trade and economic matters have been extended considerably. New Zealand participation in EXPO 1970, involved a major publicity and trade promotion campaign which proved most successful. Continued efforts have been made to improve access for New Zealand agricultural exports and, although little progress has been made, it is hoped that the growing demands of the Japanese consumer can be reconciled with the need to support the domestic agricultural sector.

Among the developing countries the newly-independent nations of the Pacific attracted particular attention in 1971. Following the Pacific Forum in August the Government, after consultation with the islands and our diplomatic representatives in the area, arranged a meeting of senior trade officials from Australia, New Zealand, and the islands held in Wellington in November 1971. In this and other ways there is evidence of a new awareness of the scope for closer trade relations with the islands.

At the same time our diplomatic and trading links across the Pacific, with the countries of Latin America, have been extended and a significant volume of trade has developed. A thorough examination is being made of the opportunities for the sale of more New Zealand products in such countries as Peru and Chile and ways are being sought to increase official contacts with the area.

Activity in the trade field has included other countries of the Pacific Basin. In April 1970 New Zealand extended a trade credit of $500,000 to Indonesia and the same month the Minister of Finance paid an official visit to Korea for trade promotion talks. A further trade credit of $500,000 was extended to Indonesia in February 1972.

New Zealand's trade relations with Australia have always been close but recent years have witnessed unprecedented growth in two-way trade. This applies in particular to manufactured goods. The New Zealand - Australia Free Trade Agreement, which commenced operation in 1966, has been an important factor in this expansion. A number of projects for combined industrial development, including two motor vehicle rationalisation plans, have been negotiated and there has been increased co-operation in implementing the Memorandum of Understanding on Defence Supply signed in 1970.

Britain's prospective entry into the EEC caused an increase in New Zealand's efforts to develop new markets for its exports and broaden the range of its export commodities. There has already been a marked expansion of New Zealand's overseas markets, notably in the United States, and countries bordering on the Pacific. For example, exports made to Japan have shown a marked increase from $6.2 million in 1953 to $103 million in the June year 1971.

About 66 percent of the exports to Japan in the year ended June 1971 were meat (mainly mutton), timber, and wool; other principal commodities were dairy products, and casein.

The value of New Zealand's overseas trade in relation to national income and on a per-head basis is among the highest in a ranking of countries of the world.

Except for the growth of trade in pulp and paper products, the composition of New Zealand's exports today does not vary greatly from that of pre-war years. Of recent years from 70-80 percent of the total value of exports is still derived from wool, meat, and dairy produce. Exports of manufactured goods (including those based on agriculture, forestry, and fishing) have risen sharply in recent years; but the steady growth of trade in meat, dairy produce, and wool has meant that the proportion as compared with total New Zealand exports today does not vary greatly from that of pre-war years.

The following table shows the changing pattern of external trade by countries of destination and origin. The percentages are based on value data only, exports f.o.b. and imports c.d.v.

YearUnited KingdomAustraliaUnited StatesOther Countries

*Gold is included in figures up to 1950.

†Provisional.

‡Alaska and Hawaii included since 1965.

Exports*
percent
18607027-3
18705246-2
1880752122
1890751564
1900771463
191084934
1920745165
1930803512
194088345
19506631021
19605341330
June    
Year    
19664551436
19674451635
19684371733
19693981736
19703671542
19713481741
Imports*
percent
1860564211
1870583615
1880563149
18906717610
190061171012
19106214816
192048171817
19304781827
194047161225
19506012721
196043181029
June    
Year    
196638191132
196737191331
196830211138
196931201237
197029201338
197129211238

NAFTA—The New Zealand - Australia Free Trade Agreement (NAFTA) was signed on 31 August 1965 and came into effect on 1 January 1966. The main aim of the Agreement is “to further the development of the Area and the use of the resources of the Area by promoting a sustained and mutually beneficial expansion of trade”.

One of the most important aspects of NAFTA is that it establishes a free trade area between Australia and New Zealand for goods listed in Schedule A. It also contains general provisions relating to such matters as dumping and quantitative import restrictions which apply to all goods traded between the two countries.

The original Schedule A contained approximately 990 tariff items. Annual reviews of the content of the Schedule, which are carried out in terms of Article 3 (which provides for reviews to progressively increase the content of the Schedule to cover substantially all goods), have added a further 440 items. Goods added under the review system are included in the Schedule on 1 July each year.

Goods listed in Schedule A of the NAFTA are those goods subject to duty concessions under the terms of the Agreement. On addition to the Schedule, goods free of duty are bound duty-free; goods incurring duties not exceeding 5 percent become duty-free; a duty between 5 and 10 percent is halved on addition to the Schedule and the remainder is removed after two years; duties of more than 10 percent are reduced by one-fifth on addition to the Schedule and reduced by one-fifth every twoyears thereafter until becoming duty-free. This is an automatic process, subject to the safeguard provisions of the Agreement. However, on request, the Member States may agree to an accelerated or slower reduction of duty. Each country agreed to eliminate margins where duties on goods imported from the other country were higher than the lowest rate applicable to the same goods imported from any other third country. Australia removed all such margins before 1 January 1966. New Zealand's implementation of this undertaking which is to be completed by 1 January 1974 was referred to the New Zealand Tariff and Development Board for consideration and recommendation to Government. There were approximately 600 items involved in this undertaking and by 1 January 1972 the margins on some 490 items had been removed, by lowering the previous special Australian duty rate.

Provision was also made under the Exchange of Letters for the establishment of a Joint Consultative Council on Forest Industries. The council which was set up to assist the development of trade in this particular area, was formally established in 1967. Amongst its work has been the publication, in May 1970, of a report on the forest resources of the two countries. Two working parties have also been established by the council—one to study area requirements for Douglas fir, and the other to investigate markets for forests products in third countries.

Following discussions in 1967 the two Governments introduced a framework for inter-company trading arrangements under Article 3:7 of the Agreement. Both Governments agreed to grant concessions within an established formula for products traded under approved schemes. Since the introduction of these arrangements and up until 1 October 1971, 171 proposals had been approved with a total trade value of approximately $27 million.

Since the NAFTA was signed, a number of other important understandings have been reached between the two countries. These include an Exchange of Letters in 1969 on forest products in which Australia agreed to consider granting New Zealand preferential access for pulp and newsprint and to assist in achieving some expansion of New Zealand exports of packaging papers. The terms of preferential access for pulp were formally agreed in April 1971.

In the period since the signing of NAFTA trade between the two countries has increased rapidly. New Zealand's exports to Australia were valued at about $96 million in the year ending June 1971 compared with $36 million in 1965-66 while Australia's exports to New Zealand have increased from $135 million to $225 million in the same period.

During this time, the percentage of total trade covered by Schedule A has increased only slightly to about 52 percent. There has, however, been a substantial increase in the value of this trade, which has risen from $94 million in 1965-66 to nearly $165 million in 1970-71.

The distribution of New Zealand's overseas trade by broad groupings is given in the following table (excluding gold and current coin).

Year Ended JuneSterling AreaDollar AreaEuropean Economic CommunityEuropean Free Trade Association (Excluding United Kingdom)Other CountriesSterling AreaDollar AreaEuropean Economic CommunityEuropean Free Trade Association (Excluding United Kingdom)Other Countries
*Provisional
Percentage of Total Export Trade (f.o.b)Percentage of Import Trade (c.d.v.)
196355.9919.3217.570.706.4368.8613.526.602.348.68
196455.6316.8818.601.117.7767.8613.946.563.538.11
196560.3014.9416.191.177.4065.0315.806.393.149.64
196654.9316.2915.741.0711.9865.6415.876.612.519.37
196754.1518.4711.651.0414.6964.0417.287.382.708.60
196855.8919.5610.530.9113.1261.9516.207.082.9911.79
196952.2920.4012.280.8614.1860.8916.448.032.9511.69
197050.2421.1811.111.0216.4460.4517.697.452.3912.02
1971*50.6721.7610.750.8016.0258.8716.658.882.4813.12

The direction of external trade is shown graphically in the following diagram.

TRADE PER HEAD—Trade per head of population is affected, not only by the volume of trade but also by the value, i.e., the prices received for exports and the cost of imports.

The following table shows the value, per head of population, of New Zealand's trade over the last 11 years.

Year Ended JuneExports (f.o.b.)Imports (c.i.f.)Total Trade
 $$$
1960267.18216.10483.28
1961233.96270.72504.68
1962237.07232.76469.82
1963249.42229.18478.60
1964286.72269.91556.63
1965282.95276.20559.16
1966288.54298.13586.67
1967268.57300.32568.89
1968299.04245.91544.95
1969357.56308.32665.88
1970388.31359.92748.23

INTERNATIONAL COMPARISON OF RELATIVE VALUE OF TRADE—For New Zealand exports of goods are of greater importance to the national economy than is the case for most other countries. (Many other countries have a greater proportional income from the exports of services such as travel, investment, insurance, and shipping activities.)

In the following table the values of the exports of goods (excluding services) for some of the main trading countries are given as a percentage of the gross national product, and also the value of total external trade in goods in 1967 per head of population, using c.i.f. valuations for imports. (Source: United Nations Statistical Office.)

CountryExport of Goods as Percentage of Gross National ProductValue of External Trade per Head
196619671969

*Exports include a large volume of goods originating in inland Europe passing through ports.

†Fiscal year beginning 1 April.

‡Exports of goods and non-factor services.

§Fiscal year beginning 1 July.

 percent(NZ)$
Netherlands34*32*1,454
Belgium29*36*1,793
South Africa2315233
Switzerland22221,422
Norway21211,193
Israel2013622
New Zealand2018712
Sweden19191,300
Canada18181,137
 percent (NZ)$
Austria1717634
West Germany1718792
France1510563
United Kingdom1413582
Italy1313406
Australia13§13§584
Japan109271
Argentina810119
United States44322

VISIBLE BALANCE OF TRADE—In the following table the c.i.f. valuation of imports has been used to establish the visible balance of trade. Gold and specie totals are excluded.

June YearVisible Excess of Exports
*Provisional.
 $(000)
1963-6443,234
1964-6517,711
1965-66-25,489
1966-67-85,984
 $(000)
1967-68145,782
1968-69136,210
1969-7081,003
1970-71*-26,042

Visible trade is not the only factor to be taken into account in considering the balance of payments between countries (see Section 25b). A statement of New Zealand's overseas exchange transactions is given in Section 29, Banking and Currency.

TRADE STATISTICS—Provisional trade data are published in a supplement to the Monthly Abstract of Statistics within a month of the period to which they relate. A publication entitled External Trade of New Zealand (Country Analyses) is published quarterly.

Annual volumes are also published by the Department of Statistics, the latest available issues being Exports 1969-70 and Imports 1969-70. Part A Commodity by Country, and Part B Country by Commodity.

New Zealand has used the Standard International Trade Classification (Revised) as from 1 July 1962, for classifying external trade for statistical purposes; from the same date this classification was put into effect for recording the external trade of the Cook Islands and Niue. The SITC order was also adopted on 1 July 1962 as the Customs Tariff classification, but a move to the Brussels Tariff Nomenclature was made on 1 July 1967.

Provisional values of imports and exports are set out in the following table.

Period1969-701970-711971-72
Exports (including Re-exports) f.o.b.ImportsExports (including Re-exports) f.o.b.ImportsExports (including Re-exports) f.o.b.Imports
c.d. Valuecif Valuec.d. Valuec.i.f. Valuec.d. Valuec.i.f. Value
 $(million)
Month of July86.785.490.791.093.598.9114.9107.2115.8
2 months ended August164.4155.2165.1176.4182.7195.1237.5203.4219.1
3 months ended September249.5242.5257.6248.7274.2294.1312.8303.1326.5
4 months ended October324.6322.1341.9325.7368.3394.8402.0390.6419.3
5 months ended November418.0385.8410.7401.2464.3497.5478.1490.0525.1
6 months ended December509.2456.8486.7515.9552.8592.4584.5579.6621.4
7 months ended January597.9530.1564.6590.8629.4676.6   
8 months ended February703.2591.6629.4722.8711.9765.3   
9 months ended March817.2668.0710.1807.2811.8873.5   
10 months ended April897.0759.5810.4927.3901.0968.1   
11 months ended May982.0853.6909.61,038.4986.01,059.3   
12 months ended June1,087.0942.31,006.01,131.11,075.11,157.1   

Valuation of Exports—It has always been the practice to record exports at free-on-board (f.o.b.) values, except during the Second World War when wool exports were valued at appraisal prices. Most meat and dairy produce exports are consigned for sale on overseas markets, and necessarily valued, on export, at the f.o.b. equivalent of the prices ruling at that time in the markets to which they are consigned. Price changes may occur in these markets before the actual sale of the produce.

The exports recorded relate to goods on vessels which have cleared their final port of call in New Zealand during the period.

Valuation of Imports—From July 1962, with the introduction of the Standard International Trade Classification, Revised, statistics on the c.i.f. basis (cost including freight and insurance) are available at item level.

The proportional difference between the two figures of valuation now made available—viz, c.d.v. and c.i.f.—will vary from period to period depending on: (1) the make-up of imports in the different periods, (2) differential changes in import prices and in freight rates; (3) differences between domestic and export prices in the exporting countries, and (4) price fluctuations between dates of purchases and of shipping. In all the tables imports are now shown at c.d.v., unless otherwise specified in respect of particular tables.

The trade figures for imports are compiled from the imports entries passed by the Customs Department. Generally the imports entries are not passed until the goods are available for discharge from the wharf.

Annual Statistics—For trade statistics a June year has been adopted since 1 July 1962 and this accords fairly well with the farm production year.

The statistics of external trade given in this section (comprising the three subsections) do not include the trade of the Cook Islands, Niue, and the Tokelau Islands: statistics for these territories are given in Section 38 of this Yearbook.

The following table gives the values of the export and import trade for years ended June and December. The movement of specie is not included in these figures and gold is excluded.

YearExports (including Re-exports) f.o.b.ImportsYearExports (including Re-exports) f.o.b.Imports
c.d.v.c.i.f.c.d.v.c.i.f.
*Provisional.
 Year ended June$(million)Year ended December
1963627.5523.7576.61,963664.3595.7650.7
1964737.3637.4694.01,964773.7644.0701.7
1965742.2662.7724.51,965729.2703.8766.7
1966767.3729.4792.81,966780.0722.4787.0
1967727.2752.2813.21,967727.1672.4725.6
1968820.5622.9674.71,968920.9749.0805.3
1969989.1799.2852.91,9691,082.5843.0898.9
1970x1,086.7944.31,007.21,9701,093.71,038.31,111.8
1971*1,131.11,075.11,157.11971*1,199.71,101.91,186.1

The following table shows for the June year 1970 the values of merchandise exports to, and imports from, each of the countries trading with New Zealand.

TRADE BY COUNTRIES, YEAR ENDED JUNE 1970
CountryExports f.o.b.Imports c.d.v.
New Zealand ProduceTotalBy Country of OriginBy Country of Purchase
Sterling Area Countries$(000)
    Associated States in Eastern Caribbean56356351
    Australia80,89687,311197,872219,535
    Bahamas36636717-
    Bahrain29293,6722,865
    Barbados1,7501,75075
    Bermuda1,4121,412-39
    British Honduras22--
    British Solomon Islands3043141718
    Brunei10102,590-
    Ceylon2,0482,0494,4014,332
    Cyprus1,0071,00795
    Falkland Islands11--
    Fiji7,6738,8489591,223
    Gambia33--
    Ghana1401402,7022,306
    Gilbert and Ellice Islands2332441,8031,803
    Guyana56568225
    Hong Kong4,5184,59717,86719,817
    India1,3161,3578,5057,454
    Ireland, Republic of1,9871,987339205
    Jamaica4,4364,436342286
    Jordan1010--
    Kenya1,2231,226423573
    Kuwait21321316,2478,574
    Libya22--
    Malawi636310059
    Malaysia7,2397,2696,4407,738
    Malta, including Gozo42425236
    Mauritius and Dependencies5505505050
    Montserrat3030--
    Namibia- -- -11
    Nauru3473596,3176,317
    New Hebrides Cond.4534762931
    New Zealand Re-imports--1,76810
    Nigeria3738448401
    Norfolk Island43346923
    Pakistan1,8321,8323,4503,242
    Papua and New Guinea2,6412,790492363
    Pitcairn Island1216-- -
    Qatar and Trucial Sheikdoms7676- -- -
    Seychelles22- --
    Sierra Leone212143
    Singapore8,5518,7253,0602,509
    South Africa3,1233,1973,9413,493
    Southern Yemen222,843-
    Tanzania (incl. Zanzibar and Pemba)4904901,7501,041
    Tonga1,4871,586485494
    Trinidad and Tobago4,4364,4364542
    Uganda64641,1831,158
    United Kingdom383,396386,017279,090299,909
    Western Samoa2,7143,4311,4411,512
    Zambia294295--
            Totals, Sterling Area528,534540,212570,849597,480
EFTA Countries (Excluding United Kingdom)—    
    Austria7777791,3961,227
    Denmark2,4382,4542,4352,200
    Norway1,1981,1981,3671,254
    Portugal1,7981,798684662
    Sweden2,5672,5927,2966,835
    Switzerland and Liechtenstein2,0922,1509,3846,749
            Totals, EFTA10,87010,97122,56118,928
EEC Countries    
    Belgium and Luxembourgh21,22621,2924,4424,353
    France and Monaco28,66328,6827,5296,765
    Germany, Federal Republic29,36429,68236,77635,084
    Italy and San Marino23,66823,72411,91310,906
    Netherlands15,98816,1139,66410,165
            Totals, EEC118,909119,49270,32367,273
Dollar Area    
    American Samoa2,1912,333969
    Antarctic Territory (U.S.)24--
    Bolivia33--
    Canada45,23145,34337,48935,927
    Colombia46462,0302,026
    Costa Rica1531537066
    Dominican Republic- -- -3,0343,034
    Ecuador55828827
    El Salvador299299- --
    Guam1,3031,306--
    Guatemala1818- -- -
    Honduras--22
    Liberia1414--
    Mexico1,2551,255210186
    Panama Canal Zone205206-53
    Panama Republic719720-88
    Philippines6,0866,518242215
    Puerto Rico1,0361,036177
    Ryukyu Islands971971225
    U.S. Trust Terrs. in Pacific496582--
    United States of America164,747166,493123,105122,850
    Venezuela409430- -- -
            Totals, Dollar Area225,188227,735167,058165,355
Other Countries$(000)
    Afghanistan22- -- -
    Algeria441-
    Angola incl. Cabinda33--
    Argentina44463431
    Brazil1513371,171315
    Bulgaria2642641919
    Burma43493-
    Chile3903907937
    China (mainland)4,0774,0844,3633,702
    China, Republic of (Taiwan)3,0673,073658645
    Congo (Brazzaville)--13- -
    Congo (Leopoldville)227877
    Czechoslovakia2,7562,7761,8051,701
    Ethiopia and Eritrea1111--
    Finland1,0031,003851783
    French Guiana105105--
    French Polynesia3,8413,8853344
    French West Indies110110. .-
    Germany, East667667368343
    Greece8,4678,4682925
    Hungary859859170158
    Indonesia4827761,596704
    Iran1,3181,31811,3903,770
    Iraq29299047
    Israel3144172128
    Ivory Coast1110999
    Japan104,921105,55778,09675,803
    Khmer Republic4433
    Korea, Republic of1,6061,608494363
    Laos1474--
    Lebanon18918929
    Macao--2- -
    Malagasy333- -
    Mongolian People's Republic--7-
    Morocco184184195
    Mozambique6106105447
    Muscat and Oman3434--
    Nepal1919--
    Netherlands Antilles53853822
    New Caledonia3,0293,171- -17
    Peru4,1274,1274021
    Poland3,1293,129431413
    Rhodesia- -- ---
    Romania33345
    Rwanda- -- --1
    Saudi Arabia1081085,041661
    Somalia99--
    South Vietnam131132-- -
    Spain4,4754,475816621
    St. Pierre and Miquelon77--
    Sudan1071075538
    Surinam66--
    Syria1871873020
    Thailand3,1493,171455395
    Tunisia125125- --
    Turkey5353210121
    U.S.S.R.16,93416,934649511
    United Arab Republic535311
    Uruguay99--
    Wallis and Futuna Is.141142--
    Yemen224381
    Yugoslavia3,7203,7203,6143,598
            Totals, Other Countries175,356176,801113,53495,288
            Totals, All Countries1,058,8561,075,212944,324944,324
    Passengers' purchases at duty-free stores1372,835--
    Ships' stores5,4738,614--
            Grand Totals1,064,4661,086,661944,324944,324

The next table shows the values of New Zealand's trade with several groupings of countries.

Year Ended JuneExports (including Re-exports) f.o.b. (Excluding Ships' Stores)Imports c.d.v.Exports (including Re-exports) f.o.b. (Excluding Ships' Stores)Imports c.d.v.
According to Country of OriginAccording to Country of PurchaseAccording to Country of OriginAccording to Country of Purchase

*Provisional.

†Belgium, Luxembourg, France, West Germany, Italy, and Netherlands.

‡Austria, Denmark, Norway, Portugal, Sweden, and Switzerland.

$(million)
  Sterling Area  Dollar Area 
1963349.9360.7371.0120.770.868.8
1964408.4432.5442.5123.988.985.9
1965444.8430.9443.8110.2104.7106.6
1966418.3478.8495.5124.0115.7104.9
1967390.0482.3495.0133.0130.2132.8
1968454.2385.9399.8158.9100.9106.3
1969511.1486.6507.7199.3131.4132.6
1970x540.2570.8597.5227.7167.1165.4
1971*566.0632.9 243.1179.0 
EEC CountriesEFTA Countries
1963109.834.632.84.412.311.9
1964136.541.840.08.222.521.9
1965119.442.339.78.620.819.9
1966119.848.245.48.118.316.1
196783.955.652.67.519.317.7
196885.644.141.67.418.616.1
1969120.064.261.28.423.620.6
1970x119.570.367.311.022.618.9
1971*120.195.5 8.926.6 

INDEX NUMBERS OF VOLUME OF EXTERNAL TRADE—The series for exports of New Zealand produce are linked-chain series. The exports of each year are revalued at the unit values of the immediately preceding year and the aggregate so obtained is compared with the recorded value in that (preceding) year to give a Laspeyre type index on base previous year. Aggregates are also calculated for immediately preceding years at the unit values of the latest year, which, compared with the recorded value in the latest year, gives a Paasche type index. The final index for the year is then obtained as the geometric mean of these two—i.e., a Fisher “Ideal” index-and in the table the annual movements are linked.

The series for total exports includes an allowance for re-exports of imported goods. Since these are normally approximately 1 percent of total exports the approximate volume movements are obtained by “deflating” the recorded values by the import price index as the best indicator available of price movements for these commodities. The two indexes, exports of New Zealand produce and re-exports, are then combined by weighting by their relative values in 1960, which is the base period for the current series.

For the import volume index, from 1950 on, a Fisher “Ideal” index has been obtained as the geometric mean of both anterior year and current year weighted indexes. Currently, the items for which quantities are recorded (and consequently unit values obtained) represent approximately two-thirds of the total value of imports. Price movements are imputed to the remaining one-third on the basis of the price movements of items in the same statistical groupings.

The total exports and imports series are combined into the total trade series by weighting by their relative values in 1960, being the base period for the current combined series. Index numbers of volume of external trade for the latest 11 years are given below on the base: calendar year 1960 (= 1000). The Monthly Abstract of Statistics and the annual Analysis of External Trade Statistics give series for calendar and March years as well as quarterly figures. The series is being revised on a 1971 base and will be published in the Abstract.

VOLUME INDEX NUMBERS OF EXTERNAL TRADEBase: calendar year 1960 (= 1000)
June YearExportsImportsTotal Trade
New Zealand ProduceTotal Exports
Dairy ProduceMeatWoolTotal
*Provisional.
19619751,0179849889881,1511,066
19621,1221,0041,1101,0721,0761,0081,043
19631,0701,1301,1071,1111,1141,0531,084
19641,1611,1361,0871,1491,1531,2501,200
19651,2411,1041,0211,1431,1471,2991,220
19661,2621,0421,1791,1861,1931,4131,299
19671,3641,0929751,1791,1841,4481,312
19681,3461,2551,1521,3411,3531,0881,225
19691,3341,3541,3331,4751,4891,2361,367
19701,4021,4561,3211,5621,5771,4181,500
1971*1,3821,4521,3011,5671,5811,5311,556

IMPORT AND EXPORT CONTROL AND EXCHANGE ALLOCATION—To ensure that overseas debt services would be met and sufficient funds be available for essential imports, there have been import control and export licences regulations since December 1938.

The Import Control Regulations 1938 prohibited the import of goods except under a licence or an exemption. The Export Licences Regulations 1938 provided (with minor exceptions) that an export licence must be obtained before goods could be exported. In addition, the requirement of an export permit was introduced by the Export Prohibition Emergency Regulations 1939, which have since been replaced by the Export Prohibition Regulations 1953. The Import Licensing Control Regulations 1964 require that, except for exempted goods (which comprise over two-thirds of private imports), a written licence, or a written permit granted by the Minister of Customs is necessary for all imports.

Export Control—Three classes of export licences are provided for, viz, particular, general, and purchaser's. The particular licence applies to an occasional shipment, the general licence is issued to exporters who make regular or frequent shipments, while the purchaser's licence applies to those cases where goods have been purchased in New Zealand for export and credits have been established from overseas funds (e.g., wool purchases). A condition of the issue of any export licence is that the overseas exchange earned must be sold to a New Zealand bank for New Zealand currency.

Whereas the purpose of the Export Licences Regulations is to ensure that all foreign exchange earned is sold to the New Zealand banking system, the Export Prohibition Regulations 1953 control the export of essential goods in short supply, of goods on which subsidies have been granted, and of goods shipped to strategic destinations.

Import Selection—The Import Control Regulations are administered through Import Licensing Schedules. Summaries of changes in the schedules up to 1962-63 have been given in the 1970 and earlier issues of the Yearbook, while changes in the 1963-64 to 1969-70 are covered in the 1971 Yearbook.

Import licences are issued by the Customs Department which is advised by the Department of Industries and Commerce on the import of materials and machinery for existing or planned New Zealand manufacturing industries and on the import of goods of a kind made in New Zealand.

Innovations of major importance introduced in 1962 were the Free Funds and the Export Incentive Schemes.

The Export Incentive Scheme was made available to all manufacturers who manufacture for export or who undertake to so do, whether or not they have an entitlement to import licence for raw materials or components. Licences issued under the scheme are either replacement, assistance, or bonus licences. A manufacturer already holding a licence, or entitlement to a licence for raw materials or components may obtain a replacement licence to the value of the licensed imported content of the goods exported, produced for export, or in the course of manufacture against confirmed overseas orders. Assistance licences will be granted either in the case of confirmed overseas orders where production has not been commenced, or when a manufacturer not holding overseas orders makes a declaration of intention to export and shows that active steps to open up an export market have been taken. Bonus licences are available to manufacturers who have actually exported; they may obtain licences for raw materials or components either of the same kind and value as those used in the manufacture of the exported goods, or of a different kind provided that the latter have a basic allocation and that the grant is not likely to affect adversely the efficient operation of an existing New Zealand industry. Bonus licences are in addition to licences issued as replacement or assistance licences. Once a bonus licence has been granted the materials or components may be used to manufacture goods for sale either overseas or in New Zealand as the manufacturer decides.

The 1970-71 Import Licensing Schedule provided in general for an increase of 5 percent in the value of licences. Objectives of Government policy were to take advantage of the improved balance of payments position to promote a rate of growth consistent with the targets set by the National Development Conference. In view of the need for greater productivity, manufacturers were being encouraged to modernise plant and to more efficient and labour-saving equipment.

A new importers policy was introduced. Limited funds were provided to assist manufacturers and other intending importers actively engaged in the handling, selling, and distribution of goods who would normally be interested in importing in their own name. Applicants also had to show that they have a direct interest in the goods concerned either because they have purchased them from existing licence holders or because they made imports in related lines.

Substantial increases were also provided in the level of licences for vehicles in an endeavour to more closely equate supply with demand.

The token licence scheme was continued, and licences issued on a value basis were increased by 25 percent.

The 1971-72 Import Licensing Schedule in general provided for an increase of 7 1/2 percent in licence values. Licences under the token licence scheme were increased to 175 percent of the 1970 level for those on a value basis and to 125 percent for those on a quantity basis. Limited provision was also made for new importers to obtain licences in certain existing token licence item codes. From 1 July 1971 additional items to a value in excess of $20 million in terms of past annual imports were exempted.

The 1972-73 Import Licensing Schedule provided for a licence allocation generally at 110 percent of the 1971-72 level by value; for new cars provision was made at $96 million compared with $60 million.

Over two-thirds by value of goods imported into New Zealand in the private sector are exempted from import licensing.

In July 1971 Government announced that a review would be made within 5 years of all those items still subject to import licensing with the objective of replacing import licensing, where applicable, by appropriate tariffs as the means of protection. It is recognised that in some circumstances the review may indicate that it will be necessary to retain import licensing on particular goods. To the greatest feasible extent the review will be of industries, rather than individual commodities. This will enable the Tariff and Development Board to consider the economic position of an industry as a whole in making its recommendations to Government.

To give the commercial community some further guidance on the order in which it would be advertising the products of industries for proposed exemption from licensing, Government has outlined in broad terms the following programme: (a) materials, components, and machinery which are common to a cross-section of industry; (b) materials and components up to and including final product used as a raw material or components by other industries; and (c) other goods on the basis of reasonably large segments of particular industries ranging from the basic raw material right through to the final product.

Within these broad terms priority in selecting industries for review will, wherever possible, be given to those which already have unrestricted access to raw materials and other inputs; those in which the existing level of protection appears to be high; and those which are significant in the cost structure of export industries. In applying these criteria regard will be had to Government assurances to industry, both general and particular; National Development Conference recommendations and related studies; and international commitments.

Another step in the exemption programme was taken in October 1971 when a further lengthy list of proposed exemptions from import licensing was published.

From the commencement of the 1968-69 licensing period the repatriation requirement for private and commercial no-remittance imports was increased to 30 percent. This amount was increased to 50 percent then 60 percent from 1 July 1969 and 1 July 1970 respectively. The repatriation requirement of 60 percent was waived on 26 February 1970 for one year in respect of built-up vehicles in line with other steps taken by Government to meet the shortage of new cars. This waiver, for built-up vehicles only, was subsequently extended up to and including 25 February 1972. For other private and commercial no-remittance imports the repatriation requirement was increased from 26 February 1971 to 100 percent. The private and commercial no-remittance import licensing schemes were withdrawn from 26 February 1972.

TARIFF AND DEVELOPMENT BOARD—The Tariff and Development Board was established under the Tariff and Development Board Act 1961. The Board was constituted on 1 June 1962 and since then has comprised between four and seven members. The board has the functions, when so requested by the Minister of Customs, the Minister of Industries and Commerce, or the Minister of Overseas Trade, to inquire into and report on revisions of the Customs Tariff, having regard to the trade and commerce, and the farming, manufacturing, and distributing industries of New Zealand and also the interests of consumers.

In 1971 the board conducted inquiries to consider the rates of duty and import licensing provisions which should apply to imports of the following goods: tuners and amplifiers, marking pens, certain metal stationery articles, armoured suction hose, piezo-electric crystals, glucose, wooden handles for tools, certain resins and plastic materials, polytetrafluoroethylene sheet, post-hole diggers, sacks and bags, excavating machinery, bookbinders' gathering and stitching machines, printing inks, cast acrylic sheet, screwdrivers, button moulds, continuous filament polyester yarn.

At the request of the Minister of Overseas Trade, the board in 1971 inquired into and reported on the question of whether certain goods should be added to Schedule A of the New Zealand - Australia Free Trade Agreement. The goods on which public inquiries were held were: dartboards, billiard tables, switchboards and control panels, road and paving setts, and monumental stone. The board also considered the question of eliminating the margins between the British preferential duty rates and Australian agreement rates for a number of items; this involved public inquiries on printed knitted fabrics, electrical fuses, sockets, and plugs.

The board received a number of references for inquiries to be held in 1972 arising from a notice of proposed exemptions from import licensing published in a supplement to the New Zealand Gazette of 17 October 1971.

Emergency Protection Authorities—The Tariff and Development Amendment Act 1967 made provision for the appointment of Emergency Protection Authorities. The Minister of Customs, the Minister of Industries and Commerce, or the Minister of Overseas Trade may, where it appears to the Minister that urgent action may be necessary to protect a New Zealand industry in relation to imports of goods, request an Authority to undertake an inquiry in relation to the importation of such goods and to report to the Minister on the following matters:

  1. Whether urgent action is necessary to protect that industry in relation to the importation of such goods; and

  2. If such action is considered necessary, the nature of the protection that is considered by the Authority to be appropriate in all circumstances, and the extent and duration of such protection.

An Authority which undertakes an inquiry is required to report back to the appropriate Minister not later than 30 days after the date on which he received the request for the inquiry. If the Authority considers that urgent action should be taken to protect the industry, it may recommend to the Minister that protection be effected by either or both of the following measures:

  1. The imposition of a temporary Customs duty.

  2. The temporary restriction of the importation of such goods.

When the Authority so recommends, action may be taken within the terms of the Customs Act 1966, to impose a temporary protective Customs duty or restriction on importation. However the matter must have first been referred to the Tariff and Development Board for its consideration before any temporary protection is imposed. There are limits placed on the duration of temporary protection which is regarded as “holding action” pending the completion of the Tariff and Development Board's inquiries.

The Emergency Protection Authority was established in 1968 and by 30 September 1971 had undertaken 134 inquiries. Most of these inquiries arose following the receipt of objections to proposals to exempt goods from import licensing. After considering the Authority's reports the Government imposed temporary duties in 27 cases, and retained import licensing in a further 25 cases. In seven cases temporary protection was reimposed and 3 cases were awaiting decision. Temporary protection was not granted in the 68 remaining instances.

TRADE COMMISSIONER SERVICE—Facilities for the promotion of overseas trade are provided by the Department of Industries and Commerce through the service of 26 Trade Commissioner posts— Athens, Bangkok, Bonn, Brisbane, Brussels, Canberra, Djakarta, Hong Kong, Kuala Lumpur, London, Los Angeles, Melbourne, Montreal, New Delhi, New York, Paris, Perth, Rome, San Francisco, Singapore, Suva, Sydney, Tokyo, Trinidad. Vancouver, and Washington. While this representation is modest in comparison with other countries, it reflects the country's growing interest in the desirability of diversifying export markets. In addition, agreement was reached with Air New Zealand in 1961 that some of its overseas managers should act as trade correspondents of the Department of Industries and Commerce. At present there are Air New Zealand correspondents in New Caledonia, Tahiti, American Samoa, and Honolulu. Most Trade Commissioners have appropriate diplomatic or consular status in the countries to which they are accredited.

While the selling of goods in overseas markets is basically the responsibility of New Zealand exporters, the Trade Commissioner can be of considerable help in conducting market surveys and supplying information on import and exchange restrictions, Customs duty, sales tax, normal sources of supply (local production and imported), marketing methods, freight rates, statutory or customary requirements for packing, labelling, etc., and reliable importers in his territory. He may also assist New Zealand importers to locate new sources of supply of essential commodities. New Zealand businessmen travelling overseas may be saved much time and trouble by enlisting the services of the Trade Commissioner, whose knowledge of local conditions and whose connections with businessmen and Government officials in his territory enable him to give valuable advice. His task is made easier if he is given adequate notice of the visit.

The Trade Commissioner keeps a careful watch on the pattern of New Zealand trade with his territory and reports on significant changes. Where imports from New Zealand are affected, for example, by a new interpretation of an agricultural inspection regulation, or by the imposition of import restrictions, the Trade Commissioner is often called upon to make representations at the official level.

Trade Commissioners are also engaged in numerous other activities, some of which are representing New Zealand at international conferences, reporting on economic and industrial developments in their territories, acting on behalf of Government departments in the procurement of stores, payment of accounts, etc., and maintaining liaison where they are stationed with business and Government circles.

Businessmen may write for information direct to the New Zealand Trade Commissioner in the country concerned but, where convenient, it is preferred that requests be made through the Department of Industries and Commerce in New Zealand, which is often able to give preliminary advice and assistance.

The addresses of overseas representatives are listed in Section 41, Official.

TRADE PROMOTION—A Trade Promotion Council was set up in March 1962 as a co-ordinating and advisory agency in a concerted continuous New Zealand trade drive and in September 1969, it accepted an invitation to act as a sector council of the National Development Council. The council advises in the exploration of new or potential markets including trade surveys and missions: the coordination of promotional schemes, trade fairs, and publicity; and the improvement of facilities, both within New Zealand and overseas, which may assist exporters. An Export Development Conference called by the Government, was held in June 1963 to examine the problems to be met in aprogramme of expanded exports. The need to diversify markets and products was underlined when Britain applied in 1961 to join the European Economic Community. A trade drive was recognised as essential to earn more overseas exchange to continue to improve the standard of living for a steadily increasing population and to expand economic and national development. A scheme of export aids was developed by the Government following the conference, among them an export guarantee scheme to provide guarantees to exporters against losses which might result from circumstances not insurable with commercial insurers. The National Development Conference in 1968 and 1969 studied the export capacity of production sectors and set 5-year and 10-year export targets. To promote the export of manufactured goods, exhibits have been arranged at trade fairs and trade missions conducted in selected areas overseas.

Export seminars have been held in major cities. The first series—on Australia—was held in 1966; the second—on Asia—in 1967; the third—on techniques of exporting—in 1969; the fourth—on export marketing—in 1970, and the fifth—on exporting to Australia—in 1971. Contacts with exporters and prospective exporters have been widened by the work of export liaison officers, who travel widely in New Zealand, explaining the facilities and taxation and import licensing incentives that are available to exporters.

22 B—EXPORTS

GENERAL—The growth and diversification of the New Zealand economy are heavily dependent on increasing exports to pay for rising imports of goods needed by industry and a growing population, as well as to provide for large payments for “invisibles” in the form of services. Overseas trade is the lifeblood of the economy. (See Section 25e, National Development Council for projections of exports to meet growth requirements.

In New Zealand copies of export entries are forwarded to the Department of Statistics for processing and analysis and the regular publication of export statistics. Exports are valued in New Zealand currency “free on board at the port of shipment”, except re-exports ex bonded warehouse or under drawback of duty, which are recorded at the original import values. Where goods are not sold till arrival at their destination, values are assessed at current prices at time of shipment. Meat and dairy-produce exports are valued like other commodities, on the basis of overseas realisation, not on the basis of the prices payable to producers under the internal purchasing procedures.

The ultimate destination of the goods is distinguished as far as practicable, but it is impossible to discover what proportion of the exports is intended for home consumption in the country of destination. A distinction is made between exports of New Zealand produce and re-exports of imported goods.

Since 1 July 1962, the Standard International Trade Classification (Revised) has been used in classifying export trade.

MAIN EXPORTS—The following table gives total exports of New Zealand produce and re-exports (excluding gold and current coin) for the latest 10 years and the main commodity groups.

Year Ended JuneMeat and Meat PreparationsDairy ProductsHides, Skins, and PeltsWool
ButterCheeseCaseinTotal
f.o.b. value $(million)
1962139.984.443.09.8146.226.7207.4
1963173.090.937.08.4146.425.4214.4
1964183.2109.635.111.3168.430.4271.4
1965212.5119.640.716.8197.731.7208.6
1966196.7109.641.720.0195.440.0231.9
1967205.0109.445.118.6205.433.6174.1
1968260.7112.247.418.1210.339.8158.2
1969309.4114.842.621.7204.755.4212.4
1970x368.9109.744.325.8213.948.7204.2
1971391.2112.047.930.2226.950.6188.6
Year Ended JuneSausage CasingsTallowFruit and VegetablesPulp, Paper, and Paper-boardTotal*Re-exportsTotal Exports

*Including commodities not listed.

†Provisional.

f.o.b. value $(million)
19628.96.39.910.9575.17.8582.9
196310.54.87.513.8620.07.6627.5
196412.07.19.617.3728.48.8737.3
196511.17.010.717.0733.78.5742.2
196610.96.512.318.3756.810.5767.3
196712.06.810.716.6717.69.6727.2
19689.96.913.823.9804.615.8820.5
196910.96.516.627.0968.920.2989.1
1970x14.09.021.628.31,064.522.21,086.7
197113.810.121.428.21,107.124.01,131.1

The commodity groups shown above normally account for more than 90 percent of their total value of merchandise exports.

The relative importance of dairy produce, meat, and wool as the main individual constituents of New Zealand's export trade have varied considerably, as is seen from the figures in the preceding table. In the preceding subsection is set out a table of volume index numbers for these commodities. A table showing the export price index numbers and terms of trade is given in Section 23, Prices.

Over 80 percent of exports are pastoral products. Of exports other than pastoral the principal ones of economic significance in the June year 1971 were; logs of radiata pine ($25.7 m), fish and fish products ($18.3 m), newsprint ($14.0 m), sawn timber ($11.5 m), wood pulp ($9.3 m), apples ($8.6 m), grass and clover seeds ($4.9 m).

Quantity figures of exports of the principal items of New Zealand produce are next given for the 3 latest years, while the Statistical Summary, towards the end of the book, shows the figures for some of the more important commodities for the last 50 years.

Commodity (New Zealand Produce)June Year 1969June Year 1970xJune Year 1971*
*Provisional.
Mining products—    
    Pumice(cwt)12,02817,17413,475
    Cement(cwt)31,60816,3018,243
Fishery products—    
    Fish, fresh and frozen(cwt)78,53699,798152,928
    Crayfish(cwt)64,88049,40644,929
    Fish oils and fish-liver oils(gal)3,5186,4195,626
Forest products—    
    Kauri gum(ton)292119
    Timber—    
        Logs, radiata pine(000 cu ft)52,78662,10661,543
        Sawn(000 sup ft)99,802106,139118,509
        For cases in shooks(000 sup ft)3,2252,3081,254
    Wood pulp(ton)87,74180,91294,626
    Newsprint(ton)121,348119,605109,681
    Building board(000 sq ft)21,08515,32417,429
    Plywood(000 sq ft)1,6784,9304,947
Commodity (New Zealand Produce)June Year 1969June Year 1970xJune Year 1971*
*Provisional.
Pastoral products—    
    Butter(ton)203,118194,892188,343
    Casein(ton)49,23661,01068,436
    Cheese(ton)86,27689,15691,039
    Milk, dried and condensed(ton)132,655181,439157,961
    Sugar of milk(ton)6,7757,9457,471
    Eggs—    
        In shell(doz)38,93569,613154,046
        Not in shell(000 lb)7099316,552
    Honey(ton)2976441,762
    Meat, frozen and chilled(ton)635,484648,389638,304
    Meat, canned(ton)3,6823,3883,768
    Meat extract(lb)415,228209,396489,833
    Other preserved meat(ton)1,4571,8411,759
    Sausage casings(000 hanks)7,4727,6467,264
    Liver meal(cwt)11,67811,0788,135
    Cattlehides(000)1,3871,4821,584
    Horsehides(000)1,9713,0361,423
    Calfskins(000)1,0451,1691,121
    Deerskins(000)5882132
    Opossum skins(000)1,2921,605346
    Sheepskins and pelts(000)37,22234,01536,248
    Horsehair and other coarse animal hair(lb)60,24360,45358,453
    Wool(metric ton)307,960302,050294,747
    Lard(cwt)11911491
    Edible tallow(ton)5,4464,0692,024
    Edible stearine(ton)706640345
    Inedible tallow(ton)64,24167,19362,550
    Neatsfoot oil(ton)715671581
    Live cattleNo.2,2631,8422,311
    Live sheepNo.4,29211119
    Live horsesNo.1,0931,1361,338
Agricultural products—    
    Barley(cental)37,061633
    Apples(000 lb)92,466120,371114,968
    Pears(000 lb)5,3846,9327,612
    Hops(lb)221,40860,989183,353
    Potatoes(ton)6,5689,37010,434
    Onions(ton)4,2309,6158,458
    Canned vegetables(000 lb)4,5497,8065,812
    Frozen vegetables(cwt)151,996215,537160,929
    Peas, food(cental)370,101363,061669,106
    Peas, seed(cental)269,893255,813196,078
    Seeds, grass and clover(cental)201,955175,027213,868
    Seeds, other(cental)13,17310,86816,327
Miscellaneous—    
    Biscuits(cwt)41,85247,51755,666
    Ale, beer, stout(gal)560,809596,313713,919
    Sugar(cwt)6,2823,9621,882
    Drinking chocolate(000 lb)3117,23211,929
    Cigarettes(lb)121,429146,100190,065
    Cut tobacco(lb)141,698124,628166,171
    Textile waste(000 lb)2,0892,3301,802
    Soaps(000 lb)4,3842,7013,424
    Chamois leather(sq ft)698,015470,609526,887

The values of the principal exports are given in the following table.

Commodity (New Zealand Produce)June Year 1969June Year 1970xJune Year 1971*
*Provisional.
 $(000)$(000)$(000)
Mining products   
    Pumice173422
    Cement402212
    Other154104109
            Totals211160143
Fishery products—   
    Fish, fresh and frozen1,8322,8584,600
    Fish, other4639161,431
    Crayfish15,37011,35812,225
    Fish oils and fish-liver oils344427
            Totals17,70015,17618,284
Forest products—   
    Kauri gum181512
    Timber—   
        Logs, radiata pine19,78723,45925,683
        Sawn8,0239,72411,498
        For cases in shooks377278188
    Wood pulp7,4487,2379,271
    Newsprint16,14915,84514,029
    Other paper and paperboard2,5934,5803,969
    Building board727587767
    Plywood139419436
    Other2986151,166
            Totals55,55962,75967,019
Pastoral products—   
    Butter114,760109,747111,982
    Casein21,70825,75530,202
    Cheese42,60344,34247,933
    Milk, dried and condensed23,12931,09234,060
    Sugar of milk1,8442,1682,047
    Other dairy produce2,4882,8712,682
    Eggs—   
        In shell163064
        Not in shell90140992
    Honey148262586
    Meat, frozen and chilled304,631364,409386,251
    Meat, canned3,6263,2183,346
    Meat extract445280584
    Other preserved meat740995987
    Sausage casings10,92913,97213,829
    Liver meal8010284
    Cattlehides8,18710,3259,740
    Horsehides91910
    Calfskins3,1752,8891,851
    Deerskins149202382
    Opossum skins1,8632,052261
    Sheepskins and pelts41,83232,94638,172
    Horsehair and other coarse animal hair263030
    Wool212,381204,222188,569
    Inedible offals (including dried blood)4,7736,6744,767
    Lard332
    Edible tallow642632389
    Edible stearine768654
    Inedible tallow5,8598,3819,739
    Neatsfoot oil214133132
    Live cattle401752981
    Live sheep167306
    Live horses3,0963,8174,604
    Other4,1732,8002,996
            Totals814,263875,375898.313
Agricultural products—   
    Barley82- -- -
    Apples5,7968,8648,596
    Pears338509571
    Hops11232114
    Potatoes404491675
    Onions324819829
    Canned vegetables6291,100912
    Frozen vegetables2,0912,8952,206
    Peas, food2,0351,7192,435
    Peas, seed1,4841,4581,137
    Seeds, grass and clover3,4533,5764,900
    Other seeds298474858
    Other4,5965,9013,586
            Totals21,64327,83726,820
Miscellaneous—   
    Biscuits1,5171,6722,049
    Ale, beer, stout476486589
    Sugar352515
    Soups87152283
    Drinking chocolate341,1812,143
    Infant and invalid food (cereal)557975
    Cigarettes268311401
    Cut tobacco213190259
    Textile waste222257180
    Soaps366317605
    Scrap metal1,2642,1441,382
    Dairy machinery7481,2331,050
    Chamois leather206175200
    Vitamins and concentrates31628
    Other54,09974,92287,243
            Totals59,59383,15996,502
    Totals, New Zealand produce (excluding gold)968,8781,064,4661,107,081
    Gold (excluded from above)272959

In the following table exports (excluding re-exports) for the years ended June 1970 and 1971 are summarised according to the Sections and Divisions of the Standard International Trade Classification (Revised).

Exports, New Zealand Produce—Section and DivisionYear Ended June
1970x1971*
*Provisional.
Section 0. Food and Live Animals$(000)
    Div. 00 Live animals4,6485,669
    Div. 01 Meat and meat preparations368,903391,168
    Div. 02 Dairy products and eggs188,222197,712
    Div. 03 Fish and fish preparations15,01318,175
    Div. 04 Cereals and cereal preparations4,0192,406
    Div. 05 Fruit and vegetables21,60421,375
    Div. 06 Sugar and sugar preparations2,6933,008
    Div. 07 Coffee, tea, cocoa, spices, and manufactures thereof2,2244,323
    Div. 08 Feeding stuff for animals (not including unmilled cereals)4,1334,339
    Div. 09 Miscellaneous food preparations3,1581,488
            Totals, Section 0614,617649,664
Section 1. Beverages and Tobacco  
    Div. 11 Beverages578669
    Div. 12 Tobacco and tobacco manufactures543749
            Totals, Section 11,1211,417
Section 2. Crude Materials, Inedible, Except Fuels  
Div. 21 Hides, skins, and fur skins, undressed48,70650,587
    Div. 22 Oil seeds, oil nuts, and kernels688
    Div. 23 Crude rubber, including synthetic and reclaimed--
    Div. 24 Wood and cork33,79838,347
    Div. 25 Pulp and waste paper7,2949,394
    Div. 26 Textile fibres (not manufactured into yarn, thread, or fabrics) and waste204,989189,257
    Div. 27 Crude fertilisers and crude minerals, excluding coal, petroleum, and precious stones157219
    Div. 28 Metalliferous ores and metal scrap2,8732,401
    Div. 29 Animal and vegetable crude materials, n.e.s.26,40226,573
            Totals. Section 2324,290316,786
Section 3. Mineral Fuels, Lubricants and Related Materials  
    Div. 32 Coal, coke, and briquettes8836
    Div. 33 Petroleum and petroleum products5,6506,669
    Div. 34 Gas41
            Totals, Section 35,7426,706
Section 4. Animal and Vegetable Oils and Fats  
    Div. 41 Animal oils and fats9,61410,554
    Div. 42 Vegetable oils and fats, unprocessed11
    Div. 43 Animal and vegetable oils and fats, processed420405
            Totals, Section 410,03510,960
Section 5. Chemicals$(000)
    Div. 51 Chemical elements and compounds1,8951,726
    Div. 52 Mineral tar and crude chemicals from coal, petroleum, and natural gas11
    Div. 53 Dyeing, tanning, and colouring materials275409
    Div. 54 Medicinal and pharmaceutical products1,2601,455
    Div. 55 Essential oils and perfume materials, toilet, polishing, and cleansing preparations9922,106
    Div. 56 Fertilisers, manufactured14716
    Div. 57 Explosives and pyrotechnic products13126
    Div. 58 Plastic materials, regenerated cellulose, artificial resins483537
    Div. 59 Miscellaneous chemical materials and products28,36934,158
            Totals, Section 533,55240,434
Section 6. Manufactured Goods Classified Chiefly by Material  
    Div. 61 Leather, leather manufactures, n.e.i., and dressed furs1,0151,365
    Div. 62 Rubber manufactures, n.e.s.1,0511,167
    Div. 63 Wood and cork manufactures (excluding furniture)2,8914,448
    Div. 64 Paper, paperboard, and manufactures thereof22,25920,494
    Div. 65 Textile yarn, fabrics, made-up articles, and related products10,69713,496
    Div. 66 Non-metallic mineral manufactures, n.e.s.2,3732,898
    Div. 67 Iron and steel1,1233,146
    Div. 68 Non-ferrous metals4,3272,763
    Div. 69 Manufactures of metal4,2164,500
            Totals, Section 649,95354,277
Section 7. Machinery and Transport Equipment  
    Div. 71 Machinery other than electric6,9887,416
    Div. 72 Electric machinery, apparatus, and appliances6,8246,723
    Div. 73 Transport equipment1,7862,281
            Totals, Section 715,59816,421
Section 8. Miscellaneous Manufactured Articles  
    Div. 81 Sanitary, plumbing, heating and lighting fixtures, and fittings471456
    Div. 82 Furniture and fixtures794975
    Div. 83 Travel goods, handbags, and similar articles421488
    Div. 84 Clothing1,9842,004
    Div. 85 Footwear253262
    Div. 86 Professional, scientific and controlling instruments; photo-graphic and optical goods, watches, and clocks672816
    Div. 89 Miscellaneous manufactured articles, n.e.s.4,6245,353
            Totals, Section 89,21810,354
Section 9. Commodities and Transactions not Classified According to Kind  
Goods under $20 in value3924
Other30393
            Totals, Section 934163
            Total New Zealand produce exports1,064,4661,107,081
            Re-exports22,19524,022
            Grand total, merchandise exports1,086,6611,131,103
            Exports of gold (excluded from above)2959

DESTINATION OF NEW ZEALAND EXPORTS—The United Kingdom has been New Zealand's principal trading partner for over 100 years. The proportion of our exports (including re-exports) going to the United Kingdom market in the years prior to the Second World War was between 70 and 80 percent of the total value of all exports. With the growing diversification of our markets in recent years the proportion of New Zealand's exports going to this market has fallen and by 1971 (June year) represented only 34 percent of the total value of exports to all countries.

In recent years trade has been recorded with over 100 countries each year.

TOTAL EXPORTS TO INDIVIDUAL COUNTRIES—The following table gives exports (including re-exports but excluding gold, current coin, passengers' purchases, and ships' stores) to each country for the 4 latest June years.

CountryJune Year 1968June Year 1969June Year 1970xJune Year 1971*

*Provisional.

†lceland included in EFTA from 1970.

‡Associated States in Eastern Caribbean, British Virgin Islands and Montserrat included in Leeward and Windward Islands until 1969.

Sterling Area$(000)$(000)$(000)$(000)
Associated States in Eastern Caribbean313437563591
Australia57,76575,28287,31196,634
Bahamas253268367469
Bahrein- -82920
Barbados1,3001,4281,7502,091
Bermuda1,2718841,4121,865
British Solomon Islands15158314442
Brunei- -41011
Ceylon7651,2422,0491,749
Cyprus9321,2721,0071,171
Fiji5,7537,6388,84812,754
Ghana125118140228
Gilbert and Ellice Islands219197244257
Guyana34565640
Hong Kong2,5573,6734,5976,804
India1,0151,9621,3572,175
Ireland1,0441,9571,9872,737
Jamaica5,1613,8834,4367,545
Jordan10121018
Kenya4004051,226429
Kuwait11365213146
Malawi464063142
Malaysia6,7636,3177,2697,613
Malta45374250
Mauritius and Dependencies185332550714
Montserrat233030
Nauru368369359286
New Hebrides85226476914
Nigeria1175438159
Norfolk Island284259469680
Pakistan3822181,832435
Papua, etc.367442,7903,430
Pitcairn Island23141614
Qatar and Trucial Sheikdoms2157687
Seychelles2422
Sierra Leone17132111
Singapore5,9748,4248,7259,236
South Africa1,9892,4723,1978,946
Tanzania95212490172
Tonga1,2991,5161,5861,662
Trinidad and Tobago3,5623,8594,4365,400
Uganda11396436
United Kingdom352,039382,749386,017384,156
Western Samoa1,5281,9463,4313,412
Zambia336248295241
Others12201023
            Totals, sterling countries454,247511,099540,212566,031
EFTA (Excluding U.K.)    
Austria38179779294
Denmark1,6841,8252,4541,978
Norway8121,3261,1981,180
Portugal1,8981,4991,7981,865
Sweden1,9532,4932,5922,110
Switzerland and Liechtenstein1,0251,0352,1501,453
Iceland-9
            Totals, EFTA countries7,4108,35810,9718,890
EEC    
Belgium and Luxembourg11,46219,30421,29225,819
France and Monaco26,51036,78128,68227,706
Germany, Federal Republic21,03328,73429,68230,271
Italy and San Marino15,54821,59123,72419,278
Netherlands11,00613,61116,11316,987
            Totals, EEC countries85,558120,021119,492120,061
Dollar Area    
American Samoa1,3171,6152,3332,493
Canada10,52816,38345,34332,183
Colombia1851484610
Costa Rica- -1153- -
Dominican Republic--- -47
El Salvador-- -29921
Guam7911,0901,3061,435
Guatemala-- -18-
Liberia2131416
Mexico2727221,2551,920
Panama Canal Zone229103206385
Panama Republic523694720219
Philippines5,9797,0316,5188,915
Puerto Rico, etc.1345781,0361,120
Ryukyu Islands, etc.590791971750
U.S. Trust Territories in Pacific5376582546
United States138,240169,802166,493192,723
Venezuela101295430341
Others-11219
            Totals, dollar area158,945199,346227,735243,144
Other Countries    
Argentina11114692
Brazil13333736
Bulgaria59650264841
Burma4614154955
Chile2862513901,223
China (mainland)5,7173,6834,0841,655
China. Republic of (Taiwan)1,0612,4443,0732,469
Czechoslovakia9461,0142,7761,671
Finland7727841,003873
French Guiana858510559
French Polynesia2,9043,5433,8854,306
French West Indies16072110-
Germany, East1,0351,0936671,574
Greece3,9166,1918,46812,425
Hungary261194859150
Indonesia24757761,234
Iran2243111,318778
Iraq1929327
Israel389144470
Japan68,18688,001105,557102,975
Korea, Republic of1,0081,4461,6081,706
Laos21717416
Lebanon6549189465
Morocco3155184154
Mozambique448602610777
Muscat and Oman1143442
Nepal48198
Netherlands Antilles593562538690
New Caledonia7771,9863,1714,086
Peru3,9872,3104,1276,190
Poland1,3462,1033,1293,310
Romania- -- -3188
Saudi Arabia4970108128
South Vietnam5097132462
Spain2,5434,5384,4752,017
Sudan410107147
Syria30260187201
Thailand1,7592,5453,1714,301
Tunisia1-125168
Turkey34255348
United Arab Republic1449053117
U.S.S.R.5,83911,66916,93417,904
Uruguay1104492
Wallis and Futuna Islands--142198
Yugoslavia1,0471,6793,7202,137
Others334656333
            Totals, other countries106,620138,600176,801179,013
            Totals, all countries812,780977,4231,075,2121,117,138
Ships' stores5,4698,7858,61410,000
Passengers2,2262,8882,8353,559
Destination optional---404
            Grand totals820,475989,0971,086,6611,131,103

The table which follows shows for each of the last 8 years the percentage of total exports (excluding gold, current coin, passengers' purchases, and ships' stores) taken by each of the principal countries trading with New Zealand.

CountryJune Year 1964June Year 1965June Year 1966June Year 1967June Year 1968June Year 1969June Year 1970xJune Year 1971*
*Provisional.
STERLING AREA   percent    
    Australia4.644.694.784.897.117.708.128.65
    Fiji0.380.490.510.520.710.780.821.14
    Hong Kong0.210.200.210.290.310.380.430.61
    Jamaica0.340.470.490.490.640.400.410.68
    Malaysia0.590.840.610.770.830.650.680.68
    Singapore- --0.430.550.730.860.810.83
    Trinidad and Tobago0.340.500.480.440.440.390.410.48
    United Kingdom47.3850.8144.5143.7043.3139.1635.9034.39
    Other1.762.302.902.501.811.972.633.19
            Totals, Sterling countries55.6360.3054.9354.1555.8952.2950.2450.67
EFTA (excluding U.K.)        
    Austria- -0.01- -0.01- -0.020.070.03
    Denmark0.230.240.250.340.210.190.230.18
    Norway0.130.130.070.120.100.140.110.11
    Portugal0.370.350.250.200.230.150.170.17
    Sweden0.350.420.420.260.240.260.240.19
    Switzerland0.020.020.070.120.130.110.200.13
            Totals, EFTA countries1.111.171.071.040.910.861.020.80
EEC        
    Belgium and Luxembourg3.123.272.941.621.411.971.982.31
    France6.394.605.303.453.263.762.672.48
    Germany. Federal Republic3.854.043.442.852.592.942.762.71
    Italy3.432.452.632.081.912.212.211.73
    Netherlands1.811.831.421.661.351.391.501.52
            Totals, EEC countries18.6016.1915.7411.6510.5312.2811.1110.75
DOLLAR AREA        
    Canada1.201.431.261.471.301.684.222.88
    Philippines0.270.500.550.710.740.720.610.80
    U.S.A.15.0612.6614.1215.8617.0117.3715.4817.25
    Other0.350.350.360.430.510.630.870.82
            Totals, dollar countries16.8814.9416.2918.4719.5620.4021.1821.76
OTHER        
    China (mainland)0.760.430.821.140.700.380.380.15
    Greece0.470.370.480.450.480.630.791.11
    Japan4.404.347.478.858.399.009.829.22
    Peru0.070.290.240.670.490.240.380.55
    Spain0.380.240.450.210.310.460.420.18
    U.S.S.R.0.290.400.771.280.721.191.571.60
    Others1.401.331.742.082.022.273.043.18
            Totals, other countries7.777.4011.9814.6913.1214.1816.4416.02
            Totals, all countries100.00100.00100.00100.00100.00100.00100.00100.00

The principal destinations of New Zealand's exports of merchandise (including re-exports) are given in the table below.

June YearUnited KingdomCanadaAustraliaFranceWest GermanyUnited StatesOther Countries*Total Merchandise Exports

*Including ships' stores and passengers' duty free stores.

†Provisional.

    $(million)    
1961295.97.425.634.715.480.6101.7561.4
1962286.57.521.536.819.786.2124.7582.9
1963296.49.027.541.122.4107.8123.4627.6
1964347.88.834.046.928.3110.7160.7737.2
1965374.810.634.633.929.893.6165.2742.2
1966339.09.636.440.426.2107.5208.2767.3
1967314.810.635.224.820.5114.2207.1727.2
1968352.010.557.826.521.0138.2214.4820.5
1969382.716.475.336.828.7169.8279.4989.1
1970x386.045.387.328.729.7166.5343.11,086.7
1971384.232.296.627.730.3192.7367.41,131.1

The statistics quoted in the foregoing table indicate the destination of New Zealand exports as recorded on the Customs documents. In some instances the ultimate destination of exports is not known at the time of export, such goods being entered as exported to the country to which they are being shipped. This applies more particularity to wool, considerable quantities of which are shipped to the United Kingdom, and in normal times subsequently re-exported to the Continent. It should be observed, however, that in all instances where the final destination is known at the time of export, the exports are credited to that destination in the New Zealand trade statistics.

A further point of some importance is the fact that an appreciable quantity of wool is exported on an “optional” basis—United Kingdom, option Continent. In these cases, however, subsequent information is received as to the actual destination of the goods, and the entries are amended.

It will be realised, therefore, that the actual final destinations of New Zealand exports may vary appreciably from the classification shown in the table. For these reasons it is probable that exports to Continental countries are normally somewhat higher than the figures indicate; conversely, exports to the United Kingdom for retention in that country are lower than the totals quoted in the table.

In the following table figures are given for the value of New Zealand's export trade to European countries. This table shows the importance of wool as the chief commodity in New Zealand's trade with Europe.

CountryJune Year
19661967196819691970x1971*
*Provisional.
   $(000)  
Austria113938179779294
Belgium22,40211,63611,46219,30421,29225,819
Bulgaria67763859650264841
Czechoslovakia9971,3319461,0142,7761,671
Denmark1,9362,4421,6841,8252,4541,978
Finland3896487727841,003873
France40,39824,82526,51036,78128,68227,706
Germany, Federal Republic26,20620,51721,03328,73429,68230,271
Germany, Democratic Republic8951,6321,0351,0936671,574
Greece3,6863,2683,9166,1918,46812,425
Hungary172359261194859150
Italy20,02215,00815,54821,59123,72419,278
Netherlands10,80911,95311,00613,61116,11316,987
Norway5708408121,3261,1981,180
Poland1,4831,6461,3462,1033,1293,310
Portugal1,8851,4611,8981,4991,7981,865
Spain3,4561,5292,5434,5384,4752,017
Sweden3,1881,8801,9532,4932,5922,110
Switzerland5308471,0251,0352,1501,453
Turkey172034255348
U.S.S.R.5,8959,1845,83911,66916,93417,904
Yugoslavia8081,1901,0471,6793,7202,137
            Totals146,431112,895111,303157,717172,812171,895
    percent  
Percentage of total New Zealand exports taken by European countries19,0815,5213,6616,1416,0715,40
   $(000)   
Value of wool exported to European countries104,27176,43075,847106,928102,056100,184
    percent  
Percentage of wool exports to total exports to European countries (value basis)71,2167,7068,2967,8059,0658,28
Percentage of total New Zealand wool exports taken by European countries (value basis)44,9643,9047,9450,3549,9753,13

DESTINATION OF MAIN EXPORTS—The table which follows shows quantities and values of the principal exports of New Zealand produce sent to various destinations during the latest June years.

Country to Which ExportedJune Year 1968June Year 1969June Year 1970
QuantityValueQuantityValueQuantityValue
Wool (Greasy, Slipe, and Scoured)
 metric tons$(000)metric tons$(000)metric tons$(000)
Australia2,5251,8144,2393,2704,5803,748
Bulgaria1,039560--449263
Belgium15,4397,84624,18114,05030,01217,214
Canada3,2752,2502,5521,9652,5021,970
China (mainland)7,1104,1902,8312,3783,8922,414
Czechoslovakia1,8549211,6671,0014,8102,676
Denmark1,3931,0891,3671,1271,8541,637
Finland535433344296465399
France40,07021,18745,66729,01630,13618,126
Germany, Democratic Republic1,6831,0301,7131,0921,065667
Germany, Federal Republic17,35711,53922,96917,32620,55215,441
Greece2,5942,1723,3582,9324,6244,147
Ireland, Republic of1,1066261,9511,2961,9051,322
Italy17,05610,29919,23213,90018,45213,032
Japan16,72711,89028,40422,62031,56224,346
Mexico498257655368496297
Netherlands12,2165,8439,6045 7937,3434,491
Norway674609623552865809
Poland1,4451,0002,5561,8584,3232,777
Portugal3,2721,8312,2611,3972,8511,716
South Africa6184898957771,125985
Spain2,0981,2033,0362,0182,2031,413
Sweden1,5281,1761,4781,2771,2561,102
U.S.S.R.10,3515,83814,67611,66819,45412,837
United Kingdom61,41236,07068,60545,81762,77041,140
United States41,40323,88839,31925,34135,27022,916
Yugoslavia1,3259981,4891,4404,0042,957
Other countries1,8291,1672,2461,8054,2333,380
            Totals268,429158,216307,917212,381303,056204,222
Frozen and Chilled Beef and Veal
 tons$(000)tons$(000)tons$(000)
American Samoa218149156143281242
Bahamas352427204537
Barbados1,2466631,1567191,426902
Belgium844541243723
Bermuda848799511585872889
Canada2,5221,9627,2995,65146,04035,379
Cyprus711403772554375289
Fiji345429543772
France684046315865
French Polynesia1,5141,6221,3801,6001,3851,703
Germany, Federal Republic1848245262317
Greece18111838374326
Guam8947199749241,1911,116
Hong Kong540555613688677812
Israel------
Italy129572112--
Jamaica1,2977521,2228461,489997
Japan3,3601,9721,9071,3123,3352,536
Korea--255195831601
Malaysia164131181179376388
Netherlands1,065702646492302302
Netherlands Antilles516338433353320276
New Caledonia17598403286221231
Philippines389356648585313375
Puerto Rico154107562528813762
Ryukyu Islands174198302420609765
Singapore2,2491,7411,9141,7482,3602,267
Sweden6980130204109190
Switzerland7205576485871,1771,302
Tonga321936224723
Trinidad and Tobago1,5201,0291,5811,2222,0641,616
United Kingdom10,5307,13910,5997,99514,00410,237
United States of America95,08566,27995,79480,29687,90385,721
Other countries5864947527856,1344,084
            Totals127,29389,289131,121109,121174,898154,244
Frozen Lamb
 tons$(000)tons$(000)tons$(000)
Australia63924053019613366
Barbados20077320123375159
Belgium and Luxembourg8434449175633298
Bermuda312190197134331235
Canada6,2882,2378,2003,1741,5761,003
Cyprus9563191,2574311,136513
Fiji7222071,037301862309
France and Monaco10234183104132103
French Polynesia205128238151290208
Germany, Federal Republic1,3705466872631,785853
Greece4,1261,3467,0572,4368,9003,807
Hong Kong509174383153456203
Italy5271971,635812839498
Jamaica18597186116171111
Japan1,9547353,5221,4735,6122,731
Malaysia15050393142485212
Netherlands8222881,3455001,164533
Singapore1,1664541,054434870379
Switzerland692279526228608308
Tonga598110641112699121
Trinidad and Tobago295121295145377200
United Kingdom272,827113,262291,865132,594271,076132,753
 tons$(000)tons$(000)tons$(000)
United States6,2113,0338,4244,76011,4316,839
Western Samoa591102717125798140
Zambia614223422147342137
Other countries1,7826752,0398713,2331,561
            Totals303,928125,158333,604150,106314,313154,280
Frozen Mutton
 tons$(000)tons$(000)tons$(000)
Australia428613--
Barbados4811892010622
Belgium and Luxembourg121301834416244
Canada46101,028418660293
Cyprus1324029910620465
Fiji52512444797467129
France and Monaco130281403216744
French Polynesia693756312417
Germany, Federal Republic8631841,205224439103
Greece521752,47245118438
Jamaica8131951,0491931,751463
Japan71,97815,58190,48418,09082,07519,621
Netherlands122252174533788
Papua and New Guinea--2385036397
Peru--857160--
Singapore95241433218845
Tonga14528145239618
Trinidad and Tobago162441964822363
United Kingdom25,4205,12431,8655,00519,6374,638
United States75293201442012
Western Samoa1012279128316
Other countries1,40223160913710,9062,776
            Totals102,77321,841132,20725,375118,09228,593
Frozen Pork
 tons$(000)tons$(000)tons$(000)
Belgium885419173243
Fiji493844312622
France165200135130105137
French Polynesia787073595453
Germany, Federal Republic12672262148155103
Guam35223721--
Japan--217125150126
Nauru--281675
Netherlands5427191296
New Caledonia13486110645445
Singapore10669137751811
United Kingdom3392023113--
Other countries1429671426147
            Totals1,3179371,182752672598
Other Frozen Meat
 tons$(000)tons$(000)tons$(000)
Australia8416233463023
Canada12298277216438258
Cyprus9444118567044
France2,4631,0602,6911,3222,8702,309
French Polynesia251148229141253214
Germany, Federal Republic2,2241,7532,1321,9492,2372,908
Greece1824539110214026
Hong Kong67281394126786
Italy4261632428016598
Jamaica9963351,0283651,180508
Japan19371350150920559
Netherlands838617392335425552
Netherlands Antilles180702239318986
Philippines229523867522637
Singapore304131251106258128
Sweden245211330296304429
Trinidad and Tobago21574294111305146
United Kingdom26,39713,26426,12412,73128,18316,778
United States of America536427526529506536
Other countries7103207823921,194814
            Totals36,75818,92837,13519,13640,15826,540
Canned and Other Preserved Meats
 tons$(000)tons$(000)tons$(000)
American Samoa586495366326488519
Fiji243213259246284262
French Polynesia107119188230187218
Gilbert and Ellice Islands13613195105101105
Italy335462173633968
Jamaica188111250171180123
Japan89221364216445
Nauru15215695107116130
Papua and New Guinea54136115126102
Philippines7911121212812
Tonga210185193171196168
United Kingdom2,2041,9801,9231,9751,3681,189
Other countries943306517317904539
            Totals5,2763,7794,4973,8614,4813,481
Butter
 tons$(000)tons$(000)tons$(000)
American Samoa7451815410468
Bahamas275159281165249146
Barbados230139231134251143
Bermuda29717618382284131
Canada531,200613--
Ceylon3272127379354175
Cyprus9356113663520
Fiji32925463362941551
French Polynesia242168236159206139
 tons$(000)tons$(000)tons$(000)
Germany, Federal Republic538303355210335190
Ghana241520123118
Guyana2113209177
Hong Kong319205319183394208
India131018612410469
Jamaica3,2061,9782,1121,2332,0691,300
Japan3,2551,803193954323
Malaysia1,2427221,432702261121
Mexico--7453111,895820
Netherlands Antilles18211611775174105
Nigeria57331-63
Panama Canal Zone27421112098150121
Panama Republic671485784639811670
Peru3,3032,0152,2891,0875,0652,256
Philippines1,0256581,4397521,332685
Singapore6894311,1656661,836757
South Africa------
Thailand6834001,1075671,150557
Tonga106731217913086
Trinidad and Tobago1,0946571,2347191,293740
United Kingdom181,848100,169183,973104,333173,59298,662
United States of America5244641,263594782389
Western Samoa122811348814796
Other countries169112296170852491
            Totals201,237112,169203,118114,760194,893109,747
Cheese
 tons$(000)tons$(000)tons$(000)
Ass, States in Eastern Caribbean14187176109
Australia3762708986311,135805
Barbados488209504221556248
Belgium293142253124220108
Bermuda8542622611248
Cyprus753667327537
Fiji552864305225
French Polynesia12280916610571
Germany, Federal Republic1,084506648317626295
Guyana13842--
Hong Kong823863325126
Italy16877--- 
Jamaica1,9749451,5265711,426521
Japan3,5391,5134,9542,1396,9163,007
Leeward and Windward Islands14385
Malaysia201047222412
Netherlands--36153617
Philippines110572941325416
Singapore314146267122248113
South Africa--9543
Trinidad and Tobago1,0484531,4345172,118760
United Kingdom85,66440,98169,17333,64968,00733,005
United States2,8671,6295,5693,7586,8784,914
Other countries177104173106331202
            Totals98,69747,36286,27642,60389,15144,342
Milk (Dried, Condensed, etc,)
 tons$(000)tons$(000)tons$(000)
Barbados441982644249175
Canada2,5505169542301,052277
Ceylon1,5584792,6757054,6011,444
China, Republic of (Taiwan)5691733,1395034,262669
Denmark1001517522869
Fiji707203757225953286
French Polynesia307883008522969
Hong Kong348762604446875
India2,4104587,5541,1065,896753
Indonesia5114151391,400235
Israel--49263--
Italy10318507--
Jamaica2,0514161,7072571,875280
Japan39,4318,43930,7224,17333,7354,350
Kuwait1673434058731150
Malaysia20,7174,67018,9763,50425,3774,638
Mauritius203616621651,276300
Mozambique5051107371281,118177
Pakistan1,6673521,0141668,2411,195
Peru8,9861,8936,4891,03011,8241,854
Philippines14,1923,01817,5412,73119,1112,932
Ryukyu179341,1291291,459163
Singapore3,2906915,9781,0229,1891,551
South Africa26959--305
South Vietnam13421338646116
Thailand4,0428976,7471,14210,8941,763
Trinidad and Tobago2,3119191,9249081,933655
United Kingdom29,1496,04419,6204,13029,4846,149
Western Samoa213692327224982
Venezuela--784125999149
Other countries1,7024091,0212773,831690
            Totals138,23130,255132,60523,129181,43931,092
Casein
 tons$(000)tons$(000)tons$(000)
Canada31148032490193
France7533601,6397433,4531,529
Germany, Federal Republic6,4642,9638,0773,6979,6894,339
India2612157--
Italy8624021,1875443,9511,778
Japan12,4945,47214,0025,90112,5895,113
Netherlands1,1334831,0995022,6211,161
Spain3831732851281,077473
Sweden18474880368886372
United Kingdom4,7872,0325,1402,2485,4902,321
United States12,6585,92516,4047,34518,9217,664
Other countries5032414271941,844809
            Totals40,27718,14949,23621,70861,01025,755
Edible Tallow
 tons$(000)tons$(000)tons$(000)
Australia--15018--
Burma1001030035--
China (mainland)43250303--
Fiji23132115152-
Hong Kong141181261612119
India9851195476412716
Japan1,1861428899052869
Malaysia671828079944268
Singapore943114877109739126
Tanzania276347158250173
United Kingdom8739860373648101
Other countries1993028739961159
            Totals6,0377295,4466424,069632
Inedible Tallow
 tons$(000)tons$(000)tons$(000)
Australia2,03628291211065392
Burma4,0994422,942329--
Ceylon458471,8471321,117138
China (mainland)9,7099135,151469922139
Fiji8599877683785130
France--1,8241735,947735
Germany, Federal Republic--8227310513
India1,3521456817642157
Japan9,1538869,82798712,1671,594
Kenya3,0163161 3201323,466472
Malaysia3,9683483,0423051,387185
Mauritius1,4881161,6991331,543152
Mozambique2,6752573,6892942,681300
Netherlands3,4662528,7977138,501965
Philippines1,4271332,56322484093
Singapore2,82527599910373599
South Africa6,7195494,7373962,487256
Trinidad and Tobago1,6121691,4691311,276145
United Kingdom7,4656137,82968014,6051,860
Other countries4,0542943,3153177,555959
            Totals66,3816,13364,2415,85967,1938,381
Cattle and Horse Hides
 lb(000)$(000)lb(000)$(000)lb(000)$(000)
Australia2,3192801,70523428548
China (mainland)3,37242053573--
Denmark751911,82125349773
Germany, Federal Republic4,5864744,8446204,772763
Greece8491071,2121881,773333
Italy19,2922,27726,0983,75827,4664,521
Japan7,8929536,8721,01912,0252,209
Netherlands1,2971524,8176993,904685
Norway584628121121,178180
Poland2,5353331,493242--
Spain1,6501891,7172441,427214
United Kingdom4,6514852,4723231,891314
Yugoslavia--1,0101274,252615
Other countries1,8782502,0693052,267398
            Totals51,6566,07457,4768,19761,73710,352
Calf and Kip Skins
 lb(000)$(000)lb(000)$(000)lb(000)$(000)
Australia3266140211112433
France524185205113654263
Germany, Federal Republic784181322181397182
Italy2,6548711,0185721,546737
Japan1,0282311,5165661,321488
Netherlands15539436244389162
Spain5551658533721,862748
United Kingdom6362151,27374916566
United States78264342366732
Other countries2966611531721178
            Totals7,0352,0416,5743,1757,2472,889
Sheepskins (with Wool)
 lb(000)$(000)lb(000)$(000)lb(000)$(000)
France3,9605413,6656353,094547
Italy656122540113858186
Netherlands--10212330
Portugal--143--
Spain1,5872522,406441668147
United Kingdom1,260195338741,477293
Other countries8916401135092
            Totals7,5521,1267,0141,2796,5701,294
Sheepskins (Without Wool)
 doz(000)$(000)doz(000)$(000)doz(000)$(000)
Australia101092836418
Belgium1952,0582573,9441322,150
Canada1412214158869
Finland16832520941351
France3121,8432583,1213763,562
Germany, Federal Republic271983734755466
Italy85619801,3461301,838
Netherlands1681,8741772,8043215,348
Spain834431041,1891021,125
United Kingdom4785,3286158,7077268,626
United States1,57616,7091,40618,2728077,682
Other countries4324189150428
            Totals3,00629,6263,00940,5522,75131,652
Sausage Casings
 hanks hanks hanks 
 (000)$(000)(000)$(000)(000)$(000)
Australia14812355964697
Canada1,8682,6451,8432,5562,4903,805
Germany, Federal Republic346563485909479970
Japan2534124190193413
United Kingdom3,7064,6253,6815,0273,1105,829
United States1,0131,7731,1441,9391,1402,419
Yugoslavia3246681074093
Other countries345272106147346
            Totals7,1739,8627,47210,9297,64613,972
Apples (Fresh Whole Fruit)
 lb(000)$(000)lb(000)$(000)lb(000)$(000)
Belgium9,5765987,7904847,818586
Canada2,2441404,9993127,193520
Fiji524335743667545
Finland2,1101322,4681541,528115
French Polynesia170135783765145
Germany, Federal Republic7,7454867,65848010,249769
Hong Kong929582,5761612,390167
Ireland, Republic of2,0921312,4871553,367253
New Caledonia3526864369047
Norway1,6081011,343841,500113
Philippines508351,4689136027
Singapore930581,295812,023136
Sweden2,7621732,3801491,880141
United Kingdom48,6893,04348,9873,06469,9685,178
United States2,1621353,1401965,704421
Venezuela1,022642,3981502,488170
Other countries1,581102958641,882133
            Totals84,6865,30391,7865,741120,3678,863
Seeds (Grass and Clover)
 cental$(000)cental$(000)cental$(000)
Australia19,06244352,50684452,273939
Chile2,6616714,44224514,789261
France13,71129524,72347529,909513
Germany, Federal Republic1,051121,968676,236141
Ireland, Republic of1,4923611,5451815,745125
Italy--1,141181,87939
Japan2,122522,939823,573107
Netherlands31741,289423,15578
South Africa27274,344535,76566
United Kingdom23,14358359,9261,29545,0621,135
United States474111,564491,47247
Uruguay1,232271,47641--
Other countries1,219332,454635,169125
            Totals66,7551,570180,3173,453175,0273,576
Peas (food), Including Frozen
 lb(000)$(000)lb(000)$(000)lb(000)$(000)
Australia11,3661,0049,3001,4174,519690
Belgium and Luxembourg1,127362,252773,202101
Fiji1,463961,0836493652
Hong Kong149134654372465
Japan2,135757,97225810,593589
Netherlands381151,306461,26843
Singapore42539806691,02383
South Africa2,80594824304,834205
United Kingdom14,39387323,5091,34419,6341,229
United States50619583211,40851
Other countries317261,308875,259448
            Totals35,0672,29049,4093,45853,4013,556
Peas (Seed)
 cental$(000)cental$(000)cental$(000)
Australia105,429574122,82667995,910540
France8,277496,133343,67520
Germany, Federal Republic9,0904524,72814520,094117
Japan3,450146,3303011,66555
Netherlands1,815116,4723910,05058
South Africa3,552183,6702112,07862
United Kingdom65,31735790,53549190,676547
Other countries9,168589,1994511,66559
            Totals206,0981,126269,8931,484255,8131,458
Wood Pulp and Waste Paper
 tons$(000)tons$(000)tons$(000)
Australia59,5035,00064,7175,59472,0286,268
Japan9,4877037,089561969106
Philippines2,8622208,6296765,126567
Other countries4,0742728,3476524,246354
            Totals75,9266,19588,7827,48482,3697,294
Timber (Sawn Conifer)
 sup ft sup ft sup ft 
 (000)$(000)(000)$(000)(000)$(000)
Australia36,0652,82453,6614,75252,5835,156
Japan22,5311,27437,7692,23834,8191,998
New Caledonia727531,7701835,460771
Tonga5295497212748660
United Kingdom--697523,586439
Western Samoa676759251101,228170
Other countries1,2251312,1992615,891737
            Totals61,7524,41097,9937,724104,0539,331
Sawlogs and Veneer (Logs, Conifer)
 cu ft cu ft cu ft 
 (000)$(000)(000)$(000)(000)$(000)
Australia37103021183114
Japan40,06110,83449,83618,69861,48923,233
Korea, Republic of3,0888482,9161,1041,784671
Other countries 1871515
            Totals43,18711,69253,06319,92763,31923,933
Fish (Other than Canned)
 cwt$(000)cwt$(000)cwt$(000)
Australia53,0111,26458,2781,94561,8612,180
France2,1372533,2176281,530240
Japan3,981643,6595918,886461
Netherlands1,631414,3021212,93293
United States53,2858,91359,21314,15645,52710,403
Western Samoa2,673213,010271,91522
Other countries11,35725913,00531221,3631,035
            Totals128,07510,817144,68417,248154,01414,433
Newsprint
 cwt$(000)cwt$(000)cwt$(000)
 (000)$(000)(000)$(000)(000)$(000)
Australia2,44115,5582,34415,8362,31215,509
Philippines391323612529108
Singapore72614502383
Thailand14481861--
Other countries320167628145
            Totals2,50415,7842,42716,1492,39215,845

EXPORTS BY PORTS—The following table shows for the latest June years the value of total exports, including re-exports, according to the ports at which goods were loaded for export.

PortYear Ended June
196519661967196819691970
   $(million)   
Whangarei8.021.622.532.334.835.8
Auckland246.3235.3233.2249.2277.8305.4
Hamilton------
Tauranga24.726.929.746.972.189.2
Gisborne7.57.57.17.19.410.7
Napier70.278.672.183.2105.6113.7
Taranaki64.364.667.573.779.884.5
Wanganui0.30.5--0.1-
Palmerston North----0.1-
Wellington91.496.385.999.9115.5120.1
Picton3.73.12.53.84.33.5
Nelson6.86.65.88.312.913.6
Greymouth----0.1-
Lyttelton61.567.060.664.180.282.0
Timaru36.340.034.747.761.561.4
Oamaru------
Otago44.644.840.029.438.140.2
Bluff76.674.565.574.696.8104.3
            Totals742.2767.3727.2820.5989.11.064.5

Auckland occupies a commanding position in the export trade of New Zealand, usually about one-third of all exports being dispatched from that port. Wellington occupies second place, with approximately one-eighth of the trade. As will be seen from the above table, the order of the other ports varies from year to year. The general rise in the value of exports through Tauranga is attributed to the pulp, paper, and timber industries of the district.

RE-EXPORTS—Until recent years the forwarding trade of New Zealand has never been of great significance. In latest years, passengers duty-free purchases, ships' and international aircraft stores, make up between one-fifth and one-third of the total re-exports. The balance is made up principally of miscellaneous stores sent to the Pacific Islands and goods returned or re-sold to the United Kingdom and Australia.

Particulars of re-exports are contained in the next table. Specie is not included in the figures.

Year$(000)
 
*Provisional.
19564,767
19574,528
19584,377
19595,321
19605,400
19617,183
Jan-June 
19623,335
 $(000)
June Year 
19637,563
19648,844
19658,512
196610,454
19679,601
196815,838
196920,219
197022,195x
197124,022*

The destinations of this re-export trade for the latest June years are shown in the following table.

CountryYear Ended June
196819691970x1971*
*Provisional.
 $(thousand)
Australia5,2295,3906,4147,970
Fiji9661,5691,1752,339
Hong Kong3349380175
Malaysia83463073
Papua and New Guinea96114834
Singapore339198174295
South Africa121047465
Tonga10010199102
United Kingdom1,6511,7792,6211,192
Western Samoa138207717326
Germany, Federal Republic150235319393
Netherlands81551125188
Canada12417711398
Philippines23221043223
United States2,6371,6151,7462,117
Brazil7-186-
Indonesia-629444
Japan267187636361
Other countries4811,3169721,340
Ships' stores8753,5913,1413,468
Passengers goods2,1222,7832,6983,419
Totals (excluding gold and current coin)15,83820,21922,19524,022

GOODS SHIPPED TO COOK, NIUE, AND TOKELAU ISLANDS—Trade with the Cook, Niue, and Tokelau Islands is not regarded as external to New Zealand, but merely as interchange between different parts of the country, and it is therefore not included in the account of the external trade. The trade of these islands with other countries is also omitted from New Zealand trade statistics. Separate returns are made of the transactions between New Zealand and these islands and the values of goods shipped to the islands are summarised below.

YearExports
*Provisional.
 $(000)
19561,132
19571,313
19581,501
19591,298
19601,490
19612,081
19621,888
19632,001
June Year$(000)
19642,397
19653,020
19662,846
19672,796
19683,461
19693,590
1970x5,024
1971*7,096

Further particulars regarding the trade of the islands will be found in Section 38.

22 C—IMPORTS

GENERAL—Statistics of imports are compiled from entries passed to the Customs and are usually quoted on the valuation basis c.d.v. (current domestic value in the country of export at the time of shipment). However, in certain tables the value c.i.f. (cost including insurance and freight) is also given. Import values are expressed in terms of New Zealand currency, and import totals do not include gold and current coin, except where expressly stated.

Reference should be made to Section 22A for details of the systems of valuation of imports as now used in these tables. Section 22A also gives a summary of import totals for recent years and index numbers of the volume of import trade.

IMPORT CONTROL—Reference to import control is made in Section 22A.

CLASSIFICATION OF IMPORTS—The following table classifies imports by Sections of the Standard International Trade Classification (Revised). It illustrates the great variety of imports which New Zealand receives in exchange for its relatively limited range of exports.

Year Ended JuneImports (c.d.v.)
Food and Live AnimalsBeverages and TobaccoCrude Materials, Inedible, Except FuelsMineral Fuels, Lubricants, and Related MaterialsAnimal and Vegetable Oils and FatsChemicals
   $(thousand)   
196134,9559,39925,35341,0451,07846,052
196230,8325,62523,46745,93389344,741
196335,2537,51922,60644,33595047,707
196448,6277,00327,53047,8191,10555,450
196535,4697,74531,02851,6911,08865,379
196637,1178,14634,95439,9451,27380,238
196731,3848,40736,68044,8631,14377,674
196831,9618,64931,81148,0421,35176,766
196934,31710,55443,68956,2481,415102,861
1970x45,2128,66651,39659,0941,709116,345
1971*58,00312,23647,28561,2192,560134,817
Year Ended JuneImports (c.d.v.)
Manufactured Goods Classified Chiefly by MaterialMachinery and TransportMiscellaneous Manufactured ArticlesCommodities and Transactions not Classified According to KindTotal Merchandise Imports
*Provisional.
   $(thousand)  
1961204,430175,40940,5704,360582,651
1962162,334156,17933,2074,617507,828
1963167,333159,45435,4463,137523,741
1964187,870217,96041,4812,523637,368
1965195,223230,98342,2261,833662,667
1966216,289263,40346,8251,236729,426
1967210,863290,90846,3573,926752,206
1968182,032196,38243,6332,280622,908
1969233,280254,90559,5572,371799,197
1970x271,612319,71366,5524,027944,324
1971*296,288372,56377,23912,8981,075,109

The next table gives fuller details of imports according to sections and divisions for the 2 latest June years.

Section and Division S.I.T.C., RevisedJune Year 1970xJune Year 1971*
c.d.v.c.i.f.c.d.v.c.i.f.
*Provisional.
Section 0. Food and Live Animals $(thousand)  
    Div. 00 Live animals2,6352,8503,2703,811
    Div. 01 Meat and meat preparations349402606686
    Div. 02 Dairy products and eggs143153285277
    Div. 03 Fish and fish preparations143153285277
    Div. 04 Cereals and cereal preparations2,3182,7846,3167,733
    Div. 05 Fruits and vegetables12,68315,84613,36516,317
    Div. 06 Sugar and sugar preparations11,02811,89915,20016,264
    Div. 07 Coffee, tea, cocoa, spices, and manufactures thereof13,26617,74912,22814,915
    Div. 08 Feeding stuff for animals (not including unmilled cereals)232262287375
    Div. 09 Miscellaneous food preparations542566439470
            Totals, Section 045,21254,66258,00367,290
Section 1. Beverages and Tobacco    
    Div. 11 Beverages4,3454,9205,7936,507
    Div. 12 Tobacco and tobacco manufactures4,3214,6316,4437,136
            Totals, Section 18,6669,55112,23613,643
Section 2. Crude Materials, Inedible, Except Fuels    
    Div. 21 Hides, skins, and fur skins, undressed572597473514
    Div. 22 Oil seeds, oil nuts, and oil kernels1,7752,0051,8932,061
    Div. 23 Crude rubber, including synthetic and reclaimed7,5138,2077,0947.645
    Div. 24 Wood and cork4,8656,7643,7395,385
    Div. 25 Pulp and waste paper1,6112,1642,3762,975
    Div. 26 Textile fibres (not manufactured into yarn, thread, or fabrics) and waste7,4858,3177,2818,216
    Div. 27 Crude fertilisers and crude minerals, excluding coal, petroleum, and precious stones22,91334,38717,65928,485
    Div. 28 Metalliferous ores and metal scrap2232381,9282,139
    Div. 29 Animal and vegetable crude materials, n.e.i.4,4414,6574,8425,172
            Totals, Section 251,39667,33747,28562,593
Section 3. Mineral Fuels, Lubricants, and Related Materials    
    Div. 32 Coal, coke, and briquettes36214299
    Div. 33 Petroleum and petroleum products58,96375,25360,84784,282
    Div. 34 Gas128150159175
            Totals, Section 359,09475,40961,21984,756
Section 4. Animal and Vegetable Oils and Fats $(thousand)  
    Div. 41 Animal oils and fats56686782
42 Vegetable oils and fats, unprocessed1,4521,6712,2522,600
43 Animal and vegetable oils and fats, processed, and waxes of animal or vegetable origin200228241310
            Totals, Section 41,7091,9672,5602,991
Section 5. Chemicals    
    Div. 51 Chemical elements and compounds31,57433,45537,54940,509
    Div. 52 Mineral tar and crude chemicals from coal, petroleum, and natural gas396521371478
    Div. 53 Dyeing, tanning, and colouring materials7,7167,5789,0399,055
    Div. 54 Medicinal and pharmaceutical products23,12320,75227,86324,873
    Div. 55 Essential oils and perfume materials; toilet, polishing, and cleansing preparations3,7003,7614,4054,413
    Div. 56 Fertilisers, manufactured5,9217,4877,33110,025
    Div. 57 Explosives1,7601,7922,1192,083
    Div. 58 Plastic materials, regenerated cellulose, artificial resins26,31525,61130,40929,515
    Div. 59 Miscellaneous chemical materials and products15,84017,30815,73017,199
            Totals, Section 5116,345118,263134,817138,151
Section 6. Manufactured Goods Classified Chiefly by Material    
    Div. 61 Leather, leather manufactures, n.e.i., and dressed furs1,5591,6171,3081,367
    Div. 62 Rubber manufactures, n.e.i.7,5127,2778,0157,902
    Div. 63 Wood and cork manufactures (excluding furniture)2,4282,9102,4892,851
    Div. 64 Paper, paperboard, and manufactures thereof10,90511,98412,04113,269
    Div. 65 Textile yarn, fabrics, made-up articles, and related products88,15993,31394,70399,665
    Div. 66 Non-metallic mineral manufactures, n.e.i.12,30013,42415,30817,421
    Div. 67 Iron and steel74,91379,75181,96591,496
    Div. 68 Non-ferrous metals42,45841,89442,22541,501
    Div. 69 Manufactures of metals31,37731,91038,23338,988
            Totals, Section 6271,612284,079296,288314,460
Section 7. Machinery and Transport Equipment    
    Div. 71 Machinery other than electric129,290131,377163,149166,022
    Div. 72 Electric machinery, apparatus, and appliances55,28755,66069,79270,260
    Div. 73 Transport equipment135,136137,260139,621146,265
            Totals, Section 7319,713324,297372,563382,548
Section 8. Miscellaneous Manufactured Articles $(thousand)  
    Div. 81 Sanitary, plumbing, heating, lighting fittings, and fixtures8779821,1141,236
    Div. 82 Furniture and fixtures255280323355
    Div. 83 Travel goods, handbags, and similar articles126137148161
    Div. 84 Clothing3,0453,2063,0243,168
    Div. 85 Footwear1,4671,5741,5771,687
    Div. 86 Professional, scientific and controlling instruments: photographic and optical goods, watches, and clocks27,04325,81431,20629,301
    Div. 89 Miscellaneous manufactured articles, n.e.i.33,73835,43039,84841,684
            Totals, Section 866,55267,42477,23977,591
Section 9. Commodities and Transactions Not Classified According to Kind4,0274,20912,89813,122
            Grand totals, merchandise imports944,3241,007,1981,075,1091,157,145

DIRECTION OF IMPORT TRADE—The United Kingdom has been the chief supplier of New Zealand imports since the eighties of last century. Prior to that the main supply was from Australia. In the years following the Second World War, the proportion of the import trade received from the United Kingdom rose from 47.8 percent in 1946 to a maximum of 60.1 percent in 1950. Since 1950 there has been an overall decline, and for the June year 1970 only 29.6 percent of imports came from that source. The trade with Australia from 1950 to 1956 was between 10 and 15 percent of the total. In 1957 and 1958, however, it rose to 17 percent, and in 1959 and 1960 to 18 percent. In the year ended June 1970, 21.0 percent of imports came from Australia. Japan is becoming an important trading partner; in the latest year 8.3 percent of imports came from that source.

The principal changes in the direction of the import trade are illustrated in the table in Section 22A giving the percentages received from the various currency areas.

The table which follows shows imports (valuation c.d.) during the latest 11 years from the United Kingdom, Australia, and the United States.

YearCountry Where PurchasedCountry of OriginTotal Merchandise Imports
United KingdomAustraliaU.S.A.United KingdomAustraliaU.S.A.
*Provisional.
Calendar Year—   $(million)   
196126097532589454576
1962   206994449
June Year—       
196322997462199748524
19642591325724713359637
19652621327824212875663
19662891437527813584729
196729115010127514397752
19682081417518813368623
1969267172102243158100799
1970x300220123279198123944
1971*   3112261301,075

The next table gives imports on a c.d.v. basis by countries of origin for June years 1970 and 1971.

CountryJune Year 1970xJune Year 1971*
Sterling Area$(000)$(000)
    Australia197,872225,512
    Bahamas1714
    Bahrain3,6724,462
    British Solomon Islands1756
    Brunei2,5904,069
    Ceylon4,4013,634
    Fiji9593,070
    Ghana2,7022,066
    Gilbert and Ellice Islands1,8032,165
    Guyana82128
    Hong Kong17,86718 628
    India8,5056,804
    Ireland339533
    Jamaica342288
    Kenya423600
    Kuwait16,24721,073
    Malawi10081
    Malaysia6,4405,535
    Malta, including Gozo5250
    Mauritius and Dependencies5062
    Nauru6,3175,539
    New Hebrides Cond,2957
    New Zealand Re-imports1,7681,845
    Nigeria448122
    Pakistan3,4503,590
    Papua and New Guinea492526
    Singapore3,0601,679
    South Africa3,9413,286
    Southern Yemen2,8431,445
    Tanzania (incl. Zanzibar and Pemba1,7501,296
    Tonga485387
    Trinidad and Tobago45109
    Uganda1,1831,930
    United Kingdom279,090310,672
    Western Samoa1,4411,513
    Other2847
            Totals570,849632,872
E.E.T.A. (Excluding U.K.)—  
    Austria1,3961,615
    Denmark2,4352,783
    Iceland-1
    Norway1,3672,155
    Portugal684654
    Sweden7,2968,536
    Switzerland and Liechtenstein9,38410,871
            Totals22,56126,616
E.E.C.  
    Belgium and Luxembourg4,4426,775
    France and Monaco7,52911,006
    Germany, Federal Republic36,77649,215
    Italy and San Marino11,91314,344
    Netherlands9,66414,178
            Totals70,32395,518
Dollar Area$(000)$(000)
    Canada37,48938,466
    Colombia2,0302,245
    Costa Rica7026
    Dominican Republic3,0346,240
    Ecuador8281,287
    Mexico210522
    Philippines242330
    United States123,105129,871
    Other5029
            Totals167,058179,017
Other Countries  
    Angola incl Cabinda-66
    Argentina3416
    Brazil1,1711,988
    Bulgaria1922
    Central African Republic-29
    Chile7997
    China, (mainland)4,3634,448
    China, Republic of (Taiwan)658726
    Congo (Brazzaville)1321
    Congo (Leopoldville)7831
    Czechoslovakia1,8051,840
    Finland851517
    French Polynesia3323
    Germany, East368416
    Greece2992
    Hungary170155
    Indonesia1,596894
    Iran11,3908,984
    Iraq90103
    Israel172232
    Ivory Coast109144
    Japan78,096110,282
    Korea, Republic of494806
    Morocco1918
    Mozambique54153
    Netherlands Antilles231
    New Caledonia-100
    Peru4037
    Poland431451
    Romania3453
    Saudi Arabia5,0414,477
    Spain8131,250
    Sudan5582
    Syria3013
    Thailand455733
    Turkey210152
    U.S.S.R.6491,198
    Yemen438261
    Yugoslavia3,614115
    Other2735
            Totals113,534141,086
            Grand Totals944,3241,075,109

On a country of origin basis the following table shows for the latest 8 years the percentage of the value (c.d.v.) of total New Zealand imports.

CountryJune Year 1964June Year 1965June Year 1966June Year 1967June Year 1968June Year 1969June Year 1970xJune Year 1971

*Federation of Malaya, North Borneo, Sarawak, and Singapore together formed Malaysia on 16 September 1963. Singapore independent from August 1965.

†Provisional.

‡Alaska and Hawaii included from 1966.

Sterling Areapercent
    Australia20.8219.3118.5219.0021.3319.8120.9520.98
    Bahrain0.230.130.030.120.060.210.390.41
    Ceylon0.760.670.650.590.710.620.470.34
    Fiji0.840.120.170.160.110.310.100.29
    Ghana0.180.150.270.160.330.130.290.19
    Hong Kong1.191.301.281.262.091.721.891.73
    India1.701.311.500.940.941.110.900.63
    Malaysia1.381.480.840.780.750.830.680.51
    Nauru0.360.380.400.520.660.770.670.52
    Singapore**0.170.400.290.380.320.16
    South Africa0.310.280.340.320.380.490.420.31
    United Kingdom38.6836.5038.1336.5930.1630.4729.5528.90
    Western Samoa0.170.170.140.110.220.160.150.14
    Other1.243.233.223.173.923.893.673.76
            Totals67.8665.0365.6464.1261.9560.8960.4558.87
    E.F.T.A. (excluding U.K.)        
    Austria0.150.140.130.110.120.110.150.15
    Denmark0.160.240.250.250.300.230.260.26
    Norway0.200.170.160.290.170.190.140.20
    Portugal0.080.080.060.060.080.080.070.06
    Sweden2.051.570.920.971.301.170.770.79
    Switzerland0.890.940.990.891.021.160.991.01
            Totals3.533.142.512.572.992.952.392.48
    E.E.C.        
    Belgium0.790.560.460.470.440.520.470.63
    France0.920.690.720.800.830.830.801.02
    Germany, Fed. Rep.2.752.833.063.573.384.233.894.58
    Italy0.880.921.051.411.341.391.261.33
    Netherlands1.211.391.321.151.071.051.021.32
            Totals6.366.396.617.397.088.037.458.88
    Dollar Area        
    Canada3.413.874.063.924.743.813.973.58
    U.S.A9.2711.3311.4912.8310.9712.4713.0412.08
    Other1.260.600.320.550.490.160.680.99
            Totals13.9415.8015.8717.3016.2016.4417.6916.65
    Other Countries        
    China, (mainland)0.230.300.380.410.460.620.460.41
    Czechoslovakia0.170.170.160.210.210.190.190.17
    Indonesia0.870.100.290.240.110.130.170.08
    Iran0.371.840.910.761.571.271.210.84
    Japan4.815.546.165.848.258.088.2710.26
    Netherlands Antilles0.360.23-0.020.020.01--
    Saudi Arabia0.150.300.360.510.580.620.530.42
    Other1.161.161.110.620.590.761.190.94
            Totals8.119.649.378.6111.7911.6912.0213.12
            Grand Totals100.00100.00100.00100.00100.00100.00100.00100.00

ORIGIN OF PRINCIPAL IMPORTS—The table which follows shows details of principal commodity imports by country of origin for years ended June 1969 and 1970. C.d.v. basis of valuation is used.

Commodity and Countries of OriginValue of Imports
1968-691969-70
 $(000)
Oranges  
    Australia1,2461,440
    All countries1,9681,868
Sugar (not refined)$(000) 
    Australia5,4664,441
    Fiji2,140641
    All countries7,61310,123
    Bananas$(000) 
    Costa Rica12659
    Ecuador421825
    Tonga276155
    Western Samoa74178
    All countries9521,279
Dried Fruits  
    Australia3,2633,784
    U.S.A.9251,005
    All countries4,5825,429
Whisky  
    United Kingdom2,5341,717
    All countries2,7031,897
Tobacco (Unmanufactured)  
    South Africa976332
    U.S.A.3,4223,435
    All countries4,8863,990
Rubber (Crude and Synthetic)  
    Canada600601
    France727141
    Malaysia3,0193,938
    United Kingdom427409
    U.S.A.9071,106
    All countries6,4037,513
Wood (Shaped or Simply Worked)  
    Australia737750
    Canada502880
    Ghana286444
    U.S.A.8271,790
    All countries2,7034,362
Pulp and Waste Paper  
    Canada298402
    Finland692559
    Germany, Fed. Rep.1042
    Sweden89
    All countries1,1781,611
Wool end Other Animal Hair  
    Australia2,2982,111
    United Kingdom9691,053
    All countries3,2733,171
Natural Phosphates$(000) 
    Australia1,2832,684
    Gilbert and Ellice Islands1,8041,803
    Nauru6,1366,317
    U.S.A.554433
    All countries10,35911,237
Raw Coffee  
    Brazil2971,015
    Papua/New Guinea348387
    Tanzania348811
    Uganda8961,146
    All countries2,2023,724
Cocoa  
    Ghana7802,252
    Netherlands1,3101,270
    All countries2,1634,397
Tea  
    Ceylon4,6404,193
    India330198
    All countries5,3444,623
Petroleum Spirit  
    Australia1,9421,763
    Iran1,4884,084
    Malaysia690130
    Singapore183671
    Southern Yemen2,1721,356
    Venezuela--
    All countries7,6789,481
Kerosene  
    Australia2,9882,656
    Iran1,0011,191
    Singapore106308
    Southern Yemen8981,010
    All countries5,7056,131
Lubricating Oils and Greases  
    Australia1,8641,764
    United Kingdom872586
    U.S.A.1,111911
    All countries3,9053,378
Organic Chemicals  
    Australia4,1394,479
    Germany, Fed. Rep.1,5151,289
    Japan2,0252,365
    United Kingdom4,4464,515
    U.S.A.5,6915,249
    All countries20,22321,125
    Inorganic Chemicals$(000) 
    Australia2,3122,831
    Germany, Fed. Rep.898868
    Japan771843
    United Kingdom2,5012,310
    U.S.A.1,6811,739
    All countries9,68510,318
Medicinal and Pharmaceutical Products  
    Australia5,1276,045
    Germany, Fed. Rep.1,7662,058
    Switzerland2,3222,075
    United Kingdom8,4528,683
    U.S.A.1,6532,692
    All countries20,45023,123
Sulphur (Other Than Sublimed, etc.)  
    Canada3,8725,704
    U.S.A.2,1472,156
    All countries6,0717,907
Plastic Materials, Regenerated Cellulose, and Artificial Resins  
    Australia4,7514,957
    Germany, Fed. Rep.1,6402,037
    Japan2,3734,141
    United Kingdom7,5668,075
    U.S.A.3,8003,423
    All countries22,29626,315
Rubber Tyres and Tubes  
    United Kingdom667840
    U.S.A.532916
    All countries1,8522,583
Paper and Paperboard  
    Australia1,3141,316
    Japan1,2011,459
    United Kingdom3,2583,847
    U.S.A.9741,066
    All countries8,3289,254
Textile Yarn and Thread  
    Australia1,9482,881
    Hong Kong1,7592,257
    Japan1,1581,120
    United Kingdom3,4004,208
    All countries10,48913,058
Cotton Fabrics Suitable$(000) 
    for Manufacture of Apparel—  
    Australia9191,017
    China, (mainland)1,3771,154
    Hong Kong3,6613,793
    Japan3,7313,402
    United Kingdom870707
    U.S.A.391410
    All countries12,29112,163
Cotton Furnishing and Household Fabrics  
    Hong Kong2,0212,282
    India619622
    United Kingdom1,1641,419
    All countries5,4786,339
Manufactured Fertilisers  
    Canada2,2221,498
    Germany, Fed. Rep.1,051880
    U.S.A.9782,288
    All countries5,4955,921
Woven Fabrics of Synthetic Fibres  
    Australia9891,154
    Japan6,3748,260
    United Kingdom9301,101
    U.S.A.650817
    All countries10,50313,457
Woven Fabrics of Regenerated Artificial Fibres  
    Japan2,2401,932
    United Kingdom1,9442,738
    U.S.A.668485
    All countries7,4977,607
Knitted or Crocheted Fabrics  
    Australia475556
    Hong Kong2,2142,068
    United Kingdom1,1391,330
    U.S.A.281250
    All countries4,6514,801
Household Linens  
    China, (mainland)209216
    Hong Kong371600
    India103136
    Japan408511
    United Kingdom389427
    U.S.A.157111
    All countries1,9202,323
    Class$(000) 
    Netherlands114305
    United Kingdom1,9112,211
    U.S.A.278304
    All countries2,8903,531
Bars and Rods of Iron or Steel  
    Australia2,6643,188
    Canada304327
    United Kingdom9341,254
    All countries4,2665,678
Woven Woollen Fabrics  
    Australia505780
    United Kingdom2,6773,437
    All countries3,5144,795
Woven Jute Fabrics  
    India2,2972,529
    United Kingdom8982
    All countries2,4592,777
Universals, Plates, and Sheets of Iron or Steel  
    Australia11,56611,238
    Japan11,59116,622
    United Kingdom8,7285,576
    All countries33,23935,071
Hoop and Strip of Iron or Steel  
    Australia736866
    Japan577642
    United Kingdom1,0851,289
    All countries2,6463,175
Iron and Steel Wire  
    Australia1,4192,034
    United Kingdom1,7281,990
    All countries3,6564,690
Tubes, Pipes, and Fittings of Iron or Steel  
    Australia3,4965,515
    United Kingdom4,5083,601
    All countries10,06311,275
Copper and Copper Alloys  
    Australia9,90315,248
    Canada1,8181,607
    United Kingdom2,7212,811
    All countries14,60919,845
Aluminium and Aluminium Alloys$(000) 
    Australia1,6383,242
    Canada5,5397,174
    United Kingdom625535
    U.S.A.7061,093
    All countries9,42313,111
Nails, Screws, Nuts, Bolts, etc., of Iron, Steel, Copper  
    Australia333462
    United Kingdom1,0571,398
    All countries2,0852,796
Angles, Shapes and Sections of Iron or Steel  
    Australia3,4334,187
    Japan2301,255
    United Kingdom1,3481,143
    All countries5,0996,848
Aircraft Engines  
    United Kingdom707529
    U.S.A.2,5684,615
    All countries3,3265,182
Internal Combustion Engines, Not Aircraft  
    Australia699727
    Canada747979
    United Kingdom2,8513,786
    U.S.A.2,3223,046
    All countries7,0819,303
Agricultural Machinery and Appliances  
    Germany, Fed. Rep.792528
    United Kingdom1,1481,574
    U.S.A.1,187661
    All countries4,3213,695
Tractors  
    Italy5911,147
    Japan325832
    United Kingdom7,2159,647
    U.S.A.2,1963,323
    All countries11,06116,395
Office Machines  
    Germany, Fed. Rep.1,516994
    Japan2,9602,042
    United Kingdom2,3762,173
    U.S.A.2,2203,422
    All countries11,09510,487
    Metalworking Machinery$(000) 
    Australia397488
    Germany, Fed. Rep.1,938734
    Japan247313
    United Kingdom2,2752,971
    U.S.A.274222
    All countries5,9745,878
Textile Machinery  
    Germany, Fed. Rep.1,3681,047
    United Kingdom1,8553,611
    U.S.A.428482
    All countries4,8076,837
Cutlery  
    Australia638780
    Japan307327
    United Kingdom755958
    All countries2,1922,650
Excavating, Levelling, Boring, etc., Machinery  
    United Kingdom1,2741,457
    U.S.A.9851,242
    All countries3,5064,555
Pumps and Centrifuges  
    Australia1,7052,194
    United Kingdom4,0324,138
    U.S.A.1,1951,778
    All countries10,00110,764
Mechanical Handling Equipment  
    United Kingdom2,1922,399
    U.S.A.8611,238
    All countries3,9825,052
Ball, Roller, and Needle Roller Bearings  
    Sweden337365
    United Kingdom1,2981,722
    U.S.A.431526
    All countries2,8223,704
Taps, Cocks, Valves  
    Australia580897
    United Kingdom1,8241,927
    U.S.A.620607
    All countries3,6174,080
Transmission Shafts and Cranks$(000) 
    Australia671813
    United Kingdom1,8802,385
    U.S.A.802959
    All countries3,8914,721
Electrical Power Machinery and Switchgear  
    Australia2,1982,640
    Germany, Fed. Rep.1,2721,372
    Italy1,207513
    Japan715578
    Sweden533876
    Switzerland658482
    United Kingdom9,5719,186
    U.S.A.917935
    All countries18,35917,730
Printing and Bookbinding Machinery  
    Germany, Fed. Rep.8631,550
    United Kingdom1,0881,563
    U.S.A.8481,465
    All countries3,3205,694
Electrical Measuring and Controlling Apparatus  
    United Kingdom1,9572,131
    U.S.A.1.2931,556
    All countries4,1794,724
Telecommunications Equipment  
    United Kingdom6,2286,789
    U.S.A.2,6141,606
    All countries9,72111,131
Railway Vehicles  
    Australia232939
    Canada11
    Japan4,572117
    United Kingdom214299
    All countries5,3395,325
Motorcars  
    Australia15,37721,637
    France747857
    Germany, Fed. Rep.1,4641,643
    Italy1,6621,036
    Japan1,6242,248
    United Kingdom26,71534,284
    All countries47,84062,462
Lorries, Trucks, and Vans—$(000) 
    Australia7806,631
    United Kingdom7,74713,033
    All countries10,17423,206
Aircraft  
    United Kingdom1,704500
    U.S.A.15,51519,455
    All countries17,63521,066
Ships and Boats  
    Hong Kong-2,600
    United Kingdom510455
    All countries7233,148
Equipment for Distributing Electricity—  
    Australia605972
    United Kingdom2,5382,653
    All countries3,8744,596
Watches and Clocks—  
Germany Fed. Rep.871399
    Switzerland1,5851,030
    United Kingdom763473
    All countries4,6122,914
Photographic Films, Plates, and Paper, (Not Developed Cinematographic Film)$(000) 
    Australia2,3633,004
    United Kingdom1,2021,348
    All countries5,3336,339
Clothing  
    Australia254275
    Hong Kong337417
    United Kingdom1,3811,585
    All countries2,6463,021
Printed Books and Pamphlets  
    Australia1,4051,684
    United Kingdom6,5147,207
    U.S.A.2,2542,446
    All countries11,49213,127
Newspapers and Periodicals  
    Australia1,6271,903
    United Kingdom1,5791,554
    U.S.A.775864
    All countries4,0404,392

QUANTITIES OF PRINCIPAL ITEMS IMPORTED—The following table shows the quantity imported during June years 1968 to 1971 of a large number of the principal items.

ItemUnit of QuantityYear Ended 30 June
196819691970x1971*
*Provisional.
Fish, canned, and fish preparationslb(000)3,6933,8784,63910,540
Wheat, unmilledbushels(000)1,7541855532,941
Ricecwt(000)93618299
Orangeslb(000)28,70036,92530,36831,988
Bananaslb(000)62,86850,25053,35448,879
Fruit—     
    Driedlb(000)21,34920,90823,45021,420
    Cannedlb(000)7,5518,48010,49814,177
Desiccated coconutlb(000)3,2583,0922,6382,826
Edible nutslb(000)1,7472,9162,5462,519
Sugarcwt(000)3,0633,2432,9593,302
Coffee, rawlb(000)8,7578,03913,48915,459
Tealb(000)15,82718,42616,83914,719
Cocoalb(000)15,2664,93216,5078,922
Winegal(000)291333346341
Whiskyproof gal(000)453563357489
Tobacco, unmanufacturedlb(000)7,2157,5224,7507,447
Synthetic and artificial fibreslb(000)4,8556,2345,9347,059
Woven fabrics—     
    Synthetic fibressq yd(000)16,08020,95125,22829,030
    Artificial fibressq yd(000)16,54716,51714,07712,488
Yarn and thread of silk, rayon, and synthetic fibreslb(000)3,0544,4695,0035,657
Yarn of wool and animal hairlb(000)188173240224
Meat wraps, cottonlb(000)4,2444,7114,2204,361
Textile fabrics coated with plasticsq yd(000)8679851,1041,605
Bags, sacks, wool packsdoz(000)831812761601
Cotton yarn and threadlb(000)6,1126,0657,2828,368
Cotton fabrics, woven, unbleachedsq yd(000)7,4468,8039,0179,347
Cotton canvas and ducksq yd(000)1,0221,0721,3831,722
Cotton fabrics suitable for the manufacture of apparel—     
    Flannelette, winceyette, diaper clothsq yd(000)8,76410,17510,1879,410
    Other kindssq yd(000)23,78528,40026,66725,648
Cotton furnishing and household fabricssq yd(000)18,55618,46620,56125,531
Woven silk fabricssq yd(000)190199193181
Woven woollen fabricssq yd(000)2,4412,3953,3252,931
Woven linen, ramie, and hemp fabricssq yd(000)1,1331,1391,6541,547
Woven jute fabricssq yd(000)16,76723,36523,33526,616
Rubbercwt(000)242383393396
Timber, sawnsup ft(000)18,45317,13722,69516,451
Wood and paper pulptons14,81611,21213,12817,254
Nitrate of sodatons7351,058450137
Fertilisers, phosphatictons(000)8941,0301,070981
Gypsum, crudecwt(000)1,7311,8832,0342,061
Sulphurtons166,425157,741242,997187,025
Saltcwt(000)889691710611
Asbestoscwt(000)117115171164
Petroleum, crudetons(000)1,5201,6581,6821,957
Petroleum, partly refinedtons(000)9301,0451,0291,025
Motor spiritgal(000)71,20664,87086,15070,877
Distillate fuelsgal(000)31,58642,97262,61150,434
Kerosene and white spiritgal(000)41,83553,77659,25657,679
Lubricating oils and preparationsgal(000)11,69212,19811,14413,566
Cream of tartar and substitutescwt(000)45.270.495.2137.1
Acidscwt(000)31.140.831.137.5
Caustic sodacwt(000)141.8139.9143.9223.8
Carbonate of sodacwt(000)434.4532.8425.4424.0
Calcium carbidecwt(000)63.356.970.869.9
Sulphate of ammoniatons10,48718,76324,02520,761
Potashtons118,584131,458162,024194,997
Pig iron and ingotscwt(000)143.1199.7231.8534.1
Bars and rods of iron or steelcwt(000)1,359.11,585.51,814.71,536.3
Angles, shapes and sections of iron or steelcwt(000)918.61,004.41,147.71,623.2
Universals, plates and sheets of iron or steelcwt(000)3,177.64,477.14,863.74,321.8
Hoops and strip of iron or steelcwt(000)204.1253.5264.3249.8
Rails of iron or steel—fish plates, etccwt(000)259.2203.2178.4291.2
Iron and steel wirecwt(000)336.5343.2414.6468.7
Tubes, pipes, and fittings of iron or steelcwt(000)849.71,044.11,030.01,014.4
Silver and platinum not fully workedoz(000)1,237.21,886.61,268.41,381.5
Copper and copper alloyscwt(000)212.6221.5233.1245.9
Aluminium and aluminium alloyscwt(000)223.3309.3401.0448.1
Lead and lead alloyscwt(000)88.288.5117.081.1
Finished structural parts and constructionscwt(000)395.6262.7138.1267.3
Wire productscwt(000)77.3100.0123.797.1
Nails, screws, nuts, bolts, etc.cwt(000)50.430.841.654.6
Hand toolsdoz(000)302.9500.3458.7470.3
Knives, kitchen and tabledoz(000)90.8104.985.6100.0
Spoons and forksdoz(000)186.7123.5138.7206.5
Internal combustion engines (not air-craft)number61,42079,415102,585106,860
Agricultural mowers—crops, lawn, weed, scrub cuttingnumber1,8051,5581,7622,152
Agricultural harvesters and threshers—     
    forage, tobacconumber250337212123
Earthmoving machinesnumber62225255305
Typewriting, calculating, and accounting machinesnumber21,29337,85835,27630,730
Domestic sewing machinesnumber22,21916,68423,30142,166
Electric motors—     
    Under 1 b.h.p.number343,393333,965410,935398,837
    1 b.h.p. and overnumber17,24814,47518,90223,833
Sparking plugs(000)554580637436
Tractorsnumber2,8974,7816,3864,593
Motor cars—     
    Unassemblednumber39,27250,02456,13658,931
    Assemblednumber4,3393,7527,16513,410
Lorries, trucks, buses, vans, etc.—     
    Unassemblednumber4,8337,05818,20921,089
    Assemblednumber156154278205
Motor cyclesnumber3,5573,4184,27415,460
Bicyclesnumber6,2255,6676,4577,183
Rubber tyres and tubes (excl. bicycle)lb(000)1,9412,3973,2773,215
Plywoodsq ft(000)1,3661,4941,1801,454
Newsprint papercwt(000)6.020.110.89.9
Printing and writing paper—     
    Machine made, not processedcwt(000)96.493.599.7102.2
    Impregnated, coated, or printedcwt(000)100.2129.0143.0155.4
Machine made paper and paperboard, n.e.s.cwt(000)42.652.361.263.0
Greaseproof paper, etc.cwt(000)42.140.838.041.4
Wallpaperrolls(000)14.11.263.746.2
Linoleum and similar floor coveringssq yd(000)1,288.01,010.21,352.7943.4
Carpets and carpeting of or with woolsq yd(000)12.221.223.629.2
Glass plate and sheetsq ft(000)7,0727,2168,21310,282
Table ware and toilet potterylb(000)2,093.72,371.52,486.72,512.8
Footweardoz. pr(000)73.582.891.585.1
Cameras, photographic(000)89.3146.054.4104.7
Watches(000)140.8335.9201.8264.7
Clocks, other than electric(000)179.0468.5200.9270.7
Electric clocks(000)24.984.234.739.4
Electrical capacitators(000)6,43914,77016,26818,353
Insulated wires and cablescwt(000)108.558.557.939.0
Telephone handsets(000)65.184.392.691.1
Electric accumulators(000)17.620.439.932.1
Electric lamp bulbs and tubes(000)4,743.59,689.75,664.37,522.1
Thermionic, etc., valve and tubes(000)1,2532,1501,8771,782
Crystal valves(000)1,7122,7544,7125,996

CLASSIFICATION OF IMPORTS BY END-USE—In the following table imports are classified by end-use in the form of economic categories. The classification involves some arbitrary decisions but it is adapted to practical purposes and the comparability of the time series has useful economic applications.

Class of Goods Imported†Year Ended June
19661967196819691970*
 $(million)
Finished Capital Goods121.4115.993.7122.1132.3
    Agricultural machinery and plant27.721.810.216.921.4
    Industrial machinery and plant38.034.231.738.342.2
    Construction machinery and plant4.02.70.72.73.3
    Transport and communication items14.612.415.224.113.9
    Other complete items37.144.835.940.151.5
Components and Materials for Capital Goods104.7109.478.389.1119.2
    For agricultural machinery and plant6.96.14.35.87.0
    For industrial machinery and plant11.212.610.010.613.1
    For construction machinery and plant1.11.00.50.60.9
    For transport and communications items32.229.320.924.642.0
    For building, construction, roads6.16.09.36.26.5
    For other capital items47.254.433.341.349.7
Finished Goods and Components     
    (Classed as consumption or capital according to type of buyer)104.7102.779.4105.5129.0
    Complete transport items16.718.710.49.119.4
    Parts for transport items58.154.443.460.168.4
    Other complete items13.412.88.715.016.3
    Parts for other items16.416.816.921.224.7
Consumer Goods199.5191.7175.8213.5241.1
    Finished consumer goods94.693.285.3106.4116.1
    Components for consumer goods104.998.590.4107.1125.1
Materials Used in the Production Process and Items Unable to be Separately Classified Elsewhere261.2264.8245.4315.6365.4
Stores Used Only for Defence1.228.72.17.119.1
            Totals792.8813.2674.7852.91,006.0
Class of Goods ImportedYear ended June
19661967196819691970*

*Provisional.

†For more detailed list of items included under each heading see relevant table in Monthly Abstract of Statistics.

 percent
Finished Capital Goods15.314.313.914.313.1
    Agricultural machinery and plant3.52.71.52.02.1
    Industrial machinery and plant4.84.24.74.54.2
    Construction machinery and plant0.50.30.10.30.3
    Transport and communications items1.81.52.32.81.4
    Other complete items4.75.55.34.75.1
Components and Materials for Capital Goods13.213.511.610.411.8
    For agricultural machinery and plant0.90.80.60.70.7
    For industrial machinery and plant1.41.51.51.21.3
    For construction machinery and plant0.10.10.10.10.1
    For transport and communications items4.13.63.12.94.2
    For building, construction, roads0.80.71.40.70.6
    For other capital items6.06.74.94.84.9
Finished Goods and Components     
    (Classed as consumption or capital according to type of buyer)13.212.611.812.412.8
    Complete transport items2.12.31.51.11.9
    Parts for transport items7.36.76.47.06.8
    Other complete items1.71.61.31.81.6
    Parts for other items2.12.12.52.52.5
Consumer Goods25.223.626.125.024.0
    Finished consumer goods11.911.512.612.511.5
    Components for consumer goods13.212.113.412.612.4
Materials Used in the Production Process and Items Unable to be Separately Classified Elsewhere33.032.636.437.036.3
Stores Used Only for Defence0.23.50.30.81.9
            Totals100.0100.0100.0100.0100.0

IMPORTS BY PORTS—In 1971 New Zealand had 17 ports of entry for Customs purposes—ten in the North Island and seven in the South Island. The following table gives the total value of imports of merchandise for the several ports of entry. The value of overseas cargo landed at other ports is included with the appropriate port of entry. Basis of valuation is c.d.v.

PortJune Year 1966June Year 1967June Year 1968June Year 1969June Year 1970xJune Year 1971*
$(thousand)
Whangarei32,23138,63133,49137,31536,98243,968
Auckland291,103301,230269,058345,966418,284476,674
Hamilton2,5352,7372,1662,7523,8774,283
Tauranga9,20820,4909,1097,6418,04712,277
Gisborne830817644829818610
Napier14,18815,70814,84117,16918,64221,712
Taranaki8,8659,63610,02415,47816,35217,151
Wanganui9809999901,1301,2141,400
Palmerston North2,6662,7092,3182,9014,3403,998
Wellington227,113219,144169,549222,266271,201307,554
Picton425395530238254390
Nelson4,9006,6294,3745,5006,2089,614
Greymouth531418475405404509
Lyttelton91,63588,54971,341102,163114,606117,363
Timaru3,3814,7083,4263,2973,5862,438
Otago27,89427,92520,46224,92728,90529,134
Bluff10,45311,48210,1109,22010,60626,032
            Totals728,939752,206622,908799,197944,3251,075,109

Almost three-quarters of the total imports usually come in by way of Auckland or Wellington. Lyttelton occupies third place and with the advent of the oil refinery plant at Whangarei this port has now reached fourth place in importance, followed by Otago.

Imports by air have been credited to the port in whose district the overseas airport is located. Thus goods which came in through Mangere Airport were included in the Auckland figures, imports through Wellington Airport and Ohakea in the Wellington figures, and through Christchurch Airport in the Lyttelton figures. The value of imports by air in the year to June 1971 was $51.1 million, the commodities and their countries of origin are listed in a supplement to the August 1971 issue of the Monthly Abstract of Statistics.

GOODS SHIPPED FROM COOK, NIUE, AND TOKELAU ISLANDS—Trade with the Cook and associated islands is not included in the export and import totals for New Zealand, but is shown separately in official publications. The following table shows the movement of goods from these islands to the main islands of New Zealand. Particulars of the trade of the islands with other countries will be found in the section dealing with New Zealand territory overseas.

June YearValue of Goods
*Provisional.
 $(000)
19631,187
19641,562
19651,867
19661,582
19671,564
19681,656
19691,852
1970x2,659
1971*2,662

The value of principal goods brought to New Zealand from the Cook, Niue, and Tokelau Islands during the last 2 years was as follows:

CommoditiesYear Ended June 1970x c.d.v.Year Ended June 1971* c.d.v.
*Provisional.
 $$
Oranges, whole fruit102,067109,229
Tangerines and mandarins, whole fruit40,15142,085
Lemons, grapefruit, etc., whole fruit27,86010,791
Bananas46,26483,521
Honey9,13817,061
Pineapples, whole fruit-7,561
Citrus fruit juices927,695778,170
Pineapple juice150,444134,342
Preserved fruit258,274231,855
Fresh tomatoes26,131762
Arrowroot, etc.19,54814,149
Copra205,577246,824
Coral and shells, etc., unworked or simply prepared33,093238
Wood manufactures (not furniture)26,39235,526
Textile clothing (not knitted, etc.)—  
    Men's and boys' outer garments524,242685,942
    Women's and girls' outer garments20,84722,391
    Men's and boys' undergarments115,684124,621
    Women's, girls' and infants' undergarments6,528-
Basketwork, wickerwork, etc.3,7882,839
Compressed gas cylinders, etc.6,52010,600
Other miscellaneous items108,379102,991
            Totals2,658,6222,661,498

22 D—CUSTOMS TARIFF AND REVENUE

THE TARIFF—Briefly the Customs tariff, apart from obtaining revenue, has for its objects the following:

(a) The development of New Zealand industries.

(b) The maintenance and extension of markets for New Zealand produce.

(c) The implementation of New Zealand's tariff commitments in bilateral and multilateral trade agreements.

When New Zealand's first Customs Ordinance was proclaimed in 1841 the intention was to raise revenue and to some extent to give preference to goods of British origin. The tariff changes of 1851 and 1864 widened the scope of the tariff but retained its revenue aspects, though at this time the duties were mainly specific rather than ad valorem. In 1888 ad valorem rates became more general and the rate of duty was raised to 20 percent, which was double the amount charged in earlier years.

The prevailing economic philosophy was, of course, that of free trade, and in New Zealand's case it was underlined by the fact that Parliament predominantly represented the farming community. Even so, the depression of the eighties had so affected some of New Zealand's manufacturing industries that protection by tariffs became practical politics in 1888. The tariff revision of 1895 was aimed at protecting a small range of industries, and at the same time it eliminated the duties on many items which entered into the cost of living of those residing in urban areas. These tendencies were continued in 1900, 1907, and 1921, with British preferences becoming more evident.

In 1921 provision was made for an extra rate of duty on goods from countries with a depreciated rate of exchange. This was the first occasion when the legislature tried to cope with twentieth century economic conditions which threatened to cut across tariffs designed to give protection to industries which were supposed to develop in a manner normal to the nineteenth century. In 1921 provision was made for anti-dumping duties, another attempt to meet so-called abnormal practices. The depreciated currency duties ranged from 2 1/2 to 20 percent; the dumping duty was not to exceed the difference between the sale price and the current domestic value.

The 1927 tariff revision extended further British preferences and increased the number of duties imposed for protection purposes. Further important items, if of British origin, were also placed on the free list. In 1930 surtaxes on dutiable goods were imposed for revenue purposes and the general tariff rate was increased by about 5 percent. In 1931 a primage of 3 percent was charged on imports (except in specified cases) which were otherwise free of duty.

In the meantime there had been a change in trade policy, which had tended to become one of protection rather than one of free trade.

As a result of the changing conditions the Ottawa Conference was called. The outcome of this conference was the Ottawa Agreement of 1932, the effect of which was to give further preference to British goods and to inhibit the use of the tariff by New Zealand for purely protective purposes. (The United Kingdom, for its part, granted duty-free entry for practically all New Zealand products and applied tariff rates on butter and cheese from foreign countries and undertook to place quota restrictions on meats from foreign countries. See Section 21A—Marketing of Primary Produce.)

In 1934 a Tariff Commission submitted a report which in the main adhered to the already established principle of British preference, and actually reduced the protection for New Zealand industries in more cases than it provided protection. The adoption of this report by the Customs Acts Amendment Act 1934 resulted in a wide range of items being made dutiable for revenue purposes, while a small group of items with a low to moderate duty gave limited protection against goods of British origin. Thus New Zealand's tariff remained an expression of the fact that New Zealand placed its economic emphasis on primary production, the market for which was mainly in the United Kingdom.

This tariff remained practically unchanged until 1960, although extended in its scope by subsequent trade agreements. In 1960 some amendments were made.

An agreement signed in Wellington in August 1959 between New Zealand and the United Kingdom made provision for the minimum margin of preference of 20 percent accorded to British goods under the Ottawa Agreement to be reduced.

The Board of Trade, in November 1957, completed a comprehensive review of the whole structure and incidence of the tariff and reported to Government.

From 1 July 1962 there was introduced a revised tariff which took its structure from the Standard International Trade Classification (Revised), a document of the United Nations Economic and Social Council, designed to list in a systematic manner the goods of world commerce according to their economic significance. It was keyed to the Brussels Tariff Nomenclature (B.T.N.), an internationally agreed nomenclature which has carefully drafted rules of definition and in which articles are grouped in logical sequence often according to the nature of the material of which they are made. A new tariff based on the Brussels Tariff Nomenclature was introduced on 1 July 1967. The duty rates remain unchanged and the statistical details conform to the requirements of the S.I.T.C. (Revised). A further revised tariff was introduced on 1 January 1972.

The rates of Customs and excise duty in force in New Zealand are set out in the publication entitled the Customs Tariff of New Zealand. This publication is available from the Government Printer, Wellington.

CUSTOMS DUTIES—As the rates of duty on goods vary according to their country of origin as well as their classification, the tariff is printed in “multi-column” form listing rates of duty under (a) the British preferential tariff, special rates under Australian and Canadian agreements being shown against the items concerned; (b) the most-favoured-nation tariff (under which goods from countries adhering to the General Agreement on Tariffs and Trade and goods from certain countries with which New Zealand has separate trade agreements are admitted); and (c) the general tariff.

Duty is generally calculated according to ad valorem rates; where, in certain cases, specific rates are prescribed, they are of a simple nature.

IMPORT CONTROL—Import licensing applies to approximately one-third of private imports and is explained in Section 22A.

EXCISE DUTIES—Excise duty is a tax on certain commodities manufactured in New Zealand. Duties on major commodities are as follows.

Beer—As from 22 August 1947 the excise duty on beer became 30c per gallon where the specific gravity of the worts used did not exceed 1,036, increased by .84c for every unit of specific gravity above 1,036. From 27 June 1958 the excise duty on beer was increased to 60c a gallon where the specific gravity does not exceed 1,036, advancing by 1.67c for every unit of specific gravity above 1,036. The specific gravity of distilled water at 60°F is taken as 1,000, and the specific gravity of the worts is determined in relation thereto.

Tobacco—The following table sets out the rates of excise duty on tobacco.

DescriptionRates at Dates Shown
27 June 195822 July 19604 May 196727 Oct 1970
Cigarettes—$$$$
    Exceeding in weight 2 1/2 lb per 1,000 per lb2.802.563.564.76
    Not exceeding in weight 2 1/2 lb per 1,000 per 1,0007.006.408.9011.90
Cigars and snuff per lb1.201.202.382.98
Other manufactured tobacco per lb2.272.022.823.54

Sugar—There was an excise duty of $18.66 per ton on sugar manufactured in New Zealand but this was abolished in February 1972.

Alcohol—Excise duties were formerly levied direct on certain manufactures, the preparation of which involved the use of a considerable proportion of spirits. In lieu of excise duty on the finished manufactured article, however, a special schedule of duties has been provided since 1921 on alcohol used in manufacturing these articles in licensed warehouses. The present rates are: on alcohol used in manufacture: perfumed spirits, $3.60 per proof gallon; toilet preparations, $3.40; culinary and flavouring essences, $2.00; medical preparations containing more than 50 percent of proof spirit, 45c per proof gallon. In similar medicinal preparations containing not more than 50 percent, the alcohol used is duty-free.

Distilleries—Excise duty on gin, geneva, schnapps, vodka, and other basically derived white spirit liquors approved by the Minister of Customs, which are produced by three rectifying and compounding distilleries, is at the rate of $13.50 per proof gallon.

CUSTOMS REVENUE—Revenue from Customs and excise duties is shown in the following table.

Year Ended 31 MarchExcise DutiesOther Excise and Customs DutiesTotal Excise and Customs Duties
BeerSpiritsTobaccoSugar
*Includes gross motor spirits duty credited to Consolidated Revenue Account.
   $(000)   
196632,8284,10033,3582,23149,185121,702
196734,7355,71136,6042,38747,310126,747
196835,5915,82845,0002,48753,266*142,172*
196935,8266,66048,5702,41061,733*155,199*
197037,2827,18050,1732,47059,695*156,800*
197139,6537,23057,3972,54671,702*178,528*

Motor spirits duty paid into the National Roads Fund has been excluded from Customs duties, but motor spirits duty paid into the Consolidated Revenue Account until 31 March 1971 is included in “Other Excise and Customs Duties”.

Customs revenue as a proportion of taxation is discussed in the section on Central Government finance.

PREFERENCE AND RECIPROCITY—The following are the classes of goods which are deemed to be the produce or manufacture of countries which are entitled to be entered for duty at British preferential rates:

  1. Goods wholly the produce of such countries.

  2. Goods wholly manufactured in such countries from unmanufactured raw materials and/or from one or more of the imported partly manufactured materials which are enumerated in the regulations.

  3. Goods partly manufactured in such countries, provided that the final process of manufacture has been performed in such countries, and also that the expenditure in material produced in such countries and/or in other items of factory or works cost incurred in such countries in respect of each article is not less than half of the factory or works cost of the article in its finished state.

The conditions applying to British Commonwealth countries, the products of which are admissible under the British preferential tariff pursuant to agreements made by New Zealand with such countries, may be varied to suit the provisions of such agreements.

Under the reciprocal trade agreements with Australia and Canada discussed hereunder, the duties on certain items are sometimes higher than the corresponding duties under the British preferential tariff and in a few cases lower.

Reciprocity With United Kingdom—Under the Ottawa Agreement New Zealand undertook to preserve the existing margins of preference on United Kingdom goods where the margin of preference did not exceed 20 percent, and where the margin exceeded that figure not to reduce it below 20 percent without the consent of the Government of the United Kingdom.

In 1958 New Zealand sought new arrangements with the United Kingdom and on 25 November 1958 the two Governments signed Heads of Agreement. This provided the basis for a new agreement to give New Zealand the right to reduce the margins of preference applied to United Kingdom goods entering New Zealand to 5 percent on certain imports essential for industry, to 7 1/2 percent on an extensive list of welfare and producer goods, and to 10 percent on all other goods. The formal text of the New Zealand - United Kingdom Trade Agreement was signed in Wellington on 12 August 1959.

On 28 June 1966 a “Record of Understanding” was agreed between New Zealand and the United Kingdom and this formed the basis for the New Zealand - United Kingdom Trade Agreement signed on 24 November 1966. New Zealand undertook to maintain duty-free entry for a short list of items and minimum margins of preference from 10 percent to 20 percent on another list of items. Otherwise the margins of preference in the 1959 Agreement are continued. On its part the United Kingdom has undertaken that, until 30 September 1972, it will admit without restriction of quantity, imports of the following New Zealand goods:

  1. Beef, veal, lamb, mutton, and the edible offals thereof, and chilled and frozen pork.

  2. Butter, cheese, skim and buttermilk powders, and casein.

In respect of butter, however, the two Governments agreed to annual consultations in connection with the United Kingdom quota scheme under which allocations are provided for the importation of butter from all countries, including New Zealand.

In June 1969 the New Zealand Government agreed, along with all other governments concerned, to a system of voluntary restraint on the export of cheddar cheese and cheddar type cheese to the British market.

Reciprocity With Australia—(a) An agreement, completed in April 1933 and confirmed by the Trade Agreement (New Zealand and Australia) Ratification Act of that year, came into operation on 1 December 1933, and remains in force until terminated by either party.

Under the agreement each country grants to the goods of the other the benefits of its British preferential tariff, except with regard to certain classes of goods, enumerated in the Schedules to the agreement, in which special rates are fixed.

The agreement provided for lower duties than those prescribed under Australia's British preferential tariff on many classes of New Zealand products entering Australia, including fresh and frozen fish and fish pastes; dried peas; fresh, smoked, and preserved meats; onions; lucerne seed; wine; furs; hats; caps; floor rugs; various agricultural and dairying implements; whale oil; casein; sugar of milk; and timber.

Minor modifications have been made to the Schedules of the agreement from time to time, but they remain substantially the same as originally negotiated.

The agreement must be read subject to the 1965 Free Trade Agreement with Australia.

The setting up of an Australian - New Zealand Consultative Committee on Trade was agreed on by the Australian and New Zealand Governments in August 1960.

(b) The New Zealand - Australia Free Trade Agreement which came into force on 1 January 1966 provides for periodic reduction and ultimate elimination of duties on the goods listed in a schedule to the agreement when such goods qualify for admission into either country as the produce or manufacture of the other country. This agreement modifies or supersedes some of the provisions of the 1933 agreement, and, in particular, 1933 agreement rates which are higher than the equivalent British preferential rates are to be reduced to the British preferential level not later than 1 January 1974. Some of these rates have been so reduced, and the Tariff and Development Board is reviewing the rates on other items.

The goods listed in Schedule A to the agreement cover 60 percent of the imports from Australia and include forest products (timber, pulp, packaging materials, plywood and veneers), petroleum products, meat, fish, cheese, lead, zinc and other metals, copper rods and bars, wool, and some machinery and chemicals. The first review of the NAFTA resulted in the addition of further items to Schedule A, the duty reductions on which entered into force on 1 January 1968 at the same time as the second stage reductions on the original Schedule A items. As a result of subsequent reviews further items have been added to Schedule A on 1 January 1969, 1 July 1969, 1 January 1970, 1 July 1970, 1 January 1971, and 1 July 1971.

The agreement provides for reviews of trade between the two countries with a view to progressive inclusion of additional items within the agreement. The agreement is to remain in force for 10 years and thereafter shall remain in force unless terminated 180 days after appropriate notice is given by one country and the prescribed consultations between the two countries have been held.

Reciprocity with Canada—Reciprocal trade arrangements between Canada and New Zealand are governed by an agreement negotiated in 1932, and this agreement remains in force until terminated by either party.

Under the terms of the agreement sausage casings, hides and skins, wool, apples, seeds, kauri gum, and phormium fibre are amongst the New Zealand products admitted free of duty. Certain other items such as butter, cheese, mutton, and lamb are admitted at rates of duty lower than the British preferential tariff.

Reciprocity with Malaysia—A trade agreement between Malaysia and New Zealand was signed in February 1961 by which each country accords preferential rates of duty to the other. Both countries agreed to guarantee minimum margins of tariff preference which apply to certain important items in each other's trade. The agreement remains in force until 6 months from the date on which notice of termination is given by either Government.

Other Trade Arrangements—New Zealand is also a party to certain commercial treaties, conventions, or arrangements with countries outside the Commonwealth. In some earlier cases New Zealand automatically became a party to arrangements concluded by the United Kingdom; in others she became a party by signifying her willingness to adhere to such arrangements. Other arrangements again resulted from direct negotiations between New Zealand and the countries concerned. In practice many of these arrangements (which generally provided for reciprocal most-favoured-nation tariff treatment) are superseded by New Zealand's accession to the General Agreement on Tariffs and Trade. However, some remain separately in force, and, in addition to these countries which are contracting parties to the General Agreement, New Zealand grants most-favoured-nation tariff treatment to Bulgaria, China (mainland), Hungarian People's Republic, Liberia, Philippines, Republic of China (Taiwan), Socialist Republic of Romania, Somalia, Tunisia, and U.S.S.R.

The trade arrangements between Switzerland and New Zealand dating from 1938, under which New Zealand receives a guaranteed import quota for apples and pears, continues in force but the portion of the arrangement relating to most-favoured-nation treatment for imports has been superseded since Switzerland became a contracting party to GATT on 1 August 1966. Since 1957 the arrangement has been extended also to Liechtenstein.

The Federal Republic of Germany and New Zealand concluded a trade agreement in April 1959. The agreement is designed to facilitate as far as possible the exchange of goods and services between the two countries. New Zealand is granted quotas on certain primary products while for some others New Zealand will be considered as a source of supply for imports into Germany under the import programme. The agreement was concluded following international discussions under the General Agreement on Tariffs and Trade on problems arising out of the Federal Republic's import restrictions. The circumstances under which the negotiations with the Federal Republic were initiated were thus somewhat different from the usual, and because of this New Zealand is not required under the agreement to make any special arrangements regarding German exports. As contracting parties to the General Agreement the two countries already granted each other most-favoured-nation tariff treatment.

A trade agreement with the Union of Soviet Socialist Republics entered into force on 1 August 1963, and is subject to 3 months' notice of termination on either side.

The trade agreement provides for the mutual grant of most-favoured-nation treatment in matters concerning trade and shipping between New Zealand and the Soviet Union. In particular each country has agreed to grant to the other, most-favoured-nation treatment with respect to Customs duties and charges of any kind imposed on the importation or exportation of products from the other country. Similarly most-favoured-nation treatment will apply in relation to prohibitions or restrictions whether in the form of quotas, import or export licences, or other controls.

A trade agreement with the Polish People's Republic entered into force on 7 July 1965 and will remain in force for a period of 5 years and thereafter continue in force until the expiration of 6 months' notice of termination from either country. This agreement provides for mutual grant of most-favoured-nation treatment in matters relating to import and export duties and charges, and also in regard to prohibitions or restrictions whether by way of quotas, import or export licences, foreign-exchange controls, regulations, directions, or other control measures.

The Republic of Korea and New Zealand entered into a trade agreement on 31 January 1967 providing for mutual most-favoured-nation treatment in all matters of trade between New Zealand and South Korea, including non-discrimination in the treatment of foreign exchange for trade purposes. Similar agreements were made with the People's Republic of Bulgaria on 7 March 1968, with the Socialist Republic of Romania on 13 October 1969, and with the Hungarian People's Republic on 22 December 1970.

A trade agreement with the Republic of the Philippines entered into force on 19 July 1968. The agreement provides most-favoured-nation treatment being extended to the trade between the two countries, including the allocation of foreign exchange. Initially the agreement runs for 1 year, thereafter it may be terminated by either country on 6 months' notice.

GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)—Tariff negotiations took place in Geneva in 1947, and the concessions given by each participating country were embodied in schedules to a General Agreement on Tariffs and Trade. The tariff negotiations themselves were bilateral but all the concessions were applied multilaterally, so that New Zealand receives the benefit of reductions made by all participants, and, conversely, New Zealand's concessions apply to all the other countries which took part. Concessions are of two kinds—actual reductions of duties and bindings of duties against increase. The Agreement, which provides for concessions under both the British preferential and most-favoured-nation tariffs, was applied provisionally by New Zealand on 26 July 1948.

The foreign countries to whose products the concessionary rates (i.e., the most-favoured-nation rates) of duty apply by virtue of their membership in GATT or some special arrangement in GATT are: Argentina, Austria, Belgium, Brazil, Burma, Burundi, Cameroon, Central African Republic, Chad, Chile, Congo (Brazzaville), Cuba, Czechoslovakia, Dahomey, Denmark, Dominican Republic, Finland, France (including overseas territories), Gabon, Federal Republic of Germany, Greece, Haiti, Hungary, Iceland, Indonesia, Israel, Italy, Ivory Coast, Japan, Kuwait, Liechtenstein, Luxembourg, Malagasy, Mauritania, Netherlands (including overseas territories), Nicaragua, Niger, Norway, Pakistan, Peru, Poland, Portugal, Rwanda, Senegal, South Africa, South Korea, Spain, Sweden, Switzerland, Togo, Turkey, United Arab Republic, United States of America, Upper Volta, Uruguay, Yugoslavia. Eire is also a member of GATT but receives the concessionary rates of the British preference tariff.

The following Commonwealth countries are members of GATT: Australia, Barbados, Canada, Ceylon, Cyprus, Gambia, Ghana, Guyana, India, Jamaica, Kenya, Malawi, Malaysia, Malta, Mauritius, Nigeria, Sierra Leone, Tanzania, Trinidad and Tobago, Uganda, United Kingdom and Northern Ireland (and dependent territories).

Some other countries, as newly-independent states, apply the GATT on a de facto basis: Algeria, Botswana, Cambodia, Congo (Democratic Republic), Equatorial Guinea, Lesotho, Maldive Islands, Mali, Singapore, Southern Yemen, Swaziland, and Zambia. Tunisia has acceded provisionally to the GATT.

While the reduction of tariffs and other barriers to trade has been the principal aim of the General Agreement it has also provided an internationally accepted code of rules in world trade, and its regular sessions have been useful as a forum for the discussion and settlement of international trade problems and disputes.

Developments have tended to whittle away most of the trading advantages which countries relying heavily on agricultural exports reasonably expected to get from GATT membership. There has been a growing disparity between the benefits accruing under GATT to the industrialised countries and the far less tangible advantages it provides for primary producing countries like New Zealand. This has been due primarily to the growing use of quantitative restrictions on agricultural products by most of the large industrialised countries as an aspect of their policies of agricultural protectionism.

The results of the Kennedy Round which was concluded in June 1967 have not corrected this imbalance, although New Zealand did obtain improved access and some tariff concessions on a limited range of agricultural products exported to some GATT countries. As compensation New Zealand has undertaken to reduce most-favoured-nation rates of duty by up to 50 percent of existing rates on a number of items. The first of the five equal annual reductions, which will implement this commitment, was made on 1 January 1968.

SUGAR AGREEMENTS—New Zealand's annual requirements of raw sugar now stand at about 150,000 tons. This quantity is purchased in accordance with two arrangements; the Commonwealth Sugar Agreement and the International Sugar Agreement.

Though not a member of the Commonwealth Sugar Agreement, New Zealand is associated with it by a Memorandum of Understanding which came into effect on 1 January 1957. The Memorandum provides that New Zealand will buy and the exporting members will provide 75,000 tons annually. The price paid by New Zealand under the Memorandum is the London Daily Price plus a Commonwealth Premium of £Stg3.75 per ton less the cost of freight from source to London, plus the cost of freight from source to Auckland. The usual sources of supply under the Memorandum of Understanding are Fiji and Queensland.

Prior to the 1957 Memorandum, New Zealand's purchases of raw sugar under the Commonwealth Sugar Agreement were governed by the 1951 Exchange of Letters between the New Zealand and British Governments. Under this Exchange which was to operate from 1953 to 1958 inclusive the Ministry of Food agreed to supply 75,000 tons annually to New Zealand at a price negotiated by Britain and Commonwealth exporting countries. This arrangement proved unsatisfactory from New Zealand's point of view because in many years the Commonwealth negotiated price was higher than the world price. The arrangements under the Exchange were terminated prematurely and replaced by the Memorandum in 1957.

Under the current Memorandum the prices paid by New Zealand for raw sugar are roughly equal to the world price.

The balance of New Zealand's requirements for raw sugar, that is over and above the 75,000 tons supplied by Commonwealth exporters, is purchased at the world price which is regulated by the International Sugar Agreement of 1968, to which New Zealand is a party.

This agreement has the same basic objectives as the 1958 Agreement which it replaced; that is, to assure supplies to importing countries and markets for exporting countries at equitable and stable prices. Exporters undertake to regulate their sales on the “free” market according to agreed quotas while importers agree to restrict their purchases from non-members while sugar prices remain within the range specified in the agreement.

In 1961 the members failed to reach agreement on the quotas for 1962 and 1963 and as a result the provisions for limitation of exports, regulation of imports and stabilisation of prices broke down. The agreement expired on 31 December 1963, but even though those articles relating to quotas and prices remained ineffective, it was extended annually by a series of protocols pending the negotiation of a new agreement.

The 1968 Agreement safeguards against the failure of the 1958 Agreement by setting a series of price levels which trigger automatic changes in export quotas and thus regulate the flow of supplies on the market.

INTERNATIONAL COFFEE AGREEMENT—New Zealand is a party to the International Coffee Agreement 1968 which entered into force on 1 October 1968 and is due to expire on 30 September 1973. This Agreement replaces an earlier one, concluded in 1962, to which New Zealand was also a party.

The objects of the Agreement are to ensure continuity and adequacy of supplies of coffee and to maintain stable and equitable prices for both consumers and producers.

Remunerative prices are of particular importance to coffee producing countries which are mainly developing countries of South America, Africa, and South-east Asia. Their economies are in many cases heavily dependent upon coffee export earnings.

The 1968 Agreement has similar provisions to the 1962 Agreement incorporating a few changes in regard to the composition of the Executive Board and to the basic annual export quotas and their revision and adjustment. Importing members are required to purchase all but a minor portion of imports of coffee from exporting member countries, while exports from member countries are strictly controlled by means of annual quotas and certification requirements. The Agreement also contains special consultation and arbitration provisions to deal with any disputes that may arise concerning processed soluble coffee (instant coffee). These provisions were inserted to resolve differences between Brazil and the United States which delayed the renegotiation of the Agreement.

New Zealand signed the Agreement in London on 27 March 1968 and upon Ratification by the New Zealand Government on 7 August 1968, the Agreement was extended to cover the Cook Islands, Niue Island, and the Tokelau Islands.

The Customs Import Prohibition Order (Coffee) promulgated on 1 April 1967 restricts New Zealand's imports of coffee by requiring compliance with obligations under the Agreement. Coffee imports under this Order are prohibited save with the consent of the Minister of Customs. The Minister has given general consent to imports of coffee from member countries provided they are accompanied by the required documents of origin as specified in the Agreement. Imports of coffee from non-member countries can only be made with the special permission of the Minister, and total imports of non-member coffee must not exceed the small annual quota of 361 bags (of 60 kilogrammes) allocated to New Zealand by the council.

Chapter 23. Section 23 PRICES

Table of Contents

CONSUMER PROTECTION: Control of Prices Act 1947—The Control of Prices Act 1947 established a Price Tribunal and also set out the general duties and functions of that body as:

  1. The fixing of prices for goods and services;

  2. The investigation of complaints with respect to all prices; and

  3. The maintenance of a survey of the prices of goods and services and the institution of legal proceedings for offences in relation to prices and the taking of such other steps as in its opinion may be necessary to prevent profiteering or the exploitation of the public.

The Price Tribunal has delegated the power to perform these functions to the Secretary of Industries and Commerce, who has in turn subdelegated that power to senior officers of the Distribution Division of the department. As a result, the tribunal now exercises original pricing jurisdiction over only a small selection of reserved items for which prices are normally approved on a New Zealand-wide basis. In all other instances the tribunal acts as an appellate authority for the purpose of considering appeals against pricing decisions made by departmental officers acting under their delegated powers.

The Price Tribunal (or officers of the Department of Industries and Commerce operating under delegated powers) with respect to items subject to direct price control may:

  1. Make price orders fixing, in such manner as is thought fit, the actual or the maximum or the minimum price for any goods (or services) sold in a specified market and under specified conditions. Price orders are published in the New Zealand Gazette, and must generally be displayed in any shop where the goods to which they relate are sold;

  2. Approve selling prices by special authorisations made in terms of section 16 of the Act. In this case approved prices are promulgated by letters of authorisation addressed specifically to the traders directly affected -or to any representative trade group acting on their behalf.

Price Control—From 1948 to 1970 successive Governments followed a continuing policy of removing goods and services from price control where competition in the field concerned was considered sufficient to regulate prices effectively. This meant that there was progressively less stress placed on direct price control but much greater importance attached to price surveillance over a wide range of goods and services having a significant bearing on the cost of living.

Price surveillance involves the investigation of complaints made by members of the public about unreasonable prices, and the carrying out by the Department of Industries and Commerce of market surveys of key decontrolled commodities at regular intervals.

If, as a result of an investigation made by the department, it appears that a trader has charged an excessive price calculated to yield more than a fair and reasonable rate of commercial profit for any goods or services, action may be taken against him in the Court for profiteering. This is regarded as a serious offence, and the relevant section of the Control of Prices Act 1947 may be invoked with regard to sales of any goods or services, whether they are subject to direct price control or not.

By early 1970 inflationary pressures were resulting in an increasing concern at rising prices and a temporary departure from previous pricing policy was initiated.

In its first form this appeared as a voluntary early warning system under which manufacturers of several commodities agreed to supply the Department of Industries and Commerce with details of cost increases which necessitated an advance in prices.

The period following the introduction of the Early Warning System coincided with a strong wage/ price spiral, and on 17 November 1970 a price freeze was imposed. The Price Freeze Regulations which were initially intended to terminate on 17 January 1971 but were subsequently extended to 14 February 1971, froze all prices except for a few exemptions, at the levels prevailing on 12 November 1970.

The price freeze was followed on 15 February 1971 by a Price Justification Scheme, details of which were embodied in a price order (No. 2154) issued by the Price Tribunal. This price order specified a wide range of commodities, on which manufacturers and packers were required to obtain the approval of the Price Tribunal before applying price increases. Such price increases as were approved were limited to a level sufficient to recover no more than proven increased costs. In addition, Price Order 2154 also froze distributive margins of all goods (except secondhand goods) at the levels which normally applied on 12 November 1970, that is, the base date adopted for the price freeze which preceded the Price Justification Scheme.

In terms of the Price Justification Scheme a manufacturer or packer was entitled to assume approval and proceed to charge increased prices as sought if, within 21 days of the date of the receipt of his application by the Department of Industries and Commerce, no objection had been raised or no further information had been sought. If, however, the department intervened in either of these ways the applicant was required to await a specific decision from the department before increasing his prices.

The Control of Prices (Positive List) Notice 1971 set out those goods and services subject to price control on and from 15 February 1971. It contained three sections—the first schedules those items which were subject to price control prior to the introduction of the Price Justification Scheme and remained so subject; the second those goods where manufacturers and packers had to seek approval of the Price Tribunal in terms of the Price Justification Scheme before increasing prices; and the third listed the goods specified in the second schedule to Price Order 2154 (that is, those on which the Price Justification Scheme froze distributive margins).

The list of items subject to price control other than as a result of their inclusion in the Price Justification Scheme comprised about 40 items as well as all drugs coming within the scope of the Social Security Scheme. Control continued to be exercised in this field because of the importance of the cost of drugs in the annual expenditure on pharmaceutical benefits under the scheme. The other items still subject to price control fell into the following two broad categories:

  1. Certain essential food items, which in the main were, until February 1967, subject to the payment of subsidies for the purpose of keeping prices down to the consumer (e.g., bread, butter, and flour).

  2. Items where retention of price control is considered necessary because conditions of monopoly or quasi-monopoly apply at the level of manufacture or distribution, or other factors exist which impede the operation of competition as an effective regulator of prices.

Among items coming within this group are sugar, yeast, bananas, and imported oranges, tobacco and cigarettes, woolpacks, bottles and jars, inorganic fertilisers, motor vehicles, and motor tyres. Price control is also exercised over storage batteries, ferrous and non-ferrous metals, basins, sanitary earthenware, and pipes.

It should be observed that certain prices controlled under other legislation do not come within the scope of the Control of Prices Act 1947. For example, maximum and minimum prices of motor spirits are fixed by Order in Council (on the recommendation of the Minister of Industries and Commerce) under the Motor Spirits (Regulation of Prices) Act 1933. Milk and cream prices are set by Order in Council on the recommendation of the New Zealand Milk Board under the Milk Act 1944.

A price freeze applied again from mid February to the end of March 1972 and was succeeded by other measures designed to combat inflation.

Subject to limited exceptions, both goods and services were subject to regulations which came into force on 1 April 1972 under the Economic Stabilisation Act 1948.

The Price Justification Scheme was revoked and under the new system a number of items were added to the positive list of the Control of Prices Act. This augmented list is called Category A.

The regulations provide that in general the Price Tribunal or other pricing authorities shall not allow adjustments to be made for increased costs (including wages and salaries) unless they accord with criteria strictly defined in the regulations.

Goods and services not subject to direct price control are known as Category B items. Prices for such goods and services may not be increased except to recover actual costs determined in accordance with the criteria laid down.

As long as the criteria are fully observed in fixing prices, notification and formal approval of increases are not required.

However, firms with a turnover exceeding $1,000,000 a year are required to make quarterly reports of all price increases and other firms may be required to do so.

The Department of Industries and Commerce investigates claims of excessive price increases and makes random checks continuously.

All margins continue to be frozen unless it can be demonstrated to the satisfaction of the pricing authority that strict adherence to them would prejudice the viability of a business.

It was found to be impracticable to bring meat, fish, fruit, and vegetables under price control but the Price Tribunal was asked to hold public inquiries into the profitability and margins in their trading; these goods are affected by auction prices.

Trade Practices—Under the Trade Practices Act 1958, a Trade Practices and Prices Commission was established and an Examiner of Trade Practices and Prices appointed. The functions of the commission are (a) to inquire into trade practices reported to it by the examiner for the purpose of ascertaining whether they are contrary to the public interest, and (b) to make orders requiring the amendment or discontinuance, or prohibiting the repetition of any such practices found to be contrary to the public interest. A trade practice may be judged contrary to the public interest only if it has the effect of increasing unreasonably, costs, prices, or profits; unreasonably reducing or limiting, or preventing competition; or limiting or preventing the supply of goods to consumers.

Appeals against decisions of the commission are heard by the Administrative Division of the Supreme Court.

The examiner is obliged to investigate any trade practice, either on complaint or on his own volition, which appears to be contrary to the public interest. On receipt of a report and recommendation from the examiner about a trade practice, the commission is obliged to hold an inquiry unless it is satisfied that all parties likely to be affected are in agreement with the order which the examiner recommends should be made. In these circumstances the commission is empowered to waive an inquiry and make an order by consent. Inquiries by the Trade Practices and Prices Commission are generally held in public and the parties, including the examiner, are usually represented by counsel.

As well as his more formal functions in terms of the Trade Practices Act, the examiner considers a number of cases where it may be possible, by negotiation with the parties, to secure on a more informal, voluntary basis, some satisfactory amendment to the restrictive trade practices concerned.

Collective tendering and collective bidding at auction are offences, and also collective pricing without the approval of the Commission.

Consumer Information—The basic aims of the Consumer Information Act 1969 are for informative labelling and marking of goods, and for the prevention of deceptive or misleading packaging, labelling and advertising. The Act has general application to goods, including services, but the majority of the sections exclude foods, drugs, and medical devices as these are dealt with by the Department of Health under the food and drug legislation. There are provisions dealing with misleading advertising, misleading packaging, and false representations as to prices, and all goods packaged in New Zealand must show the name and address of the packager on the label. Provision is made for other specific packaging and labelling requirements, including the declaration on the label of the quantitative contents of the package—to be stipulated from time to time by the publication of notices in the Gazette or by regulations made by Order in Council.

CONSUMER COUNCIL—A Consumer Council, whose functions are to protect and promote the interests of consumers of goods and services was established in 1959. Since 1 April 1967 it has operated with a new constitution under the Consumer Council Act 1966. The Council consists of 12 members appointed solely on the basis of personal qualifications by a representative Appointments Committee, and additional members are the Secretary of Industries and Commerce, the Director-General of the Department of Scientific and Industrial Research, and the Director-General of Health. District consumer committees are appointed by the Consumer Council.

Citizens may become subscribing members of the Consumers' Institute on payment of a fee of $3 a year, which entitles them to receive copies of a monthly magazine (excluding January), information broadsheets, newsletters, and other assistance from the organisation. By December 1970, 65,184 persons had joined the Consumers' Institute.

The Consumer Council lays down the policies to be followed by the executive staff of the Consumers' Institute, who conduct comparative tests and surveys on consumer goods and services, and publish the results in Consumer, the monthly magazine supplied to members.

MONETARY AND ECONOMIC COUNCIL—A Monetary and Economic Council was established under the Monetary and Economic Council Act 1961 to report on the extent to which stability in prices and other economic objectives are being achieved. In its first reports the council dealt with the economic situation and the longer-term problems of slow growth and instability, and subsequent reports have dealt largely with the current economic situation and outlook.

PRICE STATISTICS—Actual prices of many goods and services at various levels are collected periodically by the Department of Statistics. The fields covered are retail prices, wholesale prices, export prices, import prices, share prices, and wool prices. In the case of retail and wholesale prices, direct inquiry is made; export and import prices (or strictly, unit values) are mainly derived from trade statistics, share prices from records of the stock exchanges, and wool prices from the New Zealand Wool Commission. In addition, average prices of many materials and products of manufacture are available from the statistics of industrial production. Some retail prices are shown later in this Section, and a wider coverage is published in the annual Report on Prices, Wages, and Labour Statistics; the chief use made of the prices collected is in the compilation of price index numbers. These are, fundamentally, weighted averages of price ratios, the weighting being so arranged that the index numbers give a general indication of price movements in the field covered. The usual technique employs fixed weights with, however, provision for revision of the weighting pattern at suitable intervals.

CONSUMERS' PRICE INDEX—The Consumers' Price Index was revised in 1965. Complete details of the revised index are contained in the Consumers' Price Index Revision 1965 report. A brief summary of the salient features of the latest index is as follows:

  1. The basic formula used is that of Laspeyres in its aggregative form.

  2. The index relates primarily to urban and country-town dwellers living as families.

  3. About 90 percent of personal expenditure is covered.

  4. The number of items regularly priced is 535.

  5. The base is: 1962-63 consumption costed at 1965 prices.

  6. The sources of group and commodity weights were: (1) Census of Distribution 1962-63; (2) industrial or factory statistics: (3) import and export data; and (4) extension of regularly compiled statistics of consumable goods. Where considered desirable the base weight assigned to selected items was broadened to allow for expenditure on kindred items not selected for pricing.

  7. Prices are collected by field officers in 25 centres, including 2 combined areas.

  8. A scientific sample of rented houses and flats was selected.

  9. Special techniques are employed for costs of owner-occupiers, for prices of seasonal fruits, vegetables, and eggs, and for transport charges.

  10. Index numbers are compiled for all food and its subgroups at monthly intervals, and for all other groups and subgroups at quarterly intervals.

  11. Index numbers are published for the 4 chief centres and 10 larger centres individually. Combined index numbers are published for these two groupings and also for six smaller North Island centres and five smaller South Island centres. Each centre and grouping of centres is shown on its own base and on a common, all-centres, base.

  12. To provide a continuous series the pre-revision all-groups index has been converted to a 1965 base.

Costs of the following items are, for various reasons, outside the scope of the index: hotel accommodation, licensed and private; air transport; legal fees; commissions on sales, other than those incurred in the erection of house properties; gambling; church and charitable donations; private and boarding school fees; instalment credit interest and similar financial charges; personal accident insurance; photographers' charges; wages of domestic servants, jobbing gardeners, etc.; fees to chiropractors, herbalists, chiropodists, etc.; sundry licences (marriage, dog, etc.); direct taxation; savings, including amortisations of capital debts, investments, and life insurance; spirits and wine; jewellery and florists' goods; durable goods other than replacements; and private holiday transport.

In general the index assumes a constant pattern of expenditure for all centres, whether large cities or provincial centres, whether with warm or cool climates, etc. In transportation, however, the index compromises by setting up a constant base expenditure on transport for all centres, but allowing a varying dissection between the various modes of transport from centre to centre, according to local circumstances. Consequently there are no true “each on all” indexes for transportation, but “each on each” indexes can be used to produce “all on all” indexes. ("Each on all” means an index for an individual centre which uses as base the average for all centres, etc.)

A Consumers' Price Index Revision Advisory Committee was set up in June 1971 under the chairmanship of the Government Statistician to investigate changes that should be made to the index. It reported in September 1971. Its recommendations in parliamentary paper A. 40 were accepted in June 1972 and it is expected that the revised index will commence to operate in 1974.

Current Consumers' Price Index—The tables which now follow relate to the current Consumers Price Index only.

The first table supplies all-groups index numbers and index numbers of individual groups and subgroups for 25 centres combined. The group and subgroup weights are also shown as percentages of the base expenditure.

CONSUMERS' PRICE INDEX—(ALL GROUPS)—TWENTY-FIVE CENTRES COMBINEDBase: Weighted average twenty-five centres, 1965 (= 1000)
PeriodFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Groups—       
Percentages of base expenditure30.0917.9911.2113.129.4418.15100.00
Calendar year—       
19651,0001,0001,0001,0001,0001,0001,000
19661,0181,0531,0101,0161,0371,0341,028
19671,0921,1171,0631,0441,1021,1051,090
19681,1261,1771,1051,0711,1701,1671,137
19691,1801,2451,1401,1191,2181,2351,193
19701,2581,3271,1861,1991,2801,3361,271
19711,3731,4281,3041,3561,4631,4911,403
Quarter ended—       
1970—31 Mar1,2161,2941,1551,1511,2491,2921,232
30 Jun1,2491,3171,1691,1651,2481,3051,251
30 Sep1,2591,3341,1911,2141,2861,3281,274
31 Dec1,3071,3641,2281,2661,3371,4171,326
1971—31 Mar1,3481,3881,2501,3041,3901,4421,359
30 Jun1,3571,4151,2941,3461,4461,4761,389
30 Sep1,3771,4381,3121,3761,4921,5111,416
31 Dec1,4081,4701,3581,3981,5251,5371,447
PeriodFoodHousingHousehold Operation
Fruits and VegetablesMeat, Fish, and PoultryOther Foods and EggsRentHome OwnershipFuel and LightHome FurnishingsDomestic Supplies and Services
Subgroups—        
Percentage of base expenditure5.899.2214.985.5012.492.825.592.80
Calendar year—        
19651,0001,0001,0001,0001,0001,0001,0001,000
19661,0301,0401,0001,0481,0561,0201,0031,014
19671,1051,0731,0991,1121,1201,0831,0231,122
19681,1381,1011,1361,1661,1821,1601,0601,140
19691,1031,2221,1851,2241,2541,1731,1191,148
19701,1801,3481,2331,2851,3461,1791,1841,197
19711,3841,4291,3331,3511,4611,2151,3061,387
Quarter ended—        
1970—31 Mar1,1771,2831,1901,2651,3061,1751,1401,166
30 Jun1,2061,3321,2141,2761,3351,1771,1571,186
30 Sep1,1201,3771,2421,2901,3541,1801,1921,201
31 Dec1,2171,3991,2871,3091,3881,1831,2461,236
1971—31 Mar1,3991,4001,2961,3261,4151,1901,2661,279
30 Jun1,3801,4151,3131,3381,4481,2101,2951,374
30 Sep1,3681,4421,3401,3591,4731,2261,3151,394
31 Dec1,3891,4591,3851,3831,5091,2341,3491,502
PeriodApparelTransportationMiscellaneousAll Groups
ClothingFootwearPublic TransportPrivate TransportTobacco and AlcoholOther SuppliesOther Services
Subgroups—        
Percentage of base expenditure10.912.212.387.067.645.664.85100.00
Calendar year—        
19651,0001,0001,0001,0001,0001,0001,0001,000
19661,0131,0301,0211,0431,0231,0371,0471,028
19671,0391,0691,0821,1081,0981,0961,1251,090
19681,0671,0901,1041,1931,1591,1541,1931,137
19691,1131,1441,1401,2441,2131,2241,2841,193
19701,1921,2341,1891,3111,3281,3301,3541,271
19711,3551,3641,4431,4701,4751,4671,5461,403
Quarter ended—        
1970—31 Mar1,1431,1921,1621,2781,2891,2861,3051,232
30 Jun1,1571,2061,1661,2751,2891,3151,3201,251
30 Sep1,2091,2381,1781,3231,2901,3341,3801,274
31 Dec1,2601,2971,2501,3671,4451,3841,4131,326
1971—31 Mar1,3021,3141,3481,4041,4701,3871,4601,359
30 Jun1,3451,3511,3841,4671,4701,4401,5281,389
30 Sep1,3751,3811,4891,4931,4791,5011,5731,416
31 Dec1,3961,4081,5491,5171,4801,5401,6221,447

The average level of consumer prices rose by 10.4 percent in 1971, compared with a rise of 6.5 percent the year before. Although price increases were recorded in all main groups of the index, the major contributions to the overall result came from the other food, home ownership, and clothing subgroups.

The following diagram shows the movement in consumers' price index numbers.

The following tables distinguish individual centres and groupings of centres, but the subgroup indexes are omitted. Attention is called, however, to the two-fold method of presentation: in the first table current prices in each centre are compared with prices in the same centre during the base period; in the second, current prices in each centre are compared with average prices over all the 25 centres in the base period.

Where the base is the individual centre, the index numbers are specially designed to show price movements in each centre. Vertical comparisons can also be made but they will show the relative amount of price movements in respective centres, not relative current price levels. In the second method, where the base is average prices over the 25 centres, horizontal or vertical comparisons may be made to compare relative price levels. However, these index numbers do not indicate how much dearer or cheaper it is to live in one centre or another, but only how much higher or lower retail price levels are in one centre than another. The construction of the index assumes the same consumption habits in all centres, regardless of size, climate, etc.

CONSUMERS' PRICE INDEX—ANNUAL GROUP INDEX NUMBERS FOR INDIVIDUAL CENTRES AND GROUPINGS OF CENTRESBase: Weighted average each centre and grouping, separately, 1965 (=1000)
CentreFoodHousingHousehold OperationApparel
196519701971196519701971196519701971196519701971
Auckland1,0001,2711,3841,0001,3461,4511,0001,2171,3301,0001,2241,367
Wellington-Hutt1,0001,2561,3641,0001,3261,4171,0001,1771,3101,0001,2171,402
Christchurch1,0001,2481,3601,0001,3221,4231,0001,1751,3011,0001,2071,371
Dunedin1,0001,2321,3421,0001,3521,4521,0001,1721,2911,0001,1971,372
            Four chief centres1,0001,2581,3691,0001,3371,4371,0001,1931,3141,0001,2151,376
Hamilton1,0001,2621,3991,0001,2611,3451,0001,1651,2671,0001,1571,312
Tauranga1,0001,2271,3391,0001,3341,4411,0001,1991,3131,0001,1581,314
Rotorua1,0001,2311,3561,0001,3851,4781,0001,1691,2881,0001,1941,366
Napier-Hastings1,0001,2551,3741,0001,3631,4671,0001,1771,2991,0001,1821,338
New Plymouth1,0001,2771,3861,0001,3261,4461,0001,1771,2881,0001,1801,306
Wanganui1,0001,2751,3931,0001,2931,3901,0001,1751,2821,0001,2051,385
Palmerston North1,0001,2651,3881,0001,3671,4931,0001,1871,2981,0001,1821,333
Nelson1,0001,2821,3901,0001,3001,4531,0001,2141,3431,0001,1831,350
Timaru1,0001,2661,3791,0001,2511,3291,0001,1551,2701,0001,1631,308
Invercargill1,0001,2341,3441,0001,3111,4111,0001,1531,2591,0001,2061,353
    Ten larger centres1,0001,2581,3791,0001,3151,4191,0001,1751,2861,0001,1781,332
    Six smaller North Island centres1,0001,2551,3691,0001,3321,4301,0001,1881,3051,0001,1881,334
    Five smaller South Island centres1,0001,2581,3701,0001,2821,3731,0001,1801,3101,0001,2011,363
    Twenty-five centres, combined1,0001,2581,3731,0001,3271,4281,0001,1861,3041,0001,1991,356
CentreTransportationMiscellaneousAll Groups
196519701971196519701971196519701971
Auckland1,0001,2861,5001,0001,3451,5041,0001,2881,421
Wellington-Hutt1,0001,2581,4781,0001,3321,4811,0001,2711,405
Christchurch1,0001,2851,4721,0001,3431,4941,0001,2681,401
Dunedin1,0001,2581,4931,0001,3401,5041,0001,2621,402
    Four chief centres1,0001,2761,4881,0001,3411,4961,0001,2771,411
Hamilton1,0001,2751,4431,0001,3331,4941,0001,2521,385
Tauranga1,0001,2861,4551,0001,3321,4851,0001,2601,389
Rotorua1,0001,2731,4441,0001,3191,4841,0001,2671,404
Napier-Hastings1,0001,2891,4441,0001,3321,4821,0001,2721,402
New Plymouth1,0001,3051,4561,0001,3251,4761,0001,2731,398
Wanganui1,0001,2941,4481,0001,3191,4841,0001,2671,401
Palmerston North1,0001,2841,4231,0001,3331,4861,0001,2771,409
Nelson1,0001,2911,4471,0001,3251,4911,0001,2731,414
Timaru1,0001,2811,4391,0001,3331,4791,0001,2511,372
Invercargill1,0001,2931,4411,0001,3381,4961,0001,2581,383
Ten larger centres1,0001,2851,4421,0001,3311,4871,0001,2641,395
Six smaller North Island centres1,0001,2821,4301,0001,3281,4821,0001,2671,394
Five smaller South Island centres1,0001,2781,4291,0001,3341,4891,0001,2611,390
Twenty-five centres combined1,0001,2801,4631,0001,3361,4911,0001,2711,403
Base: Weighted average twenty-five centres, 1965 (= 1000)
CentreFoodHousingHousehold OperationApparel
196519701971196519701971196519701971196519701971
Auckland1,0141,2891,4031,1141,5001,6169951,2111,3241,0131,2391,384
Wellington-Hutt1,0121,2711,3801,1821,5671,6759791,1521,2829991,2151,401
Christchurch1,0021,2511,3649261,2241,3171,0011,1761,3029901,1951,357
Dunedin1,0121,2461,3588951,2111,3001,0231,1991,3211,0101,2091,386
        Four chief centres1,0111,2721,3841,0611,4191,5269961,1891,3091,0041,2211,382
Hamilton9851,2431,3789671,2191,3019641,1241,2229851,1401,292
Tauranga1,0211,2531,3671,1041,4721,5919721,1661,2771,0041,1631,320
Rotorua1,0021,2331,3591,0111,3991,4941,0041,1741,2949931,1861,356
Napier-Hastings9621,2081,3229121,2431,3381,0361,2201,3461,0061,1901,347
New Plymouth9791,2501,3569261,2281,3399841,1581,2689951,1741,299
Wanganui9731,2411,3558131,0511,1309811,1531,2579941,1981,377
Palmerston North9791,2381,3589181,2551,3709801,1641,2721,0191,2041,358
Nelson9551,2241,3279311,2101,3529711,1801,3051,0051,1881,356
Timaru9931,2571,3691,0171,2721,3521,0221,1801,2981,0051,1691,314
Invercargill1,0241,2641,3779531,2491,3451,0421,2021,3121,0081,2161,364
        Ten larger centres9851,2401,3599511,2501,3499931,1661,2771,0001,1781,332
        Six smaller North Island centres1,0021,2571,3729151,2191,3091,0301,2241,3439811,1651,309
        Five smaller South Island centres9861,2411,3518971,1511,2321,0221,2061,3389941,1941,355
        Twenty-five centres combined1,0001,2581,3731,0001,3271,4281,0001,1861,3041,0001,1991,356
CentreTransportationMiscellaneousAll Groups
196519701971196519701971196519701971
Auckland1,0001,2861,5009991,3431,5021,0261,3211,457
Wellington-Hutt1,0001,2581,4781,0191,3571,5081,0371,3181,457
Christchurch1,0001,2851,4729981,3401,4919861,2501,381
Dunedin1,0001,2581,4939831,3181,4799861,2441,382
        Four chief centres1,0001,2761,4881,0011,3421,4981,0151,2961,431
Hamilton1,0001,2751,4439931,3241,4839821,2301,361
Tauranga1,0001,2861,4559991,3311,4831,0221,2881,420
Rotorua1,0001,2731,4441,0161,3401,5071,0051,2731,410
Napier-Hastings1,0001,2891,4449941,3241,4739771,2421,370
New Plymouth1,0001,3051,4569961,3201,4719771,2441,366
Wanganui1,0001,2941,4489971,3161,4809551,2101,338
Palmerston North1,0001,2841,4239931,3241,4769781,2481,378
Nelson1,0001,2911,4479891,3101,4749691,2341,371
Timaru1,0001,2811,4391,0101,3471,4951,0061,2581,380
Invercargill1,0001,2931,4429911,3261,4831,0031,2621,387
        Ten larger centres1,0001,2851,4429961,3251,4819851,2451,375
        Six smaller North Island centres1,0001,2821,4301,0091,3411,4969881,2521,377
        Five smaller South Island centres1,0001,2781,4299951,3271,4829781,2341,360
        Twenty-five centres combined1,0001,2801,4631,0001,3361,4911,0001,2711,403

Retail Prices—New Zealand retail prices (weighted average prices over 25 centres) at 15 November 1971 of a number of the commodities which enter into the Consumers' Price Index are shown hereunder.

ItemUnitPrice
  Cents
Potatoes, newlb14.27
Potatoes, oldlb9.03
Appleslb19.64
Cabbagelb9.16
Carrotslb13.02
Onionslb11.33
Orangeslb20.05
Peaches, canned29 oz tin42.86
Peas, frozen30 oz packet45.81
Beef—  
    Sirloinlb65.29
    Prime riblb59.31
    Rump steaklb79.67
    Blade steaklb63.59
    Mincelb46.76
    Corned silversidelb63.48
    Sausages, beeflb27.60
Hogget—  
    Cut leg, knuckle endlb44.87
    Forequarterlb24.93
    Chops, middle loinlb44.28
Pork—  
    Leg, wholelb58.90
    Chops, middle loinlb60.76
Tripelb19.56
Sheep's liverlb39.62
Sheep's tongueeach6.22
Ham, cooked, slicedlb129.72
Bacon, sidelb81.93
Tarakihi filletslb59.15
Groper (hapuku) pieceslb58.74
Sole or flounder, guttedlb48.72
Smoked fishlb52.96
Salmon, fancy pink7 3/4 oz tin52.88
Milk, fresh, deliveredpint4.01
Butterlb32.91
Cheese, tasty, rindlesslb54.92
Milk powder, full cream2 1/2 lb tin124.22
Bread28 oz loaf14.22
Block cake, madeiralb45.36
Flour25 lb152.78
Oatmeal, pre-cooked3 lb packet47.56
Prepared breakfast food, wheaten24 oz packet35.37
Biscuits, chocolate wheaten7 1/2 oz packet27.73
Ricelb15.87
Sugar6 lb52.81
Honey1 lb carton35.56
Jam, apricot14 oz tin29.02
Tea1/2 lb35.15
Cocoa1/2 lb packet33.41
Coffee pure, ground, looselb102.09
Coffee, instant4 oz jar77.58
Salt, polythene wrapped5 lb bag27.42
Baked beans16 oz tin24.49
Tomato sauce10 oz bottle29.45
Tomato soup11 oz tin18.53
Aerated water10 oz bottle9.92
Ice cream, vanillapint block25.36
Chocolate, blockper 6 oz36.00
Meal, restaurant, three courseeach132.95
Eggs. 22 oz (in carton)dozen57.13
  $
Weekly dwelling rent, unfurnishedeach dwelling9.07
Concrete blocksper 10026.72
Wallpaperroll1.77
Paintgallon tin9.42
Weekly costs of owner-occupancy of dwelling—rateseach dwelling1.68
Coal, domestic1/4 ton6.53
Cokecwt1.67
Electric current (excluding water heating)150 kWh per month2.21
Electric current (including water heating)150 kWh per month5.55
Gas, domestictherm3.00
Kerosene, domestic usegallon0.32
Fuel oil, domestic heating, deliveredgallon0.23
Refrigerator 9.25 cu fteach215.00
Washing machine, semi-automatic, spin dryeach281.18
Vacuum cleanereach67.50
Radio, transistor, portableeach60.59
Television set, 23 in consoletteeach344.14
Electric radiatoreach40.14
Electric frying paneach34.95
Electric jugeach15.84
Electric toastereach10.00
Electric iron, dryeach13.51
Electric blanketeach25.31
Electric hand drilleach20.26
Lawn mower, hand typeeach36.50
Lawn mower, rotary typeeach198.00
Piano, uprighteach532.87
Perambulatoreach67.16
Dining room suiteeach104.38
Cocktail cabineteach142.48
Tallboyeach37.11
Child's coteach30.84
Lounge suiteeach285.03
Bedsteadeach29.42
Mattress, kapok, 3 fteach21.38
Mattress, inner spring 4 ft 6 in. with baseeach85.67
Mattress loam rubber 4 ft 6 in.each61.81
Venetian blinds, 72 in. wide, 44 in. dropeach31.98
Alarm clockeach9.32
Floor tiles, vinyl, 9 in. by 9 in. (veneer)each0.15
Doormat, coireach2.21
Drapery—  
    Blankets, single, all woolpair21.08
    Sheets, singlepair6.26
    Pillow, kapokeach2.18
    Towel, turkish, 24 in. by 48 in.each2.26
    Tea towel, lineneach0.83
Plate 10 in., replacement typeeach0.73
Knives, table, stainless steel1/2 doz7.18
Forks, table, E.P.N.S.1/2 doz6.62
Preserving jars, glass, quart 8 in.doz2.42
Casserole dish, 3 pinteach3.40
Mixing bowls, stainless steel, 8 in.each2.75
Saucepan, aluminium, 8 in.each7.88
Broomeach3.83
Scrubbing brusheach0.72
Bucket, plastic, 2 galloneach1.26
Hammer, carpenters, shafteach4.88
Planeeach7.45
Garden spadeeach7.04
Soap powder42 oz packet0.53
Detergents, plastic container19 1/2 oz0.47
Household cleaning pastestandard tin0.33
Disinfectant4 oz bottle0.37
Fly spray12 oz can1.05
Boot polish2 1/4 oz tin0.20
Floor polish8 oz tin0.57
Electric light bulb, 100 watteach0.27
Torch battery, dry celleach0.14
Telephone rental, private (main exchange)1 year59.94
Telegram, 15 wordseach0.44
Postage, lettereach0.03
Dry cleaning, men's two piece suitper suit1.54
Laundering sheets6 single1.00
Men's—  
    Raincoat, terylene mixture or similareach37.78
    Parka, unlinedeach12.72
    Raincoat, nyloneach7.14
    Hat, felteach8.65
    Suits, worsted, ready-made, two-pieceeach65.84
    Sports-coat, ready-madeeach41.09
    Trousers, sportspair17.64
    Trousers, jeanspair4.65
    Shirt, businesseach6.59
    Shirt, brushed cottoneach2.94
    Cardigan, all wooleach15.92
    Bathing trunks, bri-nyloneach4.15
    Pyjamas, flannelettepair4.74
    Singlet, athleticeach1.07
    Sockspair1.64
    Handkerchiefeach0.28
Women's—  
    Suit, coat and skirt, readymadeeach52.83
    Coat, woollen, wintereach52.80
    Raincoat, lightweighteach27.10
    Frock, summer, houseeach10.00
    Skirt, winter weighteach16.44
    Slacks, tailored, ready-madepair11.27
    Cardigan, all wooleach12.80
    Swimsuit, bri-nyloneach14.70
    Nightdress, nyloneach5.86
    Nightdress, winter weighteach3.87
    Underslip, nyloneach5.02
    Vest, silk and wooleach2.28
    Panties, interlockpair1.21
    Brassiere, cottoneach3.33
    Corset, lycraeach12.77
    Nylons, panty-hosepair1.53
    Umbrellaeach6.11
Boys'—  
    Raincoat, cottoneach12.45
    Blazereach17.12
    Trousers, shorts, worstedpair5.89
    Shirt, cotton, college styleeach4.03
    Shirt, T-shirt, cottoneach1.46
    Pullover, woolleneach7.07
    Sockspair1.56
Girls'—  
    Gym frockeach14.59
    Frock, summer uniformeach9.50
    Blouse, college, cottoneach3.66
    Pyjamas, winceyettepair2.83
    Bloomers, interlockpair0.91
    Sockettespair0.83
Infants—  
    Nursery squaresdoz5.71
    Baby's vesteach0.64
    Baby wool1 oz0.38
Piece goods—  
    Tweed, velour coatingyard5.06
    Viyellayard2.54
    Sailclothyard0.89
Dress patterneach0.83
Wool, hand knitting1 oz0.36
Men's—  
    Boots, heavypair16.12
    Shoes, lightpair15.66
    Sand shoespair2.63
    Jandals (thongs)pair1.65
    Slippers, leatherpair6.99
    Shoe repairs, half-soled and heeledpair3.42
Women's—  
    Shoes, heavypair11.60
    Shoes, lightpair12.67
    Slippers, feltpair3.38
    Shoe repairs, covered leather sole, heel tips and toe platespair2.41
Boys'—  
    Football bootspair8.63
    Shoes, heavypair7.78
    Gumbootspair4.96
    Shoe repairspair2.51
Girls'—  
    Shoes, schoolpair6.86
    Shoes, lightpair6.51
    Shoe repairspair1.78
Infants' shoes, plastic solepair1.79
Petrol, 83 octanegallon0.45
Petrol, 96 octanegallon0.48
Bicycle, men's sports roadstereach69.02
Bicycle tyreeach2.76
Bicycle tubeeach1.41
Cigarettespacket of 200.42
Tobacco, cigarette2 oz packet0.73
Aspirin, packet of 25per packet0.23
Toothbrusheach0.32
Toothpaste, large tubeper tube0.34
Toilet, soap, bath-sized tableteach0.15
Toilet paperper 3 rolls0.34
Face powder, block typeeach0.67
Hair rinseeach0.95
Razor blades, stainless steelpacket0.55
Electric razoreach23.04
Baby talcum powdersmall tin0.36
Attache case, fibreeach4.31
Leather briefcaseeach21.68
Suitcase largeeach13.74
Men's watch, wristleteach42.95
Newspaper, dailyeach0.05
Library subscriptionper book0.13
Popular book, paperbackeach0.75
Writing padeach0.20
Envelopes, 3 3/4 in. by 4 3/4 in.packet of 160.14
Developing and printing black and white filmper film0.84
Camera film, coloureach3.85
Tricycle, child'seach34.14
Teddy beareach8.47
Junior engineering construction seteach4.50
Tennis racqueteach9.75
Tennis ballspair0.86
Bowls, outdoorset of 437.58
Rifleeach38.59
Ammunition, .303box of 204.17
Opticians' fees, full examination and spectacles with caseeach20.74
Dental extractioneach3.16
Dental fillingseach2.59
Denturesset78.56
Medical expenses (excess over social security) private general hospitalper day6.79
Cinema admissionseat0.70
Football admissioneach0.31
Football club subscriptioneach3.36
Tennis club subscriptioneach11.32
Television licence1 year20.00
Haircut, meneach0.69
Haircut, womeneach0.73
Hairseteach1.59
Permanent waveeach6.79
Union dues (annual subscription)per member8.29
Funeral, burialeach261.42
Funeral, cremationeach228.43

International Comparisons—The two tables following provide comparisons of retail and wholesale prices respectively between New Zealand and certain other countries. All the prices have been converted into New Zealand currency and the Imperial liquid and dry measures have been adopted as the basis for common units of quantity. In the first table prices shown for the United States of America do not include sales tax. Currency conversion basis: Australia, A$1 = NZ$1; Canada, Can$1 = NZ85.63c; Great Britain, £1 = NZ$2.1429; South Africa, 1 Rand = NZ$1.25; United States, US$1 = NZ$85.070c.

INTERNATIONAL COMPARISON OF RETAIL PRICES OF BASIC FOODSTUFFS(At December 1971 in New Zealand currency)
ItemUnitNew Zealand (Average 25 Centres)Australia (Sydney)Great Britain* (London)South Africa (Cape Town)United States (Average 56 Cities)

* November 1971.

† 1 3/4 lb.

†† Cake flour.

‡ At price for 3 lb lots.

‡‡ Mixed coffee.

§ Loose.

|| December quarter, 1971.

¶ Sirloin.

** Cooking quality only available.

g Hogget.

p 29 oz.

Sources:

Australia: Commonwealth Statistician.

Great Britain: New Zealand High Commissioner.

South Africa: Bureau of Census and Statistics.

U.S.A.: Bureau of Labor.

  centscentscentscentscents
Bread2 lb14.322.019.313.942.0
Flour25 lb154.2256.2160.7220.0††253.9
Tealb74.865.068.692.8..
Coffeelb102.3§...98.666.0‡‡78.5
Sugarlb8.810.69.19.911.7
Milk (fresh)pint4.012.512.910.014.5
Butterlb32.958.062.159.774.3
Cheeselb57.249.855.752.990.5
Baconlb83.198.267.970.868.4
Pruneslb42.3...31.150.4..
Canned peaches30 oz tin42.2p33.5p30.030.4..
Beef, rib roastlb59.161.9||79.361.1104.6
Mutton, leglb44.1g33.1||...58.4..
Pork—      
    Leglb59.070.4||57.952.9..
    Chopslb60.868.6||107.155.195.3
Margarinelb**42.626.827.728.2

Comparisons in annual movement of Consumer Price Indexes of selected countries are given in the following table. (The base is calendar year 1965 = 1000.)

YearNew ZealandAustraliaCanadaFrance (Paris)JapanUnited KingdomUnited States
1960877914926825740840939
1961893938932852779869949
1962916935942893832905960
1963935940959944895924972
1964967962976972929955984
19651,0001,0001,0001,0001,0001,0001,000
19661,0281,0301,0371,0231,0511,0391,030
19671,0901,0621,0741,0571,0921,0651,059
19681,1371,0911,1191,1071,1501,1151,104
19691,1931,1231,1691,1771,2131,1761,163
19701,2711,1671,2081,2441,3081,2511,232
19711,4031,2371,2421,312 1,3681,284

WHOLESALE PRICES INDEX—The present Wholesale Prices Index was described in a special supplement to the October 1959 issue of the Monthly Abstract of Statistics under the title Index Numbers of Wholesale Prices. A brief summary of the salient features of this revision appeared in the 1960 Yearbook (pages 992-994).

The index is not a single wholesale prices index, but a series of price index numbers related to broad groupings of the inter-industry transactions distinguished in the department's input-output tables for the New Zealand economy. Thus each of the index numbers relates to a group of commodity transactions occurring at certain price levels between defined sectors in the economy. Capital goods as well as goods for current consumption or usage are represented in the various commodity flows.

Wholesale Prices Index Numbers—The table which follows is divided into two parts; the first covers “input” prices and the second “output” prices. Within the first part of the table there is a breakup into goods for industrial use (analysed by sector destinations), for consumption, and for export. In each flow imported goods are distinguished from locally produced goods. In this part of the table all prices are inclusive of sales tax and excise duties and net of subsidies; the prices for exports marketed overseas are the prices in these markets brought to an f.o.b. basis, i.e., their “input” prices to other countries.

In the second part of the table the broad producing sectors are distinguished. Here the prices of their outputs are used. They are taken before the addition of sales and excise duties or the deduction of subsidies. The prices for export meat and dairy products are those payable to producers under the different stabilisation and minimum export-meat-prices schemes.

The primary produce processing industries group comprises the two major industries, meat export works and dairy factories, processing farm products mainly for export.

The expression base for the index is the calendar year 1958.

WHOLESALE PRICES INDEXBase: 1958 (= 1000)Index Numbers of Commodity Prices by Sectors of Destination*
Calendar YearPrices Paid for Commodities Used byAll Commodities
Domestic IndustryConsumersDomestic Industry and ConsumersOther Countries (Exported)
ImportedHome ProducedTotalImportedHome ProducedTotalImportedHome ProducedTotalImportedHome ProducedTotal

*The prices used in this table are those payable by the using or consuming sectors, i.e., including indirect taxation and net after subsidies; the export prices are NZ$ f.o.b. equivalent of overseas market prices.

†This consists of manufacturing industries (excluding primary produce processing industries) building and construction, transport and communication, wholesale and retail trade, banking and finance, and public utilities and services.

‡Other than Primary Produce Processing Industries.

§ Includes wholesale and retail trade, banking and finance, and public utilities and services.

|| Provisional.

19581,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
19611,0121,0051,0081,0251,0341,0321,0151,0151,0151,0231,0151,0171,016
19621,0119929981,0331,0351,0351,0161,0071,0091,0491,0161,0161,016
19631,0341,0131,0201,0401,0501,0471,0351,0251,0281,1601,0351,0541,050
19641,0391,0711,0601,0371,0881,0761,0381,0771,0651,2591,0381,1161,097
19651,0581,1111,0931,0541,1111,0971,0571,1111,0941,1841,0571,1261,109
19661,0751,1311,1131,0761,1241,1131,0751,1291,1131,1591,0751,1351,120
19671,1041,1231,1171,1431,1981,1851,1141,1481,1381,0421,1141,1251,122
19681,2381,1741,1951,2871,2631,2691,2501,2041,2181,1441,2501,1911,206
19691,2991,2451,2631,3221,3171,3181,3051,2691,2801,2241,3051,2591,271
19701,3921,3061,3341,3751,4081,4001,3881,3401,3551,2341,3881,3181,335
1971||1,4961,3811,4191,4831,5391,5251,4931,4341,4521,3821,4931,4231,441
Calendar YearPrices Paid for Commodities Used by Domestic Industry
Primary IndustriesPrimary Produce Processing IndustriesAll Other Industries
ImportedHome ProducedTotalImportedHome ProducedTotalImportedHome ProducedTotal
FarmingAll Other Industries
19581,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
19611,0129481,0169861,0459409431,0111,0481,031
19621,0038391,0239409909199211,0121,0521,034
19639898481,0269439649529531,0391,0711,056
19649999671,0309979951,0491,0471,0431,1071,078
19651,0281,1491,0561,0911,0591,0911,0901,0611,1221,094
19661,0461,2611,1061,1621,0881,0751,0751,0771,1411,113
19671,0681,1621,1471,1391,1331,0031,0071,1071,1751,144
19681,1541,0581,2101,1341,2561,0841,0891,2451,2361,240
19691,2131,1201,2431,1841,2581,1961,1981,3081,2921,299
19701,3091,2101,2871,2571,2491,2191,2201,4021,3711,385
1971||1,3811,2871,3691,3361,4061,2041,2101,5081,4911,499
Calendar YearPrices Paid for Commodities Used by Domestic Industry
Manufacturing IndustriesBuilding and Construction
ImportedHome ProducedTotal
Other Manufacturing IndustriesAll Other IndustriesImportedHome ProducedTotal
19581,0001,0001,0001,0001,0001,0001,000
19611,0061,0261,0691,0261,0521,0561,054
19621,0061,0341,0381,0211,0461,0721,063
19631,0481,0391,1131,0611,0421,0721,061
19641,0431,0801,1811,0851,0701,0951,086
19651,0441,0841,1721,0841,0961,1411,124
19661,0631,0921,2091,1051,1101,1711,149
19671,0911,1631,1541,1251,1491,2031,183
19681,2501,2311,2241,2391,2841,2541,265
19691,3221,2981,3011,3111,3491,2981,316
19701,4071,3761,3311,3811,5081,4201,452
1971||1,5001,4781,4091,4731,6491,6081,623
Calendar YearPrices Paid for Commodities Used by Domestic Industry
Transport and CommunicationOther Industries§
ImportedHome ProducedTotalImportedHome ProducedTotal
19581,0001,0001,0001,0001,0001,000
19619801,0519991,0091,0421,033
19629921,0721,0141,0161,0601,048
19631,0091,0661,0251,0211,0631,051
19641,0171,0541,0271,0341,0861,071
19651,0721,0721,0721,0831,1031,097
19661,0731,0821,0761,1081,1061,107
19671,0961,1111,1001,1371,1871,173
19681,1891,1481,1781,2131,2461,237
19691,2271,1861,2161,2521,2881,278
19701,3071,2541,2921,3091,3701,353
1971||1,4301,3581,4101,4151,4811,463
Index Numbers of Commodity Prices by Sector of Origin*
Calendar YearPrices Received for Commodities Produced in New Zealand
Output ofUsed by
FarmingOther Primary IndustriesPrimary Produce Processing IndustriesOther Manufacturing IndustriesPublic UtilitiesAll Domestic IndustryIndustry and ConsumersOther Countries (Exported)

*The prices used in this part of the table are those receivable by producers, i.e., before addition of indirect taxation or deduction of consumer or user subsidies; prices for dairy produce and meat are those payable to producers under the schemes to stabilise returns from year to year.

†Comprises the outputs of the five sectors mentioned in this part of the table.

‡Provisional.

19581,0001,0001,0001,0001,0001,0001,0001,000
19619971,1139411,0381,0441,0091,014992
19629571,1469541,0411,0661,0031,005995
19631,0201,1569791,0621,0761,0371,0241,079
19641,1111,1861,0711,0961,0941,0991,0781,166
19651,1131,2311,0951,1091,1061,1121,1141,106
19661,1181,2861,1171,1261,1161,1261,1331,105
19671,0271,3271,0461,1581,1781,1021,134994
19681,0531,4311,1431,2301,2921,1671,1911,086
19691,1191,4861,2361,2961,2981,2351,2581,161
19701,1441,5311,2731,3841,3081,2901,3281,163
19711,1771,7001,3251,5121,3221,3731,4191,211
COMPARISON OF WHOLESALE PRICES OF CERTAIN COMMODITIES(At November 1971 in New Zealand currency)
ItemUnitNew Zealand*CanadaGreat BritainUnited States

* Priced once each quarter.

† Price excluding tax.

Sources:

Canada: Prices and Price Indexes - Dominion Bureau of Statistics.

Great Britain: wheat and oats - Ministry of Agriculture, Fisheries, and Food: butter and cheese-New Zealand Dairy Board: motor spirits - Department of Trade and Industry.

U.S.A.: Survey of Current Business.

  $$$$
Wheatbushel1.4501.4211.3371.470
Oatsbushel0.8000.6650.7430.807
Flourshort ton105.000150.027..103.380
Sugarcwt8.5869.399..11.361
Butterlb0.3100.6080.4780.591
Cheeselb0.373..0.3840.575
Motor spiritgallon0.407..0.7210.122

EXPORT PRICES—The Export Prices Index has a weighting base of 1959 quantities at 1960 prices. The wool prices used are derived from the clean, on-floor prices used in the Wool Price Index brought to an f.o.b. basis. The prices for lamb and mutton realised on the Smithfield, London, market, converted to an f.o.b. New Zealand equivalent are used for exports of whole-carcass meat shipped on consignment to Great Britain. Unit values from export statistics are used for other commodities. The prices for those goods which are consigned for sale in overseas markets therefore represent generally the ruling prices in those markets at time of export rather than the realised prices on sale.

Owing to fluctuations in the proportions of the different exports consigned to the United Kingdom and to other countries it was considered desirable, during 1963, to alter the published group and all-groups index numbers to an “all-exports” basis, that is, a single all-destinations unit value (or price) with a single weight substituted for the separate unit values and weights for the two destinations used previously. The differentiated destination weights and unit values for each commodity are, of course, still used in the separate indexes for the two destinations.

The Export Prices Index is being revised and the base changed to the year ended June 1971; the revised index is being published in the Monthly Abstract of Statistics.

In the following table are given export price index numbers for calendar years and for years ended 30 June.

EXPORT PRICES INDEX Base: Export prices during 1960 (= 1000)
PeriodButterCheeseAll Dairy ProduceMeatWoolMeat, Wool, and By-productsAll Pastoral and Dairy Produce
*Provisional.
Calendar year—       
19601,0001,0001,0001,0001,0001,0001,000
1961890990920949950951942
19621,0479981,022955929936961
19631,1459731,0771,0121,1161,0551,061
19641,2069901,1391,1121,2231,1681,160
19651,1851,0501,1781,2269561,0911,116
19661,0681,0281,1111,2159451,1051,107
19671,0511,0721,1031,1877709621,003
19681,0991,1711,1561,3777301,0401,074
19691,0971,1561,1301,5187891,1471,142
19701,1111,1761,1481,6277341,1421,144
1971*1,4611,4211,4801,6457241,1651,258
Year ended 30 June—       
19601,1961,1021,1599531,0311,0081,059
1961896991927992948966955
1962968995972905930921936
19631,0959861,0481,0031,0039931,009
19641,1819621,1011,0661,2701,1671,148
19651,2261,0381,1851,2269871,1011,125
19661,1051,0341,1361,1989791,1131,119
19671,0491,0361,0951,1998731,0371,054
19681,0771,1461,1401,3086779691,019
19691,0961,1601,1381,4248251,1201,125
19701,0971,1581,1301,5877671,1511,145
1971*1,1531,2561,2071,6597171,1611,174
PeriodAll FoodsAll Non-foodsAll ExportsAll Groups
To United KingdomTo Other Countries
Calendar Year—     
19601,0001,0001,0001,0001,000
1961937954945933954
1962992930964982931
19631,0491,0671,0561,0691,036
19641,1311,1741,1501,1671,128
19651,2011,0021,1111,1701,034
19661,1521,0371,1001,1001,090
19671,1378401,0031,035941
19681,2608591,0801,1171,031
19691,3249311,1461,1811,105
19701,3928611,1521,1941,089
1971*1,5708941,2651,3201,169
Year ended 30 June—     
19601,0671,0361,0541,0641,034
1961960953957954961
1962942934938938933
19631,0299821,0081,034974
19641,0891,1991,1391,1411,134
19651,2301,0091,1191,1851,034
19661,1581,0581,1131,1221,093
19671,1389471,0521,0681,026
19681,2177831,0221,083941
19691,2789481,1301,1501,103
19701,3629011,1541,2021,101
1971*1,4408781,1861,2321,120

The fact that the calendar year does not coincide with farm production year is especially significant in New Zealand, since the great bulk of export goods is farm produce. For a number of purposes the portion of the foregoing tables relative to years ended 30 June is the more important, in that the figures relate more closely to the farming year.

The next table shows export prices index numbers for all pastoral and dairy produce groups and for all groups combined.

Base: Export prices during 1960 (= 1000)
YearIndex Numbers
All Pastoral and Dairy ProduceAll Exports

*Upward trend in 1949 masked by appreciation in August 1948 of New Zealand pound to parity with sterling.

†Downward trend in 1968 would have been greater but for devaluation of New Zealand currency in November 1967.

‡Provisional.

1914283283
1915323321
1916384380
1917431430
1918438438
1919466463
1920475472
1921451449
1922349353
1923417416
1924466462
1925491486
1926396396
1927394393
1928439435
1929421419
1930327329
1931247253
1932224230
1933222230
1934277283
1935268276
1936310315
1937366369
1938336342
1939328335
1940381386
1941389396
1942401406
1943418423
1944440446
1945476481
1946521526
1947659661
1948733734
1949711710*
19501,0101,003
19511,1861,177
1952947947
19531,0571,053
19541,0751,073
19551,1031,102
19561,0771,075
19571,0641,059
1958901902
19591,0331,030
19601,0001,000
1961942945
1962961964
June year 19631,0091,008
19641,1481,139
19651,1251,119
19661,1191,113
19671,0541,052
19681,0191,022
19691,1251,130
19701,1451,154
19711,1741,186

The brisk demand for New Zealand wool displayed after the resumption of auction sales in September 1946, and greatly heightened during 1950 and the early part of 1951, resulted in the peak index numbers reached in 1951. After that wool prices fell away, and this, combined with low prices for dairy produce resulted in troughs in the index in 1958 and 1961. Wool prices had a like effect in 1967 and 1968. Recovery in 1969 was due, almost entirely, to improved meat prices, and this trend continued into 1970 and 1971.

IMPORT PRICES—Since 1949 the Import Prices Index has been derived from chained Fisher “Ideal” indexes. In this method two price indexes are calculated for each year on base previous year, one using the quantitive weighting pattern of the previous year and the other quantitative weighting pattern of the latest year. The geometric mean of these two becomes the definitive index for the year, on base previous year, and is linked on to the index for that year on some earlier expression base. Since the trade statistics have, since 1962, been prepared for years ended June, the definitive import and export price indexes, and consequently terms of trade, are calculated accordingly. As from 1959 the price index is designed to reflect changes in the true c.i.f. cost of imports. Previously the calculations were based solely on the current domestic values of imports in the countries of origin as verified by the Customs Department. Over a half of the total tonnage of imports is made up of fertilisers and mineral oils and fuels, with a low value per unit of weight, for which freights constitute a substantial proportion of the total c.i.f. cost. In a further range of items from salt, wheat, sugar, fresh fruits, and timber to iron and steel, pulp and paper, freights make up a significant proportion of the total c.i.f. cost. Consequently differential changes in prices and freight rates can result in current domestic valuation changes being only a poor indication of c.i.f. cost movements. By measuring current domestic valuation price changes at the item level, and adjusting for changes in c.d.v. and c.i.f. valuation ratios at the division level, the index now shows more accurately than in the past, changes in the true cost of imports to the New Zealand economy.

The year 1959 is now the standard expression base. The following table is on this base.

IMPORT PRICES INDEXBase: 1959 (=1000)
YearIndex Number
*Provisional.
1926435
1927416
1928393
1929386
1930382
1931356
1932337
1933346
1934341
1935336
1936335
1937355
1938356
1939357
1940411
1941457
1942501
1943555
1944581
1945592
1946661
1947787
1948803
1949731
1950801
1951938
19521,024
1953965
1954952
1955972
1956997
19571,030
19581,025
19591,000
19601,015
19611,020
19621,001
June year 1963993
19641,005
19651,009
19661,015
19671,014
19681,117
19691,242
19701,293
1971*1,368

The Import Prices Index is being revised and the base changed to the year ended June 1971; the revised index is being published in the Monthly Abstract of Statistics.

TERMS OF TRADE—The terms of trade is the expression of the ratio of export prices to import prices, i.e., an index of the purchasing power (in units of imports) of a fixed quantity of exports. In the table that follows terms of trade are expressed on base 1957 (= 100). However, an index above or below 100 means only that terms of trade are more or less favourable than in 1957. The choice of base year was arbitrarily made and is not intended to indicate that 1957 was a normal or standard year. For the purposes of this table both import prices and export prices indexes have necessarily been converted to a 1957 base.

The table below shows index numbers of import prices and of export prices and terms of trade for major commodity groups and total exports.

INDEX NUMBERS OF IMPORT AND EXPORT PRICES AND TERMS OF TRADEAll Countries—Base: 1957 (= 100)
PeriodImport PricesButterCheeseMeatWoolAll Exports
Export PriceTerms of TradeExport PriceTerms of TradeExport PriceTerms of TradeExport PriceTerms of TradeExport PriceTerms of Trade
*Provisional.
Calendar year—           
1957100100100100100100100100100100100
1959971271311731788891767897100
196099105106142144919382849496
1961999394141142878778798990
196297110113142146879077799194
Year ended 30 June—           
196396115119140146919583869599
19649812412713714097100105107108110
1965981281311481511121148183106108
1966991161171471491091118182105107
196798110112147150109111727399101
196810811310416315011911056519789
196912111595165137130108685610788
197012611592165131145115635010987
1971*13612189179132151112594411283

SHARE PRICES INDEX—The Share Prices Index is described in the special supplement to the March 1961 issue of the Monthly Abstract of Statistics under the title of Share Prices Index1960 Revision. The index is designed to reflect changes in the aggregate value of holdings of parcels of ordinary shares in representative selections of companies listed on the New Zealand Stock Exchanges and trading in New Zealand. In selecting the companies, the frequency with which shares are traded was used as a criterion as well as the value of the New Zealand shareholding. Within the subgroups the weights of the different companies are determined by the New Zealand shareholding, and appropriate methods take account of capital changes in the companies concerned.

The weights used to combine the subgroup indexes to obtain the group and all-groups indexes are fixed and are based on the aggregate value in 1960 of the total New Zealand shareholdings in all the exchange-listed companies which qualified for representation in the index.

Share Price and Dividend Yield Index Numbers—The following table shows the averages for the last 12 calendar years.

SHARE PRICES AND DIVIDEND YIELDS—GROUP INDEX NUMBERSBase: 1960 (= 1000)
Calendar YearIndustrialDistributionFinanceAll Groups
  Prices  
19601,0001,0001,0001,000
1961990930944968
19629588641,026963
19631,0949741,1421,089
19641,3301,1431,1531,252
19651,3691,1191,0581,245
19661,2799021,0421,153
19671,1257381,0281,031
19681,3347531,3481,232
19691,6868811,6881,541
19701,7418951,7051,581
19711,4978371,5291,380
  Dividend Yields  
19601,0001,0001,0001,000
19611,1511,1251,1351,143
19621,2571,2611,1591,228
19631,1591,1761,1301,153
19641,0371,0701,1331,067
19651,0541,1381,2821,120
19661,1661,4321,3681,250
19671,3691,7181,4261,433
19681,1961,5971,1701,238
19691,0191,3841,0461,068
19701,0831,4851,1071,135
19711,3101,6881,2751,351

SUMMARY OF PRICE MOVEMENTS—A comparative table of index numbers of various related prices series from the year 1926 onward is as follows. All index numbers are quoted on a New Zealand currency basis; index numbers of terms of trade on base 1965 = 100, all others on base 1965 = 1000.

YearImport PricesExport PricesTerms of TradeWholesale Prices*Consumers' PricesShare Prices (All Groups)
Pastoral and Dairy ProduceAll ExportsImportedHome ProducedTotalFoodAll Groups

*The three series have been individually linked.

†Provisional.

192643035535683354354349370405320
192741135335486333342332355402310
1928389393392101326347330362404321
192938237737799322346328365403336
193037829329678317333319351394391
193135222122865310293299305364234
193233320120762308276291280336222
193334219920761326271299264319259
193433724825576323279301279324303
193533224024875324302310301336321
193633127828486324310313314347305
193735132833295351333339345370309
193835230130838354340344357382289
193935329430286358363355379397275
194040734134785423371396388415288
194145234935679476392435398431289
194249635936574523411470407445292
194354937538169576415502409455339
194457539440170595425517416464369
194558642743374604433525415470389
194665446747372602440527416474429
194777859259576615417547442488543
194879465766183691517609499527439
194972363363988676528605513536424
1950792905903114717601649563566476
19519281,0631,059114836699768647629519
19521,01384985284942758853713678429
195395594794899895802844756709428
1954942963966103855839837795741492
1955961988992103870841846814760522
1956986596898893887878860786538
19571,01995395394916880889858803587
19581,01480781280946900914871839555
195998992692794970910928876871629
19601,00489690090956920931889877803
19611,00984485184960914928897893778
196298686186888961906922902916773
196398595195096979923940919935875
19641,0011,0391,0351039829699739729671,006
19651,0001,0001,0001001,0001,0001,0001,0001,0001,000
19661,003992990991,0171,0161,0171,0181,028926
19671,019899903891,0541,0341,0401,0921,090828
19681,201962972811,1831,0841,1131,1261,137990
19691,2461,0231,032831,2351,1421,1701,1801,1931,238
197013221,0251,037781,3131,2061,2391,2581,2711,270
19711,4451,1271,139791,412129113271,3731,4031,108

Various price index numbers for March and June years are given in the following table.

YearBase: Calendar Year 1965 (= 1000)
Import Prices (All Groups)Export Prices (All Groups)Wholesale Prices*Consumers' PricesShare Prices (All Groups)
ImportedHome ProducedTotalFoodAll Groups

*The two component series have been individually linked.

†Provisional.

Year ended 31 March
1940....368367362384401280
1945....597425518415465371
1950740..679534610517539432
19518091,087738634685584580493
1952969879875720799669647498
19531,000863937764853723685419
1954954964881814842768718442
1955944975855846840801747504
19569651,001876840849819764527
1957996962900885882862792543
19581,020915917889893865809596
19591,011822959909924875853549
1960991948966913929876872675
19611,004881956919931894881823
19621,005842961913927899900758
1963979888964906924902921791
1964989990984932948929941913
19651,0031,0239839809829859781,026
19661,0029941,0061,0051,0061,0061,007974
19671,0049711,0241,0191,0211,0311,039900
19681,0619031,0821,0431,0561,1001,103829
19691,2139921,2011,0971,1281,1421,1521,076
1970125710301,2471,1531,1811,1921,2071,271
1971134210461,3381,2291,2611,2911,3031,224
Year ended 30 June
1940..341383371373387405284
1945..426599426520416467374
1950757732687549621528545443
19518371,134767657711605596508
1952998857903734822687660474
1953978917926775851732692415
1954949970870827840783728459
1955947964860846842806751512
1956977984880849855827769533
19571,005986908888887865797555
19581,016825919889894867813587
19591,003860972912930875864557
19601,001949962918931876873726
19611,001861957917930897884827
19621,002844962910925902907755
1963982907971908927906926808
19649941,024982945956941948945
19659981,0079909889899939861,034
19661,0041,0021,0071,0111,0101,0141,015957
19671,0039471,0361,0251,0291,0511,055877
19681,1059201,1131,0511,0701,1061,113855
19691228x1,0171,2141,1121,1431,1561,1671,144
1970127910391,2631,1701,1981,2101,2221,286
1971135310681,3651,2501,2851,3181,3371,186

Chapter 24. Section 24 CONSUMPTION OF FOOD

Table of Contents

CONSUMPTION IN NEW ZEALAND—The estimates of consumption per head of population in New Zealand, in the tables which follow, have been compiled by deducting net exports from the sum of production and imports, and allowing for recorded and estimated movements in stocks of commodities.

While the estimates may be generally accepted as being reasonably accurate there are some deficiencies to which attention needs to be directed. These relate principally to the quantities of fruit, vegetables, poultry, eggs, and milk which enter into consumption. Little information is available on the quantities of these foodstuffs produced by householders for their own requirements, or on the extent of wastage which occurs in the marketing of these and other foodstuffs. In all these cases estimates have been compiled from the best available data and the quantities shown under consumption have been adjusted to allow for these circumstances.

The absence of particulars of stocks of certain commodities will result in some variation in imputed consumption from year to year but generally the figures do indicate a fairly accurate trend in consumption patterns. Consumption of food is measured in general at producer level. As a result no allowance is made for wastage before the foodstuffs are consumed (either at retailer or consumer level) but this wastage is probably diminishing to negligible proportions with more efficient distribution and storage facilities.

Dairy Products—New Zealanders are the world's largest consumers of butter per head, but are fairly moderate consumers of cheese. While changes in consumption patterns of milk, cream, cheese, fats, and eggs have been slight over recent years there has been a steadily rising consumption of ice cream.

Estimated figures of annual consumption per head of mean population for the main items of dairy and similar produce are given below.

ProductUnit19381967196819691970
*Includes condensed milk, evaporated milk and cream, milk powders, and sugar of milk.
Fresh milkpint220246246248250
Creampint75555
Processed milk*lb5181716x18
Cheeselb57899
Ice creampint3212425x33
Butterlb4142x41x41x40
Lard, tallow, animal fatslb..7765
Vegetable oils and other fatslb..3334
Eggsdozen2026272526

Meat, Poultry, and Fish—There are gradual changes taking place in consumption patterns in meats, poultry, and fish, with a gradual decline in the consumption of beef and a steady increase in the consumption of mutton, lamb, and poultry, with little change in the consumption of veal, pork, ham, and bacon.

In estimated average annual consumption of meats an allowance has been made for killings on farms. The weights shown are in each case on a bone-in dressed carcass basis.

Estimates have been made of non-commercial catches of fish, and home production of poultry in the figures shown below.

ProductUnit19381967196819691970
Beeflb114102999996
Veallb88887
Muttonlb6964666868
Lamblb22222021
Porklb914141415
Ham and baconlb1715161516
Edible offallb910101111
Poultrylb4991113
Fish—      
    Fresh, frozenlb111210109
    Shellfishlb12233
    Cannedlb31122

Vegetables and Fruits—Domestic garden production is taken into account for fruit and vegetables, although it is difficult to calculate consumption quantities from this source. The estimates include, at fresh weights, the fruits and vegetables grown in New Zealand and either quick-frozen or canned for local consumption.

There are considerable variations from year to year for many of the commodities and these are often a reflection of a poor growing season, consumer resistance to higher prices, or a change in consumption pattern.

Annual consumption per head of mean population for individual items is estimated as follows.

ProductUnit19381967196819691970

*Includes asparagus, beans, brussels sprouts, cucumber, leeks, parsnip, spinach, swedes, sweetcorn, etc.

†Includes grapefruit, lemons, mandarins, tangelos, etc.

‡Includes apricots, nectarines, plums, grapes, pineapples, tamarilloes, kiwi fruit, passionfruit, etc.

Fresh vegetables      
    Potatoeslb119122153160147
    Kumaraslb85566
    Cabbagelb3025243330
    Carrotslb1223232930
    Cauliflowerlb..27272725
    Lettucelb..15141614
    Onionslb..15152114
    Pumpkinlb..15151414
    Tomatoeslb2020222123
    Other vegetables*lb..22232723
Canned vegetableslb222161917
Quick-frozen vegetableslb..16141715
Fresh fruit      
    Orangeslb1614141311
    Other citrus fruitlb65658
    Bananaslb2023191517
    Appleslb4544494353
    Pears and quinceslb610111011
    Berry fruitslb..4445
    Peacheslb..16181719
Other fruitslb..13121214
Dried fruitlb..8888
Canned fruitlb1818171218

Other Foodstuffs, Beverages, etc.—The most significant change in consumption of foodstuffs is the fall in wheat products (flour, bread, etc.).

There have been gradual changes in the preferences for beverages with a gradual rise in the consumption of beer and a relatively faster increase in wines.

ProductUnit19381967196819691970

*Includes treacle and golden syrup.

†Includes dried peas, beans, and lentils.

‡Includes barley, and maize used for cornflower and corn flakes only. §Calculations are based on total imports in the period—no information is available on stocks held, hence short-term trends are not readily apparent.

Foodstuffs      
    Refined sugarlb9783949190
    Syrups etc.*lb..87109
    Honeylb..5544
    Pulseslb23334
    Nutslb..4464
    Cocoalb22212
    Cereals—      
        Wheatlb178169165164162
        Oatslb94444
        Ricelb53334
        Otherlb..2231
Beverages      
    Beergal11.124.224.324.525.7
    Grape winegal0.20.80.91.11.2
    Spiritsgal0.30.40.40.40.4
    Tea§lb6.66.26.65.85.5
    Coffee§lb0.32.82.92.85.6
Tobaccolb3.85.35.15.25.5

PROPORTION OF FOODSTUFFS EXPORTED—A considerable proportion of the foodstuffs produced in New Zealand are not consumed in New Zealand and the following table indicates the percentage of the main commodities exported.

Product19661967196819691970
Dairy products     
    Processed milk75.675.473.087.1106.7*
    Cheese93.698.183.994.388.1
    Butter73.282.480.178.580.8
    Tallow and animal fats71.573.377.275.774.5
Meat, poultry, fish     
    Beef53.355.160.561.7 
    Veal56.559.858.058.0 
    Pork3.31.72.91.3 
    Mutton49.357.060.973.4 
    Lamb92.991.792.391.6 
    Offal71.274.275.977.1 
    Other meat18.922.922.818.3 
    Fresh fish18.019.325.425.938.2
    Shellfish39.545.852.369.741.8
Fruit and vegetables     
    Apples48.240.440.744.244.5
    Pears21.515.517.314.116.3
    Berryfruits1.04.95.58.95.4
    Potatoes2.91.82.42.24.8
    Onions17.022.734.514.032.0
    Canned vegetables7.86.09.48.513.5
    Quick-frozen vegetables15.514.529.626.336.8
Product19661967196819691970
*In some cases exports may exceed production for the period, the balance being drawn from stocks in store.
Other foodstuffs     
Barley--2.10.8- -
Sugar1.01.32.01.91.5
Honey5.95.83.55.310.2
Pulses67.062.454.948.954.5
Eggs0.91.31.93.03.3

CONSUMPTION OF DAIRY PRODUCTS IN SELECTED COUNTRIES—The following table shows consumption per head of dairy produce and similar products in various countries.

CountryYearFresh MilkCheeseButterMargarineEggs
Source: Commonwealth Secretariat
  pintslbslbslbsdozen
Australia1,9672267.821.610.617
Canada1,9672089.016.49.421
Denmark1,96723020.620.939.717
New Zealand1,9692489.538.8-25
Sweden1,96726818.316.336.317
United Kingdom1,96825011.119.211.421
United States1,96719910.65.610.824

COMPARISON WITH OTHER COUNTRIES—The table which follows presents statistics for selected countries of food consumption extracted from the Food and Agricultural Organisation's Production Yearbook. Total consumption in calories per person per day is shown, and includes foodstuffs not specifically mentioned in the table (i.e., pulses and nuts, eggs, fish, fats, and oils, all of which are consumed in considerably smaller quantities than the foodstuffs shown in the table).

CountryYearGrams per Day per PersonCalories per Day
CerealsPotatoes, StarchesSugars, SyrupsVegetablesFruitsMeatMilk Products

*Provisional.

†Estimated.

Europe         
    United Kingdom*1968-692022801321651502055953,180
    Italy*1968-69357127743943081293872,940
    Yugoslavia*1,96751418167167155852813,200
    Israel1967-6830597953174281453732,930
Africa         
    South Africa1964-6646744114431001142152,810
    Ghana1964-661611,07724...3026182,130
    United Arab Republic1966-676003358268260351202,960
Asia         
    India*1966-683704443............1,900
    Japan*1,96837018161370141371232,460
North America         
    Canada*1,9671862101342282272506383,180
    U.S.A.1,9681781221393142232996713,240
    Mexico1964-663695810933182531562,600
South America         
    Brazil*1,9662694539852242741792,700
    Chile1964-6640917887207122952702,720
Oceania         
    Australia*1967-682211401421842252906313,110
    New Zealand1,9672211581162471733025633,292
    New Zealand1,9682161961312381743035373,358
    New Zealand1,9692152071292781573055473,324
    New Zealand1,970213191124252180 548 

SUBSIDIES—Government subsidies on food items were introduced in 1942 as part of the economic stabilisation policy during the war. The subsidies on butter, bread, and flour were removed as from 11 February 1967. Prices of butter and sugar were stabilised at March 1972.

The amount of subsidy being paid on the main remaining food items has been as follows.

ProductUnit19671968196919701971

*As at 31 March.

†Average subsidy for year ended 31 August.

    cents  
Eggs*dozen3.333.333.333.333.33
Milkgallon19.9318.2216.7519.6826.83

The following table shows the total cost of subsidies paid under the stabilisation vote. Other subsidies, involving relatively small amounts, are included in other government expenditure. The total amount of all subsidies will be found in the section on National Income and Expenditure.

Subsidy ItemsYear Ended 31 March
1968196919701971
  $(thousand)  
Milk14,67613,31314,02618,171
Eggs1,2491,2721,3551,615
Gas1,3581,3491,3181,202
Industrial coal (rail transport)550489481420
            Totals17,83416,42317,18021,408

Chapter 25. Section 25 ECONOMIC AGGREGATES

25 A—NATIONAL INCOME AND EXPENDITURE

GENERAL—The national accounts record the value of goods and services produced by a country and the way in which these are used. Within the accounts the flow of production and disposal of goods and incomes are analysed in various ways to provide information on the inter-relationship between industrial and institutional sectors of the economy and between the economy and the rest of the world. The accounts are used as the statistical framework within which economic policy and planning is formulated and applied, the values of the various items in the accounts providing a quantitative measure of the country's economic performance and a benchmark against which to compare other measures of economic and social well-being.

National Income—The principal aggregate is that of “national income”, which, in general terms, measures the total value of all incomes (before deduction of direct taxation) earned by the residents of New Zealand in producing the current output of goods and services.

Income can be earned in a variety of ways, and accrues to individuals according to the manner in which they participate in current production. Salary and wage payments represent the return to labour for services rendered, and include in this concept supplementary income in kind such as board and lodging provided by the employer.

Rental value of owner-occupied houses is a non-monetary item representing the imputed net rent (before payment of rates, but after deductions for depreciation, mortgage interest, insurance, and repairs and maintenance) of all owner-occupied houses (except farmhouses).

Other personal income (excluding company dividends) represents the aggregate income of professional men, farmers, and individual traders, as well as income other than salary and wages received by salary and wage earners—e.g., rent and interest. Included under this heading as current income is the amount accruing to primary-produce stabilisation accounts.

Company income represents the total income (distributed and undistributed) of companies. This means that dividends distributed to individuals are included under this heading, and not as personal income.

Apart from these incomes, which result from current productive activities on the part of individuals receiving them, there are other incomes of a “non-productive” nature in the form of social security benefits, pensions, and interest on public debt. These transfer incomes, as they are called, do not arise from the current production of goods and services and must therefore be excluded from the national income. They do, however, form part of the intermediate concept of private income, which represents the aggregate of earned incomes and unearned transfer incomes received by or accruing to persons. The deduction of direct taxation gives the concept of private disposable income. Capital receipts—e.g., from deceased persons' estates, repayment of debt, etc.—are, however, excluded both from private income and national income.

The addition to private income of Government and local authority trading profits and the deduction of transfer incomes, as already detailed, gives the concept of net national income at factor cost or, more briefly, national income. This may be defined as the income (before tax) earned by or accruing to the factors of production, in or only temporarily absent from New Zealand, in producing the current output of goods and services of all kinds. The further addition of indirect taxes (net of subsidies) is necessary to bring the national income to market price valuation.

Gross National Product—Gross national product is obtained by adding depreciation allowances to national income at market prices, and represents the value of output before deduction of allowances for depreciation and obsolescence attributable to the factors of production supplied by New Zealand residents during the year.

Gross Domestic Expenditure—This represents the total final expenditure of New Zealand residents during the year, irrespective of where the expenditure was incurred. It is the sum of personal expenditure on consumer goods and services, public authority current expenditure on goods and services, gross domestic capital formation, and changes in stocks. These four components are described in more detail in the following paragraphs.

Personal Expenditure on Consumer Goods and Services represents the value of the purchases of households and non-profit-making organisations. Besides the day-to-day expenditure on food, clothing, rent, travel and other services, etc., it includes expenditure on such items as motorcars for private use and household durables. The notable exception is expenditure on the purchase of houses; this is recorded under private capital formation.

Public Authority Current Expenditure on Goods and Services shows the current expenditure of the non-trading organs of the Central Government and local authorities. It does not include payment of pensions, monetary social security benefits or subsidies which are transfers and do not, in themselves, represent an expenditure on production. A more detailed analysis of public authority current expenditure is given later.

Gross Capital Formation represents the expenditure in New Zealand on new assets such as buildings, roads and other construction, plant, machinery and motor vehicles for business use. It does not include the value of land and secondhand assets purchased during the year which is a transfer of an asset. Nor does it include expenditure on financial assets such as company shares; such transactions do not result in direct expenditure but transfer claims from one person or organisation to another.

Change in Stocks—This represents changes in the value of stocks which may be the result of changes in volume, changes in unit values, or a combination of the two.

By adding the value of exported goods and services to gross domestic expenditure and deducting the value of imports, an estimate of the expenditure on gross domestic product is arrived at. This represents the value of goods and services produced in New Zealand during the year. The deduction of payments for the use of overseas-owned factors (capital and labour) completes the reconciliation of expenditure with the value of gross national product.

The following table shows for March years some of the more important aggregates.

PRINCIPAL AGGREGATES OF INCOME AND EXPENDITURE
Item1963-641964-651965-661966-671967-681968-691969-701970-71*
*Provisional.
National income2,7423,0023,2613,3563,4593,6744,0314,634
Gross national product $m3,1973,4913,7843,9194,0744,3344,7415,432
Personal expenditure on consumer goods and services $m1,9932,1342,3682,3942,5342,6382,8293,351
    As percentage of gross national product6261626162616062
Gross capital formation in New Zealand $m7098129089558709161,0191,204
    As percentage of gross national product2223242421212122
Public authority current expenditure on goods and services $m417460516565598649723884
    As percentage of gross national product1313141415151516
Private income $m2,9373,1943,4603,5773,6853,9024,2764,948
Private savings $m395421384411371465550513
    As percentage of private income1313111110121310

In the year ended 31 March 1971 the gross national product was valued at $5,432 million, an increase of 14.6 percent on the 1969-70 figure of $4,741 million. Preceding annual increases were 9.4 percent in 1969-70, 6.4 percent in 1968-69, and 4 percent in 1967-68.

Gross national product at constant prices rose by 4 percent compared with rises of 4.7 percent in 1969-70 and 1.5 percent in 1968-69, and a fall of 0.4 percent in 1967-68. The 1970-71 figures reflect the continued recovery in economic activity since the recession of 1967 and early 1968.

The three main components of national income, namely, salaries and wages, company incomes, and “other personal income”, when expressed in current values increased by 20.5 percent, 7.4 percent and 9 percent respectively. Within “other personal income” farming income increased by 4.8 percent.

In 1970-71 New Zealand had a deficit of $209 million on current account with the rest of the world; this can be compared with surpluses of $22 million and $42 million in 1969-70 and 1968-69 and a deficit of $86 million in 1967-68. Exports of goods at $1,110 million and imports of goods at $1,042 million gave a balance of commodity trade of $68 million in 1970-71, compared with $289 million in 1969-70. A reduction in income accruing to overseas investors contributed to the deficit of net factor payments to the rest of the world falling from $97 million in 1969-70 to $77 million in 1970-71.

Total savings showed an increase of 11 percent in 1970-71, compared with 13.4 percent in the previous year. As a proportion of gross national product, total savings fell to 21.8 percent compared with 24.7 percent in 1969-70.

Gross domestic expenditure, at $5,627 million, was 19.7 percent greater in 1970-71 than in 1969-70, compared with a 14.6 percent rise in gross national product. The percentage increases in the components of gross domestic expenditure in 1970-71 over the preceding year were as follows: personal consumption increased by 18.5 percent to $3,351 million; Government and local authority current expenditure on goods and services by 22.3 percent to $884 million; Government and local authority capital expenditure by 12 percent to $428 million. Private capital expenditure, including that of public corporations, rose by 21.8 percent to $776 million. Private capital expenditure has fluctuated considerably in the past 4 years with a fall of 15.4 percent in 1967-68 and subsequent annual increases of 9.7, 17.5, and 21.8 percent.

The estimates of national expenditure should be used with some caution, owing to the fact that not all of the items of expenditure can be estimated directly. Whatever inherent error may exist in the absolute values of individual expenditure items, year-to-year changes are likely to be reliable because the method of estimation remains the same.

In national income aggregates, no allowances have been made for any possible understatement of incomes shown in the taxation returns on which the estimates are based. Nor do these aggregates take into account “negative” incomes or losses of previous years allowed as a set-off against current profits for taxation purposes. Any understatement of the gross product total arising from these sources will therefore be reflected in a similar understatement of personal consumption which is shown as a residual item in the break-up of national expenditure. Direct estimates are made of public authority current expenditure on goods and services, gross capital formation in New Zealand by private and public authority sectors, and the balance of overseas payments on current account (sometimes termed net overseas investment or net lending abroad).

After ascertaining personal consumption in the manner outlined above, it becomes possible to make an estimate of private savings. By deducting personal expenditure and direct taxation from aggregate private income, another residual is obtained—viz, private savings. Being a residual item it will, of course, contain certain minor errors of estimation inherent in the aggregates from which it is derived. It will be free, however, from the major apparent error which is caused by the understatement of incomes through tax evasion; this is due to the fact that the underestimate is cancelled out by being included both in the minuend and subtrahend, and the residual is consequently not affected.

Full details of the methods used and a description of the items in the tables are given in National Income and Expenditure 1970-71, obtainable from Government bookshops.

It is recognised that in this form the accounts do not completely fulfil the present needs of Government or those of the National Development Council. Work on a more sophisticated system of national accounts is proceeding. Meantime it is intended to continue the present series.

CONSTANT PRICE ESTIMATES OF THE MAIN AGGREGATES—National accounting aggregates are, by their nature, summations of the values of all goods and services produced or consumed in a particular year. If the values of goods and services are expressed in current prices (i.e., the market prices prevailing in each particular year) then any comparison between 2 or more years is affected not only by changes in the volume of production between those years but in annual price movements as well. The effect of annual price movements is eliminated if all annual values are expressed in the average prices of a base period; the base used here is the year 1954-55. By expressing the aggregates in constant prices, and not in current values, their real value in terms of goods and services, either produced or available for use, can be better appreciated.

Three of the principal national accounts aggregates, gross national product, gross domestic product, and gross domestic expenditure, are expressed in current as well as 1954-55 prices in the following table.

YearAt Current PricesAt Constant 1954-55 Prices
Gross National ProductGross Domestic ProductGross Domestic ExpenditureGross National ProductGross Domestic ProductGross Domestic Expenditure
*Provisional.
    $(million)  
1954-551,8601,8771,9271,8601,8771,927
1955-561,9651,9792,0151,9321,9461,961
1956-572,0612,0782,0791,9681,9841,955
1957-582,1842,2012,2652,0712,0872,102
1958-592,2702,2942,2962,1232,1452,031
1959-602,4342,4542,3382,2122,2302,086
1960-612,6222,6592,7122,3342,3672,359
1961-622,7222,7532,8142,4182,4462,394
1962-632,9212,9662,9492,4832,5212,418
1963-643,1973,2403,2112,6392,6752,633
1964-653,4913,5503,5062,7912,8382,842
1965-663,7843,8373,9392,9693,0113,105
1966-673,9193,9844,0583,0843,1353,229
1967-684,0744,1294,1413,0713,1123,019
1968-694,3344,4154,2783,1183,1762,944
1969-704,7414,8384,7013,2633,3303,101
1970-71*5,4325,5095,6273,3933,4413,355

GROSS NATIONAL PRODUCT AND EXPENDITURE—The following table gives the composition of the national income by factor shares plus net indirect taxation and depreciation allowances entering into the market prices of all goods and services the production of which can be attributed to New Zealand residents (gross national product); the other side of the product account is a descriptionof final expenditure on gross national product by type of expenditure. Personal expenditure on consumer goods and services is obtained as a residual item in this table, all other aggregates being obtained by direct estimates.

GROSS NATIONAL PRODUCT
March YearSalary and Wage PaymentsPay and Allowances of Armed ForcesRental Value, Owner-occupied HousesOther Personal IncomeCompany IncomePublic Authority Trading IncomeLess Public Debt Interest Paid in New ZealandNational Income at Factor CostPlus Indirect TaxationLess SubsidiesNational Income at Market PricesPlus Depreciation AllowancesGross National Product
*Provisional.
       $(million)      
1950-51557122748714234- 341,225111- 191,318781,396
1951-52656173038316040- 351,250142- 321,360861,446
1952-53696213340815539- 341,317134- 301,421961,517
1953-54769243744818150- 371,471135- 311,5751061,681
1954-55862244046319560- 411,603161- 271,7381221,860
1955-56937244347318864- 421,688171- 251,8331321,965
1956-57990244650219761- 471,773168- 271,9151462,061
1957-581,068264850421165- 531,870182- 272,0261582,184
1958-591,116255049721974- 571,923208- 272,1041662,270
1959-601,181265155324282- 592,075217- 262,2661682,434
1960-611,277275156929191- 652,242226- 312,4371852,622
1961-621,3652760545288100- 702,315231- 282,5182042,722
1962-631,4452981598323105- 772,504228- 292,7032192,921
1963-641,5543086666370123- 892,742254- 302,9662323,197
1964-651,7233296692418136- 953,002276- 353,2422493,491
1965-661,89035109710475147-1043,261289- 393,5112733,784
1966-672,04139119663464147-1163,356301- 393,6183013,919
1967-682,12742130660457167-1243,459316- 213,7543204,074
1968-692,23943136688518185-1363,674343- 193,9983364,334
1969-702,45745149736591202-1494,031377- 244,3843574,741
1970-71*2,96056167802635173-1594,634459- 465,0473855,432
GROSS DOMESTIC EXPENDITURE
March YearPersonal Expenditure on Consumer Goods and ServicesPublic Authority Current Expenditure on Goods and ServicesGross Capital Formation in New ZealandChanges in StocksGross Domestic ExpenditureExports of Goods and ServicesImports of Goods and ServicesExpenditure on Gross Domestic ProductNet Factor Payments to Rest of WorldExpenditure on Gross National Product
PrivatePublic Authority
*Provisional.
      $(million)     
1950-51830153152100981,333429-3541,408-121,396
1951-52956186186106741,508526-5751,459-131,446
1952-53938212202147261,525516-5131,528-111,517
1953-541,049226215158-421,606525-4411,690- 91,681
1954-551,201227277164581,927507-5571,877-171,860
1955-561,275249266187382,015565-6011,979-141,965
1956-571,326274256203202,079595-5962,078-172,061
1957-581,445287287214322,265593-6572,201-172,184
1958-591,459302290214312,296576-5782,294-242,270
1959-601,465324297226262,338671-5552,454-192,434
1960-611,723346366233442,712630-6832,659-372,622
1961-621,793363393241242,814634-6952,753-312,722
1962-631,878394387255352,949671-6542,966-462,921
1963-641,993417423286923,211788-7593,240-423,197
1964-652,1344605003121003,506837-7933,550-593,491
1965-662,3685165663421473,939831-9333,837-543,784
1966-672,3945655843711444,058881-9553,984-663,919
1967-682,5345984943761394,140856-8674,129-554,074
1968-692,38649542374754,2781,125-9884,415-814,334
1969-702,8297236373821304,7011,277-1,1404,838-974,741
1970-71*3,3518847764281885,6271,295-1,4135,509-775,432

The graph which follows demonstrates the use to which resources available in New Zealand were put during selected years. The numerical values for this graph are derived from the expenditure part of the preceding account, and total resources available in New Zealand are equivalent to gross national product plus deficit or minus surplus on current balance of payments accounts.

The following tables provide some more detailed analysis of particular aspects of the national accounts.

Private Income and Outlay—This table gives in detail the break-up of private income and, on the expenditure side, the manner in which these incomes are spent on personal expenditure on consumer goods and services, paid in direct taxation, or saved. An analysis of other personal income is also given.

The total of personal consumption derived from the preceding table is carried forward to this table and this time private savings is obtained as a residual item. The limitations of these two residual items have already been mentioned.

Revenue Account of Public Authorities—The Government sector is discussed in more detail later in this section, but this table gives a consolidated statement of Central Government and local authority revenue and expenditure, showing as a balance that portion of the revenue which was available for capital formation and other capital transactions.

Combined Capital Account—This account indicates the manner in which resources for capital formation have been made available (a) from private savings, (b) from revenue surpluses of public authorities, and (c) from amounts set aside as depreciation. Gross capital formation represents the construction in New Zealand or purchase from overseas of durable capital assets by the private, Central Government, and the local authority sectors, plus the net change in stocks of trading concerns.

Rest of World Account—An account of external economic transactions between New Zealand and other countries; it is in essence, a balance of payments on current account for the period, presented here in abridged form.

These four tables, then, give a comprehensive picture in broad terms of the changing pattern of New Zealand's economy. One important point to consider when examining the tables, however, is that all the figures are at prices current during the period and consequently are inflated to a greater or lesser extent by price movements over the period.

PRIVATE INCOME AND OUTLAY
March YearSalary and Wage PaymentsPay and Allowances of Armed ForcesSocial Security Benefits and PensionsRental Value of Owner-occupied HousesOther Personal IncomeCompany Income Before DistributionPrivate Income (Before Tax)
FarmingManufacturing and CommerceProfessional and Other ServicesSurplus of Primary Produce Stabilisation AccountsWool Retention Moneys and Supplementary PaymentsInterest, Rent, etc
*Provisional.
 INCOME $(million)
1950-5155712942723682323566361421,319
1951-526561710530209963611- 5361601,350
1952-536962110733232104388-12381551,420
1953-547692411537259115423-11401811,572
1954-558622412240263126441-11401951,706
1955-5693724128432571324611- 13401881,794
1956-57990241324629014250- 10-12421971,891
1957-581,068261394828715658-39- -422111,997
1958-591,1162516050249145581- -442192,065
1959-601,18126198512791515820- -462422,251
1960-611,277272135128917766-11- -482912,429
1961-621,365272186025118668-10- -502882,503
1962-631,4452921981272194746- -523232,694
1963-641,55430229863152047698543702,937
1964-651,723322349632121684112584183,194
1965-661,89035242109332229882- 5644753,460
1966-672,0413925211929821397-15- 4744643,577
1967-682,1274226913029420198-13- 2824573,685
1968-692,23943278136297205106- 8- -885183,902
1969-702,45745298149310221119-113945914,276
1970-71*2,96056328167325240134211006354,948
March YearPersonal Expenditure on Consumer Goods and ServicesNet Transfers to Rest of WorldDirect TaxationPrivate SavingsPrivate Outlay
Undistributed Profits of CompaniesOther Private Savings
*Provisional.
 OUTLAY $(million)
1950-518304226572021,319
1951-52956-428449651,350
1952-53938-3292391541,420
1953-541,0491308581561,572
1954-551,2012336571101,706
1955-561,275- -348421291,794
1956-571,326- -370461491,891
1957-581,445-1345451631,997
1958-591,459344264972,065
1959-601,4656420772832,251
1960-611,7238493831222,429
1961-621,7938531611102,503
1962-631,8789505872152,694
1963-641,99375421082872,937
1964-652,134106291013203,194
1965-662,368176911542303,460
1966-672,394177551442673,577
1967-682,534137671422293,685
1968-692,63887912102553,902
1969-702,829108872463044,276
1970-71*3,35151,0792362774,948
REVENUE ACCOUNT OF PUBLIC AUTHORITIES (CENTRAL GOVERNMENT AND LOCAL AUTHORITIES)
March YearTaxationTrading IncomeLess Direct Taxes Paid by Public Authority Trading UndertakingsTotal Revenue
DirectIndirect
*Provisional.
 REVENUE $(million)
1951-5228814240- 4466
1952-5329613439- 5464
1953-5431113550- 4492
1954-5534216160- 5558
1955-5635417164- 6582
1956-5737616861- 6599
1957-5835018265- 4593
1958-5944720874- 5724
1959-6042521782- 6718
1960-6149922691- 7809
1961-62538231100- 7862
1962-63512228105- 8838
1963-64551254123- 9919
1964-65640276136-111,040
1965-66702289147-111,127
1966-67767301147-121,203
1967-68780316167-131,250
1968-69806343185-151,320
1969-70904377202-171,466
1970-71*1,095459173-161,711
March YearCurrent Expenditure on Goods and ServicesTransfer IncomeSubsidiesBalance of Revenue Over ExpenditureTotal Expenditure Plus or Minus Revenue Balances
Social Security Benefits and PensionsNet Transfers to Rest of WorldInterest on Public Debt Paid in New Zealand
*Provisional.
 EXPENDITURE $(million)
1951-5218610543532104466
1952-532121073343078464
1953-542261153373181492
1954-5522712244127138558
1955-5624912834225135582
1956-5727413244727116599
1957-582871394532782593
1958-5930216045727174724
1959-6032419745926108718
1960-6134621246531152809
1961-6236321847028179862
1962-6339421947729115838
1963-6441722968930148919
1964-65460234595352121,040
1965-665162426104392201,127
1966-675652526116392251,203
1967-685982696124212321,250
1968-696492787136192321,320
1969-707232988149242641,466
1970-71*8843289159462851,711
COMBINED CAPITAL ACCOUNT
March YearPrivate SavingsRevenue Balances of Public AuthoritiesDepreciation AllowancesTotal SavingsGross Capital Formation in New ZealandChanges in StocksNet Investment OverseasTotal Investments
PrivateCentral Government Trading UndertakingsLocal Authorities Trading UndertakingsPrivateCentral GovernmentLocal Authorities
*Provisional.
 $(million)
1950-51259707840615280209856406
1951-5211410486304186812574- 62304
1952-5319378963662021093826- 9366
1953-54214809211340221511444- 4271402
1954-551671381061434272771154958- 72427
1955-561711351141534372661295838- 54437
1956-571951161271644572561386520- 22457
1957-58208821351844482871407432- 85448
1958-591611741412055022901377731- 33502
1959-60360108141225636297142842687636
1960-612051521552465423661498444-101542
1961-621711791732465533931479424-105553
1962-6330211518526763538715310235- 42635
1963-6439514819727974442318010692- 27774
1964-65421212213277882500196116100- 30882
1965-663842202352810877566218125147-178877
1966-674112252573310936584242129144-163936
1967-683712322733512923494244132139- 86923
1968-6946523228239151,03354223713675421,033
1969-7055026429843161,171637235147130221,171
1970-71*51328532543171,183776266162188-2091,183
REST OF WORLD ACCOUNT
March YearExport ofImports ofNet Factor PaymentsNet TransfersSurplus on Current Account
GoodsServicesGoodsServicesPrivatePublic Authorities
*Provisional.
 $(million)
1951-5250125- 474-101-134-3- 62
1952-5347640- 415- 98-113-3- 9
1953-5449134- 362- 79- 9- 1-371
1954-5547136- 459- 98-17- 2-4- 72
1955-5652441- 498-103-14- --3- 54
1956-5754847- 488-108-17- --4- 22
1957-5854053- 545-112-1714- 85
1958-5952848- 468-110-24- 3-4- 33
1959-6062249- 442-113-19- 6-487
1960-6157456- 546-137-37- 8-4-101
1961-6258153- 550-145-31- 8-4-105
1962-6360763- 509-145-46- 9-4- 42
1963-6472067- 601-158-42- 7-6- 27
1964-6576770- 616-177-59-10-5- 30
1965-6674982- 722-211-54-17-6-178
1966-6778795- 723-232-66-17-6-163
1967-68753103- 638-229-55-13-6- 86
1968-69978147- 721-266-81- 8-742
1969-701,117160- 828-311-97-10-822
1970-71*1,110185-1,042-371-77- 5-9-209

DISTRIBUTION OF PRIVATE INCOME—The following table gives an analysis of private disposable income with the amount of direct taxes on gross private income shown in parentheses. In the following table the items of private income are shown as percentages of the whole.

PRIVATE DISPOSABLE INCOME (WITH DIRECT TAXATION ON PRIVATE INCOME SHOWN IN PARENTHESES)
March YearSalary and WagesPay and Allowances of Armed ForcesSocial Security Benefits and PensionsOther Personal Income (Including Rental Value of Owner-occupied Houses)Company Income (Before Distribution)Total
*Provisional.
DISPOSABLE INCOME $(million)
1957-58975 (93)24 (2)544 (147)109 (102)1,652 (345)
1958-59982 (134)22 (3)506 (200)113 (106)1,623 (442)
1959-601,035 (146)23 (3)640 (162)133 (109)1,831 (420)
1960-611,130 (148)24 (3)618 (216)165 (126)1,936 (493)
1961-621,197 (168)24 (3)612 (211)138 (150)1,972 (531)
1962-631,272 (173)26 (3)713 (184)179 (144)2,190 (505)
1963-641,378 (177)27 (3)783 (199)207 (164)2,395 (542)
1964-651,517 (206)29 (4)799 (223)221 (196)2,566 (629)
1965-661,654 (236)30 (4)822 (239)262 (212)2,769 (691)
1966-671,772 (269)34 (5)782 (250)233 (231)2,822 (755)
1967-681,844 (283)36 (5)815 (244)223 (234)2,918 (767)
1968-691,932 (308)37 (6)843 (258)298 (220)3,111 (791)
1969-702,110 (346)38 (6)892 (290)347 (244)3,389 (887)
1970-71*2,497 (463)48 (9)958 (338)339 (296)3,843(1,106)
PRIVATE INCOME ON PERCENTAGE BASIS
March YearSalary and WagesPay and Allowances of Armed ForcesSocial Security Benefits and PensionsRental Value, Owner-occupied HousesOther Personal Income (Excluding Company Dividends)Company Income (Before Distribution)Private Income

*Provisional.

†Includes changes in primary produce stabilisation accounts and wool retention moneys and supplementary payments.

 PERCENT
1957-5853.51.37.02.425.210.6100.0
1958-5954.01.27.72.524.010.6100.0
1959-6052.41.28.82.324.610.7100.0
1960-6152.61.18.82.123.412.0100.0
1961-6254.51.18.72.421.811.5100.0
1962-6353.61.18.13.022.212.0100.0
1963-6452.91.07.82.922.712.6100.0
1964-6553.91.07.33.021.713.1100.0
1965-6654.61.07.03.220.513.7100.0
1966-6757.11.17.03.318.513.0100.0
1967-6857.71.17.33.517.912.4100.0
1968-6957.41.17.13.517.613.3100.0
1969-7057.51.17.03.517.213.8100.0
1970-71*59.81.16.63.416.212.8100.0

PUBLIC AUTHORITY SECTOR—The Revenue Account of Public Authorities shown earlier is a consolidated and simplification of a separate and more detailed Central Government Revenue Account and the Local Authorities Revenue Account. The consolidated account eliminates all transfers between the two levels of Government and aggregates the respective totals of economically significant flows.

(a) Central Government—The Revenue Account of the Central Government has been obtained by an analysis of the various accounts within the Public Account. In the case of trading department operations, which are treated separately, profits only are brought into the main account as a revenue item. Expenditure has been taken “net” in all cases, sundry departmental receipts being set off against departmental expenditure. The account covers only current revenue items and therefore excludes capital receipts and payments of all kinds, thus accounting in part for the differences between the details given here and those given in the published statement of the Public Accounts in parliamentary paper B. 1 [Pt. 1].

Current expenditure on goods and services by Government rose from $541.1 million in 1969-70 to $663.2 million in 1970-71. A better measure of the relativity of Government expenditure is given by comparing it with gross national product. In 1970-71 Central Government expenditure amounted to 12.2 percent of gross national product compared with 11.4 percent in 1969-70.

Although all Government transfer expenditure—social security cash benefits and pensions, interest on public debt, and subsidies—is also paid from the Government's taxation revenue and trading profits, it is not part of Government final consumption. It only becomes final consumption in the hands of recipients, or, in the case of subsidies, can be looked upon as an offset to indirect taxation which reduces prices to consumers. For this reason the best measure of transfers is the national income itself on which they are a charge and which they redistribute.

Social security benefits and pensions, the most important item of the transfer group were $328 million in 1970-71 or 9.9 percent higher than in 1969-70, expressed as a percentage of national income, they were 7.1 percent in 1970-71, whereas the average in the latest 5 years was 7.5 percent.

With the removal of subsidies from some basic foodstuffs in earlier years their importance declined, but they increased markedly from $24 million to $46 million in 1970-71.

Interest on Government debt paid in New Zealand was 2.6 percent of national income in 1970-71 compared with 2.8 percent in both 1968-69 and 1969-70. Interest on Government debt paid overseas, $32.1 million in 1970-71, is treated as a factor payment to non-residents and is included in current expenditure totals.

Transfers to local authorities comprises two items, namely, finance provided by the Central Government to hospital boards, and transfers to other local authorities. The former, as a proportion of national income has remained quite constant, averaging 2.8 percent over the last 5 years. The latter represents a shift from local to national taxation and in 1970-71 it amounted to 3 percent of the total Government revenue from taxation, a reduction from the 3.8 percent average of the previous 4 years.

The balance of revenue over expenditure is the Government's surplus on current transactions and is, together with the depreciation provisions of Government trading undertakings, available for capital formation, lending, and debt repayment. Its magnitude changes appreciably from year to year both absolutely and in relation to total current revenue and is the result of short-term changes in fiscal and economic policies pursued by the administration. Year-to-year changes in the Government's surplus are, however, complementary to changes (in the opposite direction) in private savings. This is of course, merely a reflection of the fact that changes in taxation policies are a major cause of the redistribution of total savings as between the private and Government sector. From a long-term point of view, however, it is important to observe the changes in Government fiscal policy from pre-war to present days: in 1938-39, 4.8 percent of the Government's revenue was saved. In 1970-71 the proportion was 13.5 percent.

CENTRAL GOVERNMENT—REVENUE ACCOUNT
Item1965-661966-671967-681968-691969-701970-71*
*Provisional.
1. TAXATION      
    (a) Direct:REVENUE $(million)
        Income tax401.2443.4440.3456.7779.2957.3
        Social security taxation204.7221.0232.5234.8
        Land tax3.23.54.42.72.93.1
        Death duties22.322.521.423.626.129.2
        Other------
            Totals631.4690.4698.6717.9808.1989.5
    (b) Indirect:      
        Sales tax76.678.975.482.897.6125.3
        Customs and excise duties121.7126.8131.1142.2152.8178.5
        Motor vehicles taxation65.870.187.094.298.4104.0
        Other21.922.220.221.024.127.3
        Payroll tax-----20.5
            Totals286.0298.0313.7340.3372.9455.6
2. Totals, all taxation917.5988.31,012.31,058.21,181.01,445.1
3. TRADING INCOME117.8112.0127.8142.7158.5127.2
4. Less direct taxation paid by trading departments-11.1-11.7-13.1-15.1-16.9-15.6
            Totals106.7100.3114.7127.6141.6111.6
5. TOTAL REVENUE1,024.21,088.61,127.01,185.81,322.61,556.7
6. CURRENT EXPENDITURE ON GOODS AND SERVICES EXPENDITURE $(million)
    (a) General administration52.053.553.054.961.774.1
    (b) Interest15.217.221.628.830.832.1
    (c) Law and order10.612.813.413.016.420.7
    (d) Development of primary and secondary industries35.438.440.042.352.369.3
    (e) Health†64.269.273.377.786.8103.7
    (f) Education110.4124.4136.8145.6168.4214.8
    (g) Other social services4.63.45.27.04.95.8
    (h) Defence79.486.283.795.8102.6122.8
    (i) Rehabilitation1.41.31.21.11.11.0
    (j) Maintenance of public works and services7.812 014.218.216.118.9
            Totals381.0418.4442.4484.4541.1663.2
7. TRANSFERS      
    (a) Monetary social security benefits and pensions234.8245.4263.0270.9292.4319.5
    (b) Family benefit advances7.46.26.16.66.08.5
    (c) Net transfers to rest of world5.96.36.46.67.79.3
8. Interest on Central Government debt paid in New Zealand79.288.794.2103.6113.4120.9
            Totals327.3346.6369.7387.7419.5458.2
9. TRANSFERS TO LOCAL AUTHORITIESEXPENDITURE $(million)
    (a) Hospital boards83.892.594.9101.1113.3135.0
    (b) Other40.838.938.542.341.944.0
            Totals124.6131.4133.4143.4155.2179.0
10. SUBSIDIES39.239.221.018.924.045.7
11. TOTAL EXPENDITURE872.1935.6966.51,034.41,139.81,346.1
12. Balance of revenue over expenditure152.1153.0160.5151.4182.8210.6
13. TOTAL EXPENDITURE PLUS REVENUE BALANCES1,024.21,088.61,127.01,185.81,322.61,556.7

(b) Local Authorities—The revenue account of local authorities is in all respects similar to that of the Central Government and has been obtained by an analysis of the accounts of all local authorities including hospital boards. In 1970-71 the Central Government contributed 53.7 percent of the revenue of local authorities through transfers. Trading profits contributed a further 13.8 percent, and rates and licence fees at 32.6 percent continued the pattern of recent years.

Current expenditure on goods and services by local authorities in 1970-71, at $220.5 million was 21.1 percent higher than in the previous year, whereas the increase in Central Government current expenditure on goods and services was 22.6 percent. The limitations in the scope of local government activities as compared with those of the Central Government do not call for a detailed analysis of expenditure items and therefore current expenditure on the provision of goods and services by local authorities is shown as a single total.

LOCAL AUTHORITIES—REVENUE ACCOUNT
Item1965-661966-671967-681968-691969-701970-71*
*Provisional.
14. TAXATIONREVENUE $(million)
    (a) Direct: Rates70.376.381.288.695.5105.1
    (b) Indirect: Licence fees2.92.92.83.04.03.7
        Totals73.279.284.091.599.5108.8
15. Trading income29.234.939.542.644.045.9
16. Transfers from Central Government124.6131.4133.4143.4155.2179.0
17. TOTAL REVENUE227.0245.5256.9277.4298.7333.6
EXPENDITURE $(million)
18. Current expenditure on goods and services135.0146.9155.3164.7182.1220.5
19. Interest on local authority debt paid in New Zealand24.627.030.132.335.438.3
20. TOTAL EXPENDITURE159.6174.0185.4196.9217.4258.9
21. Balance of revenue over expenditure67.471.671.580.581.374.8
22. TOTAL EXPENDITURE PLUS REVENUE BALANCES227.0245.5256.9277.4298.7333.6

THE ACCOUNTS OF THE GOVERNMENT SECTOR—The accounts of the Government sector as set out in the preceding pages are complemented by the supplement to the September 1971 Monthly Abstract of Statistics entitled The Accounts of the Government Sector 1967-68 to 1968-69 available from the Government Printer. This compilation covers only the main aggregates of Central Government accounting and aggregates at a lower level are available from the Department of Statistics.

The accounts of the Government sector present a comprehensive and consistently classified statement of all Central Government transactions. In preparing these accounts coverage has been extended to all Government accounting units, and all transactions have been classified according to a consistent economic analysis of receipts and payments. As it stands, the new system of accounts is a valuable addition to the material on Government finance available to the public and to the policy maker. The bulk of Government accounting material hitherto available has been of a detailed nature designed to permit parliamentary and audit control of various departmental expenditures. Although this detailed presentation is essential for these purposes, it has had the undesirable effect of obscuring the broad pattern of Government operations.

The assumption by Governments of overall responsibility for the health of the national economy has created a need for a presentation of Government accounts in a form which reveals the broad types of financial flows through which the Government can influence the growth and stability of the economy. Although most of the main items included in such flows as direct taxation, subsidies, and Government transfer payments are easily obtainable by any person familiar with the public accounts, it has not been possible to obtain total figures for any of these flows. The accounts of the Government sector enable such a view to be obtained.

In addition to providing improved measures of the current account transactions as recorded in the Central Government Revenue Account, the new accounts include a full analysis of the Government's capital transactions. Details of Government lending and borrowing are classified according to changes in claims on, and in liabilities to, local authorities, the private sector, and the rest of the world.

The new presentation of the accounts eliminates numerous transfers between the many separate Government accounting units. The existence of these interaccount transfers has made it difficult in the past for the public to understand the net effect of Government transactions. For example, public attention is frequently drawn to changes in the public debt, which is usually regarded as measuring changes in Government borrowing from non-Government sources. In fact the Government is one of the main holders of New Zealand Government securities and what appear as changes in the public debt may in fact reflect no more than the transfer of Government money from one Government account to another.

25 B—BALANCE OF PAYMENTS

GENERAL—Estimates of a country's balance of payments are a measure of economic transactions which take place between that country and all other countries. The balance of payments is part of the national accounting system. The present series of New Zealand balance of payments estimates is largely based on the principles set out in the Balance of Payments Manual published by the International Monetary Fund and is in conformity with the methods used in other countries. For a more detailed description of statistical concepts and methods used in preparing balance of payments estimates, refer to the Report on the Balance of Payments for the year 1970-71, obtainable from the Government Printer.

The statement is divided into a current and capital account. The balances on both accounts are, by definition, the same; the capital account showing how the surplus or deficit on current account was financed.

Current Account—The current account records all transactions between New Zealand and the rest of the world other than changes in overseas assets and liabilities. As far as possible transactions are recorded on a gross credit-debit basis rather than on the basis of net settlements. The current account includes credits and debits for goods, services (invisibles), and transfers (donations). The difference between current credits and current debits is the balance of payments surplus (deficit) on current account. This is the measure of the extent to which a country does or does not live within its current income and it is the most significant datum emerging from a balance of payments compilation.

Capital Account—The capital account records changes in claims on, or liabilities to, the rest of the world. These may consist of changes in overseas private investments in New Zealand and New Zealand private investments overseas; borrowing or repayments overseas by the Government and official institutions and changes in Government overseas cash balances, net overseas assets, monetary gold, multilateral transfers, and other capital movements. Of the items comprising the capital account, the category of net overseas assets (the overseas exchange holdings of New Zealand's banking system) is most widely known and appreciated. Its importance lies in the fact that it records changes in overseas liquid resources which, by their nature, can be made immediately available for purposes of imports, public debt repayments, capital investments, etc. Within the confines of the balance of payments capital account the movement in net overseas assets is only one of several other capital movements with which it forms an integral part; it is the combination of all these capital changes which must be studied in order to understand the financing of the current surplus or deficit.

MERCHANDISE TRANSACTIONS: Exports—The source of export figures is Custom's export entries (exclusive of ships' stores) at f.o.b. valuation; exports from New Zealand to its island territories have been excluded, but exports from island territories to other countries have been added to New Zealand totals. The remaining adjustments are for items which are included in export and import entries (relief supplies, and some ships and aircraft), items where the valuation requires correction, e.g., parcel post, or items which are accounted for elsewhere in the balance of payments (export of gold).

Imports—The basic import figures originate from import entries. Some aircraft and ships not included in imports by Customs Department are added. New Zealand imports from its island territories have been excluded, but imports into island territories from other countries have been included.

It is necessary to comment here on the valuation method adopted for imports. Balance of payments accounts treat freight and marine insurance payments on imports (as far as they are made to non-residents) as invisible payments. As a result, merchandise transactions are shown on a f.o.b. valuation basis for imports and exports alike. This method of treatment has many advantages, and international comparability of merchandise movements is one of them. A special estimate is therefore made of imports f.o.b. for balance of payments purposes.

BALANCE OF PAYMENTS AND EXCHANGE RECORD—There are several very important differences between a balance of payments statement and the statistics of overseas receipts and payments which are included in an exchange record, such as is given in Section 29, Banking and Currency. The main differences are:

  1. The balance of payments attempts to show all economic transactions between residents of one country and residents of other countries, whereas the exchange record shows only transactions involving remittances.

  2. The import and export figures in the balance of payments are based on trade statistics, which enable goods to be valued at a definite and uniform valuation boundary—viz, f.o.b. country of export; the exchange record, on the other hand, records remittances for imports and exports whenever these are made and without adhering to any valuation boundary (f.o.b. or c.i.f.). The result is a difference both in timing and valuation between the two statements.

  3. Whereas exchange statistics record net settlements resulting from a number of possible contra-entries or offsets, the balance of payments shows these transactions as far as possible on a gross basis.

Other differences arise from the fact that the balance of payments is constructed on a basis of country of purchase for imports and country of destination for exports, country of residence of remittor or remittee, and nationality in the case of shipping companies, whereas the record of ex-change transactions is based on the country of monetary settlement.

In essence, the exchange record is a statement of cash flows, or using the terminology of commercial accounting it is the “cash book” of the nation's transactions with other countries; the balance of payments statement on the other hand approaches an “income and expenditure” account.

GEOGRAPHICAL DIVISION—The regional break-up of the balance of payments is on a geographical (as distinct from a currency) basis. This means that it is not the currency in which any economic transaction is settled but the residence of New Zealand's immediate partner in the transaction which determines in which regional column the transaction is recorded. Any exception to this rule is due to statistical necessity—insufficiency of basic data, etc., rather than choice.

The New Zealand figures include transactions of New Zealand's dependent island territories. In this respect they differ from the rest of the world account included in the national income and expenditure estimates, where the rest of the world account refers to New Zealand only, and does not cover the island territories. However, this difference in coverage only slightly affects the gross figures, and the final outcome of the balance of payments current account differs very little from that of the rest of the world account.

The regional areas and countries comprising them have been defined as follows:

Other Sterling Countries—Commonwealth countries (excluding the United Kingdom and Canada) and their trustee and dependent territories, the colonies, protectorates, and trustee territories, etc., of the United Kingdom, the Republic of Ireland, Iceland, and South Africa.

EEC Countries—The six members of the European Economic Community which formed a common market in 1958; Belgium, the Netherlands, Luxembourg, France, Italy, and West Germany, together with their associated and dependent overseas territories.

Other Countries—All countries not included in any other group.

International Organisations—Transactions with the United Nations and its agencies, the International Monetary Fund, the International Bank for Reconstruction and Development, the Asian Development Bank, the International Finance Corporation, and the South Pacific Air Transport Council and other international organisations are included.

ACCOUNTING PERIOD—All estimates are for financial years ended 31 March.

RESIDENTS AND NON-RESIDENTS—The balance of payments is a record of economic transactions between residents and non-residents.

Residents are all people living permanently in New Zealand (and who have their “centre of interest” in New Zealand). Subsidiaries and branches of overseas companies are treated as residents, while subsidiaries and branches of New Zealand companies operating overseas are regarded as residents of the country in which they operate.

In order to simplify the rather complex operations of overseas shipping companies, the shipping transactions of their branches in New Zealand (such as their receipt of freights, port disbursements, administrative expenses in New Zealand, etc.) are regarded as transactions of non-residents, by way of exception to the general rule stated above; on the other hand, their investment activity is included in the data on New Zealand branches of overseas companies and conforms to the general rule.

SUMMARY TABLES, CURRENT AND CAPITAL ACCOUNTS—The following table summarises current transactions with all countries.

CURRENT ACCOUNT
Item1966-671967-681968-691969-701970-71*
*Provisional.
 Credits NZ$(million)  
Exports f.o.b.786.0749.6974.21.113.21.102.8
Non-monetary gold-----
Transportation51.754.881.888.1102.7
Travel14.517.420.126.033.6
Insurance1.61.57.33.00.9
International investment income—22.423.531.834.841.9
    Income from direct investment5.85.98.311 312.6
    Other private investment income9.79.916.514.624.9
    Government and official institutions6.97.76.98.94.4
Government transactions—6.48.611.114.015.9
    Foreign Government expenditure4.04.66.89.69.0
    New Zealand Government receipts2.44.04.34.36.9
Miscellaneous receipts20.420.926.329.132.4
Transfers—27.331.637.137.947.8
    Government transfers-----
    Personal remittances and other donations16.419.725.828.335.5
    Migrants' funds8.48.77.05.98.3
    Legacies2.53.34.43.84.1
            Total credits930.2908.01.190.01.346.01.378.0
 Debits    
Imports f.o.b.723.4637.4720.4827.11.040.9
Non-monetary gold-----
Transportation105.4118.0136.2156.3189.6
Travel44.9.442.250.161.9
Insurance2.93.92.51.54.3
International investment income—88.978.2112.5132.4118.8
    Income from direct investment61.939.472.688.870.5
    Other private investment income8.712.38.47.915.3
    Government and official institutions18.326.531.235.332.6
    Local authority interest--0.20.40.4
Government transactions—30.622.625.127.829.5
    New Zealand Government expenditure30.622.625.127.829.5
Miscellaneous payments48.144.460.175.585.6
Transfers—50.651.451.555.961.8
    Government transfers and contribution to Colombo Plan6.36.46.67.79.3
    Personal remittances and other donations and transfers15.715.617.618.021.2
    Migrants' funds22.425.022.623.223.9
    Legacies6.24.44.67.07.3
            Total debits1,094.8996.31,150.51,326.61.592.4
            Balance on current account-164.6-88.339.519.3-214.4

The consolidated capital account shown below summarises capital transactions with all countries; some of the items are presented in simplified form (by adding or offsetting capital movements where these have occurred in respect of equally defined items).

CAPITAL ACCOUNT
Item1966-671967-681968-691969-701970-71*
Increase inIncrease inIncrease inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities

Minus (-) sign denotes decrease.

*Provisional.

†Allocation of special drawing rights is not an increase in liabilities but is entered here as a contra entry to their addition to Official Reserves to maintain the formal balance of the capital amount.

Long-term capital (Private)—NZ$(million)
    Overseas direct investment in New Zealand...28.9...28.1...38.9...76.2...133.7
    New Zealand direct Investment overseas2.3...-1.3...6.3...11.0...5.8...
    Other long-term capital movements-14.8-42.3-17.6-3.6...7.2
Long-term capital (Government)—          
    Government investments-0.3...15.1...-7.7...26.1...31.4...
    Public debt...58.5...60.4...15.4...2.9...50.6
    Local Authority debt...-...-...-2.0...-1.3...-1.3
    Asian Development Bank—Holdings of New Zealand securities...0.8...0.8...1.0...1.0...1.0
        New Zealand subscription1.6...1.6...2.0...2.0...2.0...
    Other1.7......20.6-4.6...-5.1--11.5
Monetary institutions—Reserve Bank of New Zealand—          
    International Monetary Fund—..............................
        Drawings and repurchases...-...35.6...-57.4...-18.4...-35.0
        Allocation of Special Drawing Rights...-...-...-...23.6...19.3
        Increase in Quota-...-...-...-...40.2...
        Holdings in New Zealand currency-.........-...-......30.1
    Other borrowing and lending...45.6...-12.4...-9.4...-27.9...-5.1
    Monetary gold0.1...-0.1...1.0...-0.4...-0.1...
    Reserve Bank of New Zealand and other banks—          
        Assets of New Zealand banking system0.1...69.9...-17.2...21.7...-32.4...
        Special Drawing Rights of IMF-...-...-...23.6...-4.0...
Short-term capital (Government)—          
    Government cash balances-1.0...-0.5...-0.1...-0.1...-...
    Other-4.3-6.7-12.3--18.2--0.3-
Other short-term capital movements including errors and omissions-16.2-4.351.5-8.1--68.1
Balance on capital account-164.6-88.339.519.4-214.4

ANALYSIS OF CURRENT ACCOUNT—Current payments to the rest of the world, especially imports of commodities, were at a high level in 1970-71, whereas the receipts from the rest of the world were relatively stable. The main item of receipts—earnings from the export of goods—actually declined. Receipts other than for exports of goods did rise, but these together with exports of goods were insufficient to cover the increased payments New Zealand made to the rest of the world for imports of goods and services such as transportation (involving increased freight charges) and travel.

Changes in the current account are discussed in the following paragraphs.

(a) Merchandise transactions—It was the reduction in the surplus on merchandise transactions from $286.1 million for 1969-70 to $61.9 million for 1970-71 which mainly accounted for the large deficit in the current account for 1970-71. Its cause was the rise in imports of $213.8 million from $827.1 million in 1969-70 to $1,040.9 million in 1970-71 while at the same time exports dropped from $1,113.2 million to $1,102.8 million.

The long-term trend of a declining share of exports destined for the United Kingdom continued in the latest year. In 1952-53,68.4 percent of New Zealand's exports, by value, were sold in the United Kingdom; by 1960-61 this proportion had fallen to 52.9 percent, and in the last 3 years the percentages have been 38.6 for 1968-69, 38.2 for 1969-70, and 35.7 percent for 1970-71.

The following table shows how trade with each area has moved in the last 4 years.

Year Ended 31 MarchUnited KingdomOther Sterling CountriesUnited States and CanadaEEC CountriesOther Countries*Total All Countries
*Includes International Organisations.
Exports (f.o.b. N.Z.)NZ$(million)
1967-68318.696.3150.569.5114.7749.6
1968-69377.0133.4193.6119.6150.6974.2
1969-70425.4151.7221.4142.1172.51,113.2
1970-71393.3179.9214.9135.9178.81,102.8
Annual Change—      
1968-69+58.4+37.1+43.1+50.1+35.9+224.6
1969-70+48.4+18.3+27.8+22.5+21.9+139.0
1970-71-32.1+28.2-6.5-6.2+6.3-10.4
Imports (f.o.b. Overseas)      
1967-68227.9182.1109.343.974.1637.4
1968-69241.6222.7119.451.785.1720.4
1969-70277.9257.3128.260.1103.6827.1
1970-71314.9328.4173.983.0140.71,040.9
Annual Change—      
1968-69+13.7+40.6+10.1+7.8+11.0+83.0
1969-70+36.3+34.6+8.8+8.4+18.5+106.7
1970-71+37.0+71.1+45.7+22.9+37.1+213.8
Balance of Trade (Exports Less Imports)      
1967-6890.7-85.841.225.640.6112.3
1968-69135.4-89.374.267.965.6253.8
1969-70147.5-105.693.282.068.9286.1
1970-7178.4-148.540.953.038.161.9
Annual Change—      
1968-69+44.7-3.5+33.0+42.3+25.0+141.5
1969-70+12.1-16.3+19.0+14.1+3.3+32.3
1970-71-69.1-42.9-52.3-29.0-30.8-224.2

(b) Invisibles—The deficit on invisibles for 1970-71 was $262.4 million against $200.0 million in 1968-69 and $248.8 million in 1969-70. Except for the occasional reversal, this outcome confirms the historical trend of widening deficit on “invisibles” account.

In 1970-71 of the five major categories making up invisibles, three had increased deficits over the previous year, while one deficit, Government transactions was slightly reduced, and only investment income had a substantial reduction compared with 1969-70.

The largest deficit was in transportation account—$86.9 million in 1970-71 compared with $68.3 million in 1969-70. The transportation debit item includes freight on imports, passenger fares to non-resident shipping lines and air carriers, earnings and disbursements overseas by New Zealand carriers and disbursements in New Zealand by non-resident carriers (such as port disbursements, ships' stores and bunkers). The higher freight component of this item was affected by both the increase in volume of imports and the rise in freight rates.

Investment income credits include income from New Zealand direct investment overseas, other private investment income and interest on investments of Government and official institutions. The debits include income derived from overseas direct investment in New Zealand, other private investment income and interest on Government and local authority debt. Investment income credits rose from $34.8 million to $41.9 million continuing the trend over the previous 3 years. On the debit side of the account there was a downturn from the higher level of income in the previous year and income fell from $132.4 million for 1969-70 to $118.8 million for 1970-71. The principal element of this fall was in the income from direct private investment overseas which declined from $88.8 million to $70.5 million.

The following table gives details of invisible transactions by areas.

NET DEFICIT ON INVISIBLE ACCOUNT BY AREAS
YearUnited KingdomOther Sterling CountriesUnited States and CanadaEEC CountriesOther CountriesTotal, All Countries
 NZ$(million)
1968-6995.233.531.413.726.2200.0
1969-70118.933.150.019.127.6248.8
1970-71121.044.041.923.831.5262.4

In 1970-71 transactions with the United Kingdom accounted for 46.1 percent of the invisible deficit, those with the other sterling countries for 16.8 percent, those with the United States and Canada for 16 percent, those with the European Economic Community for 9.1 percent, and those with other countries for 12 percent.

(c) Transfers—Transfers consist of legacies, personal remittances, migrants' funds, Government contributions to international agencies, gifts and donations in cash or kind, for which there is no quid pro quo. Transfer receipts have shown a steady increase for some years and recorded an inflow of $47.8 million in 1970-71, against payments of $61.8 million.

Analysis of Capital Account—The capital account of the balance of payments records changes in claims on and liabilities to other countries; such changes have direct reference to current transactions and the net difference between acquisition of new claims and the increase in liabilities explains how the current account was funded.

An analysis of the 1970-71 capital account is now presented.

Nature of CapitalNet Outflows of Capital (Increase in Claims)Net Inflows of Capital (Increase in Liabilities)
 NZ($million)
Long-term private-135.1
Long-term Government-5.4
Monetary institutions-5.6
Short-term Government-0.3
Other short-term (including errors and omissions)-68.1
Excess of capital inflows over outflows (equals balance on current account)214.4-
            Totals214.4214.4

One of the major categories of private long-term capital movements is that of direct investment in New Zealand by overseas firms in branches and subsidiaries. In 1970-71 the increase in investment by overseas firms was $133.7 million compared with $76.2 million in 1969-70 and $38.9 million in 1968-69.

The two main components of Government long-term capital movements are Government investment overseas which increased by $31.4 million and the external public debt which rose by $50.6 million. The following table shows the movements during 1970-71 in the external public debt.

Loans RaisedAmount
 NZ$(million)
In United Kingdom10.1
In United States29.4
In EEC2.7
In Swiss Francs28.3
International Bank of Reconstruction and Development2.4
            Total loans raised72.9
 NZ$(million)
In United Kingdom2.7
In United States15.0
International Bank of Reconstruction and Development4.6
            Total repayments22.3
Net addition to external public debt50.6

Under the heading Monetary Institutions are included the international transactions entered into by the Reserve Bank. During the year it repurchased New Zealand's remaining drawings from the International Monetary Fund amounting to $35 million. This was part funded from $23.3 million of the $23.6 million allocation of special drawing rights received in the previous year; the balance of the repurchase was made from overseas currency reserves. In January 1971 another allocation of special drawing rights worth $19.3 million was received. During the year the net value of the special drawing rights was therefore reduced by $4 million.

As a result of the normal 5-yearly review of quotas by the International Monetary Fund an increase in New Zealand's quota was made amounting to $40.2 million; of this $10.1 million was paid for from the overseas assets of the banking system and the remainder in New Zealand currency.

During the year the net overseas assets of the banking system declined by $32.4 million and the Reserve Bank repaid $5.1 million of its loan from the Reserve Bank of Australia.

Finally, the inflow of short-term private capital, timing errors, and omissions amounted to $68.1 million. No precise breakdown of this figure can be given but the inflow of short-term private capital received through the exchange system amounted to approximately $24 million and some of the remainder can be accounted for by changes in the amount in the lag between actual time of import and export of goods and the time of settlement of these transactions.

BALANCES BY AREAS—The following tables for current account and capital account for 1970-71 respectively, analyse the balance of payments by area.

A. CURRENT ACCOUNT BY AREAS 1970-71*
Year Ended 31 MarchUnited KingdomOther Sterling CountriesUnited States and CanadaEEC CountriesOther CountriesInternational OrganisationsTotal All Countries
*Provisional
  Credit NZ$(million)   
Exports (f.o.b.393.3179.9214.9135.9178.8...1,102.8
Non-monetary gold       
Transportation59.631.62.84.64.7...102.7
Travel5.216.711.30.20.1...33.6
Insurance1.8-0.3-0.80.1-...0 9
International investment income—       
    (a) Income from direct investment overseas5.96.40.60.2-0.4...12.6
    (b) Other private investment income12.010.42.10.20.2...24.9
    (c) Interest on investments of Government and official institutions4.4-...--...4.4
Government transactions—       
    (a) Expenditure by foreign governments in New Zealand1.31.73.70.31.60.59.0
    (b) New Zealand Government current receipts from overseas2.11.53.2-0.1...6.9
Miscellaneous receipts10.29.69.41.12.0...32.4
Transfers—       
    (a) Government transfers-----...-
    (b) Personal remittances and other donations and transfers15.312.26.21.20.6...35.5
    (c) Immigrants' funds4.72.11.20.20.1...8.3
    (d) Legacies2.51.10.30.10.1...4.1
            Total credits518.2272.3254.9144.1187.90.51,378.0
Imports f.o.b.314.9328.4173.983.0140.7...1,040.9
Transportation104.129.010.419.926.3...189.6
Travel16.731.69.51.82.3...61.9
Insurance3.30.30.7--...4.3
International investment income—       
    (a) Income from direct investment in New Zealand25.422.018.23 31.7...70.5
    (b) Other private investment income13.30.80.20 50.4...15.3
    (c) Interest on Government debt22.30.65.8-3.9...32.6
    (d) Interest on local authority debt----0.4...0 4
Government transactions—       
Current Government expenditure9.79.87.22.00.8...29.5
Miscellaneous payments28.627.022.43.04.6...85.6
Transfers—       
    (a) Government transfers and contribution to Colombo Plan0.41.5--0.56.99.3
    (b) Personal remittances and other donations and transfers6 010 31.71 51.7-21 2
    (c) Emigrants' funds6 613.22.31.20.6...23.9
    (d) Legacies2.93.40.80.10.1...7.3
            Total debts554.2478.0253.1116.2184.07.01.592.4
Balance on current account (minus sign (-) denotes deficit)-36 0-205.61.828.03.9-6.5-214 4
B. CAPITAL ACCOUNT BY AREAS 1970-71 *
ItemUnited KingdomOther Sterling CountriesUnited States and Canada
Increase InIncrease InIncrease In
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
*Provisional.
Long-term capital (private)—NZ$(million)
    Overseas direct investment in New Zealand...40.9...28.5...13.1
    New Zealand direct investment overseas-3.2...7.3...0 3...
    Other long-term capital movements-4.39.85.221.20 3-20 4
Long-term capital (Government)—      
    Government investments35.8...-...-...
    Public debt...7.5...-......
    Local authority debt...............14.5
    Asian Development Bank Holdings of N.Z. securities..................
        New Zealand subscription..................
    Other...-0.1-1.0......-6 8
Monetary institutions—      
    Reserve Bank of New Zealand—      
        International Monetary Fund      
            Drawings and repurchases..................
            Allocation of special drawing rights..................
            Increase in quota..................
            Holdings in New Zealand currency..................
        Other borrowing or lending.........-5.1......
        Monetary gold..................
    Reserve Bank of New Zealand and other banks—..................
        Assets of New Zealand banking system-32.4...............
        Special drawing rights of International Monetary Fund..................
Short-term capital (Government)—      
    Government cash balances...--......-
    Other4 1.........-7.6...
Other short-term capital movements including errors and omissions 22 022 0--172.39.1-
Multilateral transfers
Balance on capital account-36.0-205.61.8
ItemEECOther Countries and UnallocatedInternational OrganizationTotal, All Countries
Increase InIncrease InIncrease InIncrease In
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities

Minus (-) sign denotes decrease.

*All figures are provisional.

†Allocation of special drawing rights and holdings in New Zealand currency are not increases in liabilities but are entered here as a contra entry to maintain the accounting balance of the capital account. †Monetary gold in Total, All countries only.

 NZ$(million)
Long-term capital (private)—        
    Overseas direct investment in New Zealand...25.7...25.3.........133.7
    New Zealand direct investment overseas0.1...1.3.........5.8...
    Other long-term capital movements-0.6-4.4-0.70.8......-0.27.0
Long-term capital (Government)—        
    Government investments-...-...4.5...31.4...
    Public debt...2.7...28.3...-2.4...50.6
    (c) Local authority debt.........-1.3.........-1.3
    Asian Development Bank Holdings of New Zealand securities...............1.0...1.0
    New Zealand subscription............2.0...2.0...
        Other......5.6.........4.6-6.9
Monetary institutions—        
    Reserve Bank of New Zealand—        
        International Monetary Fund—        
            Drawings and repurchases..................-35.0...-35.0
            Allocation of special drawing rights...............19.3...19.3
            Increase in quota............40.2...40.2...
            Holdings in New Zealand currency...............30.1...30.1
        Other borrowing or lending........................-5.1
        Monetary gold......-0.1‡.........-0.1‡...
    Reserve Bank of New Zealand and other banks        
        Assets of New Zealand banking system..................-32.4...
        Special drawing rights of International Monetary Fund............-4.0...-4.0...
Short-term capital (Government)—        
        Government cash balances..................-...
        Other-1.2.........4.5...-0.3...
Other short-term capital movements including errors and omissions53.7-50.9--31.5-68.1
Multilateral transfers
Balance on capital account28.03.9-6.5-214.4

The following diagram shows New Zealand's balance of payments by monetary areas for the latest 5 years.

SURVEY OF COMPANIES WITH OVERSEAS AFFILIATIONS—The picture of international capital movements would be incomplete without the consideration of investment flows originating with private commercial firms. While such investment takes place in response to usual economic motivations, its effect on a country's balance of payments differs in no respect from other capital movements, such as Government lending or borrowing abroad, investment or repatriation of assets from abroad by private individuals, etc.

The type of investment referred to here is that defined as direct private investment. Subsidiaries (i.e., New Zealand companies) under control of an overseas company, branches of overseas companies where many of the shareholders reside overseas, or any other companies where overseas shareholders exercise a controlling interest, fall under this category. The question of control is decided in some cases on the strength of the parent company's holdings (a 25 percent holding of the subsidiary's ordinary share capital is deemed as the qualifying minimum), in others on the actual circumstances of the case. The same criteria apply for direct investment by New Zealand companies and residents overseas.

Direct investment flows assume various forms; they may be by remittances of cash, the provision of plant, machinery, or goods without corresponding payments, charging up of services rendered by the parent company, the re-investment in New Zealand of undistributed profits, or the partial remittance only of declared dividends and branch earnings. The inclusion of undistributed profits may require some explanation: the non-remittance abroad of the whole of the current year's earnings, or any portion of them involves, where no statutory constraints exist on remittances of current profits, a decision to invest which is in every respect equal to a decision to bring additional investment capital into the country. By treating, as already mentioned previously, total earnings of subsidiaries and branches of overseas firms in New Zealand as a current account debit or payment to the rest of the world, the unremitted portions of such earnings are treated as an inflow of investment capital which, together with other forms of investment capital (cash, goods, services), make up the total of the private direct investment item in the capital account.

The information tabulated in the following tables is based on an annual survey of companies with overseas affiliations in which the companies report on the distribution of paid-up capital and its changes, dividends and dividend remittances, intercompany accounts with the parent company or affiliated company, and head office accounts in the case of branches.

It should be noted that investment figures given in the following four tables are in terms of annual changes at current prices. The total worth of direct investment assets is extremely difficult to establish in view of the fact that book values may bear little relationship to what such investments would realise on sale; annual changes on the other hand are capable of precise expression, and define exactly their relationship to other capital movements.

Overseas Private Direct Investment in New Zealand—Data on overall private investment in New Zealand are shown in the following table. The figures are totals reflecting investment changes in firms resident in New Zealand and controlled from overseas irrespective of their legal organisation. They include therefore subsidiaries incorporated in New Zealand, companies incorporated in New Zealand which have a majority of shareholders resident overseas or are controlled by overseas residents, and New Zealand branches of overseas companies.

The figures shown in the country or regional area columns refer to the country of incorporation of the New Zealand firm's parent company, head office, or other subsidiary of the parent associate company from which the investment flows, or the New Zealand company owes or is owed on outstanding accounts, or the country of residence of individual shareholders who collectively hold a controlling interest (as defined above) in the New Zealand company.

YearUnited KingdomOther Sterling CountriesU.S.A. and CanadaEEC CountriesOther CountriesTotal, All Countries

*Included are movements in intercompany claims between areas in which affiliated companies operate, the adjustments are offsetting and the movement in the “total, all countries” column is not affected.

†Provisional.

 NZ$(million)
1960-6120.79.32.40.71.234.2
1965-6622.825.815.11.4-2.462.8
1966-670.714.913.30.1-0.128.9
1967-6816.716.6-8.12.60.328.1
1968-69*20 8-1.42.815.21.538.9
1969-7018.231.516.61.48.576.2
1970-7140.928 813.125.725.3133.7

The graph now presented shows changes in the overseas direct investment in New Zealand.

Income from Direct Investment in New Zealand—The following table provides a subdivision of total direct investment income derived by all enterprises controlled from overseas and operating in New Zealand. The investment income is given net (after payment of New Zealand taxation). The regional totals as well as the “All Countries” total correspond to the “Income from Direct Investment” debits shown in the regional current accounts.

CHANGES IN OVERSEAS DIRECT INVESTMENT IN N.Z.
YearUnited KingdomOther Sterling CountriesU.S.A. and CanadaEEC CountriesOther CountriesTotal, All Countries
*Provisional.
 NZ$ (million)
 Dividends
1960-614.73.15.4-0.213.4
1965-665.74.56.90.11.018.2
1966-675.75.77.40.10.319.2
1967-684.06.56.00.10.316.9
1968-695.86.15.30.10.217.6
1969-707.47.57.70.10.523.2
1970-71*11.86.64.00.61.224.2
 Undistributed Earnings
1960-616.83.52.8-0.313.3
1965-668.09.95.20.40.323.8
1966-6712.710.04.30.20.327.5
1967-6810.08.3-7.4-0.7-0.210.0
1968-6921.58.29.2-0.40.338.8
1969-7022.110.715.00.4-48.1
1970-71*7.811.512.52.70.134.6
 Net Earnings of Branches
1960-618.73.20.50.9-13.3
1965-667.64.41.1--13.0
1966-679.34.81.0--15.2
1967-687.24.01.3--12.5
1968-6911.63.80.4-0.416.2
1969-709.53.52.5-2.017.5
1970-71*5.93.91.7 0.311.7
 Total Income from Direct Investment in New Zealand
1960-6120.29.88.60.90.540.1
1965-6621.318.713.20.51.255.0
1966-6727.720.512.70.30.661.9
1967-6821.218.8-0.1-0.60.139.4
1968-6938.918.114.9-0.20.972.5
1969-7039.021.725.10.42.688.8
1970-71*25.422.018.23.31.770.5

Industrial Classification of Overseas Private Direct Investment and Income from Direct Investment in New Zealand—The following table shows details of overseas direct investment and income from overseas direct investment classified by major industry groupings.

Industry1967-681968-691969-701970-71*
*Provisional.
 NZ$(million)
 Direct Investment   
Farming, hunting, fishing-0.1--0.11.1
Forestry and logging
Mining and quarrying1.52.32.213.3
Manufacturing—    
    Food, drink, and tobacco4.73.26.11.0
    Meat and dairy products-2.10.615.67.4
    Textiles, clothing, and footwear0.30.31.11.0
    Wood, cork, and furniture production-0.20.10.10.4
    Pulp, paper, and printing2.55.2-2.52.0
    Leather and rubber products-0.31.81.71.3
    Chemical and mineral products2.95.41.68.6
    Metalworking4.74.18.545.1
    Engineering and transport equipment0 13.77.816.0
    Miscellaneous manufacturing0 31.27.42.7
Building and construction-1 8-0.41.50.2
Electricity, gas, water----
Wholesale and retail trade9.35.114.420.3
Banking, insurance, and ownership of property6.16.24.89.4
Transport and communication-0.5-0.75.13.3
Services0.90.90.80.7
            Totals28.138.976.2133.7
Income from Direct Investment
Farming, hunting, and fishing--------
Forestry and logging
Mining and quarrying-0.10.6---0.3
Manufacturing—    
    Food, drink, and tobacco5.34.94.74 8
    Meat and dairy products1.614 918.51.8
    Textiles, clothing, and footwear0.80 82.00 5
    Wood, cork, and furniture production0.10 10.10 2
    Pulp, paper, and printing4.07.44.73 3
    Leather and rubber goods1.11.72 31.7
    Chemical and mineral products6.86.55.87.4
    Metalworking1.62.22.53.1
    Engineering and transport equipment3.69.112.912.6
    Miscellaneous manufacturing0.91.14.13.5
Building and construction-0.2-0.12.00.6
Electricity, gas, water----
Wholesale and retail trade5.614.920.721.6
Banking, insurance, and ownership of property7.17.06.18.3
Transport and communications0.21.01.81.1
Services1.00.50.60.5
            Totals39.472.688.870.5

Investment by New Zealand Companies Overseas—The following table presents the converse picture of those immediately preceding, viz, direct investment and income for direct investment by New Zealand companies in their overseas subsidiaries and branches.

YearUnited KingdomOther Sterling CountriesOther CountriesTotal, All Countries
*Provisional.
 NZ$(million)
 Direct Investment
1965-66-0.53.2-0.12.6
1966-67-2.42.12.52.3
1967-681.1-3.61.2-1.3
1968-696.10.5-0.36.3
1969-70-2.29.93.311.0
1970-71*-3.27.31.75.8
 Income from Direct Investment
1965-661.83.40.45.5
1966-671.23.61.05.8
1967-681.43.90.55.9
1968-692.64.90.98.3
1969-704.66.40.311.3
1970-71*5.96.40.312.6

25 C—INTER-INDUSTRY STUDIES

As a background to economic policy formation, and particularly with regard to planning of industrial development, it is desirable to have an overall view of the pattern and industrial relationships of all parts of the economy. This applies at a national level and also at lower levels of, say, an industry or group of industries, when decisions involving the direction of growth have to be taken.

Such a view can be provided in the first place by input-output tables, resulting from inter-industry studies of the New Zealand economy. These show in matrix form the transactions which took place between industries in the country and what inputs they required in a chosen year to deliver an output of goods and services to final demand users such as households, Government, and export. From these tables of commodity transactions, further tables of co-efficients are computed to show not only the degree of dependence of any one industry directly on other industries and on external producers, but also the indirect requirements of any industry on all others for each unit of its output. The relationships thus established can be held to be reasonably stable for several years in a developed country and also, for major planning purposes, can be up-dated by mathematical procedures which incorporate more recent data which may become available. In this way the tables can be made to serve until completion of a fresh inter-industry study, an undertaking requiring several years of investigation and processing.

One aim of inter-industry studies is to establish a connection between demand for finished products and its implications for production, employment, capacity utilisation, and raw material requirements of industries which may be significantly, even if remotely, involved in meeting this demand.

The input-output tables of the New Zealand economy compiled from the Department of Statistics' Inter-industry Study of the New Zealand Economy 1959-60 were published in 4 parts and depict the productive sector as divided into 110 industries. A description of the industrial classifications is contained in the final volume together with an explanation of the input-output system of analysis.

An inter-industry study for the year 1965-66 is currently being worked upon and results are likely to be published during the next year. Previous studies were completed for the years 1952-53 and 1954-55 but the classification of industries was limited to 12 groups only.

The publications are available from the Government Printer.

25 D—PRODUCTIVITY AND REAL DOMESTIC PRODUCT

INDEX OF PRODUCTION—In New Zealand the total output of all goods and services in the economy is measured by the Index of Production. This overall volume of production index was first introduced in 1962 by the Department of Statistics as the basis of a productivity measure to be used by the Court of Arbitration in its wage claim deliberations.

All industries are represented in the Index of Production in proportion to their net outputs, plus depreciation. The weighting of the main industry groups for the base year, that is the 12 months ended 31 March 1955, is as follows.

 Weight (percent)
Farming20.7
Forestry and logging0.8
Fisheries, etc.0.3
Mining and quarrying1.0
Manufacturing21.6
Building and construction8.2
Power and gas1.6
Services45.8
 100.0

Production Index—The following are the figures for the index equated to base 1954-55=1000.

YearIndex
Provisional.
1954-551,000
1955-561,039
1956-571,059
1957-581,115
1958-591,146
1959-601,191
1960-611,265
1961-621,307
1962-631,349
1963-641,430
1964-651,518
1965-661,612
1966-671,679
1967-681,665
1968-691700x
1969-701783*x
1970-711844*

The following analysis of the Index of Production breaks it into industry groups for the years 1954-55 to 1968-69 and shows provisional indexes for 1969-70 and 1970-71.

The largest increase has been in the Power and Gas group, followed by manufacturing which (except in 1967-68) has maintained a steady growth. Farming, which had shown steady growth up to 1968-69, recorded its first fall in production in 1969-70, due largely to drought conditions in that year.

Industrial Group1954-551958-591959-601960-611961-621962-631963-641964-651965-661966-671967-681968-691969-70*1970-71*

*Provisional.

† Decrease.

Farming1,0001,1681,1941,2401,2621,3381,3691,3971,4941,5431,5921,6271597x1,606
Forestry and logging1,0001,1661,2841,3151,3341,2951,3541,4771,5421,5591,5671,7782007x2,113
Fisheries, etc.1,0001,1041,1531,1951,1421,2181,2501,2691,3321,4551,5331,5431,3671,543
Mining and quarrying1,0001,2421,2891,4091,3391,2901,3641,4181,5501,6611,4601,4501566x1,749
Manufacturing1,0001,2031,2441,3661,4361,5011,6581,8732,0012,1202,0962162x2358x2,442
Power and gas1,0001,2811,4351,5251,6541,8322,0162,2042,4272,5812,6602,7812943x3,125
Building and construction1,0001,1341,2481,3121,3501,3101,3171,3791,5671,6331,5651,5131633x1,648
All services1,0001,1041,1421,2081,2481,2751,3551,4111,4661,5131,4851516x1586x1,660
            Total, all groups1,0001,1461,1911,2651,3071,3491,4301,5181,6121,6791,6651700x1783x1,844
Annual percentage increase in production index...2.83.96.23.33.26.06.26.24.2-0.82.1x4.9x3.4

For the most heavily-weighted group, Services, the increase recorded has been below the All Groups average. Service industries may be said to be of two kinds, those for supplying the needs of final consumers, and those which service industries of all kinds. The volume index for these service industries covers many activities such as wholesale and retail trade, transport, communication, finance, education, and personal services.

INDEX OF PRODUCTIVITY—The main measure of economic growth is the Index of Productivity which is, in effect, the Index of Production corrected for numbers of the actively-employed civilian labour force.

The three indexes are set out below for the years 1954-55 to 1970-71 equated to base 1954-55 = 1000.

Production YearIndex of ProductionIndex of EmploymentIndex of ProductivityAnnual Percentage Increase in Productivity Index

*Provisional.

†Decrease.

1954-551,0001,0001,000...
1955-561,0391,0201,0191.9
1956-571,0591,0381,0200.1
1957-581,1151,0591,0533.2
1958-591,1461,0821,0590.6
1959-601,1911,0931,0902.9
1960-611,2651,1181,1313.8
1961-621,3071,1431,1431.1
1962-631,3491,1611,1621.7
1963-641,4301,1921,2003.3
1964-651,5181,2301,2342.8
1965-661,6121,2741,2652.5
1966-671,6791,3141,2781.0
1967-681,6651,3151,266-0.9
1968-691700x1,3191289x1.8x
1969-701783*1,3521319*x2.3*x
1970-711844*1,3891328*0 7*

It can be seen that the Productivity Index is a little more sensitive to changes in economic tempo than is the Index of Production. Output is influenced by changes in all the inputs to production, including materials, capital, management and skills, as well as labour, but at this stage an index has not been developed to permit an assessment of relative contributions of each input to economic growth.

GROSS DOMESTIC PRODUCT IN CONSTANT PRICES—The fact that the Index of Production is a volume index covering the output of all goods and services means that it can be readily modified into an index of real gross domestic product. In New Zealand the most important change is to include the services of the armed forces. The derived index is compared with the Index of Production in the following table.

YearIndex of ProductionIndex of Real Gross Domestic Product
*Provisional.
1954-551,0001,000
1955-561,0391,037
1956-571,0591,057
1957-581,1151,112
1958-591,1461,143
1959-601,1911,188
1960-611,2651,261
1961-621,3071,303
1962-631,3491,343
1963-641,4301,425
1964-651,5181,512
1965-661,6121,604
1966-671,6791,670
1967-681,6651,658
1968-691700x1692x
1969-701783*x1774*x
1970-711844*1833*

Having obtained an index of real gross domestic product it can be used to obtain gross domestic product and gross national product at constant prices from the original estimates expressed in current price terms. In the table below gross domestic product and gross national product are shown, firstly, in current prices as they appear in the annual estimates of national income and expenditure and, secondly, valued in constant 1954-55 prices. In this case the method used to obtain constant prices is to project the value of the gross domestic product for 1954-55 by the derived index.

YearGross Domestic Product in Current PricesGross National Product in Current PricesGross Domestic Product at 1954-55 PricesGross National Product at 1954-55 Prices
*Provisional.
 $(million)  
1954-551,8771,8601,8771,860
1955-561,9791,9651,9461,932
1956-572,0782,0611,9841,968
1957-582,2012,1842,0872,071
1958-592,2942,2702,1452,123
1959-602,4542,4342,2302,212
1960-612,6592,6222,3672,334
1961-622,7532,7222,4462,418
1962-632,9662,9212,5212,483
1963-643,2403,1972,6752,639
1964-653,5503,4912,8382,791
1965-663,8373,7843,0112,969
1966-673,9483,9193,1353,084
1967-684,1294 0743,1123,071
1968-694,415x4,334x3,176x3,118x
1969-70*4,838x4,741x3,330x3,263x
1970-71*5,5095,4323,4413,393

When correction is made for price changes in the values of exports and imports of goods and services, gross domestic expenditure may also be expressed in constant prices, as is done in the following table.

YearGross Domestic Product at 1954-55 PricesExports of Goods and Services at 1954-55 PricesImports of Goods and Services at 1954-55 PricesGoods and Services Available for Use* at 1954-55 Prices

*This is also called gross domestic expenditure.

†Provisional.

 $(million)
1954-551,8775075571,927
1955-561,9465685831,961
1956-571,9845925631,955
1957-582,0875966112,102
1958-592,1456635492,031
1959-602,2306805362,086
1960-612,3676586502,359
1961-622,4467076552,394
1962-632,5217386352,418
1963-642,6757837412,633
1964-652,8387697732,842
1965-663,0117978913,105
1966-673,1358339253,229
1967-683,112870x777x3,019x
1968-693,176x1,015x783x2,944x
1969-703,330x1,098x869x3,101x
1970-713,4411,0861,0003,355

The following table assesses movements caused by changes in the terms of trade, by showing gross domestic product at constant prices corrected for the terms of trade. By making this correction to the gross domestic product at 1954-55 prices, a much better picture can be obtained of the purchasing cower, both here and abroad, of the income it represents.

YearGross Domestic Product at 1954-55 PricesExports of Goods and Services at 1954-55 PricesExports of Goods and Services Corrected for the Terms of TradeEffective Gross Domestic Product
*Provisional.
  $(million)  
1954-551,8775075071,877
1955-561,9465685521,930
1956-571,9845925631,955
1957-582,0875965482,039
1958-592,1456635382,020
1959-602,2306806392,189
1960-612,3676585922,301
1961-622,4467075952,334
1962-632,5217386462,429
1963-642,6757837522,644
1964-652,8387697872,856
1965-663,0117977842,998
1966-673,1358338303,132
1967-683,112870x761x3,003x
1968-693,1761,015x875x3,036x
1969-70*3,330x1,098x961x3,193x
1970-71*3,4411,0868883,243

25 E—NATIONAL DEVELOPMENT COUNCIL

BACKGROUND—Responsibility for advising the Government on long-term economic planning rests with the National Development Council. It is assisted by a Targets Advisory Group and 16 sector councils with wide coverage of economic, social and cultural life in New Zealand, namely, Agricultural Production Council, Manufacturing Development Council, Forestry Development Council, Fisheries Development Council, Mineral Resources Council, Fuel and Power Council, Tourist Development Council, Trade Promotion Council, Building Industry Advisory Council, Transport Advisory Council, Distribution Council, National Research Advisory Council, Advisory Council on Educational Planning, Environmental Council, Social Council, and Cultural Council. The Manpower Planning Unit of the Department of Labour, and the Vocational Training Council are advisory bodies.

The objectives of the council include (a) a faster economic growth rate than would otherwise be possible (b) balanced growth in which the aspirations of all main sectors are taken into account in the national targets and goals (c) the linking of economic and non-material objectives.

Currently 187 persons serve in this structure (excluding the Targets Advisory Group), 42 from the Government and 145 from outside the Government. The secretariats of the NDC and all sector councils number 49, of whom over half are engaged full-time on council work.

During the 1950s and 60s, “key sector” conferences were held on housing and industrial, export, and agricultural development*. These conferences reflected a changed attitude regarding the Government's role in growth and development. As a result of the work of the Agricultural Development Conference in particular, medium- and long-term projections were accepted as the basis for planning. Targets were set for agricultural production up to 10 years ahead. Another feature was the formation of continuing machinery after two of the conferences, namely the Trade Promotion Council and the Agricultural Production Council.

*National Housing Conference 1953; Industrial Development Conference 1960; Export Development Conference 1963; Agricultural Development Conference 1963-64.

The Agricultural Production Council's purpose was to review agricultural sector targets and to advise the Government on how to achieve them. Other sectors became interested in this approach to planning within sectors. Preparations were being made by the end of 1967 for conferences on forestry and tourism to be held in early 1969. One drawback of this type of action was that each sector tended to view its problems and future in isolation. The Government decided therefore to hold a National Development Conference, with plenary sessions in August 1968 and May 1969, to set economic planning on a national basis. The outcome of the conference was the adoption of national and sector growth targets and of 631 recommendations. Over half of these recommendations have been implemented.

TARGETS SET BY THE 1969 CONFERENCE—The National Development Conference adopted the following average annual growth targets for a 5-year period ending 1972-73 and a 6-year period ending 1978-79*.

 1967-68 to 1972-731972-73 to 1978-79
 percentpercent
Real Gross National Product4.54.5
Real GNP per head2.72.6
Real consumption per head2.02.5

Targets were also set for exports of goods and services by the agricultural, manufacturing, forestry, fisheries, minerals, and tourism sectors. Physical targets were set for livestock numbers (expressed in ewe equivalents) and forest planting, and estimates made of the overseas tourist intake.

In setting the targets, assumptions were made about changes in domestic prices and terms of trade. Trends in the growth of population, labour force, net migration, productivity, import requirements and investment requirements were also taken into account.

Many of the measures required to achieve the targets were enumerated by the conference in its recommendations. Some were general statements of principle and were adopted by the Government as policy guidelines. Others, more specific, have had a notable impact on the work of the 16 sector councils. These are largely either the offshoots of the sector committees of the conference or statutory bodies which were already operating. It was recognised that changes in both attitudes and policies were required to meet the targets. In particular, an accelerated expansion in exports was called for. A decline in the share of total export earnings from agriculture was foreseen, although it would continue to make the biggest contribution. Other issues emphasised included the need to increase productivity (the better use of resources—men, machines, buildings, and land); the progressive substitution of tariff protection for import licensing; new markets and products; adequate advisory services and research for export industries; and the training and mobility of a widely skilled work force.

THE NATIONAL DEVELOPMENT COUNCIL—The National Development Council (NDC) was set up on the recommendation of the National Development Conference, with senior Ministers as chairman and deputy chairman. Members include the Secretary to the Treasury, the Secretary of Industries and Commerce, and representatives of Federated Farmers, the Federation of Labour, the Manufacturers' Federation, the National Council of Women, producer boards, the universities, other institutions, and the younger age group.

The NDC first met in July 1969 and has met monthly since then. Its terms of reference are: (a) To keep under review:

  1. the targets and objectives set as a result of the National Development Conference; and

  2. the measures necessary for their implementation;

(b) To propose changes in the targets and objectives and in the measures for their co-ordinated implementation; (c) To consider matters referred to it by Government or sector councils; (d) To convene periodically, but at intervals of not less than once a year, joint meetings with the chairmen of sector councils to consider progress in the attainment of the targets; (e) To advise Government on the constitution (terms of reference, membership, and appointment), time of establishment, and functioning of new sector councils.

*Calculations made in real terms remove the effect of assumed price-level changes.

A review of targets was undertaken in 1970 and 1971, and revised targets were, on the advice of the council's Targets Advisory Group, set at the second National Development Conference in March 1972.

The terms of reference of most of the sector councils require them to keep under review their objectives or targets set and the measures necessary to meet them; to advise the NDC and the Government on changes in their objectives and other matters referred to them; and to co-operate with the NDC to ensure consistency between national and sector targets and objectives.

Activities of the National Development Council*—The planning structure envisaged by the 1969 conference is now operational, with a continuing stream of information flowing between sector councils and the NDC. The NDC's attention is now focused increasingly on questions of policy and priorities for resource allocation, and informing the public of policy decisions.

The NDC and its sector councils are widely representative and present the opportunity for a comprehensive effort to achieve soundly-based economic growth and continuing discussion of the type of society in which New Zealanders want to live.

Issues considered by the council itself have included:

Forestry—The NDC supported the Forestry Development Council in recommending in 1970 an increase in the forestry planting programme to 57,000 acres per year over the following 5 years. The Government accepted this increased target, in the first instance for 1970-71, but the planting programme was revised upwards in March 1972 to 70,000 acres.

Manufacturing Export Incentives—Arising from discussions with the Manufacturing Development Council the NDC recommended that the time limit for both the increased exports taxation incentive and the export promotion taxation incentive be extended to 31 March 1974, subject to review. The Government accepted this.

Review of the Targets—Reports on progress towards the achievement of conference targets were presented by the Targets Advisory Group to the NDC in December 1970 and March 1971. Three factors in particular were noted as affecting the achievement of these targets: (a) substantial emigration in the first year (1968-69) of the initial target period and the very small net immigration in 1969-70 which reduced the rate of growth in population and labour force; (b) the greater than expected deterioration in New Zealand's terms of trade to a level which, in 1970, was the lowest since the 1920s (excluding the Second World War);(c) the sharp acceleration in the rate of increase in costs and prices.

These factors, together with the relatively slow start in 1968-69, meant that the overall average real GNP target of 4.5 percent annually was unlikely to be achieved for the first 5-year target period (1967-68 to 1972-73).

The Targets Advisory Group review found that targets for per head annual growth in real GNP and consumption had good prospects of being achieved in the first target period, given the slower population growth rate which seemed likely. Lower investment ratios than had been assumed by the conference were recommended.

It was also stated that higher rates of productivity growth would be needed to meet growth targets, that the deterioration in the terms of trade assumed by the conference had already been exceeded, and that exports in real terms were below target. The pastoral farming sector was expected to fall short of its export targets in both planning periods, primarily because the revised projections of wool and dairy prices were lower than the original conference projections, while domestic costs were higher. On the other hand, above-target exports were projected in manufacturing, forestry, horticulture and mining. Fisheries, tourism and other service exports seemed likely to be close to targets.

Role of Women—Late in 1970, a report on the role of women in national development drew attention to problems facing women in participating in national development, and to the need for further research and better use of educational facilities which would help increase their contribution.

During 1971, this report was closely considered by certain sector councils and a subcommittee was established.

*A fuller account of most of these activities of the NDC and its sector councils may be found in the council's annual reports (parliamentary paper B.4).

Immigration—The council is concerned at the skill composition of the immigration inflow. It is planning during 1972 to examine further existing population and immigration policies.

Statistics—The first National Development Conference recommended the establishment of a special technical committee to assess the range of adequate up-to-date statistical services essential for planning. A committee was set up, and reported to the NDC in October 1969. The main conclusion of the committee was that major extensions to New Zealand official statistical services, centred on a modernised and extended system of national accounts, were necessary to meet national development planning needs. The council supported this view in general and recommended to the Government accordingly.

Regional Development—In 1969 the Government commissioned a report by the New Zealand Institute of Economic Research (NZIER) on regional development in New Zealand, with special reference to manufacturing. This report was referred by the Government to the NDC late in 1970. The council decided to seek comments on it from sector councils and established a subcommittee to receive the comments and make recommendations.

The subcommittee collected a wide range of views from sector councils, universities and other organisations. Its recommendations covered criteria for and objectives and means of Government intervention in regional development, research requirements, regional statistics and accounting, executive responsibility for policy and research, the role of local authorities in regional development, and the NZIER recommendations themselves. The report was adopted by the NDC in December 1971, referred to the Government, and published in February 1972.

Conference Recommendations—A subcommittee was established by the NDC in 1969 to record, review and classify action taken on the recommendations of the first National Development Conference. Reports on additional action taken are submitted from time to time by Government departments and sector councils. Of the 631 recommendations made, the following is the classification of action taken as at 8 September 1971:

Implemented357
Partially implemented40
Not accepted18
Deferred28
Action continuing188
 631

Discussions with Sector Councils—Each year, sector councils present information reports to the NDC. Subsequently representatives from the sector meet with the council to discuss the major problems facing them. This procedure has raised many issues resulting, on occasions, in recommendations to the Government. In addition a joint meeting is held each year with all the chairmen of sector councils.

Publicity—The NDC tries to keep the public fully informed on important economic and other issues. Most of its meetings are open, in part, to news media. Publicity aspects of the work of the Council and sector councils are co-ordinated by the NDC director of publicity. A regular newsletter dealing with topics of interest in the council and sectors is widely distributed.

REVISION OF THE TARGETS—As the conditions on which targets were based had altered substantially since 1969, and a decision was then imminent on the UK application to join the EEC, the National Development Council decided early in 1971 to prepare a new set of targets for four 3-year periods ending 1972-73, 1975-76, 1978-79 and 1981-82. Each sector council was asked for detailed information on the current state of its sector, the expected output, the volume and prices of exports and investment and manpower requirements for the target years.

From the information received the Targets Advisory Group projected the possible growth rates for the economy and, after discussions with the sectors, examined the conflicting demands for resources from sectors.

On 17 November 1971 the NDC held a 1-day consultation on growth, productivity and exports. The consultation highlighted the critical issues of New Zealand's development as (a) growth of productivity, and (b) growth of export earnings.

A report from the Targets Advisory Group noted that higher productivity growth would require changes in attitudes and policies by all groups in the economy—management, labour, and Government—and should include not only farming and manufacturing but also the servicing sectors. The report listed the key factors for productivity growth as: control of inflation; improved industrial relations; greater skills on the part of management and labour; increased investment in labour-saving plant; increased domestic savings in order to finance the investment; better all round use of resources and speedy application of the latest technology.

A faster growth of export earnings than the 1969 conference thought desirable was considered necessary by the Targets Advisory Group because export prices have not risen as rapidly as import prices. The report emphasised that every effort must be made to raise export prices to the full extent that markets can absorb. The Targets Advisory Group could see only a temporary improvement in the terms of trade before a subsequent decline occurred to the low 1970-71 level.

The export targets adopted by the National Development Conference on 9 March 1972 are set out in the following table.

Sector Classification1969-70 Base Year1972-731975-761978-791981-82
 $(million)
Pastoral products9101,1371,2861,5521,857
Other agricultural products3244587392
Totals, agricultural products9421,1811,3441,6251,949
Manufacturing68155231345517
Forestry6394181228281
Fisheries1518233959
Minerals17232943
Other goods (including re-exports)2231395165
Totals, goods1,1121,4851,8412,3172,914
Tourism264674119178
Transport88129183253313
Other services476584107138
Totals, goods and services1,2731,7252,1822,7963,543

It was estimated that the projected exports of goods and services, together with an assumed external borrowing of 2 percent of GNP, would finance a level of imports sufficient to support the following growth rates, given the productivity growth indicated.

Growth RateThree Years Ending in Year shown
1972-73 Projection1975-76 Target1978-79 Target1981-82 Target
 (percent a year)
Real GNP per head2.32.82.72.7
Real GNP4.04.54.54.5
Productivity growth required2.02.52.52.5
Real consumption per head2.52.02.52.7

The growth rates adopted will require a radical improvement in productivity growth—export growth alone will not be sufficient. Present trends and policies indicate that productivity growth is unlikely to increase much above the long-term average of 2 percent a year. Therefore, if higher growth rates are required, further policy changes in all sectors to increase the efficiency of resource use and allocation will be necessary.

It is clear that deep consideration must be given to improving productivity. For this reason the programme for the conference in March 1972 centred on the twin objectives of increasing productivity and export returns—the theme for the meeting being “New Zealand in the 1970s—Growth for Better Living”. Background papers are available from Government bookshops.

LOOKING TO THE FUTURE—Over the next few years critical decisions will have to be made which will have a major influence on the whole course of future development in New Zealand. The role of the National Development Council and its sector councils will be to serve as a forum in which these policy issues can be debated and clarified, and policy advice given to the Government to enable the development goals to be met.

The reports presented by the sector councils to the NDC in 1971 highlighted particularly the difficult task of the NDC in trying to reconcile conflicting sectoral demands for resources for manpower, capital and exports.

At the same time New Zealand, like many other countries, has become increasingly aware of the environmental, cultural and social aspects of economic growth. The NDC recognises national development is not confined to economic and material betterment, and that the total environment in which New Zealanders live must be constantly examined and improved. Increasing emphasis is being given to the non-material aspects of growth, generally under the heading of “quality of life”. However, the NDC is fully aware that to provide the resources for an improvement in the “quality of life” exports and productivity must continue to expand.

Chapter 26. Section 26 CENTRAL GOVERNMENT FINANCE

26 A—REVENUE AND EXPENDITURE

GENERAL—Central Government is concerned with the future of the nation and therefore with the economic, social, and cultural development of the people as a whole and the quality of their environment. In New Zealand the State is fairly broadly concerned in national development and social welfare. The Central Government budgets for and controls expenditure on capital works such as electricity supply, land settlement, housing, public buildings, forest development, railway and road construction, telecommunications, and on other functions such as social security, health, education, defence, and paying interest on the public debt.

Taxing, charging, and borrowing are the three alternative avenues of raising revenue to meet Government expenditure. The problem of choice between these avenues can be described as the choice of the most efficient and equitable way of paying for publicly-provided services. However, the problems of finance and of raising revenue cannot be considered in isolation. In the first place some Government expenditures, such as subsidies and transfer payments (for example, pensions and child benefits), can and do alter the equity of the tax system. For instance, subsidies and monetary benefits can be regarded as refunds of tax. In the second place, it is now generally accepted that a system of raising revenue must be in accord with the general objectives of Government economic policy. In the final analysis any system of Government finance, embracing both expenditure and the raising of revenue, must be designed to achieve the economic objectives of growth, full employment, price stability, and external balance of payments in an efficient manner, tempered by the prevailing views about freedom and the equitable distribution of income.

Central Government, by budgeting for a surplus (revenue exceeding expenditure) or a deficiency, or by varying the impact of taxation or the level of Government expenditure on certain sectors of the economy, now uses these powers to regulate internal economic activity.

The Department of Statistics publishes a review of Government transactions, described in terms of economic flows, in The Accounts of the Government Sector. In this, the Government sector of the economy is divided into two broad sections—the Public Accounts, including dependent administrative bodies; and Government enterprises and life accounts outside the Public Account, (such as State Advances Corporation, Post Office, State Insurance Office, and Government Superannuation Fund): the transactions of Central Government are shown in relation to all other economic sectors. The Public Revenues Act 1953 is the governing legislation on the administration of public money.

THE PUBLIC ACCOUNT—This is a single financial account held at the Reserve Bank. The following funds and accounts controlled by the Treasury are included in the Public Account; the Consolidated Revenue Account, Works and Trading Account, Trust Account, Loans Redemption Account, National Development Loans Account, Reserve Fund, and National Roads Fund. The Trust Account represents only lodgements or withdrawals of (mainly) non-Government money. (The Loans Redemption Account is dealt with in the subsection on indebtedness.)

The receipts and payments of the Consolidated Revenue Account over a long period will be found in the Statistical Summary near the end of this volume.

Financial Year—The financial year commences on 1 April and ends on 31 March. The expenditure of public money is authorised by an annual Appropriation Act, which lapses at the end of the financial year. However, the Minister of Finance is authorised to pay money for services for a period of 3 months from the commencement of the next financial year, pending the granting of supplies by Parliament, which normally meets in June.

SUMMARY OF THE PUBLIC ACCOUNT—The figures shown under the various headings in this subsection are on the basis of receipts and payments. In some sections devoted to the operations of various departments, the figures are given on an income and expenditure basis, and accordingly differ to some extent from those appearing here.

ReceiptsYears Ended 31 March
19701971

*Includes defence credits.

†Includes deposits with trading banks.

‡Excludes Treasury Bills encashed $169.8 million (1969-70) and $195.9 million (1970-71).

 $(million)
 Consolidated Revenue Account
Taxation receipts—  
    Income tax779.2957.3
    Payroll tax-20.5
    Customs duty115.5138.9
    Beer duty37.339.7
    Sales tax97.6125.3
    Stamp, racing, and estate duties49.855.9
    Other taxation22.725.4
            Total taxation1,102.11,363.0
Other receipts—  
    Interest90.097.7
    Profits from trading undertakings9.716.1
    Departmental receipts80.7*89.4
            Total receipts1,282.51,566.2
Expenditure—  
    Social services707.0833.3
    Defence89.7109.1
    Administration, etc.114.1135.2
    Stabilisation17.221.4
    Maintenance of works, etc.42.148.8
    Development of industry81.5117.8
    Interest and management of public debt145.2154.1
Transfer from Consolidated Revenue Account to—1,196.81,419.7
    Loans Redemption Account60.095.0
    National Development Loans Account-15.0
    Reserve Fund-11.0
    Works and Trading Account1.20.9
    Special entries17.1*19.4
            Total expenditure1,275.11,561.0
Other Accounts Within the Public Account
Transfers from Consolidated Revenue Account to—  
    Loans Redemption Account60.095.0
    National Development Loans Account-15.0
    Reserve Fund-11.0
    Works and Trading Account1.20.9
 61.2121.9
Miscellaneous receipts—  
    Highways revenue79.782.9
    Sinking Fund contributions, etc.20.719.3
    Miscellaneous capital receipts20.419.1
    Excess receipts of trading accounts, etc., within the Public Account+ 1.9- 14.5
 122.7106.8
Receipts from borrowing—  
    In New Zealand—  
        Public and departmental205.0163.6
        Post Office Savings Bank35.024.3
    Overseas—  
        United Kingdom and Europe-45.7
        IBRD Inter-island Transmission Project, Railways, and Marsden Point5.72.4
            Total—Borrowing245.7236.0
International Finance Agreement Act 1966—  
    Securities issued to Asian Development Bank1.01.0
    Allocation of Special Drawing Rights23.619.3
    Securities issued to I.M.F.-29.7
            Totals1,736.72,080.9
National Roads Fund77.685.7
Transfer from National Development Loans Account for—  
    Housing11.910.6
    Forest development1.52.2
    Public buildings10.915.3
    Airport development1.04.2
    University and technical institute building12.715.7
    Railway construction1.54.5
    Electric supply37.047.5
    Land settlement11.010.8
    State coal mines0.2-
    Railways5.42.4
    Post Office10.531.4
    State Advances Corporation51.061.0
    Other14.85.3
 169.4210.9
Miscellaneous capital expenditure21.218.4
 190.6229.3
International Finance Agreements Amendment Act 1966—  
    Issue of securities to I.M.F.-29.7
    Further subscription to I.M.F.-10.5
    Holding of Special Drawing Rights transferred to Reserve Bank23.619.3
    Subscriptions to Asian Development Bank1.01.0
    Securities in favour of Asian Development Bank1.01.0
 25.661.4
Repayment of loans—  
        In New Zealand138.8109.2
        Overseas16.521.1
 155.3130.3
Net purchase of miscellaneous investments—  
    In New Zealand- 19.3- 20.0
    Overseas+ 7.0+ 29.8
 - 12.3+ 9.8
Balancing items—  
    Reserve Bank: Purchase (+) or sale (-) of Government securities+ 12.8-
    Increase (+) or decrease (-) in cash balances in the Public Account- 12.0+ 3.4
 + 24.8+ 3.4
            Totals1,736.72,080.9

REVENUE AND EXPENDITURE—Tables are now given to show receipts and payments of the Consolidated Revenue Account.

By including the receipts of both the Consolidated Revenue Account and the National Roads Fund the following table shows the total receipts of direct and indirect taxation during the latest five years.

ItemYear Ended 31 March
19671968196919701971
 $(million)
Direct taxation—     
    Income and social security income tax664.4672.8691.5779.2957.3
    Estate and gift duty23.121.724.126.329.3
    Land tax3.54.42.72.93.0
            Total—Direct taxation691.0698.9718.3808.4989.6
Indirect taxation—     
    Customs duty92.095.516.4115.5138.9
    Beer duty34.735.635.837.339.7
    Sales tax78.975.482.897.6125.3
    Racing duty12.011.311.212.113.2
    Stamp and other duties9.68.49.411.513.4
    Motor spirits duty-10.411.93.53.9
    Highways taxation70.963.066.378.882.0
    Payroll tax----20.5
    Other taxation0.413.916.316.418.5
            Total—Indirect taxation298.6313.5340.1372.6455.4
            Total—Taxation receipts989.61,012.41,058.41,181.01,445.0
Interest—     
    On capital liability—     
        Electric supply24.130.032.834.736.3
        Post Office10.811.411.812.212.9
        Other27.830.433.936.841.0
    On other public moneys3.74.15.66.27.5
            Total—Interest66.376.084.189.997.7
Profits from trading undertakings12.311.05.49.716.1
Departmental receipts54.756.260.164.471.2
Special receipts-4.813.717.119.0
            Total—Other133.3147.9163.3181.3204.0
            Total—Receipts1,122.91,160.31,221.71,362.21,649.0
    Total taxation as percentage of national income29.7%29.3%28.7%29.3%31.2%

The following table shows expenditure from the Consolidated Revenue Account.

ItemYear Ended 31 March
19671968196919701971

*Includes amount for transfer to Decimal Currency Account.

†Included in Vote: Maori and Island Affairs.

‡Previously included in Vote: Justice.

Permanent appropriations—$(million)
    Under special Acts of Legislature—     
        Civil List0.60.60.70.70.9
        Debt services—     
            Interest106.0115.8132.4144.2153.0
            Transfer to Loans Redemption Account—     
                New Zealand Loans Act 1953—     
                    Section 5926.328.115.032.335.4
                    Section 57 (c)11.325.31.37.714.6
                Administration and management1.01.11.11.01.1
            Total—Debt services144.6170.4149.8185.2204.1
    Special Acts—     
        Superannuation Act 195617.217.517.719.522.9
        Miscellaneous2.52.42.83.23.3
            Total—Special Acts19.720.020.522.626.2
            Total—Permanent appropriations164.9191.0171.0208.5231.2
Annual appropriations—     
    Vote—     
        Legislative0.80.90.91.01.2
        Prime Minister's Office0.10.10.10.10.1
        Foreign Affairs9.99.911.514.715.2
        Finance—     
            Audit0.70.70.70.80.9
            Customs2.32.52.52.73.6
            Inland Revenue5.96.26.46.98.3
            Stabilisation35.817.816.417.221.4
            Treasury3.0*2.7*2.12.22.6
            Total—Finance47.729.928.129.836.8
General Administration—     
            Broadcasting- -- -- -- -- -
            Government Printing Office6.96.26.07.29.1
            Internal Affairs6.56.36.67.39.8
            Island Territories3.73.8
            Labour4.95.86.65.06.4
            Maori and Island Affairs3.13.17.88.19.2
            Marine3.32.93.03.94.1
            State Advances Corporation- -- -- -- -- -
            State Services Commission0.70.70.70.80.9
            Statistics1.61.31.31.31.8
            Valuation1.41.61.61.82.2
            Total—General Administration32.231.833.635.543.5
        Law and Order—     
            Crown Law Office0.10.10.10.20.2
            Justice9.29.510.011.913.3
            Police11.112.212.914.918.8
            Security Intelligence Service----0.4
            Total—Law and Order20.421.823.027.032.7
ItemYear Ended 31 March
19671968196919701971

*Excludes $13.5 million Export-Import Bank Defence Credit.

†Excludes $17.1 million Export-Import Bank and British Credits. Includes $1.2 million loan repayment.

‡Excludes $19.0 million Export-Import Bank and British Credits Includes $3.7 million loan repayment.

§Includes transfer to National Roads Fund, $3 million.

||Includes transfer to National Roads Fund $10,000.

¶Includes $1.28 million grant to International Wool Secretariat.

Annual appropriations$(million)
    Vote—     
        Defence88.687.185.3*89.7109.13
        Maintenance—     
            Public Works and Services36.836.337.839.846.7
            Roads, etc.1.94.74.7§2.2||2.1||
            Total—Maintenance38.741.042.542.148.8
Development of Primary and Secondary Industries—     
            Agriculture20.319.220.628.854.5
            Forest Service6.36.77.38.29.8
            Industries and Commerce2.62.63.55.05.3
            Lands and Survey5.15.45.76.37.6
            Mines1.23.32.71.51.2
            Scientific and Industrial Research7.57.98.79.713.2
            Tourist and Publicity4.74.95.35.96.8
            Transport12.413.113.716.020.2
Total—Development of Primary and Secondary Industries60.063.267.581.5118.6
Social services—     
            Social Security Monetary Benefits—     
                Age55.157.560.867.076.2
                Invalids5.15.35.56.17.0
                Widows11.312.012.613.715.9
                Sickness4.65.25.66.17.1
                Family66.871.568.372.370.4
                Miners0.10.10.1-0.1
                Orphans0.10.10.10.20.2
                Unemployment0.12.23.31.51.0
                Universal superannuation70.276.480.688.8101.0
            Education146.4159.8175.9196.3251.9
            Family benefit capitalisation7.67.27.87.510.6
            Health12.212.613.214.7242.0
            Health benefits37.539.341.946.9
            Hospitals115.0119.1126.6141.1
            Social security expenses and emergency benefits8.59.610.812.216.3
            War and other pensions30.930.730.832.433.6
            Total—Social Services571.5608.5644.0707.0833.3
            Total—Annual appropriations869.7894.1936.61,028.21,239.3
Unauthorised expenditure—  $(million)  
Services not provided for--0.3-1.3||0.3
Transfer to Loans Redemption Account16.0--20.045.0
Transfer to National Development Loans Account----15.0
Transfer to Reserve Fund-10.0--11.0
Special Entries--39.017.119.0
            Total expenditure1,050.61,095.31,146.91,275.11,560.9

NATIONAL DEVELOPMENT LOANS ACCOUNT—Particulars of receipts and payments of the National Development Loans Account were as follows

Item1967-681968-691969-701970-71
*IBRD harbour projects.
 $(thousand)
Receipts    
Stock issued208,636182,603157,924216,524
Advance subscriptions2,8752,4452,0402,386
International Monetary Fund—    
    Allocation of Special Drawing Rights--23,55019,298
    Securities issued to Asian Development Bank—    
    Non-negotiable non-interest-bearing notes8111,0071,0071,007
Securities issued to I.M.F.—    
    Non-negotiable non-interest-bearing notes---29,730
Transfer from Consolidated Revenue Account---15,000
            Totals212,323186,055184,521283,945
Payments    
Charges and expenses on raising and repaying loans2,2701,42656519
Transfer to Works and Trading Account—    
    Public Works44,00039,00039,50052,500
    Electric supply61,00050,50037,00047,500
    Land settlement16,50012,00011,00010,750
    State Coal Mines1,000600200-
    Working Railways6,8157,3285,4412,365
Capital equipment credit arrangements---5,403
Advances to—    
    Post Office7,5006,40010,50031,400
    New Zealand National Airways Corporation-1,500500-
    New Zealand Steel Ltd.5864,1851,300-
    State Advances Corporation43,00038,00051,00061,000
    Tourist Hotel Corporation6106188651,000
Christmas Island Phosphate Commission4001,000500-
Natural Gas Corporation2305,61510,5373,165
Calls on shares in New Zealand Steel Ltd.1,4871,4871,039-
Acquisition of shares in Air New Zealand Ltd.1,2002,200--
Calls on shares in New Zealand Wool Topmaking Investigating Co. Ltd.---62
Loans to Harbour Boards*    
    Auckland491102--
    Lyttelton43---
    Napier913--
Holding of I.M.F. Special Drawing Rights transferred to Reserve Bank--23,55019,298
Further subscription to I.M.F.---10,449
Further security in favour of I.M.F.---29,730
Encashment of securities in favour of I.M.F.---90
Encashment of securities in favour of Asian Development Bank---20
Currency subscription to Asian Development Bank8111,0071,0071,007
Security in favour of Asian Development Bank8111,0071,0071,007
Advance subscriptions from previous year allocated-2,8752,4452,040
            Totals188,846176,853197,447279,305
            Balances at end of year52,83462,03649,11053,749

WORKS AND TRADING ACCOUNT—The Works and Trading Account receipts and payments are shown in the following table.

Item1967-681968-691969-701970-71
Receipts $(thousand)  
Airport development133167103171
Electric supply73,34084,73091,35996,579
Forest development12,05317,12821,39723,678
Housing construction1,3822,0263,8082,715
Land settlement—    
    Crown lands17,78521,06126,09226,261
    Maori land settlement8,4388,9989,95310,862
Public buildings2,4602,7043,355746
Railway construction586810
State coal mines13,33912,48712,99712,392
University and technical institute buildings-429
Working railways88,63191,553101,103105,048
Miscellaneous370323345253
            Sub-totals217,934241,189270,581278,724
Contributions from National Development Loans Account129,315109,42793,141113,115
Capital equipment credit arrangements---5,403
Contributions from Consolidated Revenue Account—    
    From vote “Mines"2,9502,4001,230877
            Totals350,199353,016364,952398,119
Expenditure    
Annual Appropriations—    
    Vote—    
        Airport development6125871,1224,357
        Electric supply98,63896,35886,48799,053
        Forest development15,09419,72023,74825,918
        Housing construction15,68015,12115,71013,302
        Land settlement—    
            Crown land21,00321,22522,77123,583
            Maori land settlement10,8169,67110,08010,310
        Public buildings14,08213,24714,22116,023
        Railway construction5036301,5964,511
        State coal mines17,24415,44513,62014,025
        University and technical institute buildings14,78812,03612,73215,699
        Working railways99,76091,15898,256117,166
            Sub-totals308,220295,198300,344343,947
Subsidies to Government Superannuation Fund1,7861,7812,1312,609
Interest on capital liability paid to Consolidated Revenue Account—    
        Electric supply30,01932,75234,70536,283
        Land settlement9,33910,04910,72811,365
        Working Railways (IBRD loan)7541,3671,7322,047
Contributions to Loans Redemption Account5,0046,1506,9259,832
Capital equipment purchased under credit arrangements---5,403
Land acquired other than from annual votes1,2151,3912,9952,440
Miscellaneous expenditure357324234345
            Totals356,694349,012359,794414,271

NATIONAL ROADS FUND—The National Roads Act 1953 established a National Roads Fund within the Public Account, the revenue of the Fund being derived mainly from motor taxation together with an annual contribution from the Consolidated Revenue Account. Expenditure from the Fund is for the purpose of developing State highways to modern standards and of subsidising the roading programmes of local authorities.

Receipts and payments of the National Roads Fund were as follows.

Item1967-681968-691969-701970-71
*Cash received but not yet allocated.
Receipts $(thousand)  
Highways revenue62,99166,32578,83681,957
Contribution from Consolidated Revenue Account3,2503,0001010
Miscellaneous573761830813
Interest48706078
            Totals66,86270,15679,73782,858
Payments    
State Highways maintenance10,31112,45612,17914,057
State Highways construction22,76625,78628,73531,219
Local authorities' subsidised works26,86128,20230,65333,211
Administration and general expenses5,7756,3106,0677,240
Unauthorised expenditure6676
            Totals65,71872,76077,64185,733
Balance at end of year4,1701,5673,663788

SUMMARY OF BALANCES—A summary of the balances in the Public Accounts is given in the following table.

AccountBalance at 31 March
1968196919701971
  $(thousand)  
Consolidated Revenue Account22,49030,16937,53842,867
Works and Trading Account14,51818,52323,6827,530
Loans Redemption Account52,29346,35945,00253,807
National Development Loans Account52,83462,03649,11053,749
National Roads Fund4,1701,5673,663788
Reserve Fund42,60944,13644,89359,231
Suspense Account*295287254265
Trust Account25,05722,96824,69525,676
            Totals214,266226,045228,836243,913

The composition of the total balances is shown in the following table.

NatureAt 31 March
1968196919701971
 $(thousand)
Cash47,60957,48569,50372,913
Imprests6,0248,23911,33313,247
Investments in New Zealand83,70979,83360,49840,468
Investments overseas76,92480,48887,502117,285
            Totals214,266226,045228,836243,913

26 B—TAXATION

TOTAL TAXATION—A summary of taxation revenue during the last 11 March years is given in the following table.

Year Ended 31 MarchDirect Taxes on Income (i.e., Income Tax and Social Security Taxation on Income)Total Taxation
AmountPercentage of Total Taxation (All Sources)Amount
TotalPer Head of Mean PopulationTotalPer Head of Mean Population
*Excludes duty on motor spirits refunded under the Transport Act; this comprises refunds to persons entitled to exemption from the additional payment of Customs duty from 27 June 1958.
 $(million)$ $(million)$
1961413.8173.3061.9668.9*280.10
1962457.0187.2063.8716.4*293.40
1963432.8173.2063.3684.0*273.80
1964466.5182.9062.8742.3*291.10
1965547.7210.5564.8844.5324.65
1966606.0228.9266.0918.2346.86
1967664.4246.5667.2988.9366.98
1968672.8245.9866.41,012.7370.25
1969691.5250.5465.31,058.6383.54
1970779.2279.4066.01,181.3423.58
1971957.3338.1266.21,445.3510.49

The following table shows receipts, under the various heads, of taxation during the latest 5 years.

HeadRevenue for Year Ended 31 March
19671968196919701971

*Excludes 2.3 cents per gallon now paid to National Roads Fund.

†Included in National Roads Fund.

Consolidated Revenue Account—  $(million)  
    Customs revenue92.095.5106.4115.5138.9
    Beer duty34.735.635.837.339.7
    Motor spirits duty less refunds10.411.93.5*3.9*
    Motor vehicles fees and charges13.215.315.717.9
    Sales tax78.975.482.897.6125.3
    Film-hire tax0.40.30.30.30.4
    Mileage tax0.40.70.40.2
    Estate and gift duties23.121.724.126.329.3
    Duty on instruments7.05.86.88.810.7
    Racing taxation12.011.311.112.113.2
    Payroll tax----20.5
    Other taxation2.82.82.82.93.0
    Land tax3.54.42.72.93.1
    Income tax443.4440.3456.7779.2957.3
    Social security income tax221.0234.5234.8
National Roads Fund—     
    Highways revenue (less rebate)70.163.066.378.882.0
            Totals988.91,012.71,058.61,181.31,445.3

The sources of revenue are shown in the following diagrams.

A comparison of taxation revenue and total private income and national income is afforded by the following table, which also shows taxation as a percentage of private income and national income.

YearNational Income at Factor CostCentral Government Taxation
Total RevenuePercentage of National Income
*Provisional.
 $(million) percent
1960-612,242668.929.8
1961-622,315716.430.9
1962-632,504684.027.3
1963-642,742742.327.1
1964-653,002844.528.1
1965-663,261918.228.2
1966-673,356988.929.5
1967-683,4591,012.729.3
1968-693,6741,058.628.7
1969-704,0311,181.329.3
1970-714,634*1,445.331.2

CUSTOMS AND EXCISE TAXATION—Revenue under the headings of Customs does not include receipts from tyre tax and from motor spirits tax paid into the National Roads Fund. The following table shows Customs and excise revenue, for ordinary revenue purposes, for the latest six years.

Year Ended 31 MarchCustoms Duties*Beer DutyTotal Customs and Excise DutiesProportion of Total Taxation

*Including excise duties other than beer duty.

†Includes gross motor spirits duty.

  $(thousand) percent
196688,87532,828121,70313.3
196792,01234,735126,74712.8
1968106,58135,591142,17214.0
1969119,37835,826155,19914.7
1970119,51837,282156,80013.3
1971108,87539,653178,52812.4

Information in regard to Customs and excise duties generally is contained in Section 22d—Customs Tariff and Revenue.

ROADS TAXATION—The National Roads Fund derives its revenues from a tax on motor spirits, heavy traffic licence fees, and a mileage tax on vehicles not using motor spirits. Other revenues of the fund, which are not classed as taxation, consist of a Government contribution, interest earned, and miscellaneous receipts—e.g., from the sale of materials, etc. For 1968-69, tax on petrol paid to the fund was 14.8c per gallon. From 1 April 1969 the rate was increased to 17.1c per gallon by the transfer to the fund of 2.3c per gallon previously credited to the Consolidated Revenue Account, and from 1 April 1971 to 18.1c per gallon by the transfer of a further 1c a gallon.

The Local Authorities (Petroleum Tax) Act 1970 authorised territorial local authorities in 21 tax areas covering the country to levy a local authorities petroleum tax at the rate of 1, 2, or 3 cents a gallon on motor spirits and 0.5, 1, or 1.5 cents a gallon on diesel fuel delivered in a tax area. All tax areas decided to make the levies at maximum rates from February or March 1971. The proceeds of any tax imposed may be applied to projects for the benefit of the region or distributed among the constituent local authorities according to their proportions of total rate revenues. This legislation was designed to spread the rating burden of taxpayers.

Taxation receipts for roads purposes have been as follows during the latest six years, excluding rebates.

Year Ended 31 MarchPetrol TaxMileage TaxFeesTotal
  $(000)  
196648,6522,60614,54865,806
196750,8122,90116,35770,070
196850,5363,1959,26062,991
196953,6013,6049,12066,325
197064,9923,8999,94578,836
197166,8664,85810,23281,957

On 4 May 1967 the tax on motor spirits was increased by 3.3c a gallon for general revenue purposes, but from 1 April 1969, 2.3 cents a gallon was credited to the National Roads Fund and from 1 April 1971 the remaining 1c a gallon has been so credited.

INCOME TAX—Income tax is levied under the Land and Income Tax Act 1954, the Income Tax Assessment Act 1957, and amendments.

Exemptions—Certain specified incomes and types of income are exempt from income tax. The incomes of local and public authorities (except for certain Government trading departments), building societies (with the exception of rental income), co-operative dairy and milk treatment companies, trustees of superannuation funds (subject to certain investment requirements), friendly societies, charitable societies, and others of similar character are exempt from income tax. The general principle is, when a society or association carries on business exclusively for the purpose for which it was established and does not operate for the private pecuniary profit of any individual, the income is exempt from income tax. Monetary benefits from the Consolidated Revenue Account (except the universal superannuation benefit), sick benefits from friendly societies, workers' compensation payments, war pensions, and for individuals the first $100 of income from interest, are exempt from income tax.

Pay as You Earn Income Tax—Payment of income tax is on a “pay as you earn” basis. It applies to all individual taxpayers and to estates. It does not apply to companies, unless incorporated after 25 July 1957, or unless the company voluntarily elects to come within the PAYE provisions.

The main features of the scheme are:

  1. Income tax on salary and wages is deducted by the employer. In the main, taxpayers whose income consists solely of salary and wages are required to furnish a return of income only when their income during the year exceeds $2,600. However, they may furnish a return if they wish to have an adjustment made. In such cases the taxpayer is assessed on the basis of the annual return and receives a refund when tax assessed is less than the tax deducted by the employer.

  2. All other individuals (including self-employed, except for certain classes of farmers), estates, and companies within the scheme, pay provisional tax in two instalments on a provisional declaration of the current year's income. The actual income of the previous year is commonly used as a basis for computing the provisional tax. Farmers in some circumstances may pay in three instalments. There is an adjustment at the end of the year when the return of income is furnished.

Tax Code Declarations—Employees are required to deliver a tax code declaration to the employer each year before 1 April. The tax code declaration specifies whether or not the taxpayer has a dependent wife, and the number of other dependants.

There is no obligation on the employer to check the accuracy of the tax code declaration. Except for cases when the employee ends and commences employment during the week, the employee must not have more than one tax code declaration current during the pay period. However, there is provision for secondary tax code declarations when the employee has two or more employers at the same time.

At the end of the year or on the termination of employment the employer completes the tax code certificate by entering the amount of wages and salary paid and the amount of tax deductions made, hands one copy to the employee, and sends the other copy to the Commissioner.

In considering the incidence of income tax in New Zealand as illustrated by the next table it should be noted that under the provisions of the Social Security Act a family benefit of $78 a year is paid, usually to the mother, for every child under 16 years of age irrespective of the income of the parents or the child. The allowance may continue to be paid up to age 18 years if the child is still attending school full time

Amounts paid by an employee to a superannuation fund are deducted from the gross salary for the period: the taxable income is the income after deduction of superannuation payments.

When there is no tax code declaration or special tax code certificate, the tax deduction is at the “no declaration” rate shown in the tax deduction tables. This deduction, is at the flat rate of 27 1/2c in the dollar (increased by 10 percent for the four months' period from 1 April 1971 to equate to a surcharge of 3 1/3 percent income tax for the year ended 31 March 1972).

Special Tables—Special tables are provided for shearers and for casual agricultural employees. These are tables of deductions from daily earnings.

There is also a table of deductions at a flat rate of 21c in $1 (23c in $1 during the period 1 April 1971 to 31 July 1971). This applies to payments of extra emoluments and to secondary employment unless a special tax code certificate is issued by the Commissioner. Extra emoluments, e.g., end of year bonuses and retrospective wage increases, are treated as separate payments. Secondary employment exists when the taxpayer has two or more employers at the same time. The secondary employer deducts tax according to the flat rate table, while the principal employer uses the normal table.

Employer's Duties—The employer is required to keep a record for each employee showing the amounts of net payments, and superannuation and tax deductions. Not later than 20 April each year he must deliver to each employee a signed tax deduction certificate showing the total amounts of payments and tax deduction for the year (or period of employment if less than one year). A similar certificate must be given to the employee within seven days from the cessation of employment.

The aggregate amount of all tax deductions is to be remitted to the Commissioner each month. Not later than 15 May each year the employer must deliver to the Commissioner a reconciliation statement showing the total amount of tax deductions paid to the Commissioner in respect of deductions made during the year, and the total amount of tax deductions shown in the certificates for employees. The reconciliation statement is accompanied by signed copies of all tax deduction certificates.

Withholding Payments—These are payments for services rendered, but in circumstances where there is no real employer-employee relationship. Examples are company directors' fees, agricultural contract work, fees for free-lance journalists. Tax is deducted from the gross amounts of such payments at flat rates which vary from 7 1/2c to 25c in the dollar (increased by 10 percent for the period 1 April 1971 to 31 July 1971) according to the nature of the work.

Provisional Taxpayers—Provisional taxpayers are those who derive any assessable income which is not subject to tax at source. However, the first $100 of interest is exempted from income tax, and is therefore not assessable income. Estates, trusts, and companies incorporated after 25 July 1957, are also provisional taxpayers. Companies existing at that date may voluntarily elect to become provisional taxpayers.

Tax on provisional incomes is payable in two instalments during the year, by 7 September and 7 March. Normally the provisional income is an amount equal to the taxpayer's income for the preceding year. When the taxpayer anticipates that the income will be less than that of the preceding year, he may make an estimate of the provisional income and pay provisional tax on the estimated income. The taxpayer may estimate or re-estimate his provisional income at any time before the date for payment of any provisional tax instalment. If he does this and his estimated provisional tax is less than the normal provisional income (actual income of the previous year) and less than 80 percent of his actual income for the year, he may be liable to a penalty of 10 percent on the amount of provisional tax underpaid.

Alteration of Tax Code Declaration During Year—When the employee changes employment during the year, he must deliver a declaration to the new employer. If the declaration is delivered before the end of the first pay period, it applies from and including the first pay.

Employees who become entitled to claim allowances for new dependants during the year may deliver a new tax code declaration immediately the event occurs (e.g., marriage, or the birth of a child). The new tax code applies to the pay period commencing after the pay period in which the declaration was delivered.

When it becomes apparent that a dependent wife's income will exceed $650 for the year, the employee must immediately deliver a new tax code declaration omitting the wife as a dependant. The new code applies to the pay period following that in which it was delivered.

In other cases when a dependant ceases to be a dependant during the year—i.e., when a dependent wife dies or a child dies or reaches the age of 18 years—the employee is entitled to retain the tax code including them as dependants until the following 31 March. This applies even when the employee delivers a new tax code declaration on a change of employment.

Tax Deduction Tables: Principal Tables—The tax code declaration bears a code (M if the taxpayer is entitled to a wife's exemption; S if not so entitled); and a number which represents the number of other dependants. The tax deduction tables specify for each code and number the amount of tax to be deducted from the salary or wage payment for the period.

The amounts of tax shown in the tables are calculated as follows:

  1. The weekly income has been converted to an annual basis and after deduction of the special exemptions to which the taxpayer is entitled the amount of income tax is computed and is then divided by 52 to arrive at the weekly deduction.

  2. Fortnightly, three-weekly, four-weekly, and monthly tables of deductions are based on multiples of the basic weekly tables.

PAYE Tax Deductions—The tax rates for the purposes of PAYE tax deductions at source are the amounts shown in the tax deduction tables. These deductions are fixed according to the current amount of exemptions and tax rates. Some examples of these tax deductions are given for selected weekly incomes in the table which follows.

Weekly EarningsNot Entitled to Wife's ExemptionEntitled to Wile's ExemptionEntitled to Exemption for Wife and for—
One ChildTwo ChildrenThree Children
Operative from 1 August 1971
$$$$$$
100.36----
120.520.11---
140.680.260.06--
160.840.420.220.01-
181.020.580.370.17-
201.440.730.530.330.12
221.860.890.690.480.28
242.281.170.840.640.44
262.701.591.040.800.59
283.122.011.460.960.75
303.542.431.881.340.91
323.962.852.301.761.21
344.383.272.722.181.63
364.803.693.142.602.05
385.224.113.563.022.47
405.714.533.983.442.89
508.356.896.235.594.99
6011.309.688.938.227.50
7014.5912.8011.9411.1510.36
8018.2216.2615.3114.4313.55
9022.0720.0119.0018.0417.08
10026.1323.9722.9021.8820.87

For the four months 1 April 1971 to 31 July 1971 the above rates were increased by 10 percent to equate to a surcharge of 3 1/3 percent on the rates of income tax for the year ended 31 March 1972.

Employees who, in addition to their income from employment, derive interest, dividends, or rents, not exceeding $200 in the aggregate, are not required to pay provisional tax on this income which has not been taxed at source.

Provisional taxpayers are required to furnish returns of income, irrespective of the amount of income. The Commissioner then makes an assessment of terminal tax. Any difference between that assessment and the amount paid as provisional tax is either payable by the taxpayer or, if an overpayment, refunded to him.

Farmers who satisfy the Commissioner that they regularly derive more than half their income from an agricultural business and that more than half their gross cash income is derived after 7 February, and whose balance date falls between 1 April and 30 September, may pay provisional tax in three instalments.

Statistics relating to the incidence of income tax are given in Section 28 of this Yearbook.

Taxation of Individuals: Rates—The rates of income tax increase in steps ranging from a minimum of 7.85 percent on the first $650 of taxable income to a maximum of 50 percent of taxable income in excess of $12,000. The following table shows the rate of income tax for each step of taxable income for the year ended 31 March 1972.

Taxable IncomeTax on Each Dollar
$ $cents
Up to 6507.85
651-1,70021.00
1,701-2,00024.50
2,001-2,50027.50
2,501-3,00030.50
3,001-3,50034.00
3,501-4,00037.00
4,001-4,50039.00
4,501- 5,00041.00
5,001- 5,50043.00
5,501- 6,00045.00
6,001- 7,00046.00
7,001- 8,00047.00
8,001-10,00048.00
10,001-12,00049.00
Over 12,00050.00

For the period 1 April to 31 July 1971 the above rates were increased by 10 percent to equate to a surcharge of 3 1/3 percent for the year 1971-72.

Dividends—Dividends received by individual shareholders are included as part of their assessable income and assessed in the same manner as other income. A rebate of up to 10 percent of the taxable dividends is allowed when the taxable income including dividends is $4,000 or less. When profits from the realisation by a company of capital assets are distributed in cash, the amount of such profits may be exempted.

Special Exemptions from 1 April 1971—In determining the taxable income of individuals certain special exemptions are deductible from the taxpayer's assessable income. These exemptions are as follows:

Personal Exemption—A special exemption of $275 is allowable as a deduction from the assessable income of every taxpayer, except for non-resident taxpayers.

Wife Exemption—A special exemption of $275 is allowable as a deduction from the total assessable income of a married taxpayer. This exemption applies only when the taxpayer supports his wife during the income year. It is reduced $1 for each $1 of the wife's income in excess of $375 up to $650, so that the taxpayer receives no exemption when the wife's income exceeds $650.

Child Exemption—A special exemption of $135 is allowable in respect of each of the first four dependent children of the taxpayer under the age of 18 years; for each child after the first four the exemption is $140.

Dependent Relative Exemption—A special exemption of the amount contributed towards the support of a dependent relative of the taxpayer or $135, whichever is the less, is also allowable. Where more than one taxpayer contributes towards the support of the same dependent relative, the exemption is apportioned between them. The exemption is also allowable in the case of amounts paid towards the support of a separated or divorced wife.

Housekeeper Exemption—A special exemption equal to the wife exemption or the amount of wages paid, whichever is the less, is allowable in respect of payments made to a woman or a day nursery, playcentre, creche, or kindergarten to care for a widowed, divorced, separated, or unmarried taxpayer's child under the age of 18 years, or any child who by reason of mental or physical infirmity is unable to earn a living. The exemption is also allowed to a working wife who pays a woman or a day nursery, playcentre, creche, or kindergarten to care for a child while she works, and to a taxpayer employing a housekeeper to look after the taxpayer's home because of the mental or physical infirmity of the taxpayer or his spouse.

Donations and School Fees—A special exemption is allowable for cash donations for religious and charitable purposes and for tuition fees incurred in sending a child of the taxpayer to a registered private school or a special school for handicapped children provided that in each case the school is not run for private pecuniary profit. The maximum exemption under this heading is $100.

Insurance and Superannuation—A special exemption is allowed for premiums paid in respect of policies of life insurance, sickness, and accident insurance on the life of the taxpayer and his wife and children, and for contributions to an approved superannuation fund. The maximum exemption allowable is $950 but is limited to $700 when the taxpayer is a member of an employer-subsidised superannuation scheme.

Taxable Income—In the case of individuals, income tax is assessed on the taxable income. This comprises total income less expenses less (a) any income exempted from income tax and, (b) the amount of the special exemptions to which the taxpayer is entitled.

A summary of the changes in the principal special exemptions and in the rates of ordinary income tax for the last 6 years is given in the following table.

Income Year Ended 31 MarchSpecial ExemptionOrdinary Income Tax
PersonalWifeChildCharitable Donations and School Fees*Insurance and SuperannuationBasic Rates IntroducedRebates
Member of Subsidised Scheme*Others*RatesMaximum

*Maximum, security tax.

†$140 for each child in excess of four

‡Upon amalgamation of income tax and social

 $$$$$$ %$
19679363121561005006501,96110200
19689363121561005006501,96110200
19699363121561005006501,96110200
19702752401351005006501,969--
19712752751351007009501,969--
19722752751351007009501,970--

Taxation of Companies: Rates—The rates of income tax for 1972 are as follows:

Resident Companies and Public Authorities—The rate of income tax for every dollar of taxable income in the case of companies and public authorities is:

  1. When the taxable income does not exceed $7,200, 20c increased by 1/48,000 of $1 for every dollar of taxable income;

  2. When the taxable income exceeds $7,200, tax on the first $7,200 is calculated as given above and there is a flat rate tax of 50c for every dollar of income in excess of $7,200.

Non-resident Companies—(a) When the taxable income does not exceed $7,200, the rate of income tax for every dollar of taxable income is 25c, increased by 1/48,000 of $1 for every dollar of taxable income.

(b) When the taxable income exceeds $7,200, tax on the first $7,200 is calculated as in (a) above and tax on the excess is charged at a flat rate of 55c in the dollar.

Bonus Issue Tax—Bonus share issues are generally subject to a flat rate tax of 17 1/2c in the dollar which is payable by the company making the bonus share issue. Bonus issues arising from capitalisations of capital profits, share premium reserves, and the writing up of capital assets are exempt.

All companies which are, or are deemed to be, resident in New Zealand are liable for the bonus issue tax on bonus share issues they make. The sole exception is a petroleum mining company.

Excess Retention Tax—Excess retention tax is assessed to “privately controlled investment companies” if the amount of dividends paid is less than 40 percent of the income after taxation. The basic rate of excess retention tax is 35c in the dollar of the insufficient distribution of income.

Grouping of Companies—Two or more companies which are two-thirds commonly owned in terms of paid-up capital, or nominal value of allotted shares, or voting power, or entitlement to profits, constitute a “group” of companies. The assessable incomes of companies included in a group are aggregated for the purpose of determining the rate of income tax. Provision exists for offsetting losses incurred by companies within a group and for the making of subvention payments.

Non-resident Investment Companies—Special provisions exist to limit the income tax payable by a non-resident investment company on income derived from investments or assets which are used wholly or principally in projects which are of importance in the development of New Zealand.

Unit Trusts—Unit trusts are treated as companies, and income and other payments to unit holders are treated as dividends.

Taxation of Trusts—Trusts created after 18 July 1968, with the exception of trusts created by will or intestacy, or other specific cases such as trusts created by Court order and statutory trusts such as the Official Assignee as trustee for creditors, are subject to a minimum rate of income tax of 35 percent on income classified as trustee's income.

The trustee of a trust other than a specified trust is entitled to a special exemption of $100 and is subject to a rate of tax calculated by reference to the trustee's income at the rate for individuals.

Deductions of Expenditure From Total Income—Any expenditure or loss necessarily incurred in carrying on a business for the purpose of fining or producing assessable income may be deducted.

Deductions are also allowed to salary and wage earners for expenditure or loss which is incurred in producing assessable income. Types of expenditure which qualify are maintenance of tools of trade, instruments and equipment, reference books and technical manuals relating directly to the taxpayer's trade or occupation, subscriptions to trade and professional journals, the maintenance of any licence or certificate essential to the occupation of the taxpayer, and costs of short refresher courses or seminars connected with the taxpayer's trade or profession.

No deduction is allowed for expenditure which is of a capital nature or of a private or domestic nature.

Depreciation Allowances:Ordinary Depreciation—On buildings the allowable ordinary depreciation rates vary from 2 1/2 percent of cost price for wooden-walled and framed buildings to 1 percent of cost price for buildings of reinforced concrete. There are higher rates for certain buildings, such as cool stores, chemical works, glasshouses, etc. Various rates of depreciation have been fixed by the Commissioner of Inland Revenue for different classes of plant, machinery, and equipment. These are normally expressed as percentages of the diminishing value of the asset.

Special Depreciation—Special depreciation allowances are given on the cost of: plant and machinery (excluding motorcars and station wagons); employee accommodation; new farm buildings and extensions (other than residences); private bathrooms, showers and water closets installed in existing hotels; new hotels erected pursuant to an “approved project"; new buildings or extensions erected to provide storage for frozen meat or meat products.

Special depreciation is limited in the aggregate to 20 percent of the cost of the asset and is allowed in addition to ordinary depreciation.

Additional Depreciation—Additional depreciation is allowed on: plant, machinery, and equipment used for scientific research; safety frames on tractors; capital expenditure arising from compulsory surveys of fishing boats; capital expenditure in erecting or extending meat export slaughterhouses and meat packing houses; capital expenditure in erecting or extending buildings used for processing or storing fish or fish products for export.

Supplementary Depreciation—New farm buildings (other than residences) qualify for a supplementary depreciation allowance of up to 6 percent of cost. The overall deduction in conjuction with ordinary depreciation cannot exceed 10 percent of cost in any year. New hotels and motels catering for the travelling public qualify for a supplementary depreciation allowance of 1 percent of cost.

Tax Incentives—A number of taxation incentives designed to encourage investment in productive activities are available to industrial and agricultural enterprises. These incentives include:

Livestock Value—A farmer's livestock is treated as trading stock. Apart from the usual valuation options for trading stock used in a business, farmers are permitted to use a “standard value” for each class of livestock, thus reducing in some degree fluctuations in income which might occur if market prices or other valuations were used. The standard value system is universally used except for high-value stud stock. The value adopted for any particular class of animal is usually somewhat below actual cost and also usually below sale value. The disposal of all or a substantial part of a farmer's livestock may result in an unduly high income for the year. The tax law provides special measures to alleviate the tax burden if that happens in the following circumstances: (1) death of the farmer, (2) retirement from farming, (3) expiry of a lease or acquisition of the farm land by the Crown, and (4) forced sale of livestock due to an adverse event (e.g., fire, flood, drought, disease among livestock).

The term “adverse event” means any happening which is declared by the Minister of Finance to be an adverse event.

Increased Livestock Incentive—An optional incentive scheme aimed at maintaining and accelerating the growth of livestock numbers is available. It applies to sheep, cattle, and pigs in a farming business and provides for the establishment of base livestock numbers. Increases in stock above the base livestock number may, at the taxpayer's option, be brought in at a “nil” value. Because there may be changes in the type of livestock carried from year to year a system of equivalents is provided, namely, one head of cattle equals six sheep, one head of cattle equals four pigs, and three sheep equal two pigs. The equivalents are not based on standard or market values but on food intake.

Sharemilkers—A sharemilker who sells his livestock, or a farmer on leasehold land who quits the land and sells his livestock in order to purchase his own farm, is allowed to spread forward the excess income arising from the sale of the livestock. The excess income is the difference between the amount realised and the standard value adopted for the livestock. The excess is assessed as income in the fifth income year after the year of sale unless the taxpayer elects to have all or part of the amount assessed in any one or more of the intervening four income years.

Farm Income Equalisation—This is a scheme whereby farmers may deposit up to a maximum of 25 percent of their income, with a minimum deposit of $200, in an income equalisation reserve account. Deposits are deductible in the year of deposit and withdrawals constitute assessable income in the year of withdrawal. The maximum period in which deposits may be held in the reserve is five years; thus the scheme offers a means whereby a farmer can reduce fluctuations in his income.

Capital Development Expenditure—Taxpayers engaged in agricultural pursuits and in rock oyster farming or mussel farming may deduct certain capital development expenditure or spread it over a period of 10 years. In the case of rock oyster and mussel farming, development expenditure includes the cost of acquiring and preparing suitable surfaces for collecting spat.

Export Market Development and Tourist Promotion—A 150 percent deduction, subject to an overall limit, is allowable for qualifying expenditure as an incentive to promote the export of New Zealand goods and services; the overseas use of New Zealand trade marks, patents, designs, or copyright; and to develop the New Zealand tourist industry. Self-employed professional people can claim up to 50 percent allowance in respect of their own time spent on promoting their services for overseas projects. A formula is provided to value the time.

Forestry Encouragement Grants—Under a scheme introduced in 1970 the Government makes grants in respect of the planting, maintenance, and development expenditure of companies and individuals who undertake approved forest planting programmes. This grant for expenditure is not assessable income and a deduction is not allowed for the expenditure unless and to the extent that it is more than twice the amount of the grant. Grants are also made for the personal labour of the taxpayer and his family. These grants are assessable income.

Increased Exports—This incentive is to encourage exports by manufacturers who produce mainly for the local market. If the value of qualifying goods exported during the year has increased by comparison with the average value of goods exported during a “base period” of three years, 15 percent of the increase can be deducted.

Industrial Research and Development Grants—Grants made under the Industrial Research and Development Grants Act 1970 will not represent assessable income to the recipient. When the grant is in respect of deductible expenditure the amount ordinarily allowable is reduced by the amount of the grant. When the grant is for capital expenditure, e.g., plant, the cost of the asset is reduced by the amount of the grant in determining the amount of depreciation to be allowed.

Investment Allowance—An allowance of 10 percent of the cost of qualifying new plant and machinery is to be allowed in addition to other depreciation allowances. This allowance reintroduces the previous allowance which was suspended in 1966.

Investment Allowance (West Coast, South Island)—20 percent of the cost of plant and machinery, and of buildings acquired, erected or extended, used for development projects in specified areas of the West Coast, South Island, is deductible, in addition to all depreciation. This allowance is to attract new industry to the area.

Mining—The mining industry has special methods of tax assessment, and investors may make a deduction of one-third of calls paid on shares in mineral or petroleum mining companies.

Post Office Bonus Bonds—Prizes received in respect of Post Office Bonus Bonds are exempt from tax.

Post Office National Development Bonds—An additional tax exemption is available in respect of the accumulated interest on Post Office National Development Bonds. The exemption is available to individuals only, and is subject to a maximum exemption of $500 in any income year. The interest is paid on maturity or surrender and is deemed to be derived in the income year in which the bond matures or in the year in which it is surrendered.

Scientific Research—Special incentives to encourage scientific research are available. Expenditure on research equipment acquired for scientific purposes directly relating to the business of the taxpayer may be written off over a period of 5 years. Also the cost of research directly relating to the business of the taxpayer may be deducted in the year in which it was incurred, and gifts of money made by companies to universities and approved institutes for education and research are, subject to certain limitations, deductible.

Stamp Duty Exemption On First Conveyances—To encourage builders to start private housing schemes, when new houses and sections are sold the duty payable on the instrument of conveyance is computed on the unimproved value of the land only.

Visiting Experts—A special rebate is provided for approved visiting experts who provide (either as independent consultants or as employees) specialist, technical, or managerial expertise essential to the development in the initial years of an approved new and continuing enterprise in New Zealand; or provide expertise that is not generally available in New Zealand; or who are engaged in approved research work in institutions or universities. The effect of the rebate is to limit the New Zealand tax payable on income from the visiting experts' services to an average rate of 35 percent.

Land Tax—Land tax is levied on the total unimproved value of land held at 31 March by each owner after making, by way of special exemption from that value, the following deductions: where the value does not exceed $60,000, a deduction of $60,000; where the value exceeds $60,000 a deduction of $60,000 diminished at the rate of $1 for each $1 of that excess, so as to leave no deduction when that value amounts to or exceeds $120,000.

Subject to deductions provided, life tenants are liable for land tax and joint owners are assessed jointly as regards the land held in conjunction, and are liable severally in respect of each owner's interest in such land and other land. This liability for joint assessment also applies to companies owning land if they consist of substantially the same shareholders. Two or more companies are deemed to consist of substantially the same shareholders if they are two-thirds or more commonly owned by the same persons. The ownership may be measured in terms of paid-up capital, or nominal value of allotted shares, or voting power, or entitlement to profits.

The rates of land tax on a “step” basis are as follows: where unimproved value after allowing the special exemption does not exceed $20,000 the rate is for each dollar; where it exceeds $20,000 but does not exceed $30,000 the rate is 5/8c for each dollar; where it exceeds $30,000 but does not exceed $40,000 the rate is 1 1/4c for each dollar; where it exceeds $40,000 the rate is 1 2/3c for each dollar.

There is a rebate of a sum equal to 50 percent of the tax so assessed.

Land used for farming or agricultural activities is exempt from land tax.

Payroll Tax—A payroll tax was introduced as from 1 August 1970. The tax is paid by employers at a flat 2 percent on all remuneration which is liable for the tax. Subject to an exemption of $7.800 a year for each employer, the gross amount of all salaries, wages, bonuses, commissions, and benefit allowances which are paid to employees are liable. In addition, directors' fees, honoraria, and certain other payments are liable for the tax.

Other exemptions are:

  1. Most farmers, agricultural contractors and primary processing industries.

  2. Hospitals, schools, charitable organisations.

  3. The normal administrative functions of the Central Government and local authorities—although their trading activities are liable.

There is provision for rebates against payroll tax for sales of certain export goods. Payroll tax is not deductible for income tax purposes.

Legislation 1971—Principal amendments to legislation in 1971 included the following:

Mining Companies—New provisions have been introduced relating to the taxation of mining companies. Whereas previously these companies were taxed solely by reference to the amount of dividends declared during an income year they are now taxed on a conventional profit and loss basis. Exploration and development expenditure, much of which would normally be classified as capital expenditure, may be claimed against income. Tax is now levied on mining income at two-thirds of the rate applicable to the income of non-mining companies.

Minority Shareholders in a Company Included in a Group of Companies—A tax credit is now available to qualifying minority shareholders for a proportion of the additional tax paid by the company consequent on the application of the grouping provisions.

Property Syndicates—Unincorporated associations of not less than 11 persons formed after 3 September 1971 for the sole or principal reason of holding real property for investment or sale are treated as companies assessable at ordinary company rates. Any interest paid to members of the syndicate is not deductible for tax purposes but, together with any other distributions to members, is treated as dividends to members. A special exemption is not allowed for premiums paid on life policies assigned for the purposes of financing investment in property syndication.

Life Insurance Premiums and Superannuation Contributions—No special exemption is allowed for premiums on any policy which has been assigned or mortgaged as a security for money borrowed and invested in or loaned to certain property syndicates formed after 3 September 1971. Where a taxpayer moves in or out of an employer-subsidised superannuation fund during an income year the basic special exemption of $700 is increased by $21 for each month the taxpayer is not a contributor to an employer-subsidised scheme.

ESTATE AND GIFT DUTIES—The legislation dealing with estate duty and gift duty is contained in the Estate and Gift Duties Act 1968 and amendments.

When the final balance of the dutiable estate of a deceased person exceeds $12,000, estate duty is levied on the amount thereof. Exemptions are provided for the successions of a wife, husband, or infant of a deceased person. (For this purpose an infant child is widely defined to mean a child, or stepchild, of a deceased person, under the age of 20 years; and includes any other person, other than the wife of the deceased, who is living and under the age of 20 years, and is in the opinion of the Commissioner, a dependant of the deceased.) These exemptions are subject to the following limitations and operate by way of a deduction from the duty of so much as is attributable to the exempted succession or exempted portion of the succession. In the case of a wife, the exemption applies to the value of her succession or $40,000, whichever is the less; in the case of a husband, to the value of his succession or $40,000, whichever is the less; and in the case of an infant child, to value of the child's succession or $1,000, whichever is the less.

There are also various exemptions which operate by way of the exclusion of certain property in computing the amount of the final balance of the estate as, for example, for an interest in a home settled under the Joint Family Homes Act 1964 which passes to the surviving spouse; accrued amountsof war pensions and superannuation benefits; certain defined personal chattels to a value not exceeding $2,000; the property in an outright gift made before death to a charity; certain superannuation allowances for widows and infant children; and the wood value of growing trees on any land, a proprietary interest in which forms part of the dutiable estate.

Relief is provided for quick successions where estate duty is payable twice on the same property by reason of the two deaths occurring within a short period. The duty is reduced in the second estate according to the interval between the two deaths as follows: second death within four months, 75 percent reduction; within eight months, 60 percent reduction; within one year, 50 percent reduction; within two years, 40 percent reduction; within three years, 30 percent reduction; within four years, 20 percent reduction; within five years, 10 percent reduction.

Income tax in respect of a deceased person up to the date of death is treated as a debt of the deceased in all cases.

Estate duty is due and payable to the Commissioner of Inland Revenue on the death of the deceased. Interest is charged at the rate of 5 percent on all duty unpaid within six months of date of death. In addition a penalty of 5 percent is payable if duty is not paid within three months after notice of assessment, but is not imposed earlier than six months after death. The time for payment of duty without incurring a penalty may be extended in certain cases.

There is a right of appeal to the Board of Review constituted under the Inland Revenue Department Amendment Act 1960, against decisions of the Commissioner in the exercise of his discretion under certain sections of the Act. There is also a right of appeal on points of law or of fact by way of a case stated to the Supreme Court.

The following table gives the scale of rates of estate duty which applies to estates of deceased persons dying on and after 25 June 1970.

Final Balance of EstateBasic PaymentRate on Excess
$ $$percent
Up to 12,000--
12,001- 14,0001407
14,001- 16,0001408
16,001- 18,0003009
18,001- 20,00048010
20,001- 22,00068011
22,001- 24,00090012
24,001- 26,0001,14013
26,001- 28,0001,40014
28,001- 30,0001,68015
30,001- 32,0001,98016
32,001- 34,0002,30017
34,001- 36,0002,64018
36,001- 38,0003,00019
38,001- 40,0003,38020
40,001- 42,0003,78021
42,001- 44,0004,20022
44,001- 46,0004,64023
46,001- 48,0005,10024
48,001- 50,0005,58025
50,001- 52,0006,08026
52,001- 54,0006,60027
54,001- 56,0007,14028
56,001- 58,0007,70029
58,001- 60,0008,28030
60,001- 70,0008,88031
70,001- 80,00011,98032
80,001- 90,00015,18033
90,001-100,00018,48034
100,001-110,00021,88035
110,001-120,00025,38036
120,001-130,00028,98037
130,001-140,00032,68038
140,001-150,00036,48039
Exceeding 150,00040,38040

Gift Duty—A gift means any disposition of property situated in New Zealand (or of property outside New Zealand if the donor is domiciled in New Zealand at the time of the gift) which is made otherwise than by will, whether with or without an instrument in writing, without fully adequate consideration in money or its equivalent. There is provision for a deduction from the value of the gift of money payments adequately secured to the donor which were fixed or ascertainable at the date of the gift. No duty is payable on a gift which, together with the value of all other gifts (not exempt from duty by reason of their nature) made at the same time or within 12 months previously or subsequently by the same donor to the same or any other beneficiary does not exceed the value of $4,000. Gifts up to $200 in any year to the same person are not taken into account for gift duty (or estate duty) if made as part of the donor's normal expenditure. Various other exemptions, including gifts to any charitable trust, are contained in the Act.

The amount of the gift duty is payable by either the donor or the beneficiary, but the beneficiary is entitled to be indemnified by the donor unless the terms of the gift provide otherwise. Particulars of any gift made exceeding $2,000 (or the value of which when aggregated with the value of all gifts made by the donor within 12 months previously exceeds $2,000) are required to be furnished for assessment of duty, if any, within three months of the date of the gift, and if the duty is not paid within six months of making the gift a 5 percent penalty is imposed. Interest is also payable at 5 percent on any gift duty not paid within three months of the date of the gift and on any penalty from the date it was incurred.

The following table gives the scale of rates of gift duty made on and after 19 July 1968.

Value of Gift (Together With Value of All Aggregated Gifts)Basic PaymentRate on Excess
*Of total value of gift.
$ $$percent
Up to 4,000--
4,001- 6,000-9
6,001- 8,00018011
8,001-10,00040013
10,001-12,00066015
12,001-14,00096017
14,001-16,0001,30019
16,001-18,0001,68021
18,001-20,0002,10023
20,001-22,0002,56025
22,001-24,0003,06027
24,001-28,0003,60023
28,001-32,0004,52025
32,001-36,0005,52027
36,001-40,0006,60029
40,001-44,0007,76031
44,001-48,0009,00033
48,001-52,00010,32035
52,001-56,00011,72037
56,001-60,00013,20039
60,001-64,00014,76031
Over 64,000-25*

The net revenue received from estate duty and gift duty during each of the latest six years is given below.

Year Ended 31 MarchEstate DutyGift DutyTotal Estate and Gift Duties
  $(thousand) 
196620,9282,10223,031
196721,1581,90623,064
196820,2411,49021,731
196922,0502,06224,112
197024,6691,63326,303
197127,7511,58929,340

Board of Review—The Inland Revenue Department Act provides for the establishment of one or more boards of review. There is at present only one such board. Members of a board are appointed by the Governor-General and consist of a chairman who is a barrister or solicitor of the Supreme Court of not less than seven years' practice, and two other members. The functions of a board are to sit as a judicial authority for hearing and determining such objections to assessments of tax or duty or the decisions or determinations of the Commissioner as are authorised by the relevant legislation. A determination of a board is final as to any question of fact, but subject to appeal to the Supreme Court on any question of law. However, questions of fact may be referred direct to the Supreme Court if both parties consent or if the Court considers it desirable that the objection be determined by it.

ESTATES PASSED FOR DEATH DUTY—Particulars of deceased persons' estates certified during the year ended 31 March 1971 are given in the tables following. Totals for the previous three years are appended. Estates of Maoris, other than hereditary interests in Maori land, are included.

The following table analyses the estates certified by size of estate value.

Size of Estate (Net Value)Number of EstatesAggregate Net Value of EstatesEstate Duties Assessed
MalesFemalesTotal

*Fifteen months to 31 March 1969.

†Calendar year.

$(000) $(000)   $(000)$(000)
Under 25755901,1651.501-
2 and under 41.0901.0322.1226.332-
4 and under 61.0479041.9519.721-
6 and under 89087861.69411.809-
8 and under 107836111.39412.496-
10 and under 1256440997310.6301
12 and under 144422767189.33531
14 and under 163592105698.51674
16 and under 182911654567.751104
18 and under 202271393666.936137
20 and under 222321333657.654191
22 and under 24163902535.805170
24 and under 3041221062216.648659
30 and under 4042619562121.5001.199
40 and under 5028012340318.0671.417
50 and under 602178330016.4641.632
60 and under 701535320613.3921.641
70 and under 801123214410.7691.511
80 and under 90912811910.1901.684
90 and under 1005111625.8991.057
100 and under 120932712013.1392.651
120 and under 1404613597.5951.693
140 and under 160246304.4741.055
160 and under 180214254.2451.180
180 and under 200124163.003881
200 and over43186120.8217.023
            Totals. 1970-718.6626.15214.814264.69425.995
            Totals, 1969-708.4155.92614.341251.11628.611
            Totals, 1968-69*10.2617.02117.282278.94529.069
            Totals, 19677.8615.46513.326205.79021.508

The average net value per estate certified in 1970-71 was $17,867 (males $20,809; females $13,726), compared with $17,510 (males $19,849; females $14,189) in 1969-70. Duty on estates of males amounted to $18.5 million and on estates of females $7.5 million, the respective figures for 1969-70 being $18.8 million and $9.8 million.

The law relating to death duties is contained in the Estate and Gift Duties Act 1968 which came into force on 1 January 1969. From 26 June 1969 the exemption for both a widow and a widower has been $40,000 and estates up to a value of $12,000 are exempt from duty.

The average amount of duty assessed within each of the various estate groups is now given. The rates of average duty to average estate value are also given.

<
Size of Estate Net Value)Average Duty Assessed per EstateAverage Duty as Percentage of Average Value of Estate
MalesFemalesTotalMalesFemalesTotal

*Fifteen months to 31 March 1969.

†Calendar year.

$(000) $(000)$$$percentpercentpercent
Under 10------
10 and under 12-11-- -- -
12 and under 142866430.20.50.3
14 and under 16921931290.61.30.9
16 and under 181583512280.92.11.3
18 and under 202625573741.42.92.0
20 and under 223807715221.83.72.5
22 and under 245179556732.24.22.9
24 and under 308171,5321,0583.1