THE NEW ZEALAND OFFICIAL YEAR-BOOK, 1976


Table of Contents

PREFACE

The New Zealand Official Yearbook, of which this is the 81st edition, was first compiled in 1875 as the Official Handbook of New Zealand, edited by Julius Vogel, C.M.G. Its purpose, as stated in the Introduction, was "to give to those who may think of making the Colony their home or the theatre of business operations, an idea of New Zealand from a New Zealand point of view".

In the 100 years of its existence the Official Yearbook has evolved into a standard reference work and something of a one-volume annual encyclopaedia. Its aim is to present a comprehensive statistical survey of the New Zealand population and of the economic, social, and political organisation of the country, with a background of text aimed primarily at the non-specialist.

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

In 1976 three Government departments have celebrated anniversaries—the oldest of the three, the Department of Lands and Survey, celebrated its centenary; the Tourist and Publicity Department, its 75th anniversary; and the Department of Scientific and Industrial Research, its 50th anniversary. A special article in this Yearbook, entitled Tourism: The Invisible Export, traces the development of the Tourist and Publicity Department, and a shorter article the history of the Department of Lands and Survey, while a short description of the genesis of DSIR is included in the section on Science and Scientific Services. The photographic section complements the article on tourism, with a selection of photographs supplied by the Tourist and Publicity Department from the photographic libraries of the National Publicity Studios, the Alexander Turnbull Library, and other sources, illustrating travel and tourism in New Zealand around the turn of the century and today.

Additional and more recent information on many of the subjects mentioned in the Official Yearbook can be obtained from publications of the Department of Statistics listed at the end of this volume, especially from the Monthly Abstract of Statistics. With the Official Yearbook to give him background and historical perspective, and the Monthly Abstract to give him the latest figures, the student of the New Zealand economy is well-equipped.

The Yearbook owes much to the assistance and co-operation of other Government departments, the producer boards, the Reserve Bank, and a considerable number of other official bodies, as well as to the compiling sections of this department. I would like to express my appreciation to all the people involved, and especially to the staff of the Government Printing Office, without whose work there would be no Yearbook. The volume was edited by N. G. Killick, B.A., who would also like to express his appreciation of the assistance and co-operation he has received.

E. A. HARRIS,

GOVERNMENT STATISTICIAN.

Department of Statistics, Wellington, NEW ZEALAND. October 1976.

Chapter 1.

SYMBOLS

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

- nil or zero… not applicable
.. figures not available- - amount too small to be expressed
not yet available — space left blankx revised

METRIC SYSTEM

The conversion of the system of weights and measures used in New Zealand to metric units was substantially completed by the end of 1976.

As far as possible statistics in this issue have been converted to the metric system, but for various reasons, this has to be a gradual process extending over a number of years.

CONVERSION OF BRITISH (IMPERIAL) AND SI (METRIC) UNITS

Some relationships between common British units and common SI units are shown in the following table.

Length

  • 1 in. = 25.4 mm

  • = 2.54 cm

  • 1 ft = 30.48 cm

  • = 0.305 m

  • 1 yd = 0.914 m

  • 1 mile = 1.609 km

  • 1 mm = 0.039 in.

  • 1 cm = 0.394 in.

  • 1 dm = 3.937 in.

  • 1 m = 39.37 in.

  • = 1.094 yds

  • 1 km = 0.621 miles

Area

  • 1 sq ft = 0.093 m2

  • = 929.03 cm2

  • 1 sq yd = 0.836 m2

  • 1 acre = 0.405 hectare (ha)

  • 1 sq mile = 2.590 km2

  • = 259 ha

  • 1 m2 = 10.764 sq ft

  • = 1.196 sq yds

  • 1 da = 0.247 acres

  • 1 ha = 2.471 acres

  • 1 km2 = 247.1 acres

  • = 0.386 sq miles

Volume

  • 1 cu in. = 16.387 cm3

  • 1 cu ft = 0.028 m3

  • 1 cu yd = 0.765 m3

  • 1 cm3 = 0.061 cu in.

  • 1 m3 = 35.315 cu ft

  • = 1.308 cu yds

Capacity

  • 1 pt = 0.568 litres (1)

  • 1 qt = 1.137 1

  • 1 gal = 4.546 1

  • 1 litre = 1.760 pts

  • = 0.880 qts

  • = 0.220 gal

Weight

  • 1 oz = 28.35 grams (g)

  • 1 lb = 0.454 kilograms (kg)

  • 1 cwt = 50.802 kg

  • 1 long ton = 1,016 kg

  • = 1.016 tonnes (t)

  • 1 g = 0.035 oz

  • 1 kg = 2,205 1b

  • 1 t = 2,204.62 1b

  • = 0.984 long tons

  • = 1.102 short tons

Velocity

  • 1 mile per hour (mph) 1.61 kilometres per hour (km/hr)

  • 1 kilometre per hour (km/h) 0.621 miles per hour (mph)

Pressure

  • 1 pound per sq in. (psi) 6.89 kilopascals (kPa)

  • 1 kilopascal (kPa) 0.145 pounds per sq in. (psi)

  • 1 ton per sq in. (ton/in2) 15.4 megapascals (MPa)

  • 1 megapascal (MPa) 0.0647 tone per sq in. (ton/in2)

Temperature

  • Degree Fahrenheit (°F) 9 × °C/5 + 32

  • Degree Celsius (°C) 5/9 (°F-32)

Chapter 2. 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 bate 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 east 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 broadleaved 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 of New 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. Areas are calculated to mean high-water mark. Adjustments have been made to statistics published prior to 1974.

(a) New ZealandArea in Square Kilometres
North Island114,453
South Island150,718
Stewart Island1,746
Chatham Islands963
Minor Islands— 
  Inhabited— 
  Kermadec Islands34
  Campbell Island114
Uninhabited (Auckland and other offshore islands)676
Total268,704
(b) Overseas territories 
Tokelau Islands, comprised of— 
  Fakaofo Island, Nukunonu Island, Atafu Island10
Niue259
(c) Ross Dependency(Estimated) 414,400

GEOGRAPHICAL FEATURES: Coastline—Since the combined length of the North and South Islands extends over 1,600 kilometres, and since the width of neither Island exceeds 450 kilometres 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 200 m 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 (2,518 m), Ruapehu (2,797 m), Ngauruhoe (2,290 m), and Tongariro (1,968 m), they do not exceed an altitude of 1,800 m. 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: Raukumara, 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 group 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 1,200 m 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 (3,766 m), while no fewer than 18 peaks exceed 3,000 m. 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 2,300 m 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 2,740 m in the South Island.

Mountain or PeakHeight (metres)
NORTH ISLAND 
Ruapehu2,797
Egmont2,518
Ngauruhoe2,290
Tongariro1,968
SOUTH ISLAND 
Kaikoura Ranges 
  Tapuaenuku2,884
  Alarm2,865
Southern Alps 
  Cook3,766
  Tasman3,500
Dampier3,440
  Silberhorn3,279
  Lendenfeldt3,201
  Mt. Hicks (St. David's Dome)3,183
  Malte Brun3,176
  Torres3,163
  Teichelmann3,160
  Sefton3,157
  Haast3,138
  Elie de Beaumont3,109
  Douglas Peak3,081
  La Perouse3,079
  Haidinger3,066
  Minarets3,066
  Aspiring3,036
  Hamilton3,022
  Glacier Peak3,007
  De la Beche2,992
  Aiguilles Rouges2,966
  Nazomi2,961
  Darwin2,961
  Chudleigh2,952
  Annan2,947
  Low2,942
  Haeckel2,941
Goldsmith2,905
Conway Peak2,901
  Bristol Top2,898
  Walter2,898
  Grey2,893
  Green2,836
  Hutton2,834
  D'Archiac2,828
  Ronald Adair2,827
Earnslaw2,823
  Hochstetter Dome2,822
  Nathan2,804
  Barnicoat2,799
  Sibbald2,798
  Arrowsmith2,795
  Spenser2,794
  The Footstool2,765
  Rudolf2,755
  The Dwarf2,751
Darran Range 
  Tutoko2,756

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 29 km and a width of 9 km. In common with other glaciers on the eastern slope, of which the more important are the Murchison (17 km), the Mueller (13 km), the Godley (13 km), and the Hooker (11 km), its rate of flow is slow, while its terminal face is at an altitude of somewhat over 600 m. 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 15 km and 13 km respectively, and terminal faces at altitudes of 200 m and 210 m.

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.

River Length(kilometres)
*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 
  Piako90
  Waihou (or Thames)175
  Rangitaiki193
  Whakatane105
  Waipaoa (from source, Mata River)121
  Waiapu (from source, Waipapa Stream)113
  Wairoa (from source, Hangaroa River)137
  Mohaka (from source, Taharua River)172
  Ngaruroro154
  Tukituki113
Flowing into Cook Strait* 
  Ruamahanga124
  Hutt56
Flowing into the Tasman Sea 
Otaki48
Manawatu182
Rangitikei241
Turakina137
Whangaehu161
Wanganui290
Waitotara108
Patea143
Waitara98
Mokau158
Waikato (from source, Upper Waikato River)425
Wairoa (from source, Waiotu Stream)132
Hokianga (from source, Waihou River)72
River Length(kilometres)
SOUTH ISLAND 
Flowing into Cook Strait 
  Pelorus64
  Wairau169
  Awatere126
Flowing into the Pacific Ocean 
  Clarence209
  Conway48
  Waiau-uha (or Waiau)169
  Hurunui138
  Waipara64
  Ashley97
  Waimakariri161
  Selwyn95
  Rakaia145
  Ashburton90
  Rangitata (from source, Clyde River)121
  Opihi80
  Pareora56
  Waihao64
  Waitaki (from source, Hopkins River)209
  Kakanui64
  Shag72
  Taieri288
  Clutha (from source, Makarora River)322
Flowing into Foveaux Strait 
  Mataura240
  Oreti203
  Aparima (Jacobs River)113
  Waiau (from source, Clinton River)217
Flowing into the Tasman Sea 
  Hollyford76
  Cascade64
  Arawhata68
  Haast64
  Karangarua37
  Cook32
  Waiho (from source, Callery River)32
  Whataroa51
  Wanganui56
  Waitaha40
  Hokitika64
  Arahura56
  Taramakau80
  Grey121
  Buller (from source, Travers River)177
  Mokihinui56
  Karamea80
  Heaphy35
  Aorere (from source, Spee River)72
  Takaka (from source, Cobb River)72
  Motueka108
  Waimea (from source, Wai-iti River)48

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 79 sq km in area and consists of two arms, the main arm being 30 km in length and the Ahuriri Arm 18 km in length.

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

LakeLength, in Kilometres*Greatest Breadth, in Kilometres*Area, in Square KilometresDrainage Area, in Square KilometresApproximate Volume of Discharge, in Cubic Metres per SecondMaximum Height Above Sea Level in Metres (Range in Brackets)Greatest Depth, in Metres

* 1 kilometre equals 0.621 miles.

† 1 square kilometre equals 0.386 square miles.

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

NORTH ISLAND       
Natural       
Taupo40.227.46063,2891,271357 (1.5)159
Rotorua12.09.780526..280 (0.6)26
Rotoiti16.14.83464224279 (0.6)70
Tarawera11.28.9361868299 (0.6)87
Rotoaira4.82.8131297564 (0.9)..
Waikaremoana19.39.75442718614 (13.7)256
Wairarapa19.36.4803,201..820
Rotoehu4.83.2844295 (1.2)....
Rotoma5.23.61231..316 (1.8)..
Okataina6.44.81065..310 (2.7)..
Okareka2.42.0321354 (1.2).. 
Rotomahana6.42.8970..340 (6.7)..
Rerewhakaitu4.02.88....439 (1.2)..
Tikitapu1.61.21....416..
Rotokakahi4.01.65281396..
Artificial       
Ohakuri33.80.4144,791157287..
Atiamuri6.40.415,128165252..
Whakamaru21.70.885,581174226..
Maraetai7.20.846,190191188..
Waipapa9.70.416,475198127..
Arapuni16.10.8136,876207111 (0.6)..
Karapiro24.10.487,45922154..
Whakamarino0.80.4......274..
SOUTH ISLAND       
Natural       
Rotoiti8.92.81018412616 (1.8)76
Rotoroa14.53.22337627446 (1.5)152
Brunner8.98.939414..85109
Kaniere9.72.01628..131197
Coleridge17.73.236559..510207
Sumner9.72.414337......
Tekapo17.75.6961,42487715 (7.6)189
Pukaki15.38.0831,355128500 (9.1)..
Ohau17.74.8601,19165527 (1.7)..
Hawea30.68.01191,46963345 (16.2)392
Wanaka45.14.81922,543202279 (4.3)..
Wakatipu77.24.82932,978174310 (2.1)378
Te Anau61.29.73443,302276209 (4.6)276
Manapouri28.98.01424,623386185 (6.4)443
Monowai19.31.62827214196 (4.0)..
Hauroko35.42.47158331156 (1.8)..
Poteriteri28.92.4474143029..
Waihola6.42.085,698..(Tidal)16
Ellesmere22.512.91811,930..(Tidal)2
Artificial       
Cobb4.80.42736808 (15.2)..
Waitaki4.80.869,712344230..
Roxburgh32.20.4615,571489131..
Mahinerangi14.51.6213117391..
Benmore—       
  Ahuriri Arm18.54.4797,77034036096
  Main Arm29.8

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 molluscan shells, foraminifera, and other fossils that they contain, as well as by various radioactive techniques.

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 metres thickness of other rocks that once covered them. The metamorphic rocks developed huge, elongated sea basins (geosynclines) in which tens of thousands of metres 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
PlioceneTertiary11 "
Miocene25 "
Oligocene38 "
Eocene60 "
Paleocene70 "
MesozoicCretaceous..135 "
Jurassic..180 "
Triassic..225 "
PaleozoicPermian..270 "
Carboniferous..350 "
Devonian..400 "
Silurian..440 "
Ordovician..500 "
Cambrian..600 "

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 high temperatures and 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 metres. It must have been achieved very slowly, probably by innumerable small movements, each less than a few metres. 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 metres 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 built, carving detailed landscape patterns 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, spits, and bars. The Pleistocene period was the time of the Ice Age, and in the high mountains 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 8,000 cu km 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 900 m 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.

EARTHQUAKES: Geophysical Background—An earthquake occurs when energy is suddenly released from a volume of rock within the Earth's outerlayers, and is radiated outwards in the form of elastic waves that can be felt at places near the origin, and detected by sensitive instruments at greater distances. Earthquakes are most common in certain geographically limited regions, one of which includes New Zealand. Within these disturbed zones, young fold mountains, oceanic trenches, volcanoes, anomalies in the Earth's gravitational field, and active geological faulting are also usual, and like the earthquakes have their ultimate cause in the internal processes incidental to the major structural development of the Earth, and as yet imperfectly understood.

The seismically active zones define the margins of a system of stable blocks or plates which are not completely inactive, but experience large earthquakes only infrequently, and are thought to be the primary units of the Earth's crust. Two of these units, the Pacific and Indian Plates, abut in the vicinity of New Zealand, forming a triple junction with a third, the Antarctic Plate, south of Macquarie Island. As a result of thermally generated convective movements in the deeper levels of the earth, relative displacement of the plates is occurring, and this provides the continuing source of the energy that is intermittently released as earthquakes.

Instrumental records have shown that at the time of an earthquake large shearing movements take place at the source. It seems probable that all major earthquakes are the result of the breakage of rock under strain, but other factors such as the presence or absence of liquid in the pores and fractures of the rock are also of primary importance in determining the time and place at which a shock occurs.

In large shallow earthquakes a rupture may appear at the surface, forming or renewing movement on a geological fault. In regions where the majority of earthquakes are very shallow, such as California, there is a tendency for the earthquake origins to cluster near geological fault traces, but in regions where there is deeper activity, such as New Zealand, this is not so. For example, there is little activity near the Alpine Fault, which stretches for some 500 km from Milford Sound to Lake Rotoiti, and is considered one of the world's largest and most active faults. Conversely, instances of fault movement that have not been accompanied by earthquakes are known. Practical assessments of earthquake risk must therefore be based upon the statistics of known earthquake distribution, and the broader geological setting of the origins.

New Zealand Seismicity—Compared with some other parts of the Pacific margin, such as Japan, Chile, and the Philippines, the level of seismic activity in New Zealand is moderate. It may be roughly compared with that prevailing in California. A shock of Richter magnitude 6 or above occurs on the average about once a year, one of magnitude 7 or above once in ten years, and one of about magnitude 8 perhaps once a century, but in historic times only one shock (the south-west Wairarapa earthquake in 1855) is known to have approached this magnitude.

Other natural disasters and accidents are together responsible for more casualties than earthquakes, the most serious seismic disasters in New Zealand having been the Hawke's Bay earthquake of 1931 in which 255 deaths occurred, and the Buller earthquake of 1929 in which there were 17. The total resulting from all other shocks since 1840 is less than 15. The last earthquake to cause deaths occurred at Inangahua in 1968, when 3 people died.

Regarded broadly, the zone of seismicity within which New Zealand lies extends continuously from the triple junction south of Macquarie Island to Samoa. When looked at more closely, breaks in continuity and changes in the character of the activity become apparent. There are changes in direction, in the positional relationship of the deeper and shallower activity, and in its association with the other geophysical and geological features of the region.

Within New Zealand itself, at least two separate systems of seismic activity can be distinguished. The main seismic region, which is the larger, covers the whole of the North Island apart from the Northland peninsula, and the South Island north of a line passing roughly between Banks Peninsula and Cape Foulwind. The southern, or Fiordland seismic region includes southern Westland, western Southland, and western Otago. Less clearly defined activity covers the remainder of the two main islands, and extends eastwards from Banks Peninsula to include the Chatham Islands.

Shallow earthquakes, which are the most numerous, originate within the Earth's crust, which in New Zealand has an average thickness of some 35 km. These shocks are responsible for almost all damage to property, and now and in the past they have been widely scattered throughout the country. In historically recent times, the main and Fiordland seismic regions have been significantly more active than the rest of New Zealand, but neither the central seismic region that lies between them nor the Northland peninsula has been free from damaging shocks. The details of the present pattern are not necessarily unchanging and could alter significantly after the occurrence of a major earthquake. Because of this, because of the broader geophysical setting, and because of the distance to which the effects of a large earth quake extends, it would be highly imprudent to treat any part of New Zealand as free from the risk of serious earthquake damage.

Many active regions of the Earth have only shallow earthquakes, but in others shocks have been known to occur at depths as great as 700 km below the surface. It is thought that these deep shocks originate within the edges of crustal plates that have been drawn down or thrust beneath their neighbours. Such deep events are common in both the main and Fiordland seismic regions of New Zealand, but their relative positions with respect to the shallow activity and to other geophysical features are rough mirror images. This is believed to indicate that in the North Island, the edge of the Pacific Plate lies below that of the Indian Plate, while in the south of the South Island the Pacific Plate is uppermost and the Indian Plate has been thrust beneath it.

The most important system of deep shocks in New Zealand lies in a well-defined zone beneath the main seismic region, stretching from the Bay of Plenty to Nelson and Marlborough. The maximum depth of occurrence at the northern end is about 400 km, and decreases smoothly to merge with the shallow activity before the southern boundary of the region is reached. Along the whole of the system, there is also a decrease in maximum depth from west to east. In northern Taranaki, near the western limit of this activity, a small isolated group of shocks at a depth of about 600 km has also been recorded. In the central seismic region only shallow shocks are known.

The maximum depth of the earthquakes in the Fiordland region appears to be only about 160 km, but it is only recently that instrumental coverage has been adequate for a proper study of this area. Here, the deep activity is more concentrated than in the north, lying close to Lakes Te Anau and Manapouri.

Both earthquakes occur and volcanoes are found in geophysically disturbed regions, but although small earthquakes usually accompany volcanic eruptions, large ones are rare. Regions of active volcanism are also subject to periodic outbreaks of small earthquakes, all of similar magnitude, and very numerous. These events are known as "earthquake swarms". Although the number of shocks may cause alarm, it is unusual for even minor damage to result. There is not often a simultaneous volcanic outbreak, but swarms do not seem to occur in non-volcanic regions. In New Zealand they have occurred in the volcanic zone that includes Mt. Ruapehu and White Island, in the Coromandel Peninsula, in parts of Northland, and near Mt. Egmont.

Seismological Observatory—Each year the Seismological Observatory, Wellington, a section of the Geophysics Division of the Department of Scientific and Industrial Research, publishes the analyses of several hundred earthquakes originating in the New Zealand region, using data obtained from its own network of recording stations, and from stations in other countries. The instrumental data are supplemented by information about felt effects, supplied by a large number of voluntary observers, who complete a standard questionnaire.

The network of recording stations controlled by the Observatory is now one of the world's largest and most extended, covering the main islands of New Zealand, a large part of the south-west Pacific, and the Ross Dependency. The 36 permanent stations now operating are:

Apia and Afiamalu (Western Samoa); Nadi (Fiji); Niue; Rarotonga (Cook Islands); Raoul Island (Kermadecs); Cape Reinga, Onerahi, Great Barrier, Auckland, East Cape, Karapiro, Whakatane, Gisborne, Wairakei, Tuai, Tarata, Chateau, Taradale, Mangahao, Castlepoint, Cobb River, Wellington, Kaikoura West, Kaimata, Christchurch, Gebbies Pass, Chatham Islands, Mount John, Milford Sound, Oamaru, Roxburgh, Monowai, Waipapa Point; Campbell Island; Scott Base (Antarctica).

At Afiamalu, Rarotonga, Wellington, and Scott Base the equipment includes instruments of internationally standardised pattern designed to record both local and distant activity. The stations at Karapiro and Roxburgh are also equipped to record both local and distant shocks. At the other stations, many of which record more than one component of the ground motion, the instruments are primarily intended for the study of shocks within about 1000 km.

Scott Base and several of the island stations provide preliminary readings by radio, but all final analyses are made at the Observatory in Wellington. Portable equipment is available for more intensive study of aftershock sequences, earthquake swarms, and micro-earthquakes, and for other research projects. In addition, the department's physics and engineering laboratory maintains a network of strong motion recorders intended to provide data on large shocks for engineering purposes.

The information collected and published by the Observatory covers all significant earthquakes in the New Zealand region. It is made freely available to the public and the press, as well as to seismologists, engineers, and other specialists. In addition, a very large number of distant earthquakes are recorded, and readings of these, as well as of the local activity, are regularly sent to international agencies and to overseas seismologists who have a need for them. The Observatory itself carries out a vigorous programme of research into problems of seismicity and earthquake mechanism, and into the structure and constitution of the earth's crust and its deep interior.

Earthquakes During 1975—1975 was a year of moderate earthquake activity in New Zealand. No earthquake reached a magnitude of 6 on the Richter Scale, but two had magnitudes of 5.9. The largest shallow shock of the year occurred on the evening of 10 June 1975. Its magnitude was 5.9, and its epicentre about 15 km south of Dannevirke, where there was minor damage, including broken windows and dislodged masonry. The earthquake was reported felt from the Bay of Plenty to Banks Peninsula. The other earthquake of magnitude 5.9 had a focus about 75 km deep beneath Cook Strait to the west of Kapiti Island. It occurred on the morning of 5 January, and was felt extensively in the central parts of the country. Some crockery was knocked off shelves in coastal areas to the north of Wellington.

The deepest earthquake in New Zealand since 1960 took place on 8 February, at a depth of 580 km beneath Taranaki. Its position was close to those of the three other earthquakes that have been located at depths of about 600 km beneath New Zealand, in an area where earthquakes are generally no more than 300 km deep. Its moderate magnitude of 4.9, and its great depth prevented it from being felt.

Four deep earthquakes with magnitudes of about 5.75 occurred at more usual depths beneath the North Island. Those on 30 April and 19 August were about 140 km deep beneath Lake Taupo, and were felt from the Bay of Plenty to the north of the South Island. Deeper shocks, 220 km under Lake Taupo on 12 November and 300 km beneath the Tauranga area on 23 November, were not felt so strongly, although of similar magnitude.

Shallow earthquakes of magnitude 5 that were felt extensively in the central parts of the country occurred on 13 April near Queen Charlotte Sound, and on 12 July and 30 December south of Nelson. A shock of magnitude 5.2 occurred in the Gisborne region on 26 August, but because it was 50 km off the coast it was not felt strongly. Earthquakes that were widely felt in the southern parts of the South Island originated near Milford Sound on 16 March (magnitude 5.5) and 5 June (magnitude 4.9). Two earthquakes in the mountains between Arthur's Pass and Lewis Pass were felt on the West Coast and North Canterbury on 28 April and 25 September. Their magnitudes were 4.7 and 4.8 respectively.

An earthquake of magnitude 4.4 was felt extensively in Northland on 12 February. It was centred about 50 km south-east of Whangarei, near the Hen and Chicken Islands. A further shock in this area occurred on 17 August, about 30 km south of Whangarei, and was reported felt at Paparoa and Ararua, although its magnitude was only 2.8.

Other earthquakes in areas of less frequent activity occurred about 40 km off the coast to the west of Raglan on 14 March (magnitude 3.7) and 20 June (magnitude 4.0), and 170 km to the south-east of Chatham Islands on 26 July (magnitude 4.6). None of these earthquakes was felt.

Among the large earthquakes in the active area to the north of New Zealand, that which attracted most attention was a shallow shock of magnitude about 7.5 that occurred between Tonga and Samoa in the early morning of 27 December. Such earthquakes may cause a tsunami, and on this occasion a civil defence alert was called until it had been established that no tsunami had been generated. During the alert the public was warned to stay away from beaches and low-lying areas.

Both Mt. Ngauruhoe and Mt. Ruapehu erupted spectacularly during the year. On 19 February Mt. Ngauruhoe erupted ash and steam, and large rocks were thrown several kilometres. This was the mountain's most violent eruption since 1954. There was an ash eruption of Mt. Ruapehu on 24 April, which caused a greatly increased flow in nearby streams and rivers. Local tremors were reported at the times of these eruptions, but no significant earthquakes were recorded.

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 35 in the Pacific islands and are sent by telegraph and radio, along with measurements of winds at upper levels made at 10 radio wind stations, and of temperatures made at 9 radiosonde stations. Daily observations are made for climatological purposes at about 280 places in New Zealand and 60 in the islands. Rainfall measurements are made at a total of about 2,400 places within New Zealand and 120 outside the country.

Detailed climatological statistics are published annually by the New Zealand Meteorological Service in the Meteorological Observations and in Rainfall Observations. Current statistics appear monthly in the New Zealand 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-east 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 30 km 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 figures were all obtained by the use of anemographs at airports (except for Auckland where the site is at Mechanics Bay).

StationAverage Number of Days with Gusts ReachingYears of Data
40 mph or More60 mph or More
Nov-AprMay-OctYearNov-AprMay-OctYear
Kaitaia1632480.71.62.321
Whangarei1626420.81.42.28
Auckland2028480.91.62.524
Tauranga1523380.50.71.222
Rotorua1116270.30.20.59
Hamilton91322-0.60.68
Gisborne2127480.40.91.329
New Plymouth3348812.14.76.822
Napier1721380.60.51.123
Wanganui3742792.74.47.116
Palmerston North2622481.10.81.918
Wellington909818818.822.741.58
Nelson2014340.50.30.830
Blenheim2315380.70.51.230
Westport1420340.41.01.423
Hokitika1420340.31.31.68
Christchurch3123541.51.32.829
Timaru1512270.70.61.315
Dunedin2832602.62.85.411
Gore2920490.9-0.95
Invercargill5345985.85.010.827

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 700-1000 mm a year. Of the remainder, much valuable farm land, chiefly in northern Taranaki and Northland, has upwards of 1500 mm. Over a considerable 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 there are at least 150 rain days (days with at least 0.2 mm of rain) 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 582 mm which occurred at Rapid Creek, Hokitika Catchment, 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 falls reaching 80 mm are very rare.

NORMAL MONTHLY AND ANNUAL RAINFALL (MILLIMETRES)* (1941-70)

StationJanFebMarAprMayJunJulAugSepOctNovDecYear

*25 millimetres equal 1 inch.

Kaitaia Aerodrome799484119152157150165122112102941430
Kerikeri76124112142178178183196142114991041648
Dargaville6684791041321501321379710984791253
Auckland (Albert Park)6494861141271351371429410784841268
Tauranga Aerodrome8484114114137132137137107114841041348
Rotorua991141171171501501421371271221041321511
Taupo8194769110912211710984102841121199
Hamilton (Ruakura)718184991121321171179710791891197
Taumarunui8999841091321521351241171371241301432
New Plymouth             
Aerodrome1071021021171631681631471121351171321565
Masterton (Waingawa)645876711021071029174746976964
Gisborne Aerodrome74619191109112112117747158641034
Waikaremoana             
(Onepoto)1501401681802111881982261501501471522,060
Napier515866618489798151534364780
Wanganui696461748691817658816989899
Palmerston North84697474869991846989791041002
Wellington (Kelburn)8184949713213514012410211284861271
Westport Aerodrome1551681571912011881831701701832011852,152
Hokitika Aerodrome2312512392342722292412362392572772342,940
Milford Sound5315696305264834193784245385466385546,236
Nelson Aerodrome7474818911279919476817474999
Blenheim514351537658666153534851664
Hanmer Forest8681919911799104114899789991165
Lake Coleridge616158767971817974767671863
Christchurch514658588456585346464656658
Lake Tekapo514348535348534856515151606
Timaru585858484836413841485869601
Dunedin (Musselburgh)746176747166564648587171772
Queenstown746676717966646176767664849
Alexandra463838282820151520283330339
Gore766976797679564853698179841
Invercargill Aerodrome897994104911076966748694891042

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 300 m. 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 42°c, which has been recorded in three places: Jordan (Marlborough), Christchurch, and Rangiora (Canterbury); 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/ (°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 (1 m above the ground) has registered below 0°c only once in 65 years, yet up 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 2,500 m on the central plateau, but the snow line rarely descends below 600 m 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 2,000 m in summer, being slightly lower on the western side where the Franz Josef and Fox Glaciers descend through heavy bush to within 300 m of sea level. In inland Canterbury and Otago, where there are considerable areas of grazing lands above 300 m, 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 1,000 m.

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.m3 p.m.3 a.m.3 p.m.
 percent
Auckland (Mechanics Bay)85639074
Gisborne85578769
Ohakea Aerodrome87628972
Wellington89718777
Christchurch83578870
Hokitika94768770
Invercargill87689077

Very low humidity—from 30 percent down to about 5 percent—occurs at times in the lee of the Southern Alps where the Fohn 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 places are near Blenheim, the Nelson-Motueka area, and Whakatane, where the average duration of bright sunshine exceeds 2,350 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 has been expressed as a percentage of the possible sunshine.

StationSummerWinter
 percent
Auckland5548
Hamilton5443
New Plymouth5446
Napier5650
Wellington5340
Nelson5957
Hokitika4645
Christchurch4746
Dunedin4042
Invercargill4135

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 (metres)Rain Days (1.0 mm or More)Wet Days (2.5 mm or More)*Bright Sunshine (Hrs)Days 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.

Kaitaia Aerodrome801381032,138015.52415158282
Kerikeri731351012,014115.12515136290
Dargaville201471082,011314.6231514729-2
Auckland (Albert Park)491401022,140015.42314168273
Tauranga Aerodrome4118902,285814.2241414529-2
Hamilton (Ruakura)40131992,0541713.2231312329-3
Rotorua307123971,9332512.5231212329-3
Gisborne Aerodrome4113812,224614.0241413432-2
Taupo376123872,0683911.8231111229-4
Waikaremoana            
(Onepoto)643164131-611.120911328-1
Taumarunui1711401111,7243912.9241312231-5
New Plymouth            
Aerodrome271421162,102013.12113135260
Napier292642,262614.1241314432-2
Wanganui22117872,092413.5221214529-1
Palmerston North34127911,8261513.0221213428-3
Masterton (Waingawa)114123882,0072912.2241211231-4
Wellington (Kelburn)126124952,014012.52011136261
Nelson Aerodrome296722,4034111.9221212128-3
Blenheim484582,4703612.6231212232-4
Westport Aerodrome21691401,937112.11912124250
Hanmer Forest387115881,9238510.12299-232-9
Hokitika Aerodrome391681441,8832511.3191111326-2
Lake Coleridge3649874-7010.1219..131-7
Christchurch785581,9853711.7221112132-4
Lake Tekapo68370532,264929.12269-330-10
Timaru1781551,8103911.0211011032-4
Milford Sound3183165-2710.318910225-3
Queenstown32993721,9315310.122810-130-5
Alexandra14164392,0478110.623711-232-8
Dunedin (Musselburgh)2119791,695810.9191011330-2
Gore72137931,6984010.12199031-5
Invercargill Aerodrome01571111,627489.61899028-5

Notes: (1) Averages of rain days and wet days 1950-70; sunshine 1941-70; mean temperature, mean daily maximum and mean daily minimum 1941-70; 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 1975—In the North Island rainfall during 1975 was mainly close to normal. However, it was 10 percent above normal in the King Country. In the South Island rainfall was mainly 5 to 10 percent above normal. In Marlborough and North Canterbury it was 20 percent above normal.

1975 was a warm year. The average departure above the 1941-70 normal was 0.5°c, with comparatively little variation in departures over the country. The period 1970-75 has been by far the warmest 6-year period on record in New Zealand, with an average departure above the 1941-70 normal of 0.6°c. November 1974 to April 1975 was unusually warm, but November and December 1975 were cooler than normal.

Sunshine was mainly below normal by 100-150 hours. The Dunedin-Balclutha-Invercargill area was worst affected, and Dunedin's total of 1,493 hours was the lowest in 30 years of observation. The only considerable areas favoured with sunshine appreciably above normal were eastern Northland and Marlborough.

Seasonal Notes—January was marked by an unusually high frequency of north-easterly winds, bringing excessive cloud to some eastern districts. In the west it was one of the warmest months on record. In many areas conditions were dry in the first half of the month, but good rains in the second half freshened up the pastures. On the night of 28-29 January an exceptional fall of rain of more than 100 mm in 6 hours was reported in parts of the upper plains of South Canterbury, causing serious flooding and the loss of four lives. Thunderstorms were unusually frequent, especially over the North Island from the 6th to the 17th.

February and March were both warm and cloudy. From 5 to 7 February many districts were buffeted by winds often well beyond gale force, mainly from the south-west. Some very heavy rain was recorded in parts of the South Island on 22 and 23 February, especially at Moanaroa, about half-way between Timaru and Waimate. Severe local flooding and erosion were reported. By March grass growth was generally very good.

April and May were both warm months with more frequent winds from a westerly quarter than usual. April was a particularly wet month in Fiordland, and Milford Sound received 1283 mm of rain, a record total for April. On 30 May exceptionally heavy rain caused flooding and slips in some areas near Whangarei. Conditions were mainly favourable for farming, except that in parts of the North Island April was too dry, while in May the ground became too wet in some districts.

June was marked by a greater frequency of south-easterly winds than usual and it was the first month since August 1974 with temperatures colder than normal. Considerable snow was reported in the Mackenzie country and neighbouring areas from the 14th to the 16th. By the end of the month, parts of inland Canterbury reported the ground frozen to a depth of 10 cm. Frosts cut back pasture growth, but most stock appeared to be wintering well.

July was marked by an unusually high frequency of winds from west to south-west. There were two very cold spells, one in the third week bringing exceptional snow to parts of the North Island.

August was a mild month, and in the South Island it was unusually cloudy and wet. Exceptionally strong north-westerly winds affected Canterbury and some other eastern districts on 31 July and 1 August. Instrumental observations at Timaru Aerodrome, Christchurch Airport, Kaikoura Peninsula, and the northern end of Lake Wairarapa all indicated winds of hurricane force. Widespread damage was reported, including the devastation of large areas of forest, houses de-roofed, and buildings demolished. Some farmers found the weather too wet and conditions were at times unfavourable for lambing.

September was comparatively dry in many parts of the country. In Northland and Coromandel a large proportion of the rain fell during the passage of two depressions across Northland on the 2nd and 3rd and the 28th and 29th. Flooding was reported in both Northland and Coromandel. In some areas the dry weather retarded growth; but conditions were mainly favourable for lambing.

October was marked by an unusually high frequency of easterly winds over the northern half of the North Island, bringing considerable cloud and rain to these areas. In eastern Northland and Coromandel two-thirds of the rain fell from the 8th to the 13th. Flooding was reported in both areas, with easterly gales. It was a good month for dairy production and most farmers in the North Island found it a favourable month for growth.

November and December were both cool months. They were marked by an unusually high frequency of wintry southerly conditions, especially during the first 3 weeks of November and from Christmas to the end of the year. Snow was reported to comparatively low levels in both Islands on 21 November, and also on 25 and 26 December. On the latter occasion, light falls even affected parts of southern Hawke's Bay at altitudes below 300 m. The cold spells retarded growth; in addition many farmers found the period from 24 November to 24 December, when mainly westerly conditions predominated, too dry.

Summary of Meteorological Observations for 1975—The observations from which the following summary was compiled for the year 1975 were made at 0900 hours New Zealand standard time, i.e. 2100 hours Greenwich mean time.

StationRainfall (mm)Rain Days (1.0 mm or More)Bright Sunshine (hours)Screen Frost Days*Air Temperature (Degrees Celsius)
Mean Temp.Mean Daily MaximumMean Daily MinimumExtremes
JanJulJanJulMaximumMinimum

*Minimum Air Temperatures less than 0.0°C.

†°C=5/9 (°F-32).

Dargaville11551491958215.424.714.714.36.628.5-1.9
Whangarei17161302,062015.825.414.914.96.329.31.0
Auckland11651392,014016.225.914.17.47.428.42.8
Tauranga Aerodrome13081162,147514.525.114.015.13.128.4-3.7
Rotorua149812818042813.024.211.713.41.328.5-6.2
Taupo11631201966....24.310.812.2..29.4..
Hamilton, Ruakura130613319812513.925.013.113.82.330.1-4.0
Taumarunui161014916343913.426.411.913.12.033.1-4.2
New Plymouth Aerodrome14621482,116613.824.013.114.64.430.3-1.4
Masterton97013519322812.724.312.013.82.330.3-4.3
Gisborne Aerodrome10231072,1511414.424.213.714.52.632.1-2.4
Onepoto, Waikaremoana2,292160..1111.721.29.212.22.029.8-4.0
Napier857872,1472014.624.814.415.42.530.1-3.9
Palmerston North95812518131113.624.911.915.43.529.6-3.4
Wellington, Kelburn13721242,009013.022.511.215.15.130.10.6
Wanganui8491061986414.224.312.615.45.031.0-2.3
Westport Aerodrome2,5511901800012.823.012.014.03.627.60.1
Hokitika Aerodrome2,99918517372011.922.311.013.01.826.1-2.6
Milford Sound7,792205..3410.621.99.112.30.828.3-3.3
Nelson Aerodrome10881012,4533612.723.811.914.5-0.128.9-4.2
Blenheim758842,5283713.424.713.414.10.632.6-3.6
Hanmer Forest6713518117910.622.89.611.5-1.632.9-9.3
Lake Coleridge889101..6310.622.39.511.5-1.833.0-7.8
Christchurch881942,0383612.222.811.514.4-0.335.0-5.4
Lake Tekapo676762,046999.022.16.010.5-3.831.3--14.0
Timaru6848418173811.422.311.013.50.030.4-5.5
Dunedin, Musselburgh8021401493911.219.510.313.93.128.4-6.5
Queenstown92011017624510.723.57.913.0-0.330.5-4.5
Alexandra337752,0257511.024.77.613.4-3.633.1-8.8
Gore10041591632429.821.48.411.50.929.7-4.6
Invercargill Aerodrome110817214623610.121.09.911.41.529.1-4.4

For 1975 the mean sea level pressure values in millibars at 0900 hours New Zealand standard time were: Auckland, 1016.1; Kelburn, Wellington, 1013.8; Nelson Aerodrome, 1014.3; Hokitika Aerodrome, 1014.1; Christchurch, 1012.3; and Dunedin Airport, 1011.6.

Chapter 3. 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 as 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.

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. His activities 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.

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.

Public Works and Farm Development-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 east 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 by the 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 6 years from 1906 with Joseph Ward as Prime Minister were marked by several notable events in imperial affairs, but, on the whole, the Government's domestic policies were singularly uninspiring.

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 William 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, under the leadership of Michael Savage, in 1935 led to changes in administrative policy and a renewed emphasis on social problems.

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 farm products, 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.

Other legislative enactments under this heading included 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.

The financial needs of the Second World War from 1939 onwards were met with virtually no overseas borrowing. Financing the war by taxation and internal borrowing also assisted in the achievement of a successful stabilisation policy. Full employment in war was followed by full employment in peace. Expansion and diversification of manufacturing and servicing industries provided avenues of employment for the growing labour force.

At the 1949 election the Labour Government was defeated after holding office since 1936. It was succeeded by a National Government, under the leadership of Sidney Holland.

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. Early in 1972 John Marshall became leader of the National Party. At the 1972 election the Labour Party swept back into power under Norman Kirk; after his untimely death in 1974 W. E. Rowling became Prime Minister. At the 1975 election there was a dramatic reversal of the position 3 years earlier, and the National Party under Robert Muldoon, was returned to power with a substantial majority.

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.

Relations with Europe—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 joining 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 have not been 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, under free trading conditions, enables its farm products to meet any competition.

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.

The decision of Britain to become part of the European Economic Community with effect from 1973 and thus subject to a new pattern of trading arrangements would have been disastrous for New Zealand's exports of dairy produce and lamb, but for the negotiating of special arrangements for continuing trade.

Pacific Orientation—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. One-tenth of the New Zealand population is Maori or Polynesian, and there are more Niue Islanders in New Zealand than in Niue. Cook, Niue, and Tokelau Islanders are New Zealand citizens who freely move back and forth. These people have undoubtedly had a big influence on the character, attitudes, and behaviour of the rest of the New Zealand population—most have some understanding of the "Polynesian way". New Zealand has a number of other basic links with the South Pacific, due in part to the common colonial history shared with such nations as Fiji. This British heritage has given a common language and the democratic tradition. Today all the independent states of the South Pacific are associated in the British Commonwealth.

The most recent political development is the establishment of the South Pacific Forum. This group, comprising the leaders of the independent and self-governing nations of the South Pacific (Cook Islands, Niue, Western Samoa, Tonga, Fiji and Nauru), together with Australia and New Zealand, has had highly successful meetings in their respective capitals. The South Pacific Forum is a new concept in international relations—an exciting development. There is no constitution, there is no agenda, and there is no formality. The leaders come together in private sessions for frank and concentrated discussion on practical matters of direct relevance to the people of the Pacific. The island leaders themselves suggested the formula and proposed Australian and New Zealand participation. Clearly they saw the need to exchange views, discuss projects and priorities, and generally to secure on a regional basis effective collaboration and co-ordination at the highest level. A South Pacific Bureau for Economic Co-operation has been established with a broad programme of trade, production, and economic development. It is based in Suva.

Expansion of overseas aid to the Pacific and to Asia from 1973 onwards has been a feature of the Labour Government under Kirk and subsequently under Rowling, and more recently of the National Government under Muldoon.

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 made for 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.

Development of New Zealand's International Relations—Until the early 1930s New Zealand's external interests were almost exclusively centred on its relationship with Britain. The British Navy protected New Zealand and Britain took the bulk of New Zealand's exports. Where Britain led, New Zealand followed, not blindly but with pride and conviction. Britain, as a great power, played a major role in world affairs. New Zealand's "foreign policy" consisted chiefly of 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 a distinctively New Zealand foreign policy is usually regarded as dating from 1935. The Labour Government strongly upheld the principle of collective security and pressed for vigorous collective action by the League of Nations against aggression in Abyssinia, Spain, and China at a time when the United Kingdom was pursuing the policy which came to be known as "appeasement".

There was, however, no suggestion that New Zealand was departing from its historically close association with Britain. The course it would follow in the event of war was never in doubt. When war broke out the Prime Minister, the Right Hon. M. J. Savage, expressed New Zealand's position in these terms:

"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 to adopt a more independent foreign policy. The New Zealand Government established (in effect from 1943) a career foreign affairs service, and made a beginning in stationing its own diplomatic representatives in countries where New Zealand's interests made their presence necessary. In particular, New Zealand sought to foster good relationships with its neighbours in the Pacific and Asia and to increase the measure of security and welfare in these areas.

Woven into post-war policy was the traditional New Zealand belief in the principle of collective security and international justice, which the United Nations was pledged to support. There was also the belief that the international community should give high priority to the welfare and political advancement of dependent peoples and to the elimination of poverty, disease, and other economic and social causes of international tension.

The wartime alliance of the two Pacific Commonwealth countries of Australia and New Zealand with the United States found expression in peacetime in the ANZUS Treaty, in which, for the first time, New Zealand and Australia entered into a security treaty with a foreign country. 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 against aggression in the area. The signing of the Manila Treaty and the establishment of SEATO in 1954, like the formation of the ANZUS alliance, took place against a background of continuing instability and violence in South-east Asia.

The scope of New Zealand's interests 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, leading to increased co-operation in fields besides that of defence. By the mid-1960s New Zealand had more widespread representation in Asia than in Western Europe.

The political evolution of the South Pacific, with the emergence of Western Samoa, Nauru, Fiji, Papua New Guinea, and Tonga as independent states and the Cook Islands and Niue as self-governing in free association with New Zealand, has led to the development of a new pattern of relationships, bilateral and multilateral, between New Zealand and its South Pacific neighbours. In addition to its special relationship with Western Samoa (a former United Nations Trust Territory administered by New Zealand), the Cook Islands, and Niue (whose people retain New Zealand citizenship), New Zealand has close bilateral ties with Fiji, Nauru, Tonga and Papua New Guinea. A relationship is rapidly developing with other Pacific countries approaching independence, such as the Solomon Islands, the Gilberts, and Tuvalu.

New Zealand is co-operating with these countries at the regional level in the South Pacific Forum, where the independent and self-governing countries in the South Pacific, together with Australia and New Zealand, discuss their common problems.

The Forum, in 1973, established the South Pacific Bureau for Economic Co-operation (SPEC) which is aimed at facilitating co-operation and consultation on trading, transport, and economic matters among forum members.

New Zealand is endeavouring also to promote the economic and social welfare of the South Pacific peoples and to foster an emerging sense of regional identity through its membership of the South Pacific Commission, an organisation whose members are not only the South Pacific's independent and self-governing countries but also those territories remaining under British, French, and American administration.

The New Zealand Ministry of Foreign Affairs is responsible for the external relations of the Tokelau Islands, and for those of the former dependent territories of the Cook Islands and Niue, which are now internally self-governing. The Secretary of Foreign Affairs is the Administrator of the Tokelau Islands, which are non-selfgoverning territory administered by New Zealand.

New Zealand has continued to place special importance upon its membership of the United Nations. It is an active participant in the work of the General Assembly, and has been a member of all Councils of the Organisation. In 1950 it provided troops to the United Nations Command in Korea and has contributed military observers and civilian police in various peace-keeping operations. It has sought to assist all efforts to attain the political and social objectives outlined in the Charter.

The historical links with Britain and with Western Europe and North America remain close, as does the economic relationship with Britain, New Zealand's largest single customer. Although New Zealand has been making satisfactory progress in diversifying her markets, especially within the Pacific Basin, her trading and other interests in the European Economic Community remain a major policy concern.

The Labour Government, which was elected in 1972, emphasised its wish to strengthen New Zealand's bilateral links with the nations of Asia and the Pacific as well as expand regional co-operation, its commitment to a vigorous programme of aid to less-developed countries, and its belief that the United Nations can and should do more to protect and advance the interests of its smaller members. Successive governments have made clear New Zealand's total rejection of all doctrines of racial superiority and its determination to play a more independent role in world affairs. A new element in New Zealand's foreign policy in 1974-75 was the introduction of a Cultural Relations Exchange Programme. The Government, aware of the contribution cultural relations can make to the growth of better international understanding, set aside the sum of $50,000 annually to promote cultural exchanges. In 1975-76 emphasis was placed on exchanges with China.

INTERNATIONAL RELATIONS IN RECENT YEARS—The Ministry of Foreign Affairs has the primary responsibility of advising and assisting the Government in formulating and executing decisions in the field of New Zealand's external relations. It is the agency through which other governments and their representatives in New Zealand communicate with the New Zealand Government. It operates New Zealand's aid programmes and maintains New Zealand's diplomatic and consular representation abroad. The ministry's overseas functions are discharged through a network of 44 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 has a substantive role in the formulation and execution of New Zealand's economic policies. In Wellington the ministry works closely on these questions with other departments such as the Treasury, Department of Trade and Industry, Customs Department, and the Ministry of Agriculture and Fisheries. Economic activity is as much part of an overseas mission's everyday work as its political, consular, and trade functions. Officers of the ministry have a major responsibility to inform foreign governments of New Zealand's policies, negotiate agreements, and keep the New Zealand Government informed of economic developments in the country to which they are accredited.

The ministry's involvement in the economic sphere was amply demonstrated in the events leading up to Britain's entry into the EEC. The negotiations in Luxembourg, that decided the terms of British entry and the special arrangement for New Zealand exports of butter and cheese to Britain, were preceded by an intensive campaign of publicity for New Zealand's case, continuous ministerial and official contacts in Britain and Europe, and a series of visits to New Zealand by British and European Ministers, officials and journalists directly concerned with Common Market affairs. In all this activity the ministry played a full part in Wellington, with other departments, and abroad where its officers were heavily involved.

Since British accession, New Zealand has pressed continuously for improvements in its terms of trade with Britain. As a result New Zealand's position post-1977 was strengthened by the Dublin Declaration, issued by the Community Heads of Government on 11 March 1975, following a British initiative to have the question considered.

The ministry has a special role also 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. It also works in close liaison with the Overseas Information and Publicity Section of the Tourist and Publicity Department to ensure that overseas posts are kept supplied with up-to-date information about New Zealand.

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—As a member of the Commonwealth New Zealand is able to consult and co-operate with 34 other countries in a wide variety of activity, both governmental and non-governmental. The value to New Zealand of its Commonwealth links is derived not only from the practical benefits of what the Commonwealth does but also from the heterogenous composition of the association. Its 35 members take in the 6 continents and the 5 oceans of the world. The Pacific region is now fully represented in the Commonwealth. Fiji, Tonga, Western Samoa and Papua New Guinea are full members along with Australia and New Zealand, and Nauru has special status.

As the Commonwealth has grown and changed, its relationships have taken on a new scope and emphasis. As Commonwealth heads of government affirmed in the Commonwealth Declaration adopted at their meeting in 1971, the association "provides many channels for continuing exchanges of knowledge and views on professional, cultural, economic, legal and political issues among member states. These relationships we foster and extend for we believe that our multinational association can expand human understanding and understanding among nations, assist in the elimination of discrimination based on differences of race, colour, and 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 different races live in harmony, sees in the Commonwealth a special opportunity for multi-racial co-operation and understanding.

The value of the association in providing a forum for the exchange of views between a large number of diverse nations, as set out in the Declaration, was illustrated at the Heads of Government Meetings in 1973 in Ottawa and in 1975 in Kingston, Jamaica. Discussions were frank, informal, and private, ranging over topics which included changing power relationships, trade, monetary and other economic issues, security, nuclear testing, development assistance, foreign investment, international transport, and South African questions. The 1975 meeting paid special attention to the world economic situation, especially the problems of developing nations. Periodic meetings of Commonwealth Ministers of Finance, Trade, Health, Law, and Education promote the exchange of views and functional co-operation in diverse fields of national activity. Ministerial meetings are supported by conferences and seminars of officials and professional and technical specialists.

The belief of member countries in the potential of the Commonwealth led to the establishment of a permanent Commonwealth Secretariat in London in 1965 to be the main agency for multilateral communication among Commonwealth governments. The Secretariat promotes consultation and disseminates information on matters of common concern, organises meetings and conferences, and coordinates many Commonwealth activities. Prominent among these is the Commonwealth Fund for Technical Co-operation. The fund is financed by voluntary contributions from most Commonwealth countries. Its primary purpose is to promote economic development through self-help and mutual assistance.

Besides contributing to the budget of the Commonwealth Secretariat and the Commonwealth Fund for Technical Co-operation, New Zealand provides financial support to a number of other intergovernmental Commonwealth organisations which promote co-operation in specific areas. New Zealand also contributes to the Commonwealth Foundation, which was established at the same time as the Secretariat to promote close links in the professions throughout the Commonwealth. It has sponsored official and non-official Commonwealth professional organisations and strengthened the links between administrators, engineers, lawyers, accountants, scientists, and private individuals in the different Commonwealth organisations. Like the Secretariat it has provided a focus for Commonwealth activities and a basis for extending international co-operation.

New Zealand and the Asian/Pacific Area—Since the Second World War, and particularly since 1955, there has been a noteworthy growth in New Zealand's relations with the countries of the Asian/ Pacific area. New Zealand has a direct interest in the maintenance of peace and the growth of prosperity in the area. Its political and economic relations with Australia, the United States, Canada, Japan, and the countries of South-east Asia are of particular importance.

Almost half New Zealand's overseas trade is with the countries of the Pacific Basin and is growing steadily.

Private initiative, with Government assistance, has been able to develop new markets, new products, new selling processes, and new economic and commercial relationships. A pattern of regular economic consultations with our main trading partners has been developed; bilateral economic agreements have been concluded.

Aid activities have been expanded. In the early 1950s aid programmes, except for assistance to New Zealand's own Pacific territoties, were largely directed towards the Indian subcontinent in the form of capital grants, which called for little direct New Zealand participation. Since the mid 1950s, technical assistance programmes have been enlarged to bring students to New Zealand and send New Zealand experts into the area. Aid activities now utilise New Zealand's industrial and engineering skills as well as those in the more traditional agricultural and health fields.

New Zealand's overseas representation has been expanded in reponse to the growth in New Zealand's interests and involvements overseas. In 1955, when a New Zealand mission in Singapore was established, New Zealand had full diplomatic representation in only four countries in the Pacific area (the United States, Canada, Japan, and Australia). There are now some 30 diplomatic, consular, and trade posts in the Asian/Pacific area. This network enables New Zealand to assess external events in the light of this country's own interests and needs, and to work directly with other countries in areas of common concern. New Zealand has also developed its political contacts with countries of the Asia and Pacific area in other important ways. Exchanges of visits by Heads of State and Government Ministers and parliamentarians have increased, and the development of regular bilateral consultations has also been encouraged.

Also worthy of particular note is the emphasis New Zealand has placed on supporting regional organisation for co-operation and consultation in both the political and development fields. In the South-east Asian region, in 1973, New Zealand joined the Ministerial Conference for the Economic Development of South-east Asia (MEDSEA) and became an associate member of the Southeast Asian Ministers of Education Organisation (SEAMEO). The Government continues to actively explore possibilities for new forms of regional co-operation in Asia, and in 1975 steps were taken to initiate trade co-operation and joint development projects between New Zealand and the Association of South-east Asian Nations (ASEAN) which comprises Indonesia, Malaysia, Singapore, Thailand, and the Philippines.

Cultural contacts with the countries of Asia and the Pacific have been expanded. For many years New Zealanders looked largely to Britain for cultural inspiration and experience. Today, their horizons have been broadened. Professional bodies, sporting associations, private business groups, and universities have direct contacts with similar organisations in other countries in Asia and the Pacific where in the past they had links only with Britain and perhaps Australia. Tourism and the development of civil air links have also helped bring a wider range of contacts.

New Zealand and the South Pacific—New Zealand has a long history of interest and involvement in the South Pacific. In the latter part of the 19th century Prime Minister Richard Seddon harboured ambitions of a South Pacific empire controlled by New Zealand, and as a result of pressure from Seddon the administration of the Cook Islands and Niue, which were British colonial possessions, was handed over to New Zealand in 1901. The number of New Zealand Pacific dependencies increased when, following the establishment of the League of Nations, Western Samoa, which had been occupied by New Zealand troops at the outbreak of the First World War, became a mandated territory under the administration of New Zealand. In 1925 the Tokelau Islands, part of the Gilbert and Ellice Islands Colony, were ceded by the United Kingdom to New Zealand.

Despite its geographical situation, the acquisition of overseas dependencies in the South Pacific and the ethnic kinship of the Maori and the Polynesian peoples, New Zealand's present identity as a South Pacific country was slow in developing for a number of reasons. Culturally, New Zealand has been closer to Western Europe than to the Pacific. For many years almost all of New Zealand's exports went to the United Kingdom. Politically, New Zealand's outlook was oriented towards Europe and, more recently, South-east Asia. Also the Pacific Islands were, and in some cases still are, administered by other countries.

But during the 1960s there was a dramatic emergence of new nations in the South Pacific. New Zealand encouraged this development in its own territories.

In Western Samoa, which had become a United Nations Trust Territory administered by New Zealand, political and constitutional development was carried forward in accordance with the wishes of the Samoan people. This culminated in the establishment of the independent State of Western Samoa on 1 January 1962. 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, after the alternatives concerning constitutional development had been submitted to the Island assemblies, the Cooks and Niue chose full internal self-government with a continued association with New Zealand. Events thereafter moved rapidly in the Cook Islands and on 4 August 1965 the Cook Islands became a self-governing nation in free association with New Zealand. In an exchange of letters between the New Zealand Prime Minister, Mr N. Kirk, and the Premier of the Cook Islands, Sir Albert Henry, in April 1973 clarifying the special relationship between the Cook Islands and New Zealand, it was agreed that there were to be no legal fetters of any kind upon the freedom of the Cook Islands to make their own laws and control their own Constitution. Although New Zealand has a statutory responsibility for the external affairs and defence of the Cook Islands, it is intended that the Cook Islands be free to pursue their own policies and interests in these as well as other areas.

Niue became self-governing in free association with New Zealand on Constitution Day, 19 October 1974. It is written into the Niue Constitution Act 1974 that New Zealand will continue to be responsible for the external affairs and defence of Niue, that Niueans will remain New Zealand citizens, and that New Zealand will provide necessary economic and administrative assistance.

The Tokelau Islands are still included within the boundaries of New Zealand and are administered under the authority of the Tokelau Islands Act 1948. Tokelauans are New Zealand citizens. By agreement with the Government of Western Samoa the office of the Tokelau Islands Administration is based in Apia and handles the Tokelau Islands transactions with the outside world, especially with New Zealand. Decisions about day-to-day living in the Tokelau Islands are made by the village councils.

The developments in New Zealand's dependent territories are part of a wider pattern of political evolution in the region. In 1968 Nauru became an independent republic; in 1970 Fiji became independent; and in the same year Tonga rejoined the comity of nations. In 1975 Papua New Guinea became fully independent after being self-governing since December 1973, and constitutional changes are in progress in the Solomon Islands and in the Gilbert and Ellice Island group.

It is natural that New Zealand and its South Pacific neighbours should have become very closely associated. One important reason has been the movement of Pacific peoples into New Zealand. Cook, Niue, and Tokelau Islanders are New Zealand citizens and move freely back and forth. New Zealand's historical association with Western Samoa, which is reflected in the Treaty of Friendship signed in August 1962 and its close association with the Kingdom of Tonga, has resulted in a steady flow of immigrants and visitors under work permit schemes from both countries.

New Zealand has also played an active role in building up regional co-operation in the South Pacific. A major step in this direction was the creation of the South Pacific Forum comprising the independent and self-governing countries of the South Pacific, Fiji, Nauru, Tonga, Western Samoa, the Cook Islands, Niue, and Papua New Guinea together with Australia and New Zealand which, at the invitation of New Zealand, met for the first time in Wellington in August 1971. Since then meetings have been held in Canberra, Suva, Apia, Rarotonga, and Nuku'alofa. At the most recent meeting in Nuku'alofa representatives from the Solomon Islands and the Gilbert and Ellice Islands were admitted as observers.

The South Pacific Forum provides the opportunity for the leaders of the South Pacific states to discuss common problems, exchange information, consider priorities, and plan programmes for mutual and regional benefit. The topics considered include such matters as regional trade, shipping, telecommunications, education, law of the sea, disaster relief, and nuclear testing.

At the Canberra session of the South Pacific Forum members agreed to establish the South Pacific Bureau for Economic Co-operation (SPEC) to deal with trade and related matters. The main purpose of the SPEC is to advise Forum members on ways of promoting regional trade and free trade among Island members and to encourage collaboration in areas such as regional transport which will assist the economic development of the Island members.

The South Pacific Commission, created in 1947 by the Canberra Agreement of which New Zealand is a signatory, is the other major regional body. It is composed of representatives of the administering powers in the Pacific—the United Kingdom, the United States, France, Australia, and New Zealand—together with Fiji, Nauru, and Western Samoa. Since its establishment the commission has done much useful work in promoting the economic and social welfare of the South Pacific peoples. It is primarily a technical assistance organisation. Its budget for 1975 is A$2,371,624. Australia, France, Nauru, and New Zealand made additional voluntary contributions to the commission's budget for 1974 and 1975 which have enabled work to be undertaken on a number of special projects of interest to the region as a whole.

Within the South Pacific Commission the South Pacific Conference is of particular importance. The conference, which meets annually and is attended by representatives of all the countries of the region, has helped build up a sense of regional identity. The conference decides the work programme of the commission and the priorities within the work programme. It was decided at the fifteenth South Pacific Conference, held in Nauru in September 1975, that a special review conference would take place early in 1976 to reconsider the whole function of the South Pacific Commission.

The United Nations and its specialised agencies are also an important source of technical assistance in the South Pacific. The independent countries of the region are members of various UN bodies, and the United Nations Development Programme (UNDP) has a regional office in Fiji. These countries are also members of the Asian Development Bank and receive loans from it to promote their economic development.

New Zealand and the Middle East—New Zealand has developed its relations with countries in the Middle East since 1973 in response to the enhanced importance of the region in world political and economic affairs. The greatly increased price of oil and the possibility of a supply cut with renewed hostilities has made it important that New Zealand develop its relations with producing countries. The increased oil revenues have given greater purchasing power to the countries in the region which, their development programmes and rising standards of living, have a rapidly growing demand for goods and services which New Zealand can provide.

Relations with Iran have developed quickly. In 1974 a number of ministerial and official visits were exchanged between the two countries, culminating in the visit to New Zealand in September 1974 of Their Imperial Majesties, the Shah and Shahbanou and the signing of a trade agreement. In early 1975 New Zealand opened an embassy in Tehran. Relations with other countries in the Middle East have been developed as a result of a goodwill mission visiting the major Arab countries in early 1974, and with ministerial visits between New Zealand and Saudi Arabia, Iraq, and Bahrain. New Zealand has accredited a non-resident Ambassador to Egypt and to Iraq and plans to open an embassy under a Chargé d'Affaires in Baghdad.

New Zealand in the United Nations—If New Zealand is better known in international affairs than some other small states, this is, in some measure at least, because of New Zealand's record of active participation in the United Nations.

New Zealand's share of the United Nation's regular budget is 0.28 percent. In 1975 this meant a New Zealand contribution to the organisation of NZ$594,000.

United Nations Security and Peace-keeping Activities—New Zealand Governments have acted upon the conviction that it is only through the United Nations that an effective and comprehensive collective security system can eventually be developed and disarmament achieved. At San Francisco in 1945 the New Zealand Prime Minister, 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 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 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 consistently played a prominent role on disarmament issues, particularly in relation to nuclear weapons testing. In 1975 New Zealand and Fiji requested the inclusion of an item in the agenda of the General Assembly on "the establishment of a nuclear-weapon-free zone in the South Pacific". The two countries, and Papua New Guinea on attaining UN membership, submitted a resolution endorsing the idea of establishing such a zone and inviting the countries concerned to carry forward consultations about ways and means of giving it effect.

New Zealand has also advocated adequate and timely preparations in case aggression should occur and has supported development of the United Nations' capacity for peace-keeping. 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 served in Cyprus.

While recognising that the objective of developing the United Nations' potential in security and peace-keeping is a long-term one, the New Zealand Government has indicated its interest in making a practical contribution by training some New Zealand military units to take part in future United Nations peace-keeping operations.

Economic and Social Activities—In addition to this concern with international peace and security, other aspects of the work of the United Nations have attracted increased attention 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 goodwill and co-operation are being given practical expression.

During both 1974 and 1975, Special Sessions of the General Assembly were held specifically to discuss development issues. The sixth Special Session in 1974 launched the Declaration and Programme of Action on the Establishment of a New International Economic Order which was considerably refined and received almost unanimous support at the Seventh Special Session in 1975.

In recent years a series of special conferences have been held on some of the main problems facing mankind: the environment (at Stockholm in 1972), population (at Bucharest in 1974), food (at Rome in 1974), and industrial development and International Women's Year conferences in 1975. Of equal importance is the Conference on the Law of the Sea, which seeks to regulate exploitation of the world's last major untouched region. This conference, which resumed in 1976, is of particular interest to New Zealand because of our extensive coastal waters and dependence on maritime transport.

The United Nations body with primary responsibility in the economic and social field is the Economic and Social Council (ECOSOC), comprising 54 elected members, which co-ordinates activities of numerous committees ranging from the Statistical Commission, of which New Zealand is a member (until the end of 1977), to the autonomous specialised agencies such as the World Health Organisation.

*Since renamed Economic and Social Commission for Asia and Pacific (ESCAP).

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. Its interest in social and economic questions is illustrated by its membership of ECOSOC from 1947 to 1949,1959 to 1961, and from 1971 to 1973. 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. The general trend towards closer ties with Asia further demonstrated by membership of the Asian subgroup of various international bodies such as the ILO Asian group, and the AOPU (affiliated body to the UPU) and by participation in the UNESCO Conference on Cultural Policy in Asia which was held in Jogjakarta in 1973. New Zealand has also served terms of office from time to time on the Status of Women Commission, the Technical Assistance Committee,the Statistical, Social, Population, Human Rights and Fiscal Commissions, and the Committee on Science and Technology for Development. New Zealand served on the Governing Council of the United Nations Development Programme from 1974 to the end of 1976.

Specialised Agencies–-New Zealand is a member of all the 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, in total considerably exceed our contribution to the United Nations' regular budget. In 1975, for example, our contributions to the budgets of the ILO, the FAO, WHO, and UNESCO alone totalled NZ$668,000.

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 island countries 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 facilitate 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 services of experts to developing countries (for example in agriculture, physiotherapy, police work, forestry, and education) and donations of equipment or commodities.

In March 1973 the Government announced substantial increases (to some $27 million in 1973-74) in New Zealand multilateral aid programmes under United Nations and other auspices as part of the Government's policy of progressively increasing the proportion of gross national product (GNP) allocated to aid to reach the internationally accepted target of 0.7 percent of GNP in official development assistance. In announcing this decision the Prime Minister indicated that the Government planned to play its part in leading New Zealand to the goal of 1 percent of GNP in total resource transfers, stressing that the co-operation of the general public and the business community would be required if New Zealand was to attain this target. (Details and statistics of New Zealand development assistance programmes are set out in the final section of this chapter, headed "New Zealand's Aid and Other Resource Flows to Developing Countries".)

New Zealand's membership of the International Bank for Reconstruction and Development, the International Monetary Fund, and the International Finance Corporation allows this country to participate in international efforts to increase the stability of international trade and promote the economic development of the underdeveloped areas of the world. It 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 ESCAP to foster economic growth and co-operation in the Asian/Pacific region.

New Zealand has supported United Nations agency activity which will help the social and economic development of the Pacific Islands. Examples of such projects are: the work of WHO in eradicating yaws and tuberculosis; FAO's efforts to control the rhinoceros beetle which ravages much of the islands' coconut crops, and its support for a regional fisheries development agency; the establishment by UNESCO of a curriculum development unit at the University of the South Pacific; the placement in Suva of a development assistance team, backed by ESCAP and the specialised agencies.

New Zealand has in the past served on the governing bodies of FAO, UNESCO, and UPU, and was a member of the Executive Board of WHO from 1972 to 1974. 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 in 1968 and its third in. Santiago in 1972. 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 has been a member of the board since its foundation. There are also within the organisation functional committees on commodities, manufactures, finance invisibles, shipping, technology and preferences. New Zealand has been a member of most of these committees. The fourth session of UNCTAD took place in Nairobi in 1976.

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. A major round of tariff negotiations was initiated following the Tokyo meeting in September 1973. The substantive stage of the negotiations is now in progress.

OECD—In May 1973 New Zealand was accepted into full membership of the Organisation for Economic Co-operation and Development (OECD). The OECD, founded in 1961 as a successor to the Organisation for European Economic Co-operation, has a membership of 24 countries—19 from Europe plus the United States, Canada, Japan, Australia, and New Zealand. Yugoslavia has a special status in the organisation. The main role of OECD is to promote co-operation among governments in all fields of economic and social policy. Its activities cover not only economic and monetary questions, but also agriculture, the environment, science, education, manpower, industry, and energy. An important part of OECD's activities is to assist its members to discharge, in the most effective way possible, their responsibilities towards the developing countries of the rest of the world. These activities have assumed particular importance in the past year, and the OECD has established a series of high level groups to study matters of particular concern to developing countries.

(Further details of New Zealand's trading relations are set out in section 22, "External Trade".)

New Zealand's Defence Policies—After the Second World War the international scene was clouded for many years by the Cold War. New Zealand was affected by the tensions of the period and took steps to provide for its defence in concert with its allies. As a small country with limited resources, New Zealand alone was not able to defend its extensive but isolated territory against aggression by any militarily significant power. It therefore supported efforts to give effect to the provisions of the United Nations Charter which looked to the creation of a universal system of collective security. In the meantime it accepted that it should act in concert with like-minded countries in order to strengthen its security in its own region.

Recent developments in international affairs—especially the improvement of the United States' relations with China, the ending of the war in Vietnam, the growth in the number of major power centres (multipolarity)—have led to a relaxation of tensions that has lessened the likelihood that New Zealand might be involved in war. Changes in United States policy, which now emphasises that the primary responsibility for long-term stability in Asia rests with the countries of the area, and the large reduction of the British defence presence outside Europe have given new impetus to regional initiative. The relaxation of cold war tensions has given New Zealand and other small nations greater freedom of action but it has also reinforced the requirement for closer collaboration on a regional basis. It has also meant that New Zealand's relations with the countries of South-east Asia are no longer to be regulated primarily by defence considerations.

By means of staff exchanges, exercises, training programmes, and the provision of facilities under its Defence Mutual Assistance Programme, New Zealand co-operates with several countries in Southeast Asia and the South Pacific in building up one another's defence capacity, thereby contributing to regional stability. It is also a partner in the Five Power Defence Arrangements relating to Malaysia and Singapore, which, although ostensibly military in nature, are primarily a political instrument for fostering stability and co-operation and helping to preserve national integrity and independence.

The Five Power Defence Arrangements—The basis of the Five Power Defence Arrangements is not a formal treaty or arrangement but a statement incorporated in the communique of the meeting of Ministers of the five powers (Britain, Malaysia, Singapore, Australia, and New Zealand) 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 Arrangements is the belief that defence co-operation of this kind contributes significantly to the maintenance of stability and the continuation of development in the region as a whole.

The Australian, New Zealand, and United Kingdom forces stationed in Malaysia and Singapore under the Five Power Defence Arrangements were grouped into an ANZUK Force. The Australian Government decided in 1973 to withdraw most of its ground forces by April 1975, while retaining two RAAF squadrons in Malaysia. The ANZUK Force was disbanded in early 1974 and the New Zealand contingent based in Singapore became known as New Zealand Force South-east Asia. Later the United Kingdom Government announced, as part of its defence review, that it would withdraw its forces based in Singapore by April 1976.

In August 1975 the New Zealand Government announced that it had decided in principle that the New Zealand Force in Singapore should return home to New Zealand in the next 2 years or so. In commenting on the decision, the Prime Minister said that New Zealand units stationed in Malaysia and Singapore had assisted those countries in adjusting to changing circumstances during the critical early years of their independence. More recently, their role had been to help them build up their own defence capabilities. Recent consultations with New Zealand's partners had indicated that that form of support would not be needed much longer. There were other ways more relevant to their needs in which New Zealand could now help. They were therefore agreeable to New Zealand's planning for the return home of its forces.

The Prime Minister of New Zealand emphasised that the return home of the New Zealand Force would not reflect any lessening of New Zealand's commitment to the Five Power Defence Arrangements or of its interest in the region's well-being and stability.

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. Pakistan formally withdrew from the organisation in 1973 and France, while remaining a signatory of the Manila Treaty, has given up any role in the day-to-day co-operative activities established under it. Under the terms of the Manila Treaty, 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 processes. 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 undertook activities intended to foster the security and stability of the regional member countries and to carry out, on a modest scale, projects designed to promote their economic and social development. For example, it sponsored research in the fields of tropical medicine, agriculture, and engineering.

Despite the advantages SEATO provided during the earlier years of its existence, it had a number of inherent weaknesses from the start (e.g., more members outside the region than within it, regional members not contiguous, varying points of view among a widely scattered membership), which gradually made it less relevant to the needs of the region as time passed. The end of the United States confrontation with China and of the military tensions that it created accentuated the need to adapt SEATO to present-day realities.

Nevertheless, a number of SEATO countries wished to see the Manila Treaty remaining in effect at a time of major change within the region. A major review, which New Zealand fully supported, was held at the SEATO Council Meeting in September 1973 with the aim of making the organisation more relevant to the needs of the region. As a result of this review, military planning was abandoned, the size of the organisation was scaled down, and the emphasis of its activities was changed to support for economic and social development.

The ending of the Vietnam war in 1975 and other developments in the region led Governments in South-east Asia to re-assess many of their attitudes and policies. On 24 July 1975 the President of the Philippines and the Prime Minister of Thailand—the two regional members of SEATO—reached agreement in principle that "the Organisation should be phased out to make it accord with the new realities in the region". After further consultations among members, the SEATO Council of Ministers decided at its annual meeting in New York on 24 September 1975 that, while the Organisation had over the years made a useful contribution to stability and development in the region, "in view of the changing circumstances it should now be phased out".

ANZUS—There is no direct threat to the security of the New Zealand homeland at present. In the unlikely event of such a threat materialising New Zealand would be able to turn for assistance to its partners in 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.

In the absence of any foreseeable need to invoke the security provisions of the treaty, ANZUS can be seen as a durable expression of a strongly-based community of interest and attitude among the three democracies that are parties to it. The close relationship among the three countries is reflected in the informality and ease of their consultation under the ANZUS Treaty. Meetings of the Council of Ministers are generally held once a year to discuss matters of common interest.

NEW ZEALAND'S AID AND OTHER RESOURCE FLOWS TO DEVELOPING COUNTRIES—New Zealand aid is designed to help foster economic and social development and raise living standards in the less affluent countries, particularly New Zealand's near neighbours in the South Pacific and South-east Asia. The determining factor in the type of aid is the needs of the recipient countries themselves.

But aid as commonly understood does not represent the entire resource flow to developing countries. New Zealand's total resource flow (the transfer of goods, services, and capital) to developing countries takes four forms: official development assistance (ODA), other (or non-concessional) official flows, private flows and grants by voluntary agencies (GVA). The New Zealand Government has accepted the international target of 1 percent of GNP for total resource flows (both official and private) to developing countries. The element of this overall aid effort which the Government is able to influence most directly is official development assistance (ODA). However, support is also given to the efforts of private aid agencies.

During 1974-75 official development assistance rose from the $24.9 million level of the previous year to $41.8 million. Official aid expenditure during 1975-76 is provisionally estimated at $59.8 million (0.58 percent of GNP). With the strengthening of aid administration machinery, specialist advice from Government departments, and the services of companies and consultants in the private sector, New Zealand has been able to implement a considerably expanded programme. To ensure further public participation in the programme, an Advisory Committee on External Aid and Development was set up in 1975. Drawn from a broad cross-section of the community with varying attitudes and interests, it advises the Minister of Foreign Affairs on all aspects of New Zealand aid. Its advice is in the area of both private and official aid programmes. Regular bi-monthly meetings with representatives of New Zealand's voluntary agencies are held by the Ministry of Foreign Affairs.

The official development assistance consists of "bilateral" and "multilateral" aid. The bilateral aid programme has recently accounted for between 70 and 80 percent of the total ODA and is implemented directly by the New Zealand Government. Bilateral programmes are concentrated on the South Pacific, South and South-east Asia, and to a lesser extent on Africa, the Caribbean, and Latin America. The South Pacific, as an area with which New Zealand has historical ties, and one where development needs have been somewhat neglected by major aid donors, received more than 50 percent of the assistance (totalling $30.4 million) provided by New Zealand in bilateral aid during 1974-75.

Diversity is evident in the bilateral projects undertaken by New Zealand. For example, forestry projects range from a large-scale planting programme in Fiji, where Caribbean pines are being planted as the possible basis for a major export industry in the future, to the provision of a portable sawmill in Tonga to exploit coconut palm stems.

Livestock projects include sending a herd of Jersey cows to India for cross-breeding purposes, and sending a flock of sheep to Papua New Guinea to help to establish a new industry. Other projects include geothermal exploration in the Philippines and Indonesia, assistance to the fishing industry in Indonesia and Tonga, and hospitals in Thailand, Western Samoa, and Tonga.

The second element of New Zealand's official assistance is the multilateral programme. This covers New Zealand's participation in the work of the United Nations, the Commonwealth, and South Pacific and South-east Asian region agencies. The multilateral programme enables New Zealand to make a contribution to development work which would usually be beyond the scope of the bilateral aid programme, either in terms of the scale of the projects or their location in developing countries beyond the regions of concentration of the bilateral aid effort.

Bilateral Aid—New Zealand's bilateral aid is extended in the form of capital assistance, which involves the transfer of resources which have the primary aim of increasing the stock of physical capital in a developing country, or technical assistance, which makes available training facilities, experts and consultants. Some of the inputs which New Zealand has made available under capital assistance include buildings, materials, technical equipment for hospitals, dairies, and similar facilities, livestock, and capital equipment of various sorts. Capital has also included grants for budgetary support in the case of the Cook Islands, Niue, and the Tokelau Islands. New Zealand has provided expert assistance in many fields, along with training awards in both New Zealand and the developing countries.

Bilateral assistance also includes food aid and special emergency and distress relief.

A country breakdown of bilateral ODA during 1974-75 shows the direction and scope of New Zealand's assistance during the year. On a regional basis the South Pacific was allocated $16 million, Asia $12 million, Africa $0.5 million, and Latin America and the Caribbean $0.2 million.

ODA:BILATERAL AID 1974-75

CountryTotal Aid
South and South-east Asia$(000)
  Afghanistan5
  Bangladesh2,141
  Bhutan23
  Brunei7
  Burma22
  India411
  Indonesia2,846
  Khmer Republic93
  Korea443
  Laos106
  Malaysia963
  Maldives Republic19
  Nepal213
  Pakistan1,101
  Philippines909
  Singapore245
  Sri Lanka1,133
  Thailand1,144
  Vietnam764
  Regional and others247
  Total12,837
South Pacific 
  Solomon Islands75
  Cook Islands4,485
  Fiji2,588
  Gilbert and Ellice Islands56
  New Hebrides13
  Niue2,476
  Papua New Guinea479
  Tokelau Islands682
  Tonga828
  Western Samoa3,052
  Regional1,488
  Total16,221
Africa 
  Ghana22
  Kenya5
  Lesotho2
  Malawi2
  Mauritius36
  Nigeria9
  Sierra Leone6
  Tanzania230
  Zambia62
  Regional and other170
  Total546
Latin America and Caribbean- 
  Jamaica49
  Peru96
  Uruguay3
  West Indies2
  Grenada1
  Honduras36
  Regional1
  Total188
  Other457
  Voluntary agencies170
Total bilateral aid$30,419

In the following table bilateral ODA is shown by programme.

 $
Bilateral Aid—Asia and the Pacific15,813,794
Commonwealth Education Scheme and Medical Aid228,013
Disaster relief517,400
Maori Affairs Department for South Pacific6,796,000
Ministry of Transport for South Pacific851,212
Trade credit (to Indonesia)201,883
Reserve Project Funds5,082,315
Other programmes361,848
Regular contributions to the programme of CORSO and VSA (Volunteer Service Abroad)141,000
Special Commonwealth Aid to Africa Plan426,018
Total$30,419,483

Non-official Flows—One initiative in the field of voluntary agencies was the establishment of a Voluntary Agency Support Scheme in 1974. This incentive scheme provides for Government financial assistance equal to a third of the total cost for approved projects mounted by New Zealand private agencies in developing countries. In 1974-75 a total of 15 relatively small-scale projects were approved. Voluntary agencies contributed around $3 million to the total flow of resources from New Zealand to developing countries during 1974-75. Direct investment in developing countries by New Zealand is estimated at $7.9 million for 1974-75 (the figure being based on balance of payments data recorded by the Department of Statistics). Long-term export credits, based on a survey by the Ministry of Foreign Affairs, were $0.7 million, but this figure may well be understated due to the difficulty of carrying out a comprehensive survey.

Multilateral Aid—During 1974-75 the major portion of the $11 million multilateral aid programme represented contributions to the Asian Development Bank in the form of contributions to ordinary capital ($812,000), the Asian Development Fund ($1,352,925), and the Technical Assistance Fund ($75,000). The Bank's members now include a number of independent South Pacific countries as well as Asian countries which are receiving New Zealand bilateral assistance. The United Nations and its specialist agencies were also a focal point of New Zealand's multilateral ODA. Contributions to the United Nations Development Programme ($2,054,640), the World Food Programme ($813,819), the United Nations Children's Fund ($450,000), the United Nations Fund for Population Activities ($200,000), the United Nations Relief and Works Agency ($100,000), and the United Nations High Commissioner for Refugees ($50,300) continued New Zealand's long association with United Nations programmes.

Other organisations to which New Zealand made contributions during 1974-75 included the International Development Association ($1,280,000), the International Fertiliser Subsidy Scheme ($1,738,485), the Commonwealth Fund for Technical Co-operation ($400,000), the International Planned Parenthood Federation ($200,000), the South Pacific Commission ($218,923), Asian and Pacific Council bodies ($55,500), and the Asian Institute of Technology ($24,450).

ODA: MULTILATERAL AID 1974-75

 NZ$(000)
Asian Development Bank1,428
Asian Development Fund1,353
Technical Assistance Special Fund75
Commonwealth Fund for Technical Co-operation400
Commonwealth Youth Programme30
International Committee of the Red Cross15
International Planned Parenthood Federation200
Reconstruction in Indo-China— 
Nam Ngum hydro-electric scheme248
Red Cross440
UNICEF250
Unspecified100
Total1,038
 NZ$(000)
South Pacific Bureau for Economic Co-operation46
South Pacific Commission219
South Pacific Commission Works Programme250
United Nations agencies and funds— 
  International Development Association1,280
  United Nations Children's Fund450
  United Nations Development Programme2,055
  United Nations Fund for Population Activities200
  United Nations High Commissioner for Refugees50
  United Nations Relief and Works Agency100
  World Food Programme814
Total4,949
Other United Nations organisations244
Total$10,247

CONSTITUTION OF NEW ZEALAND: General—New Zealand is a sovereign independent unitary state being in form a constitutional monarchy with responsible government and a unicameral legislature.

In common with the United Kingdom, New Zealand has no single written instrument purporting to be its supreme or fundamental law. Its constitution is contained in the statutes of the Imperial and New Zealand Parliaments and the decisions of the superior courts of both jurisdictions. Some statutes have greater constitutional significance than others.

To the extent that its constitution is unwritten it is flexible, but restraints by way of conventions prevent, at least in normal circumstances, arbitrary or improper alteration of the constitution and the abuse or misuse of legislative or executive power.

Statutes such as the New Zealand Constitution Act 1852 (United Kingdom) recite law which, by reason of political, legal, and social development, may appear obsolete. If the spirit of the law in such a case cannot readily be observed by the use and development of convention, the law may be repealed, cf. Constitution Amendment Act 1973 (New Zealand). On the other hand, some conventions may be translated into substantive law after a period of time. Thus, the Civil List Act 1950 provides that no person may be appointed or remain a Minister of the Crown unless concurrently, he is a member of the House of Representatives.

The fundamental canon of the constitution is that Parliament is supreme or "sovereign". The question as to where sovereignty lies does not arise in the sense of its vesting in the people or the legislature or the monarch. Nor can it be argued, except in a very loose sense, that the legislature reflects and executes the will of the people. Reality dictates that the will of the people is expressed through the ballot box in choosing its government and legislature. That is not to say that individuals and organisations do not express their views on measures which may become law but their voice and influence is limited, if only paradoxically, by the very nature of government which the country possesses, that is, representative and responsible.

The constitutional theory of the separation of powers does not operate fully in New Zealand. The Executive Government consists of members of the legislature who are appointed by the Governor-General as Ministers of the Crown but who are, in practice, those members of the Government party who are selected for office by the leader of the Government party or elected to the ministry by their parliamentary fellows through caucus. Strictly speaking, ministers, being members of the legislature, are thereby "responsible" to it for their actions and those of their departments. Moreover, the Executive Government, collectively, is held to be answerable in the same way for its policies and the means of implementation. However, for so long as the two-party system continues to operate in New Zealand so that one party, gaining a majority at the polls, becomes the government of the day, the quantum of responsibility will depend largely on that government's observance of the conventions surrounding the concept. The rigours of individual ministerial responsibility have been eroded to the extent that where it is a question of the appropriate Minister being in the position of respondeat superior for the acts or omissions of his officers or department, the convention that he should resign appears to have fallen into desuetude. Constitutional and political writers appear to be in favour of that convention's demise.

The Sovereign—The Queen, in right of New Zealand, is styled: "Elizabeth the Second, by the Grace of God Queen of New Zealand, and Her Other Realms and Territories, Head of the Commonwealth, Defender of the Faith", Royal Titles Acts 1953 and 1974.

Being a constitutional monarchy, the Sovereign's powers are defined and circumscribed, first by law and then by convention.

In the Sovereign's absence, most of the royal powers are exercised by her representative, the Governor-General, in terms of the 1852 Act and the Instructions and Letters Patent of 1917. It should be noted that the Governor-General is not a viceroy and it would therefore be possible but unlikely for him to act ultra vires. By convention, the Queen and the Governor-General avoid becoming embroiled overtly in the "politics" of government, although the Sovereign and Governor-General remain an integral part of the legislative process.

Many of the formal procedures associated with government and administration require the participation of the Queen or Governor-General, inter alia, summoning, proroguing, and dissolving Parliament; assenting to measures passed by the House so as to give them the force of law; appointing judges of the Supreme Court and senior officials of State; appointing ministries and individual Ministers; conferring knighthoods and other honours. Most of the royal functions will be performed on advice of the Executive Government and little, if any, information is available as to whether this advice has always been taken without demur within the last 70 years. To reject advice would place the Governor-General in a very difficult situation, his appointment and tenure being at the pleasure, ultimately, of the New Zealand Government. Learned writers have suggested that he would only refuse to act on advice were he reasonably certain that he could find another member of the legislature willing and able to form a government enjoying the confidence of the House or, if this were not feasible, that his rejection would be vindicated by the electorate were he to dissolve Parliament and cause a general election. To reject advice otherwise, or fail having tried the alternatives, would be to invite his own recall.

Speculation remains, of course, on whether the Governor-General would reject advice even in the circumstances outlined above. The question is to determine how much real power, active or residual, is now possessed by the Governor-General. Recent amendments* to the 1852 Act have shorn the Governor-General of the legal basis of powers which have lapsed already, in great part, by operation of convention.

Nevertheless it should not be supposed that the Sovereign or the Governor-General have become constitutionally redundant. Many of the powers held and exercised by the Executive Government arise by virtue of the royal prerogative, defined by Dicey as the "residue of discretionary or arbitrary authority, which at any given time is legally left in the hands of the Crown". While many of the prerogative powers have been superseded by statute (there is debate on whether the prerogative is thereby extinguished or continues to subsist), substantial areas remain untouched, the majority of prerogative powers being exercised by Ministers with or without reference to the Governor-General.

Although calls for its abolition are made from time to time, the Monarchy seems to be an accepted part of New Zealand's constitutional and political structure although overt involvement in the political arena whether by the Queen or the Governor-General might well have the effect of engendering substantial support for abolition.

Parliament—With the abolition of the Legislative Council (Upper House) in 1950, Parliament, for most purposes, has consisted of the Governor-General (the Queen when resident in New Zealand) and the House of Representatives. By convention, this has come to mean the House of Representatives—the Governor-General exercising only those constitutional powers which serve to confer on measures before the House and passed by it, the force of law.

The New Zealand Parliament is a creation of the United Kingdom Parliament and, unlike its creator, cannot claim to be a court of record. However, it has followed Westminster and acts as a court of equity in so far as it will hear petitions from individuals and groups. The basic rule is that the petitioner(s) must have exhausted all available legal and equitable remedies, if the subject matter of the petition is justiciable.

*See New Zealand Constitution Amendment Act 1973 (N.Z.).

By Act, the Parliament claims and possesses all privileges, rights, and immunities, claimed and possessed by the House of Commons as at 1 January 1865. This claim is reiterated by the Speaker to the Governor-General at the time he presents himself for confirmation in his office.

The question of parliamentary privilege escapes precise legal definition. The most that can be said is that the courts will define the ambit of the privilege and within those limits Parliament may do as it will. As yet, the matter has not been tested in a New Zealand court.

The New Zealand Parliament holds plenary power to make laws for New Zealand including those having extra-territorial effect (in this context section 49 of the New Zealand Loans Act 1953 is something of a curiosity). Plenary legislative power was not assumed until 1947 with the passing of the Statute of Westminster (Adoption) Act 1947.

Any residual doubts about the power of the New Zealand Parliament were removed with the passage of the New Zealand Constitution Amendment Act 1973 (New Zealand).

The doctrine that one Parliament cannot bind its successor operates in New Zealand. It would seem therefore that those provisions of the Electoral Act 1956 relating to: (a) the constitution and order of the Representation Commission; (b) the number of General electoral districts, their boundaries based on the total population; (c) the tolerance (5 percent) within which the Commission must work in relation to (b); (d) the age of voting (18 years since 1974); (e) the secret ballot; (f) the duration of Parliament; while expressed as being entrenched by s. 189 of the 1956 Act, in that amendment to any of the above provisions must receive a majority vote of 75 percent or receive the consent of the electors by referendum, are entrenched in a moral sense only. It would be open to any Parliament to repeal section 189 and then proceed to amend or repeal the "entrenched" provisions by ordinary legislation. The same result would be achieved by repealing the 1956 Act in toto.

Meeting, etc., of Parliament—Parliament is summoned, prorogued, or dissolved by the Governor-General and lasts for a maximum of 3 years although there have been some exceptions. The 1852 Act provided for quinquennial Parliaments but this provision was abolished by the Triennial Parliaments Act 1879 which substituted a 3-year term. Since 1881 elections have been held at 3-year intervals except that the term of the Parliament during the First World War was extended to 5 years by special legislation and that of the twenty-fourth Parliament to four by the Electoral Amendment Act 1934. The 3-year term was restored by a 1937 Amendment but the term of the twenty-sixth Parliament was extended to 5 years because of war-time conditions. The 3-year term was enacted in the Electoral Act 1956 and a referendum in 1967 favoured its continuation.

By convention, the Governor-General would accept the Prime Minister's advice to dissolve Parliament before expiry, as was done in 1951, unless the Governor-General were of the opinion that the Prime Minister no longer commanded a majority in the House and that a ministry could be formed without having to hold elections.

Until 1973, sessions (the period between summons and prorogation) usually covered the months June through to November. However, in 1974 Parliament met as early as February and sat until early November. The 1974 session lasted 119 sitting days (a record). Unless provided to the contrary, business introduced during a session and not completed at the time of prorogation, lapses and requires to be re-introduced during the next session. In 1976 Parliament met in June.

House of Representatives—For all practical purposes "Parliament" is synonymous with "House of Representatives" but from the constitutional viewpoint distinctions need to be drawn.

The House comprises 87 members with 4 of the electorates being Maori. With certain exceptions, (the insane, for example), any person who is not an alien and who is 18 years of age or more may vote in a general election.

The Speaker is elected at the start of a new Parliament and presents himself to the Governor-General for confirmation. The act of claiming the rights, privileges, and immunities of the House and its members can only be described as historical re-enactment when real power has passed from the Monarchy to the Executive Government. It is customary in New Zealand, unlike the United Kingdom, for the Speaker to change according to the government of the day. The Chairman of Committees is also elected soon after the start of a new Parliament. Though he performs the same functions as those performed by his seventeenth century predecessors, the original reason for the House having a Chairman of Committees has never arisen in New Zealand, but the manner and form of the Westminster Parliament has been carried over and maintained in this regard so as to form an integral part of the procedure of the House. That is not to say that the New Zealand House is an antipodean mirror of the Westminster Commons—the differences are many but the form of both Houses is not dissimilar.

The primary functions of the House are to vote supply; pass legislation; to exercise supervision and control of the Government; to consider petitions from individuals or organisations seeking redress for alleged grievances or changes in the existing law. The Opposition may, where necessary or desirable, seek to bring down the Government by a vote of no confidence, although within context of a two-party House the chances of a successful vote in this regard would be very few.

Financial control over the Government is exercised by the House in so far as expenditure of public money must be authorised in the form of an Appropriation Act. A more detailed examination of the Estimates is carried out by the Public Expenditure Committee. However, no appropriation can be made without the recommendation of the Crown (i.e., the Government).

Most Bills are introduced by the Government as a result of decisions made in Cabinet. By convention, the procedure for passing a public Bill is: (a) on introduction, formal first reading; (b) some time after, a second reading which is a debate on the principles and policy underlying the Bill; (c) a clause-by-clause debate with the House sitting as a Committee of the Whole House; (d) the Bill is reported back to the House from the committee and later read a third time. Having passed the three readings, the Bill is printed in its final form incorporating amendments (if any) and sent to the Governor-General for the Royal Assent.

Any member may introduce a Bill. Of course, it is always open to a Government to defeat such a Bill at any stage of its progress. A practice has arisen whereby a private member's Bill will sometimes be withdrawn and substituted by a Government measure incorporating all or some of the provisions in the former Bill although it cannot be said that this is done with every Bill.

Special procedures apply to local and private Bills. A local Bill is one which proposes to affect a particular part of the country and is sought, usually, by the appropriate local authority. Each local Bill stands referred to the Local Bills Committee after its first reading. Its recommendation carries weight with both the House and the Government.

A private Bill is one which applies to a person or group of persons and is introduced after public notice, by a member by way of petition on behalf of the Bill's promoters. It may then be referred to a committee of members for consideration and report.

The relations of the House with its members and non-members and the relations of member with member within its precincts are contained in the Standing Orders and the rulings thereon of successive Speakers.

Legislation—With the ever-increasing complexity and volume of legislation and the range of subjects which it concerns or touches, the House cannot exercise full and proper control over subordinate legislation authorised by statute. Although all Statutory Instruments* require to be laid before the House and are subject to review by the Statutes Revision Committee, in practice such control has not been required.

It is rare for the Government to accept amendments to legislation from the Opposition although it may sometimes do so if the amendment is constructive and does not conflict overtly with the policy considerations (if any) underlying the measure. Much of the legislation is what might be described as "departmental" in that it is sought by a Government department or agency and does not necessarily affect or reflect the political views of either the Government or the Opposition.

With the increasing load thrust on the House it has become customary for the more controversial or complex pieces of legislation to be referred for further consideration to select committees which comprise usually between seven and nine members, the Government party being in the majority. During the 1974 session, there were some 25 select committees. The aim in using these committees is that it affords a chance for the members to consider the measure in a more detailed fashion and gives individuals and organisations whose interests may be affected, should the legislation become law, an opportunity to state and have their views considered. Changes, sometimes substantial, are made to legislation as a result of this procedure. This practice of lobbying, both by groups and individuals, pervades all facets of political life. It can be argued that those who are familiar with the select committee procedure and used to advancing a particular view are in a superior position in being able to make their views known to the members individually and collectively. While issue cannot be taken with this practice provided no element of bribery or corruption enters into it, nevertheless, it can be argued that those who stand to be affected most by law, whether directly or indirectly, do not have the same opportunity to make their views and ideas known. A number of reasons might be advanced for this contention but primarily it would seem to be a case of the greater bulk of people being unaware of how "to work the system". Although no empirical research has been done, it would be interesting to be able to isolate the extent to which the influence of lobbyists has or has not contributed towards the increasing use of select committees.

*Statutory Instruments include: Orders in Council, ministerial orders, proclamations, and departmental instructions.

Party System—The two major political parties are Labour and National (the latter comprising the Government since December 1975). The other principal parties putting forward candidates at the 1975 General Election were Social Credit and Values.

At a general election any person being qualified as an elector may offer himself for election but it seems that only those who are candidates proffered by a political party have more than a marginal chance of election. The party forming the Government is that which gains the majority of seats, not necessarily the majority of votes cast. Unlike Australia, New Zealand does not have a preferential system of voting nor does the law require everyone to vote, although each eligible elector must register as such. The convention operates that if a Government is defeated at a general election it resigns before the House meets and does not wait to be defeated on a vote in the House. The members for each party form their respective caucuses to which the policies and tactics of the party are submitted for discussion and, where necessary, decision. The discussions of caucus are never published.

Salaries, etc.—Until the making of the Wage Adjustment Regulations 1974, section 27 of the Civil List Act 1950 provided that on the recommendation of a Royal Commission the Governor-General might 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 should 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 were made on a basis matching that for the State Services Remuneration and Conditions of Employment Act 1969; the Government Statistician provided 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 might be made by Order in Council to the salaries of Ministers and members. The 1974 regulations suspend the operation of section 27 of the 1950 Act. The salaries and allowances of Ministers and members of Parliament are now considered and fixed by the Higher Salaries Commission established by the 1974 regulations.

The following table sets out the salaries and allowances payable from 1 April 1974. The amounts are in accordance with the recommendations of the Royal Commission upon Parliamentary Salaries and Allowances 1974.

officeSalary $Expense Allowance $

*An additional allowance of $2,000 is paid to the Minister holding the portfolio of Foreign Affairs.

† Plus travelling allowance $1,275 and house allowance $600.

‡ Plus electorate allowance.

Prime Minister27,5005,000*
Deputy Prime Minister21,0002,150*
Minister with Portfolio18,0002,000*
Minister without Portfolio15,5001,600
Parliamentary Under-Secretaries13,5001,600
Speaker16,5001,500
Chairman of Committees14,000900
Leader of the Opposition18,0002,000
Deputy Leader of the Opposition13,500800
Chief Whips12,5002,395
Junior Whips12,0002,395
Members11,0002,395

There is an additional electorate allowance depending on classification of electorates: (a) electorates which are wholly urban, $110; (b) electorates which are substantially urban, $275; (c) electorates which are partially urban and partially rural, $625; (d) electorates which are ordinary rural, $1,100;

(e) electorates which are predominantly rural, $1,380. The special additional allowance for Southern Maori electorate is $420 and for each of the other Maori electorates it is $210. The daily sessional allowance is $4 and the night allowance for members entitled thereto is $10.

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 $1,000 for each full year in office, with a maximum of $5,000 a year, after retirement, defeat at the polls, or when a member only. This is subject to a 2-year minimum period having been served as Prime Minister

An amendment in 1973 to the Civil List Act provides that a defeated member of Parliament will continue to receive salary at the rate of an ordinary member for 3 months after the date of the election

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 age 60 years at the time of his death, or $260 a year, whichever is the greater.

In addition to the foregoing a new member elected for the first time receives a grant of $100 which is a "once only" payment.

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, for example, an Associate Minister of Finance. There are also Parliamentary Under-Secretaries without Ministerial rank who assist certain Ministers in the work of their portfolios; the Under-Secretaries are not members of the Executive Council or of Cabinet.

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 Gazetteof 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.

After the General Election 1975 the newly-appointed Executive Council consisted of 20 members. Two members, exclusive of the Governor-General or the presiding member, constitute a quorum.

The Governor-General receives a salary and an allowance which are determined from time to time by the Civil List Act 1960 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, 2 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.

Cabinet is assisted in work by some ten Cabinet committees, the membership of which includes those Ministers principally concerned with the subject matters handled by the committee. These include committees covering Policy and Priorities, Economic Affairs, Government Works, Legislation and Parliamentary Questions, Social Affairs, Honours and Appointments, and the State Services. Some of the committees are supported by inter-departmental committees of officials. All Cabinet committees have delegated authority from Cabinet to make decisions within their terms of reference.

The Cabinet Office is responsible for the servicing and co-ordination of Cabinet and its committees to ensure their smooth functioning as well as providing liaison and advice within the inter-Departmental framework. The Secretary of the Cabinet is also Clerk of the Executive Council.

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 has 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, Crown Law, Valuation, Statistics, and Audit; the finance subgroup—Treasury, Customs, Inland Revenue; the regulatory subgroup—State Services Commission, Internal Affairs, Labour; the defence and law and order subgroup—Ministry of Defence, Justice, Crown Law, and Police; the research subgroup—Scientific and Industrial Research.

In the second group are the transport and communications subgroup, such as Ministry of transport, Post Office, Railways, and Tourist and Publicity; the developmental—Ministry of Works and Development, Ministry of Agriculture and Fisheries, Lands and Survey, Forest Service, Mines, Electricity, Energy Resources, Maori Affairs, Trade and Industry; The commercial—Public Trust, Government Life Insurance, Housing Corporation, Rural Banking and Finance 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.

OMBUDSMEN—Since 1962 there has been an Ombudsman 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. 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.

Under the Ombudsmen Act 1975 jurisdiction was extended to local authorities and a range of specified national boards, councils, and other organisations. Provision was made for the appointment of a Chief Ombudsman and additional (including temporary) ombudsmen.

An analysis of complaints made to the Ombudsmen and the resultant action is given in the Official section of this Yearbook.

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 is the Industrial Commission concerned with awards and orders governing wage determination and conditions of employment in industry.

PARLIAMENTARY ELECTIONS—The law on elections is contained in the Electoral Act 1956 and its amendments. At every census the Chief Electoral Officer is to arrange with the Government Statistician to deliver to every occupier or person in charge of a dwelling forms of application for registration as an elector. This form is to be completed by every adult who is residing in the dwelling on the day of the census. Following the population census (every 5 years) the boundaries of General (formerly known as European) electorates and Maori electorates are revised, and the new boundaries 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 term "General population" means total population with the following exceptions:

  1. Maoris—defined in the 1975 Amendment as "a person of the Maori race of New Zealand; and includes any descendant of such a person who elects to be considered as a Maori for the purposes of this Act";

  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.

After the population figures are supplied by the Government Statistician it is then the responsibility of the Representation Commission to define new electoral districts—General and Maori. The commission comprises eight members. Five of these are official members; the Surveyor-General, the Government Statistician, the Chief Electoral Officer, the Director-General of the Post Office, and the Chairman of the Local Government Commission (who is without voting rights). 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 eighth 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 number of general electorates is based on total population under a formula that allocates 25 seats to the South Island. The total South Island population (excluding those on the Maori roll) is divided by 25, and the quota thus obtained for each South Island electorate is then divided into the North Island population (again excluding those on the Maori roll) to give the number of electorates in the North Island.

The number of Maori seats is no longer fixed at four. Maori seats will now be determined by dividing the South Island quota into the total Maori population. The total Maori population in this case is the number of Maoris who have chosen to be registered as electors of Maori electoral districts and their children aged 18 years and under.

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 18 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 September 1974, persons 18 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 and the qualifying age had been lowered to 20 years in 1969.)

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 18 years and must (a) be ordinarily resident in New Zealand, (b) at some period have resided continuously in New Zealand for at least a year, and (c) except in special cases have resided continuously for 1 month 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. Maoris and persons of part-Maori descent may elect to be included on either the General or the Maori electoral 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: General—Since 1876, following the abolition of the provinces, the structure of territorial local government has been based on counties, boroughs, and town districts. Since then, however, there has developed a further structure, that of special purpose authorities. In this category there are such authorities as harbour boards, pest destruction boards, and electric power boards. Together, these two groups of local authorities (territorial and special purpose) form our local government system, a system to which, however, the Local Government Act 1974 is bringing considerable changes. Before these changes are described, the development of the present system is briefly outlined.

Boroughs—The Municipal Corporations Act 1876 provided for the incorporation of the 36 boroughs then in existence and for the creation of new boroughs. They are now governed by the Municipal Corporations Act 1954. Boroughs provide for the needs of concentrated populations and before they can be constituted 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. With the growth and centralisation of population the number of boroughs, despite amalgamations of adjacent boroughs, steadily increased until 1955 when the total was 146. By 30 November 1974 this figure had decreased to 136.

Counties—Counties were originally introduced by the Counties Act 1876 which has now been superseded by the Counties Act 1956. Generally they cater for the primary needs of rural areas. Initially, there were 63 counties but with increasing settlement this number increased to 129 in 1920. Since then, the number of counties has been reduced by amalgamations and mergers and at 30 November 1974 there were 105 counties, of which 104 were actively functioning, Fiord being a sparsely populated county in which the Counties Act is not wholly in force.

County Towns and County Boroughs—Prior to the Local Government Act 1974 county councils could, under the provisions of the Counties Act 1956, declare areas within counties to be county towns. To qualify, the areas concerned must have had 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 was 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 could 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. At 30 November 1974 there were 92 county towns in existence. The Counties Amendment Act 1968 made provision for the constitution of county boroughs. This unit of local government could be formed from an existing county town or borough or town district. It remained an integral part of the parent county, but the county borough council, which was a fully-elected body, had a statutory right to exercise some, but not all, of the powers of the county council within the district of the county borough. The minimum population required for a county borough was 1,500. At 30 November 1974 there were 12 county boroughs. Under the Local Government Act 1974, existing county boroughs became communities under the jurisdiction of district community councils, and existing county towns became communities under the jurisdiction of community councils.

Town District—The town district represents a form of local government intermediate between the county and the borough. It implies a certain concentration of population. There were two types of town districts—dependent and independent. Dependent town districts were subject to county control (mainly for roads) and the area of their district formed part of the district of their parent counties. Since the 1954 Municipal Corporations Act no new dependent town districts could be constituted, and on the enactment of the Local Government Act 1974 the four existing dependent town districts became community councils. Independent town districts do not form part of the county within which they are situated nor are they subject to any county council control. The Municipal Corporations Act requires the area of an independent town district be not more than 2 square miles, within which no two points are more than 4 miles distant; having a minimum population of 500 and with a density of population of not less than 1 person to the acre. The number of independent town districts at 30 November 1974 was eight.

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 and pest destruction boards, 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, and land drainage.

Number of Local Authorities—The number of local authorities actively functioning at 30 November 1974 was 543, made up as follows: county councils, 105; borough (including city) councils, 136; town councils (independent), 8; town councils (dependent), 4; regional authority, 1; river boards (2 boards also have the powers of land-drainage boards), 6; catchment boards, 13; catchment commissions, 4; land-drainage boards, 33; electric power boards, 39; water-supply board, 1; regional water board, 1; urban drainage boards, 4; transport board, 1; local railway board, 1; power and gas board, 1; nassella tussock boards, 2; harbour bridge authority, 1; road tunnel authority, 1; valley authority, 1; plantation board. 1; forestry corporation, 1; crematorium board, 1; wallaby board, 1; pest destruction boards (separately elected), 69; independent fire boards, 60; independent harbour boards, 17; hospital boards, 30. Borough and county councils also function as fire authorities in 231 cases, as harbour boards in 8 cases, as county pest destruction boards in 37 cases, as domain boards in 407 cases, and as scenic boards in 138 cases. There are 459 independent domain boards and 129 independent scenic boards. In addition, there were 22 district councils of the National Roads Board constituted under the National Roads Act 1953. 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.

LOCAL GOVERNMENT ACT 1974-This Act, which came into force on 1 December 1974 provides the means for the establishment of a system of regional bodies to deal in a co-ordinated manner with all functions of a regional nature. It continues and improves the procedures of rationalisation of the local government structure in both the special purpose and territorial spheres and provides for the eventual phasing out of the existing dual system of territorial local government based on counties and boroughs. Furthermore, to encourage greater public involvement in local community affairs the Act provides for the establishment of community councils with varying degrees of authority. Finally, the responsibility for introducing and implementing the above changes lies primarily with a reconstituted and enlarged independent Local Government Commission.

Local Government Commission-The Local Government Act, which repealed the Local Government Commission Act 1967, sets 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 minimum membership of the commission shall be five, one of which shall be chairman, and at least one member must have experience in urban territorial local government and at least one other must have experience in rural territorial local government.

The principal task of the new commission will be to prepare by 31 December 1979, or as soon as possible thereafter, schemes establishing regional authorities throughout New Zealand. These authorities will be called united councils or regional councils and their nature is described in more detail below.

Allied with the task of establishing regional authorities, the commission is to ensure that united councils or regional councils or territorial authorities (a borough, city, county, district, or independent town council) undertake those functions of special purpose authorities which in the opinion of the commission, should be performed by them. For this purpose, practically all types of special-purpose authorities, except for hospital boards and education boards, have been placed within the jurisdiction of the commission. Accordingly, the commission is also empowered to provide for any function undertaken by a territorial authority which, in the commission's opinion, would be more appropriately performed by a united or regional council to be transferred.

The new commission will continue 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 local authority will best provide for the needs and well-being of its residents and the continued development of the district, 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 a size and nature as will promote efficient local government and avoid the necessity of uneconomic expenditure. Furthermore, the commission can ensure that any united or regional council has the power to do anything which will facilitate the discharge of any of its functions and particularly the power to undertake any function, which is regional in nature, operated by any other authority.

United and Regional Councils-Apart from the Auckland Regional Authority, which has operated since 1963, the regional bodies to be established under the Act will be new to local government in this country. They will be determined by the commission and established by Order in Council giving effect to a final scheme of the commission. The commission will determine whether the governing body for each region is to be either a united council or a regional council. The essential difference between united councils and regional councils are that the former will be appointed by the constituent (territorial) authorities within the regions concerned while regional councils will be directly elected bodies. In both cases the membership of united and regional councils will be not less than 12. To obtain finance, united councils will make levies on their constituent authorities, while regional councils will have direct rating powers.

No criteria are prescribed by the Act to guide the commission in deciding whether a united council or a regional council is to be set up for a region. However, the united council concept is designed to meet the requirements of those regions where the range of functions, or the nature of the responsibilities involved, do not justify the setting up of an organisation of the scale inherent in a directly elected regional council. On this basis it is envisaged that united councils may be more prevalent in rural areas.

Functions of these authorities can be attained in several ways. First, the Act prescribes that every united council or regional council shall have two mandatory functions—that of regional planning and civil defence. Also, in the commission's scheme constituting a united or regional council the Commission may provide for it to undertake the functions of any territorial authority or special purpose authority. Furthermore, a united or regional council is empowered to undertake solely any new regional function which is not undertaken by any other local authority in its region. In this regard, the commission, by scheme, can provide that that function may be one that other local authorities are not empowered to undertake by any other statute. Besides the two mandatory functions, the Act provides that a united or regional council may undertake the functions of regional reserves, forestry, regional roading and community services. A united or regional council may enter into an agreement with a constituent authority to undertake any function of that authority where, in the opinion of either party, that function would be more effectively and economically undertaken by the regional body. Finally, united and regional councils may enter into agreements with the Crown whereby they may exercise any function or provide any service for or on behalf of the Crown.

District Councils—The Act empowers the commission when bringing down schemes affecting boroughs or counties to redesignate them as districts under the jurisdiction of "district councils". Although district councils will represent a further type of territorial authority, eventually it is intended that the dual system of territorial local government based on county and borough will be abolished. The rationale behind this provision is that today, many territorial authorities are neither "boroughs" nor "counties" in the sense that they are neither wholly urban nor wholly rural. This provision, however, will not apply to the designations of "city" and "city council".

The Act also provides that where, as a result of amalgamations or unions the new boundaries of the district of a district council coincide with those of a region, the district council may undertake the functions of a regional body. In this case, no united or regional council need be established for the region.

District Community Councils and Community Councils—The Act provides for the establishment of "communities" within the districts of territorial local authorities. Each community will be administered by either a "district community council" or a "community council". These communities will not be local authorities in the true sense but will have councils of not less than 5 nor more than 12 who will be elected on a residential franchise for a 3-year term.

Except for certain reserved powers dealing with finance, staff, and planning, a district community council may exercise all the powers and functions of its parent territorial authority. Community councils, however, derive most of their powers by delegation from their territorial authority. Once again, powers dealing with finance, staff, and planning cannot be delegated.

The general idea behind communities is that they will encourage public participation in locality affairs through elected bodies who will represent and place the needs and views of their residents before their parent local authority and any government agencies or other organisations involved. Furthermore, they are intended to give a lead to and encourage community participation in the provision of community activities and amenities, and generally to foster a sense of community pride. This idea is not entirely new to local government in New Zealand. It has been successfully applied for some years in rural areas by the "county town" and "county borough" legislation. In the purely urban areas such as cities and boroughs, however, the establishment of equivalent bodies has not been provided for until the Local Government Act. Immediately the Act came into force all county boroughs were redesignated district community councils and all county towns and dependent town districts became community councils.

General Powers—Local authorities in New Zealand derive their powers from the Act under which they are constituted. In the case of territorial local authorities, the Municipal Corporations Act 1954 and the Counties Act 1956 are the main governing Acts, while united, regional, district, district community, and community councils are under the Local Government Act 1974.

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 20 to 25 sections, while about 15 local Acts are passed each year.

Franchise—Under the Local Elections and Polls Act 1966, elections are held on the second Saturday in October every third year. The next triennial general elections are due in 1977. Enrolment of residential electors is compulsory. In a poll on any proposal relating to loans or rates, a rate paying 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 18 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. In the case of regional councils, district community councils, and community councils the right to vote is limited to those who reside in the region or community.

Voting Procedures—Generally speaking, franchise can only be exercised by personal attendance at the polling booth, but the Local Elections and Polls Act 1966 was amended in 1970 to permit county councils to use postal voting. Postal voting will also apply to those district community councils and community councils in counties. Other local authorities are able to use this method only on approval being granted by Order in Council. At the 1974 elections many counties, 8 boroughs, and 4 drainage boards used postal voting. In every such case election participation was appreciably higher than the national average. To a lesser extent use was also made of spread voting where voting is possible at polling booths over a period of up to 6 days instead of being confined to the single day.

Remuneration of Members—The remuneration of members of local authorities is governed by the statutes constituting the various types of local authorities. Most special purpose authorities pay their chairmen an annual allowance with a maximum fixed for each type of authority. The maximum payable to mayors of boroughs and cities and county council chairmen varies according to the population of the local authority. The chairman and members of a united or regional council may be paid such annual allowances as may from time to time be approved by the Minister of Finance after consultation with the Minister of Local Government.

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 and Development who may delegate his authority to the Commissioner of Works.

This subject is further discussed in Section 13, Pattern of Development and Land Use.

Chapter 4. Section 3 POPULATION

Table of Contents

GENERALS-By world standards, New Zealand's population is small-only an estimated 3.1 million at the end of 1975. Our rate of growth, however, is high, higher than in almost any other developed country. A main cause of this in recent years has been the relatively large gains from net migration. Because of the age structure of our population, our potential for growth will continue to be high for some time after the average family size has become small-as it is expected to do.

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 late in 1973.

POPULATION GROWTH-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, 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 New Zealand-born. Since 1961 (when the New Zealand-born made up 86 percent of the population) the proportion has fallen slightly mainly because of increased international travel and tourism. At the 1971 census 85.6 percent of the population was recorded as having been in New Zealand.

During the present century, natural increase has accounted for over three-quarters of the growth of population. New Zealand's rate of natural increase is relatively high compared with other countries whose population is predominantly of European origin.

The natural increase rate has, in the main, closely reflected the changes in the birth rate, with a low point of 8.63 per 1,000 in 1935 and high points of 18 per 1,000 in 1947 and 1961; in the 1960s the average rate was less than 14 per 1,000. Like the low birth rate of the thirties, the fall in the birth rate in the sixties and seventies is a feature that New Zealand shares 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.

†Section 14 birth registrations excluded since 1966.

    (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
1966-1970306.0118.6187.4307.5120.2187.3
1971-1975307.9124.9183.0304.4124.8179.6
Totals 1916-1975......2,665.21,063.61,601.7

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
1971-1975107.897.8
Total 1901-1975...537.2

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 the years ended March 1968, 1969, and 1970, but these losses were more than compensated for by relatively heavy gains to the population from net migration during the years ended March 1973, 1974, and 1975.

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 Tokelau Islands are constitutionally part of New Zealand, for geographical reasons they are administered separately. The Cook Islands and Niue Island are self-governing but the islanders are New Zealand citizens.

The most recent Census of Population and Dwellings was taken on 23 March 1976. Some preliminary data from this census are given at the back of this Yearbook.

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 10 (males) and Campbell Island 9 (males)

New Zealand*31 March 19751,554,3001,551,1003,105,400
Island Territory—    
  Tokelau Islands25 September 19747388361,574
  Cook Islands30 September 19749,6169,32118,937
  Niue Island30 September 19742,0211,9713,992
Ross Dependency23 March 1971190-190

At 31 December 1975 the population of New Zealand was estimated at 3,148,400.

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.

Census DatePopulationIncrease or Decrease
IntercensalIntercensalAnnual Average

*Numbers of persons in New Zealand armed forces overseas not available.

†Includes members of New Zealand aimed forces overseas.

   Percent
31 March 1901*815,86272,648*9.771.89
29 April 1906936,309120,44714.762.75
2 April 19111,058,312122,00313.032.52
15 October 1916*1,149,22590,9138.591.50
17 April 19211,271,668122,44310.652.27
20 April 19261,408,139136,47110.732.06
24 March 19361,573,812165,67311.771.13
25 September 19451,702,330128,5188.170.83
25 September 19451,747,711173,89911.051.11
17 April 19511,939,472237,14213.932.37
17 April 19511,941,366193,65511.081.91
17 April 19562,174,062234,59012.102.31
17 April 19562,176,224234,85812.102.31
18 April 19612,414,984240,92211.082.12
18 April 19612,417,543241,31911.092.13
22 March 19662,676,919261,93510.852.11
22 March 19662,678,855261,31210.812.10
23 March 19712,862,631185,7126.941.35
23 March 19712,864,113185,2586.921.34

POPULATION POLICY GUIDELINES—Early in 1973 an Inter-Departmental Committee on Population Questions was established in recognition of the growing worldwide importance attaching to issues associated with population. Late in 1974 the Government directed the committee to prepare a paper discussing the main issues to be taken into account in formulating a specific population policy for New Zealand. The committee's report, published in September 1975, discussed the world population situation; New Zealand's population situation in relation to fertility and mortality trends and patterns, and both external and internal migration; and the implications of current and projected population trends in New Zealand, taking into account the relationship of population to physical resources, the economy, and society as a whole. It concluded by laying down broad guidelines for a population policy.

COMPARISON WITH OTHER COUNTRIES—The annual average percentage increases of population for the period 1970-73, are given in the following table for certain selected countries. (Source: United Nations Demographic Yearbook 1973.)

CountryAverage Annual Percentage Increase
Australia1.6
Canada1.2
China1.7
Denmark0.7
Egypt2.2
France0.9
Germany, West0.7
India2.1
Ireland0.9
Japan1.3
Netherlands1.0
New Zealand1.8
Norway0.7
Singapore1.7
South Africa2.8
Sweden0.4
Switzerland1.3
Thailand3.2
United Kingdom0.3
United States0.9
U.S.S.R.1.0
Western Samoa2.1

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 and 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
19701,407,0071,408,9802,815,98738,7771.42,788,839
19711,430,1081,430,7652,860,87344,8861.62,831,222
19721,454,5101,455,4062,909,91649,0431.72,876,388
19731,487,6961,486,9632,974,65964,7432.22,932,406
19741,522,4001,520,4003,042,80068,1412.32,995,400
19751,554,3001,551,1003,105,40062,6002.03,060,400
Years Ended 31 December
19701,425,4351,426,7022,852,13748,0781.72,819,602
19711,448,4491,450,6182,899,06746,9301.62,864,392
19721,480,1471,480,8492,960,99661,9292.12,916,572
19731,513,7261,513,2043,026,93065,9342.22,978,676
19741,548,9001,545,8003,094,70067,7702.23,044,100
19751,573,9001,574,5003,148,40053,7001.73,103,700

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
1970112,322109,781222,1035,1342.4219,424
1971115,037112,537227,5745,4712.5224,718
1972118,390115,912234,3026,7283.0230,747
1973121,569119,107240,6766,3742.7237,547
1974124,200122,000246,2005,5242.3243,400
1975127,100124,500251,6005,4002.1248,600
Years Ended 31 December
1970114,340111,768226,1085,3542.4223,365
1971117,516115,010232,5266,4182.8229,104
1972120,814118,322239,1366,6102.8235,924
1973123,602121,192244,7945,6582.4242,017
1974126,200123,620249,8005,0062.0247,300
1975129,000126,400255,3005,5002.2252,700

POPULATION PROJECTIONS—An indication of possible future growth of the total New Zealand population (including Maoris) up to 2001 is given by the detailed alternative projections which follow.

Projections of future population involve an element of uncertainty owing to incomplete knowledge of the factors underlying changes in fertility, mortality, and migration levels and difficulties in forecasting the future behaviour of these components of population change.

It should be understood that, as with all demographic projections prepared by the Department of Statistics, these projections are not strict forecasts or targets, but conditional forecasts based on the stated assumptions. Presentation and use of the projections, therefore, cannot be divorced from consideration of the assumptions adopted.

These projections incorporate fertility assumptions relating to age-of-mother-specific total birth rates. Marital-status-specific birth rates were not used to project fertility because of their non-suitability in terms of the projection methodology. In the department's judgment this will not significantly impair the validity and utility of the projections. A full description of the projection assumptions is contained in the footnotes to the table.

Single-year-of-age-specific projections, equivalent to those in the table below are available on application to the Demographic Analysis Section of the Department of Statistics.

As at 31 MarchProjected Total New Zealand Population* Assuming Net Annual Immigration of
5,00010,00015,000
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal

*The base population for these projections is the estimated population at 31 March 1974. They are based on the following assumptions:

(a) That future fertility experience will be in accordance with the alternative trends in age-of-mother-specific birth rates described in (‡) below;

(b) That 1970-72 Life Table Mortality Rates (Total Population) apply throughout the projection period.

†The assumed net immigration is taken to commence from the projection base point of 31 March 1974.

‡The fertility variants inherent in these projections are based on extrapolation of the 1962-73 trends in age-of-mother-specific birth rates until 1974 with a subsequent divergence into three alternative assumptions designated "high", "medium" and "low". In general the "low" assumption is based on a continuation of the 1962-73 trend from 1974 to 1979 with an extension of this trend, somewhat flattened, until 1984 and a further extension, even more flattened, until 1989. The "high" and "medium" assumption were then derived relative to the "low" assumption, using generally less extreme declining trends, with the further condition that the "medium" birth rate values were the average of the "high" and" low" values at any projection time-point. In the 10-14 and 15-19 maternal age groups the "high" assumption was the bench-mark, based on 1962-73 experience, and the "medium" and "low" assumptions were derived relative to this variant. Because of the uncertainty in projecting fertility experience for longer than 15-20 years ahead, birth rates which make up the above fertility assumptions have been kept constant from 1990 until 2001, at the levels projected for 1989.

(Thousand)
1974 (Base)1,5221,5203,0431,5221,5203,0431,5221,5203,043
Highs Fertility Assumption
19761,5701,5673,1371,5811,5763,1581,5921,5863,178
19811,6981,6933,3911,7381,7273,4651,7791,7603,539
19861,8361,8283,6651,9061,8873,7931,9771,9473,923
19911,9761,9663,9422,0772,0514,1282,1792,1384,317
19962,1152,1014,2162,2482,2164,4642,3842,3304,714
2,0012,2562,2384,4934,4232,3834,8042,5942,5295,122
Medium Fertility Assumption
19761,5681,5663,1341,5791,5753,1541,5911,5843,175
19811,6821,6773,3591,7221,7113,4321,7621,7443,506
19861,7951,7893,5841,8641,8473,7111,9341,9063,839
19911,9041,8973,8012,0031,9813,9842,1032,0654,168
19962,0102,0004,0102,1392,1114,2502,2712,2224,493
2,0012,1102,0994,2092,2722,2384,5112,4362,3784,815
Low Fertility Assumption
19761,5661,5643,1301,5771,5723,1491,5881,5813,169
19811,6661,6623,3281,7041,6943,3981,7441,7273,471
19861,7541,7503,5051,8211,8063,6281,8901,8643,754
19911,8331,8293,6621,9291,9103,8382,0271,9924,018
19961,9651,9003,8062,0302,0064,0362,1582,1144,272
2,0011,9681,9633,9312,1232,0954,2182,2812,2304,511

The following diagram presented on a ratio scale shows the growth of actual population from 1880 to 1974 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 of the North and South Islands as disclosed by each census since 1901.

Census YearTotal PopulationTotalPercentages
North IslandSouth IslandNorth IslandSouth Island
1901431,471384,391815,86252.947.1
1906521,899414,410936,30955.744.3
1911610,599447,7131,058,31257.742.3
1916698,982450,2431,149,22560.839.2
1921791,918479,7501,271,66862.337.7
1926892,679515,4601,408,13963.436.6
19361,018,038555,7741,573,81264.735.3
19451,146,315556,0151,702,33067.332.7
19511,313,869625,6031,939,47267.732.3
19561,497,364676,6982,174,06268.931.1
19611,684,785730,1992,414,98469.830.2
19661,893,326783,5932,676,91970.729.3
19712,051,363811,2682,862,63171.728.3

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 N.Z. Maoris, and the South Island population 811,268, inclusive of 13,837 N.Z. 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—In the following table arc shown the areas and the populations of the statistical areas at the 1971 Census and an estimate at 31 March 1975.

Statistical AreaArea (Square Kilometres)Population Census 23 March 1971Estimated Population 31 March 1975
Northland12,63996,191100,430
Central Auckland5,569698,400796,660
South Auckland - Bay of Plenty36,744422,299464,120
East Coast10,87847,34248,550
Hawke's Bay11,033133,250144,910
Taranaki9,713100.895104,890
Wellington28,153552,986591,860
Totals, North Island114,7292,051,3632,251,420
Marlborough10,93031,64234,280
Nelson17,89768,83872,320
Westland15,56622,86122,510
Canterbury43,431398,830428,080
Otago36,441182,749185,760
Southland29,681106,348111,030
Totals, South Island153,946811,268853,980
Totals, New Zealand268,6752,862,6313,105,400

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 were 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.

The populations of the 7 Statistical Divisions and the 24 defined Urban Areas are given below.

Statistical Division (S.Div.) and Urban Area (U.A.)1966 Population Census1971 Population CensusPercentage IncreaseEstimated Population 31 March 1975
1961-19661966-1971
Auckland S. Div.—     
Northern Auckland U.A.86,297107,96534.325.1138,700
Western Auckland U.A.75,79289,94637.318.7109,760
Central Auckland U.A.281,192286,7874.42.0292,900
Southern Auckland U.A.124,886165,04854.732.2205,080
Sub-totals, Combined Auckland U.As.568,167649,74621.014.4746,440
Remainder S. Div.45,50448,6541.26.950,220
Totals613,671698,40019.313.8796,660
Hamilton S. Div.—     
Hamilton U.A.68,48580,81223.918.096,690
Remainder S. Div.55,78655,1942.0-1.156,050
Totals124,271136,00613.09.4152,740
Napier-Hastings S. Div.—     
Napier U.A.38,38243,60117.013.650,350
Hastings U.A.40,65545,51214.111.951,180
Remainder S. Div.7,8747,8204.0-0.77,830
Totals86,91196,93314.411.5109,360
Palmerston North S. Div.—     
Palmerston North U.A.52,39357,06513.98.962,870
Remainder S. Div.23,55123,6673.70.524,130
Totals75,94480,73210.56.387,000
Wellington S. Div.—     
Upper Hutt Valley U.A.27,39830,98620.913.136,270
Lower Hutt Valley U.A.88,33792,00314.54.299,000
Porirua Basin U.A.37,62447,85835.727.255,740
Wellington U.A.132,005136,7826.13.6142,700
Subtotals, Combined Wellington U.A.s.285,364307,62913.37.8333,710
Remainder S. Div.13,56116,40318.021.020,950
Totals298,925324,03213.58.4354,660
Christchurch S. Div.—     
Christchurch U.A.257,505275,96812.17.2297,860
Remainder S. Div.24,95426,6426.96.828,550
Totals282,459302,61011.67.1326,410
Dunedin S. Div.—     
Dunedin U.A.108,779111,0593.62.1114,410
Remainder S. Div.7,0866,681-2.9-5.76,480
Totals115,865117,7403.11.6120,890

Urban Areas Not in Any Statistical Division

Urban Area1966 Population Census1971 Population CensusPercentage IncreaseEstimated Population 31 March 1975
1961-19661966-1971
Whangarei31,00134,02932.29.837,640
Tauranga33,82240,34927.219.348,360
Rotorua33,61339,75231.518.347,270
Gisborne28,11630,16111.27.332,440
New Plymouth35,68038,7808.78.743,050
Wanganui38,17437,9826.9-0.538,480
Masterton19,11620,14712.85.421,260
Nelson34,45937,99412.310.342,310
Timaru27,94628,9595.83.630,250
Invercargill46,93950,68112.08.054,060
Totals, 24 Urban Areas1,748,5961,930,22615.710.42,148,630
Totals, 7 Statistical Divisions1,598,0461,756,45314.39.91,947,720

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

City or BoroughEstimated Population 31 March 1975*Approximate Area in Hectares

*While population estimates are given at 31 March 1975 they relate to Local Authority boundaries existing at 1 April 1975.

North Island—  
Kaitaia4,000526
Kaikohe3,490544
Whangarei (city)34,3004,354
Dargaville4,2601,133
Helensville1,330532
East Coast Bays (city)22,4001,558
Takapuna (city)65,4008,610
Devonport11,000445
Northcote10,150450
Birkenhead20,5001,266
Waitemata (city)81,90037,550
Henderson6,690517
Glen Eden8,020503
New Lynn10,300564
Auckland (city)153,1007,472
Newmarket1,21074
Mt. Albert27,400983
Mt. Eden21,100598
Mt. Roskill34,6001,862
Onehunga15,550760
One Tree Hill13,050983
Ellerslie5,690301
Mt. Wellington21,2001,650
Howick15,200621
Otahuhu10,100558
Papatoetoe (city)23,600907
Manukau (city)134,60056,547
Papakura (city)21,6001,380
Pukekohe8,4701,405
Waiuku3,260593
Tuakau1,920442
Huntly5,460785
Cambridge7,1801,071
Ngaruawahia4,240450
Hamilton (city)90,1005,555
Te Awamutu7,300713
Te Kuiti4,880675
Taumarunui6,6501,815
Thames6,3201,653
Paeroa3,750574
Waihi3,200539
Te Aroha3,1401,126
Morrinsville4,450476
Matamata5,090533
Putaruru4,700395
Tokoroa18,9001,359
Mt. Maunganui10,6501,411
Tauranga (city)33,8003,806
Te Puke4,060532
Rotorua (city)37,9002,667
Taupo12,8501,446
Whakatane11,0501,688
Kawerau7,570923
Murupara2,900287
Gisborne (city)30,4002,628
Wairoa5,630649
Napier (city)47,0002,847
Hastings (city)33,6001,711
Havelock North8,880514
Waipawa1,700692
Waipukurau3,570420
Dannevirke5,610526
Woodville1,540427
Waitara5,660652
New Plymouth (city)37,9002,316
Inglewood2,360284
Stratford5,350816
Eltham2,320647
Hawera8,380514
Patea1,940575
Ohakune1,390840
Raetihi1,340388
Wanganui (city)36,2002,997
Taihape2,750778
Marton4,720573
Feilding10,400855
Foxton2,830306
Palmerston N. (city)57,1004,302
Levin15,0001,298
Otaki4,000666
Kapiti14,55017,428
Upper Hutt (city)30,80048,428
Lower Hutt (city)65,3008,967
Petone9,4301,044
Eastbourne4,8401,273
Porirua (city)42,8008,508
Tawa12,500550
Wellington (city)143,40026,343
Pahiatua2,640291
Masterton19,8001,799
Carterton3,950512
Greytown1,760442
Featherston2,360307
Martinborough1,340433
Totals, North Island cities and boroughs1,784,570311,804
City or BoroughEstimated Population 31 March 1975*Approximate Area in Hectares
South Island—  
Picton3,210426
Blenheim16,9001,770
Nelson (city)32,1004,762
Richmond6,9501,052
Motueka4,0101,021
Westport4,900308
Runanga1,340487
Greymouth7,7101,068
Hokitika3,440273
Rangiora5,750357
Kaiapoi4,860318
Riccarton7,140339
Christchurch (city)172,50010,635
Lyttelton3,2001,036
Ashburton14,2501,226
Geraldine2,030301
Temuka3,490395
Timaru (city)29,6002,262
Waimate3,190312
Oamaru13,1501,161
Port Chalmers2,950410
Dunedin (city)84,00016,560
St. Kilda6,420249
Green Island6,650781
Mosgiel9,430787
Milton2,190204
Kaitangata1,020518
Balclutha4,870509
Tapanui890121
Lawrence620249
Roxburgh780208
Naseby11076
Alexandra4,470986
Cromwell970321
Arrowtown320134
Queenstown2,760416
Gore9,170946
Mataura2,510515
Winton2,320231
Invercargill (city)50,6005,574
Bluff3,250866
Riverton South1,360403
Totals, Island cities and boroughs537,38060,573
Grand totals, all cities and boroughs2,321,950372,377

Town Districts—The population of town districts—i.e., those contained in the following table—is not included with that of the county in which the town district is located.

Town DistrictEstimated Population 31 March 1975*Approximate Area in Hectares

*While population estimates are given at 31 March 1975, they relate to Local Authority boundaries existing at 1 April 1975.

North Island—  
Hikurangi1,050389
Warkworth1,660577
Ohura490330
Manaia930206
Waverley1,140202
Totals, North Island5,2701,704
South Island—  
Wyndham720275
Otautau970198
Totals, South Island1,690473
Grand totals6,9602,177

Communities—The following table lists communities with populations of 1,000 or more at 31 March 1975. The parent county is shown in parentheses. The population of communities (previously known as county towns or dependent town districts) are included in the administrative county populations given in a later table.

CommunityEstimated Population 31 March 1975*Approximate Area in Hectares

*Sec note to following table.

North Island  
Kerikeri (Bay of Islands)1,070347
Moerewa (Bay of Islands)1,37075
Kawakawa (Bay of Islands)1,590229
Paihia (Bay of Islands)1,360232
Raglan (Raglan)1,100372
Kihikihi (Waipa)1,230212
Whitianga (Coromandel)1,160293
Waihi Beach (Ohinemuri)1,050209
Katikati (Tauranga)1,370960
Mangakino (Taupo)1,900261
Turangi (Taupo)5,400579
Edgecumbe (Whakatane)1,230172
Ohope (Whakatane)1,250540
Ashhurst (Oroua)1,510125
South Island  
Kaikoura (Kaikoura)1,760283
Halswell (Paparua)4,870204
Brighton (Taieri)1,010112
Fairfield (Taieri)1,450143
Ranfurly (Maniototo)1,030391
Wanaka (Lake)1,160294
Te Anau (Wallace)2,070395

District Communities—The following table lists the populations of district communities as at 31 March 1975. The parent county is shown in parentheses. The populations of district communities (previously known as county boroughs) are included in the administrative county populations given in the following table.

District CommunityEstimated Population 31 March 1975*Approximate Area in Hectares

*While population estimates are given at 31 March 1975 they relate to Local Authority boundaries existing at 1 April 1975.

North Island  
Wellsford (Rodney)1,670554
Hibiscus Coast (Rodney)8,330633
Otorohanga (Otorohanga)1,940227
Ngongotaha (Rotorua)2,130513
Opotiki (Opotiki)2,640299
Bulls (Rangitikei)2,010405
Waikanae (Horowhenua)3,7101,060
Shannon (Horowhenua)1,710342
Heretaunga-Pinehaven (Hutt)6,3304,700
Wainuiomata (Hutt)19,65026,614
Totals50,12035,347
South Island  
Hornby (Paparua)9,310491
Sockburn (Paparua)6,5901,066
Totals15,9001,557
Totals, county boroughs66,02036,904

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 an estimated total of 4,800 persons at 31 March 1975.

Counties—The following table gives the estimated population of individual counties at 31 March 1975 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 district communities, and communities which form parts of counties.

Administrative CountyEstimated Population 31 March 1975 (*)Approximate Area, in Square Kilometres

(*)While population estimates are given at 31 March 1975, they relate to Local Authority boundaries existing at 1 April 1975.

North Island—  
Mangonui7,2002,481
Whangaroa1,900622
Hokianga4,0001,588
Bay of Islands15,3902,131
Whangarei13,2002,675
Hobson5,1301,929
Otamatea6,1601,109
Rodney24,6402,328
Waiheke2,520155
Great Barrier Is.270285
Franklin16,8001,477
Raglan8,9902,411
Waikato15,7201,655
Waipa14,9801,129
Otorohanga9,8201,976
Waitomo5,6203,375
Taumarunui5,5204,851
Coromandel3,8501,137
Thames4,2601,034
Hauraki Plains5,100603
Ohinemuri4,170624
Piako11,0501,168
Matamata13,4302,541
Tauranga17,2401,829
Rotorua18,3302,681
Taupo13,6407,244
Whakatane14,2504,191
Opotiki6,2103,124
Waiapu4,3702,818
Waikohu3,2402,650
Cook8,2702,841
Wairoa5,3604,128
Hawke's Bay21,3004,842
Waipawa3,4501,347
Waipukurau3,9802,027
Dannevirke3,6601,414
Woodville1,440404
Clifton2,0001,176
Taranaki9,500588
Inglewood2,840521
Stratford5,0802,157
Egmont5,470622
Eltham2,880534
Waimate West2,320215
Hawera4,310495
Patea2,7101,531
Waimarino1,3702,147
Waitotara2,8001,209
Wanganui2,8301,189
Rangitikei15,6104,489
Kiwitea1,720930
Pohangina870671
Oroua4,960492
Manawatu6,410692
Kairanga6,100461
Horowhenua13,4901,420
Hutt26,530429
Pahiatua2,030741
Akitio880831
Eketahuna2,000828
Masterton3,7902,390
Wairarapa South2,5301,140
Featherston2,8602,471
Totals, North Island counties458,350111,193
South Island—  
Marlborough9,5006,639
Awatere1,5703,878
Kaikoura3,1802,344
Golden Bay3,2802,618
Waimea15,7507,511
Buller3,0605,035
Inangahua1,9602,440
Grey4,1203,957
Westland5,87011,440
Amuri2,6004,273
Cheviot1,500875
Waipara2,5902,476
Ashley3,0101,241
Rangiora4,230263
Eyre2,860459
Oxford1,620814
Malvern6,4605,046
Paparua31,770445
Waimairi69,900115
Heathcote8,63034
Mt. Herbert740171
Akaroa1,520437
Chatham Islands730963
Wairewa650438
Ellesmere8,0201,200
Ashburton11,0006,174
Strathallan9,2002,675
Mackenzie8,9607,456
Waimate5,0303,558
Waitaki8,0506,236
Waihemo1,670878
Waikouaiti3,730826
Taieri7,9702,329
Bruce3,4601,344
Clutha5,5002,717
Tuapeka3,9103,584
Maniototo2,5203,471
Vincent3,7907,563
Lake3,58010,025
Southland26,1909,577
Wallace13,1109,656
Fiord1407,861
Stewart Island4101,746
Totals, South Island counties313,340152,788
Grand totals, all counties771,690264,574

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.

The 1971 Census figures showed 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 and Maori population—the urban content has been taken as the population in the 24 defined Urban Areas, plus that of all boroughs, town districts, communities, district communities, and townships with population of 1,000 or over.

CensusUrbanRural*
NumberPercentNumberPercent

*Excludes shipping.

Total Population
1926937,30466.9464,37033.1
19361,050,82967.0518,284x33.0
19451,211,41971.3487,726x28.7
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
New Zealand Maori Population
19269,81515.453,80484.6
193615,60619.066,69381.0
194524,80125.173,92374.9
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 the combined Auckland Urban Areas 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 compounded 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 Community)Number of CentresPercentage of Population in These Centres
19261961196619711926196119661971
1,000- 2,499634544437.53.02.5x2.4
2,500- 4,9992347x41406.27.2x5.55.0
5,000- 9,9991134x34355.99.6x8.9x8.8
10,000-24,9991221232313.315.0x13.512.8
25,000 and over412192224.132.5x40.944.6
Total11315916116357.067.3x71.3x73.6

In the South Island a higher proportion of the population is rural, that is, outside urban communities, than in the North Island, the proportion being 22.7 in the South Island against 16.9 percent in the North Island, at the 1971 Census of Population.

Males and Females—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 distribution 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 Population Census of 1971.

Statistical Areas
Hawke's Bay1,029
Central Auckland1,021
Otago1,019
Canterbury1,014
Nelson1,004
East Coast999
Wellington998
Taranaki988
South Auckland-Bay of Plenty974
Northland967
Marlborough959
Westland945
Southland942
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
Tauranga1,044
Northern Auckland1,044
Whangarei1.040
Porirua Basin1,023
Masterton1,021
Wellington1,016
Invercargill1,014
Rotorua1,013
Lower Hutt Valley1,009
Southern Auckland1,001x
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
Wellington Island28,15310.012.413.916.818.619.6
Totals, North114,7297.810.011.514.716.517.9
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 Island Zealand153,9463.33.64.14.75.15.3
Totals, New268,6755.26.37.29.010.010.7

NEW ZEALAND MAORI POPULATION—For statistical purposes, all persons of half or more Maori ancestry are defined as Maoris. This definition differs from that used for electoral purposes, as introduced in the Electoral Amendment Act 1975. That Act states that ‘Maori’ means a person of the Maori race of New Zealand; and includes any descendant of such a person who elects to be considered as a Maori for the purposes of the Act.

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.

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.

 numberpercent
190145,5493,436x8.161.59
190650,3094,76010.451.98
191152,7232,4144.800.96
191652,997x274x0.520.09
192156,9873,9907.531.62
192663,6706,68311.732.24
193682,32618,65629.302.62
194598,74416,41819.941.93
1945*100,04417,71821.522.07
1951115,67616,93217.152.89
1951*115,74015,69615.692.66
1956137,15121,47518.563.46
1956*137,34121,60118.663.48
1961167,08629,93521.834.02
1961*167,39030,04921.884.03
1966201,15934,07320.393.84
1966*201,47934,08920.373.83
1971227,41426,25513.052.48
1971*227,74126,26213.032.48

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. 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.

Of the 227,414 Maoris at the 1971 Census, 213,577 were in the North Island.

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 1971 shows the high proportion (49.1 percent) of Maori children under 15 years compared with the total population (31.8 percent), and the low proportion of people in the older age groups.

Age Group (Years)Percentage in Age Groups (1971 Census)
New Zealand MaoriTotal Population
Under 1549.131.8
15-1910.59.1
20-4429.631.5
45-597.515.1
60 and over3.312.5
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, resulting in much higher levels of migration. 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 the last 11 years are given in the following table. Crews of vessels, through passengers, and members of the armed forces, have not been taken into account in this table.

Year Ended 31 MarchArrivalsDeparturesExcess of Arrivals Over Departures
MalesFemalesTotalMalesFemalesTotal
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
1971190,437161,859352,296185,598158,853344,4517,845
1972217,606190,675408,281211,048186,382397,43010,851
1973247,135222,247469,382233,721210,186443,90725,475
1974316,681281,418598,099298,474266,458564,93233,167
1975359,067319,588678,655343,489306,025649,51429,141

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 (including permanent) 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.

1969-70382535......26,825......29,822
1970-715383,18217,73512,2369,40639,37711,23422,2354,69633,165
1971-724834,18320,26114,57810,26045,0999,33922,9795,22837,546
1972-735063,03626,66616,69411,29154,6517,81821,8585,80735,483
1973-744504,83638,12117,12314,57169,8159,59126,8325,91542,338
1974-754377,67034,14217,56614,19265,9009,05027,6396,77243,461

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

YearAustraliaCanadaIndiaUnited KingdomCook Islands and NiueFijiWestern SamoaNetherlandsSouth AfricaUnited StatesAll Other CountriesTotal
Immigrants by Country of Last Residence
1969-708,8541,0642109,3877554852815401871,7163,34626,825
1970-7113,8041,71819413,2761,0627956695333312,1614,83439,377
1971-7216,0832,13527315,2091,1817844456495162,4135,41145,099
1972-7317,7302,05621921,6761,9499703828196412,3095,90054,650
1973-7420,3192,12926731,8112,2801,1895537438472,4267,25169,815
1974-7521,4861,51721827,4862,2861,3247768607312,0407,17665,900
Emigrants by Country of Next Residence
1969-7015,268941846,8372526602563994081,4923,22529,822
1970-7118,8501,1021119,3095298483127534351,4434,47338,165
1971-7217,6308061709,4424377584425797691,7374,77637,546
1972-7315,2308321839,7573518716474846421,7174,76935,483
1973-7420,5001,17911610,8634407575836004931,8554,95242,338
1974-7519,3441,34416011,8545507288094605241,7395,94943,461

Ages—The following table gives the age distribution of long-term (including permanent) arrivals and departures for the year ended 31 March 1975.

Age, in YearsLong Term ArrivalsLong Term DeparturesExcess of Arrivals Over Departures
MalesFemalesTotalsMalesFemalesTotals
Under 158,3457,67216,0173,8963,7017,5978,420
15-192,5733,2955.8682,0932,8474,940928
20-246,8336,79113,6247,0476,48213,52995
25-4413,52110,69924,2208,0055,67013,67510,545
45-642,4772,3804,8571,6191,3732,9921,865
65 and over5957191,314314414728586
Totals34,34431,55665,90022,97420,48743,46122,439

The occupations of working persons in long-term (including permanent) arrivals and departures for the year ended March 1975 are given in the following table.

Occupation GroupLong term ArrivalsLong term Departures
MalesFemalesTotalMalesFemalesTotal
Professional (including nurses and teachers)4,7134,0388,7513,3983,5896,987
Administrative and managerial1,2891271,4169331161,049
Clerical workers1,5095,4636,9721,2534,7165,969
Sales workers1,2967262,0229955151,510
Farmers and fishermen1,1551241,2791,074761,150
Miners and quarrymen96-9643-43
Transport and communications workers1,1092491,3588582381,096
Tradesmen, factory workers, labourers10,42182711,2487,4257648,189
Personal and other services1,0591,6612,7207401,0891,829
Not specified631129760567140707
Totals, actively engaged23,27813,34436,62217,28611,24328,529

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

Country of BirthImmigrantsEmigrants
1972-731973-741974-751972-731973-741974-75
Commonwealth Countries      
United Kingdom—      
  England and Wales16,74924,89220,1194,1094,6085,471
  Scotland1,9932,6032,235725851842
  Northern Ireland62684169999147178
  Other or undefined1,6852,7633,142479563643
Australia8,21910,53911,3732,5073,0013,062
Canada1,2971,363877355482505
India296427349194126138
New Zealand14,52515,13615,72922,52627,94627,260
Pacific Islands—      
  Cook Islands and Niue1,6212,0722,114127178339
  Western Samoa281399590322351549
  Fiji330542664274198213
  Other Pacific345349388227282990
Other1,5392,0152,063705695694
Totals, Commonwealth countries49,50663,94160,34232,64939,42840,884
Other Countries      
Austria527063214021
China72117147797851
Denmark739676475334
Germany338391359150141130
Greece586811811110154
Hungary504649303626
Ireland, Republic of403136991494643
Italy871301101758467
Indonesia8997100594245
Netherlands915839943451490348
Switzerland17629326373102101
United States1,4371,5501,316752855808
Yugoslavia98120117676961
Others1,2961,9211,798670773786
Totals, other countries5,1445,8745,5582,8342,9102,577
Grand totals54,65069,81565,90035,48342,33843,461

IMMIGRATION POLICY—The guidelines of a revised immigration policy on permanent entry were announced by the Government in May 1974. A particular concern of the new policy is to eliminate discrimination but this does not imply that New Zealand should accept migrants from all regions or countries, particularly from those with which New Zealand has no affinity or migration links. Harmonious settlement is emphasised and the number of immigrants is to be matched to New Zealand's capacity to provide employment, housing and community services. (In 1974 the net inflow reached 34,000 and imposed considerable strain on the economy). Immigrants are now selected according to defined criteria, including skills and qualifications, health, character, age 18 to 45 years, and families of not more than four dependent children. There is liberal provision for admitting relatives of New Zealand residents and for other cases with strong humanitarian considerations.

The South Pacific is a special situation. The Islands, being our nearest neighbours apart from Australia, must be regarded in some measure as our responsibility. Those born in the Cook, Niue, and Tokelau Islands are New Zealand citizens and may migrate at any time. Western Samoa, as a former trust territory, holds a special place in the policy. The Samoans take full advantage of the opportunities offered, the inflow at present being about 1,500 a year. Provision has been made for permanent entry of a small number of Fijian citizens and Tongans.

In order to meet the particular needs of Islanders who wish to work for a period in New Zealand, special schemes have been progressively introduced in consultation with the Islands Governments. The schemes, which are orientated to employment opportunities in New Zealand, are operated in co-operation with employers and replace the earlier system whereby Islanders wishing to take employment obtained visitors' permits. The permit arrangement was designed for working visitors and, in practice, has not proved altogether satisfactory.

A Review of Immigration Policy was published as parliamentary paper E 21, 1974.

Assisted Immigration—Further developments relating to the settlement of immigrants in New Zealand are detailed in parliamentary paper G. 34 published in September 1975.

Until April 1975 two immigration schemes financially assisted by the Government were in operation—the subsidy scheme which involved a contribution by employers to immigrants' fares, and the-assisted passage scheme which was almost fully paid by the Government. Under each scheme, migrants made a token contribution, the equivalent of £10 sterling for single persons and £20 for married persons.

As part of its moves to conserve employment opportunities for New Zealand workers, the Government decided to abolish the assisted passage scheme and to apply stricter criteria to the subsidy scheme.

The latter scheme is now directed at assisting those migrants who have particular skills which are unobtainable in New Zealand and other skilled workers who are needed to break production bottlenecks which depress employment opportunities for New Zealand workers.

The number of assisted or subsidised immigrants arriving in the last three years were as follows.

Year Ended 31 MarchBritishDutchGermanSwissUnited StatesOtherTotal
19733,459550143768104,138
19746,140493104159126,755
19758,18652242936108,787

Refugees—New Zealand continued to accept a significant number of refugees who came within the Mandate of the United Nations High Commission for Refugees. Recent arrivals have come mainly from continental Europe and South America, but include 50 Vietnamese families who did not have formal refugee status. Because of the invaluable assistance received from the Inter-church Commission on Immigration, most refugees arriving received considerable re-settlement assistance.

Formalities—The legislation respecting immigration into New Zealand is contained in the Immigration Act 1964 and amendments. This legislation is administered by the Department of Labour.

The Immigration Act prescribes that all persons who are not New Zealand citizens require permits to enter the country. Citizens from countries with which New Zealand has negotiated visa abolition agreements may be exempted from this requirement if they intend visiting New Zealand for short periods.

In addition, under a special reciprocal arrangement with Australia, Australian citizens are exempt from the entry permit requirements, and other Commonwealth citizens with permanent residence status in Australia do not require permits to enter New Zealand provided they travel direct to this country from Australia.

To obtain permission to settle in New Zealand, intending immigrants, other than Australian citizens, should first write to the nearest overseas representative of the New Zealand Government or write direct to the Secretary of Labour, Private Bag, Te Aro, Wellington, New Zealand for the necessary application forms. Each application is considered on its 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 New Zealand Representative, and overseas by the representatives of New Zealand at Apia, Athens, Bangkok, Bonn, Brussels, Canberra, Geneva, The Hague, Hong Kong, Jakarta, Kuala Lumpur, Lima, London, Los Angeles, Manila, Melbourne, Moscow, New Delhi, New York, Noumea, Ottawa, Paris, Peking, Port Moresby, Rome, San Francisco, Santiago (Chile), Seoul, Singapore, Suva, Sydney, Teheran, Tokyo, Vienna, and Washington. United Kingdom, Canadian, Australian, Malaysian, Singapore, 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.

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 be in 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 1973-74 year there were 195 such ceremonies, at which 1,314 candidates took the oath of allegiance, and during the 1974-75 year there were 193 ceremonies at which 1,204 candidates took the oath.

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.

Country of Birth1973-741974-75
NaturalisationRegistrationTotalNaturalisationRegistrationTotal
Australia32225-6565
Austria410148513
China4460104453277
Denmark6284610
Fiji-107107-103103
Germany9243382331
Greece282553201636
Hong Kong-1919-3636
Hungary22931171027
India31251284107111
Indonesia1010209110
Ireland-1717-8484
Italy4-4538
Kenya-99-1818
Malaysia-363614041
Netherlands11686202163135298
Poland171330151025
Romania148227512
South Africa166480154257
Switzerland17724242549
Tonga2171912021
U.S.S.R.85138715
United Kingdom-891891-3,2283,228
United States9101991827
Western Samoa-1261267108115
Yugoslavia563692442367
Other countries3519222730223253
Totals4231,9302,3534444,3934,837

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 19741 April 1975
MalesFemalesTotalMalesFemalesTotal
Afghanistan819516
Albania9-99-9
Austria352130482348130478
Belgium493988534093
Bulgaria5566162971
Burma2522726228
Chile191938232649
China9056781,5838896621,551
Czechoslovakia89561451643119
Denmark497285782511293804
Finland80751559683179
France121159280135171306
Germany5784581,0366104631,073
Greece5856151,2005726121,184
Hungary238119357218114332
Indonesia1408722714780227
Israel1531817825
Italy576225801616230846
Japan127178305147204351
Korea351146391453
Lebanon232346202545
Nepal971610717
Netherlands7,3545,55012,9047,4565,68413,140
Norway1015615710458162
Philippines552883613495
Poland380283663362275637
Romania161127161228
South Africa143155298157177334
Spain401353411960
Sweden86871739091181
Switzerland6243759996864191,105
Thailand6714220968138206
Turkey141428151732
United States2,5181,6824,2002,7961,8764,672
U.S.S.R.150141291154140294
Vietnam99611608856144
Yugoslavia9005141,4148504971,347
Other countries69441138747134
Stateless31940401454
Totals17,18212,34129,52317,70012,77130,471

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.

CENSUS OF POPULATION AND DWELLINGS 1971—The series of tables on the following pages contain data derived from the Census of Population and Dwellings 1971. Publications containing fuller results are listed towards the back of this Yearbook.

MARITAL STATUS—The marital status of persons aged 16 years and over as returned at the Census of 1971 is summarised in the following tables.

Age Groups (Years)Never MarriedMarriedLegally SeparatedWidowedDivorcedTotal*

*Including persons not specifying status.

Males
16-19101,8092,3282266104,726
20-2474,54543,07775338137119,447
25-3430,723142,4452,8152211,338178,803
35-4414,560139,2422,5788202,151160,248
45-5412,088128,9672,5082,5063,145150,020
55-649,004101,6681,7005,1232,796120,861
65-745,28455,3388797,8331,45371,162
75 and over2,35919,04334310,25141632,687
Totals, 1971250,372632,10811,59826,79811,442937,954
Totals, 1966244,834581,5606,81927,3729,435871,854
Females
16-1989,09111,015145166100,387
20-2440,97672,0721,775182342115,512
25-3415,053152,9514,0059832,059175,199
35-447,747135,8363,1033,0472,776152,637
45-548,770125,1022,6059,8523,639150,146
55-6410,02187,8281,54922,2073,334125,179
65-748,62241,11270432,6241,83585,135
75 and over6,33912,00625335,62272055,183
Totals, 1971186,619637,92214,139104,3314,711959,378
Totals, 1966183,093583,1728,54896,57710,853882,716
Total
16-19190,90013,3431672212205,113
20-24115,521115,1492,528220479234,959
25-3445,776295,3966,8201,2043,397354,002
35-4422,307275,0785,6813,8674,927312,885
45-5420,858254,0695,11312,3586,784300,166
55-6419,025189,4963,24927,3306,130246,040
65-7413,90696,4501,58340,4573,288156,297
75 and over8,69831,04959645,8731,13687,870
Totals, 1971436,9911,270,03025,737131,33126,1531,897,332
Totals, 1966427,9271,164,73215,367123,94920,2881,754,570

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

Marital Status196119661971
MalesFemalesMalesFemalesMalesFemales
Never married27.220.128.120.826.919.5
Married67.566.766.866.167.866.6
Legally separated0.70.90.81.01.21.5
Widowed3.511.13.110.9x2.910.9
Divorced1.11.21.11.21.21.5
Totals100.0100.0100.0100.0100.0100.0

HOUSEHOLDS—There were 801,686 households in permanent private dwellings at the Census in 1971. The following table analyses 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 HouseholdsNumber of Households with Occupancy 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—        
Complete485,789-153,59286,379107,01174,24438,07226,491
Incomplete with children absent25,400-5,7396,5505,5913,5211,9152,084
Incomplete with one parent absent42,504-20,30710,8526,1312,8981,3041,012
Incomplete with one rent and child(ren) absent3,540-1,460930552283137178
Totals557,233-181,098104,711119,28580,94641,42829,765
Multi-person—        
One family plus other persons (non-family)76,449-826*19,74516,94715,70010,71512,516
Multi-family with or without other persons12,040---2,2592,6032,3344,844
Totals88,489-82619,74519.2C618,30313,04917,360
  Non-family42,675-29,6307,8123,4651,205375188
  One person113,289113,289------
Totals801,686113,289211,554132,268141,956100,45454,85247,313

In the following table these complete one-family-only households are analysed by distribution of the occupants and the occupational status of the head of the household.

Occupational Status of HeadTotal HouseholdsHusband and Wile OnlyHusband and Wife with
1 Child2 Children3 Children4 Children5 or More Children
Actively engaged—       
Employer38,0127,4906,4249,5707,7484,2262,554
Own account41,3548,9416,87710,1348,0794,5232,800
Salary or wages345,95988,20265,86185,01957,47228,83520,570
Unemployed1,643508311301203131189
Relative assisting20141-311
Not specified345975276522543
Totals427,333105,25279,526105,10073,55737,74126,157
Not actively engaged—       
Retired55,57846,8046,3311,573493196181
Student9856751777533196
Housewife138922311435
Other1,755769322252157113142
Totals58,45648,3406,8531,911687331334
Grand total485,789153,59286,379107,01174,24438,07226,491

The following table shows the composition of one-complete-family-only households in 1971 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 Children*4 Children*5 or More Children*Total

*Unmarried children of any age living at home.

Numbers
Under 205767428414561,427
20-2415,93010,8605,7311,0832025633,862
25-4424,13830,53768,55454,61228,37418,858225,073
45-6463,92037,65531,13918,1199,3217,450167,604
65 and over49,0286,5851,50341617012157,823
Totals153,59286,379107,01174,24438,07226,491485,789
Percentages
Under 2040.452.05.91.00.40.4100.0
20-2447.032.116.93.20.60.2100.0
25-4410.713.630.524.312.68.4100.0
45-6438.122.518.610.85.64.4100.0
65 and over84.811.42.60.70.30.2100.0
All ages31.617.822.015.37.85.5100.0

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 1971. 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
$ Nil18,2582,596900368233291
1- 59910,9641,680675345187190
600-1,3999,8552,5721,612943579529
1,400-2,19915,4137,2686,1974,1202,2022,120
2,200-2,99933,34321,72222,33814,7438,0366,703
3,000-4,99948,12537,31353,93836,60518,05911,730
5,000-7,99911,5549,25615,42912,0075,9253,235
8,000-9,9992,0381,5002,4152,0541,118580
10,000 and over2,2511,6972,6932,4681,374735
Not specified1,791775814591359378
Totals153,59286,379107,01174,24438,07226,491
Total Income of HouseholdHusband and Wife OnlyHusband and Wife with
One ChildTwo ChildrenThree ChildrenFour ChildrenFive or More Children
$ Nil16,09063726113299147
1- 5999,913623344212132136
600-1,3998,1691,359899521322322
1,400-2,19911,3534,4103,6902,4501,3601,311
2,200-2,99919,38313,44014,0549,2704,9983,892
3,000-4,99943,02733,18245,95730,97914,9669,653
5,000-7,99934,09822,47127,53619,4589,9616,357
8,000-9,9994,9374,7196,5374,9462,6111,685
10,000 and over3,8673,8605,8094,8712,7391,924
Not specified2,7551,6781,9241,4058841,064
Totals153,59286,379107,01174,24438,07226,491

The following table shows persons living alone in 1971 by age and marital status.

Age Group (in Years)Marital Status
Never MarriedMarriedLegally SeparatedDivorcedWidowedTotal*
Males
Under20658292-689
20-242,420457951672,995
25-446,2341,9011,06272115210,070
45-646,5042,5561,2751,9562,76315,054
65 and over2,6011,7153767527,26312,707
Totals18,4176,6582,8103,44510,18541,828
Age Group (in Years)Marital Status
Never MarriedMarriedLegally SeparatedDivorcedWidowedTotal*

*Total includes 313 male heads and 153 females, whose age and marital status were not available.

Females
Under 204092481-442
20-241,0783648017101,549
25-443,0205814134832494,746
45-646,1882,1569892,36611,95623,655
65 and over5,7582,2014471,27931,23140,916
Totals16,4535,3261,9374,14643,44671,461*

RELIGIOUS PROFESSIONS—The following summary presents the main religious professions returned at the 1961, 1966 and 1971 Censuses.

Religious ProfessionNumber of AdherentsPercentage
196119661971196119661971
Anglican (Church of England)835,434901,701895,83934.633.731.3
Presbyterian539,459582,976583,70122.321.820.4
Roman Catholic (including Catholic undefined)364,098425,280449,97415.115.915.7
Methodist173,838186,260182,7277.27.06.4
Baptist40,88646,74847,3501.71.71.7
Protestant (undefined)45,10046,09037,4751.91.71.3
Christian (undefined)12,13021,54833,1870.50.81.2
Ratana23,12627,57030,1561.01.01.1
Latter Day Saints17,97825,56429,7850.81.01.0
Brethren25,76423,13925,7681.10.90.9
Salvation Army15,45417,73719,3710.60.70.7
Seventh Day Adventist8,2209,55110,4770.30.40.4
Jehovah's Witness5,9447,45510,3180.20.30.4
Agnostic2,2884,9609,4810.10.20.3
Atheist3,3595,4749,2910.10.20.3
Church of Christ10,48510,3018,9300.40.40.3
Congregational9,37712,1017,7040.40.40.3
Lutheran4,8175,7305,9300.20.20.2
Ringatu5,3775,6055,6350.20.20.2
Eastern Orthodox3,3283,6054,3190.10.10.2
Hindu2,0743,5993,8450.10.10.1
Hebrew4,0064,1043,8030.20.20.1
Undenominational1,5143,0693,7090.10.10.1
Assemblies of God1,0602,0283,599..0.10.1
Apostolic Church1,3991,8412,3610.10.10.1
Undenominational Christian2,1701,9681,9030.10.10.1
Christadelphian1,4981,6281,6670.10.10.1
Christian Scientist3,7191,1618160.2----
Rationalist9561,696779--0.1--
All other religious professions14,38623,49924,6940.60.90.9
No religion (so returned)17,48632,78057,4850.71.22.0
Object to state204,056210,851247,0198.47.98.6
Not specified14,19819,300103,5330.60.73.6
Totals2,414,9842,676,9192,862,631100.0100.0100.0

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)1965 Census1971 CensusPercentage of Total Population
MalesFemalesTotalMalesFemalesTotal19661971

*Under 20 years.

0-4 156,954149,689306,643151,916145,946297,86211.510.4
5- 9152,816146,441299,257158,310151,494x309,80411.210.8
10-14136,498130,001266,499154,286147,671301,95710.010.5
1525,62124,32949,95028,39027,28655,6761.91.9
16-1999,70595,712195,417104,726100,387205,1137.37.2
20-2497,39493,258190,652119,447115,512234,9597.18.2
25-2984,92782,319167,24694,62292,690187,3126.26.5
30-3476,52972,867149,39684,18182,509166,6905.65.8
35-3984,91178,978163,88976,99774,192151,1896.15.3
40-4481,38578,795160,18083,25178,445161,6966 05.6
45-4972,27273,516145,78880,87978,488159,3675.45.6
50-5468,77869,226138,00469,14171,658140,7995.2x4.9
55-5961,43860,316121,75465,26466,919132,1834.54.6
60-6449,15849,99399,15155,59758,260113,8573.74.0
65-6936,46842,96179,42942,70047,91490,6143.03.2
70-7424,49734,05058,54728,46237,22165,6832.22.3
75-7918,04525,50343,54816,75426,61243,3661.61.5
80-8410,61615,73026,3469,92317,30127,2241.01.0
85-894,5617,26011,8214,5428,20412,7460.40.4
90 and over1,1702,2323,4021,4683,0664,5340.10.2
Totals1,343,7431,333,1762,676,9191,430,8561,431,7752,862,631100.0100.0
Under 15 years446,268426,131872,399464,512445,111909,62332.6x31.8
15-64 years802,118779,3091,581,427862,495846,3461,708,84159.1x59.7
65 years and over95,357127,736223,093103,849140,318244,1678.38.5
Minors*571,594546,1721,117,766597,628572,7841,170,41241.8x40.9
Adults772,149787,0041,559,153833,228858,9911,692,21958.2x59.1

ETHNIC GROUPS—The following table gives the broad ethnic origins of the population.

Ethnic GroupCensus
196119661971
European2,216,8862,426,3522,561,280
Maori167,086201,159227,414
Other Origins—   
Pacific Islanders—   
  Cook Island Maori4,4998,66313,772
  Samoan6,48111,84222,198
  Niuean and Tokelauan1,7282,8465,459
  Tongan1,0431,3892,075x
  Other5891,5311,909x
  Sub-totals, Pacific Islanders14,34026,27145,413
Chinese8,52410,28312,818
Indian4,1796,8437,807
Fijian7461,3232,021
Syrian, Lebanese, and Arab1,1011,0991,126
Other ethnic groups2,1223,5894,752
  Sub-totals, others16,67223,13728,524
Totals2,414,9842,676,9192,862,631

COUNTRY OF BIRTH—From 1945 to 1961 the New Zealand-born population remained at about 86 percent of the total population; since 1966 the proportion has dropped slightly, mainly because increased numbers of New Zealanders have been overseas at census date and increased numbers of overseas tourists have been in New Zealand. At the 1971 Census, 85.4 percent of those enumerated gave New Zealand as their birthplace, 8.7 percent gave the United Kingdom, 1.5 percent gave Australia, 1.1 percent the Pacific Islands (including the Cook Islands and Niue), and 0.7 percent the Netherlands, Ireland was the birthplace of 0.3 percent. India of 0.2 percent, and China of 0.1 percent.

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

Years of Residence1961 Census1966 Census1971 Census
NumberPercentages Specified CasesNumberPercentages Specified CasesNumberPercentages Specified Cases

*Including unspecified

0- 472,68521.7103,06426.590,36022.3
5-964,46819.356,87714.667,30416.6
10-1442,31312.6x61,35115.752,98113.1
15-198,1472.438,95710.055,38713.7
20 and over146,89044.0129,29733.2139,51134.3
Totals340,476*100.0396,925*100.0418,462*100.0

INTERNAL MIGRATION—The 1971 Census of Population and Dwellings included, for the first time, a question on internal migration. Respondents were asked to state their usual place of residence 1 year and 5 years prior to the census. Since the resulting data were based on recollections rather than enumeration in a particular locality, the detailed figures need to be treated with some caution. Nevertheless, they provide valuable indications on trends in a field previously little explored.

The following table gives a summary by Statistical Areas of the percentages of the population who had changed or not changed their residences within the year prior to the 1971 Census. It will be seen that, in New Zealand as a whole, 83.59 percent of the population were living at the same address as a year previous. The greatest mobility of population was found in the two main concentrations-Central Auckland Statistical Area (in which 18.62 percent of the population had moved within the year) and Wellington Statistical Area in which 17.70 percent had moved.

Usual Residence on Census Night (1971)Residence One Year Prior to Census (1971)
UnchangedElsewhere in N. Z.Pacific IslandsOther CountriesNot Specified or No Settled Abode
 Percentage
Northland S. A.87.4411.560.020.760.22
Central Auckland S. A.81.3814.940.211.931.55
South Auckland - Bay of Plenty S. A.83.9513.790.071.921.28
East Coast S. A.85.8411.450.010.622.08
Hawke's Bay S. A.85.2012.890.030.731.15
Taranaki S. A.87.5511.09..0.730.63
Wellington S. A.82.3014.640.121.551.39
  North Island83.0914.060.121.401.33
Marlborough S. A.86.7211.150.010.881.23
Nelson S. A.84.9312.450.021.680.92
Westland S.A.88.378.72..0.542.37
Canterbury S. A.83.8914.090.031.130.86
Otago S. A.85.8111.960.020.951.26
Southland S. A.85.6112.720.031.020.63
  South Island84.8613.040.031.100.98
  New Zealand83.5913.770.091.311.23

Data based on residence 5 years prior to the 1971 Census indicate that 61.31 percent of the total population were still at the same address in 1971 (or, at least, in the same Statistical Area) as they were 5 years previously, but that 38.69 percent—almost 4 in every 10—had moved at least once during the 5 years. In Central Auckland Statistical Area 43.49 percent and in Wellington Statistical Area 41.22 percent of the population recorded that they had been living elsewhere 5 years prior to the 1971 Census.

STATISTICS OF WORLD POPULATION—The area and estimated population of the major areas and selected countries at 1 July 1973 are shown in the following table. (Source: United Nations Demographic Yearbook 1973.)

Major Areas and CountriesAreaPopulation
 sq km (000)million

*Excluding U.S.S.R., shown separately.

Major Areas  
  Africa30,320374,0
  America—North21.515236.0
  America—Latin20,567309.0
  Asia27,6552,204.0*
  Europe4,936472.0*
  Oceania8,51020.6
  U.S.S.R.22,402250.0
      World Total135,9063,860.0
Selected Countries  
Africa  
  Algeria2,38215.8
  Angola1,2475.7
  Egypt1,00135.6
  Ethiopia1,22226.1
  Ghana2399.4
  Kenya58312.5
  Morocco44716.3
  Mozambique7838.8
  Nigeria92459.6
  South Africa1,22123.7
  Sudan2,50616.9
  Tanzania, United Republic of94514.4
  Uganda23610.8
  Zaire Republic2,34523.6
America—North  
  Canada9,97622.1
  United States9,363210.4
America—Latin  
  Argentine2,77724.3
  Brazil8,512101.7
  Chile75710.2
  Colombia1,13923.2
  Peru1,28514.9
  Venezuela91211.3
Asia  
  Afghanistan64718.3
  China9,597814.3
  Hong Kong14.2
  India3,280574.2
  Indonesia1,492124.6
  Iran1,64831.3
  Iraq43510.4
  Israel213.2
  Japan372108.3
  Jordan982.6
  Khmer Republic1817.6
  Korea—North12115.1
  Korea—South9832.9
  Lebanon103.1
  Malaysia33011.6
  Nepal14112.0
  Pakistan80466.7
  Philippines30040.2
  Saudi Arabia2,1508.4
  Singapore0.62.2
  Sri Lanka6613.2
  Syria1856.9
  Thailand51439.8
  Turkey78137.9
  Vietnam—North15922.5
  Vietnam—South17419.4
Europe  
  Austria847.5
  Belgium319.8
  Bulgaria1118.6
  Czechoslovakia12814.6
  Denmark435.0
  France54752.1
  Germany—East10817.0
  Germany—West24962.0
  Greece1328.8
  Hungary9310.4
  Ireland, Republic of703.0
  Italy30154.9
  Luxembourg30.3
  Netherlands4113.4
  Norway3244.0
  Poland31333.4
  Portugal928.6
  Romania23820.8
  Spain50534.9
  Sweden4508.1
  Switzerland416.4
  United Kingdom24455.9
  Yugoslavia, Republic of25621.0
Oceania  
  Australia7,68713.1
  Fiji180.6
  New Caledonia190.1
  New Zealand2693.0
  Papua-New Guinea4622.6

Chapter 5. 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. While in recent years the natural increase rate in New Zealand has fallen, in line with the trend in the majority of developed countries, the New Zealand rate remains 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
196560,04722,97637,0717,7761,2176,55914.0733.43
196660,00323,77836,2257,7431,2916,45213.5131.87
196761,02223,00738,0157,9961,2226,77413.9432.59
196862,11224,46437,6488,0891,3246,76513.6831.75
196962,36024,16138,1998,1611,3306,83113.7431.31
197062,05024,84037,2108,1931,3996,79413.2030.42
197164,46024,30940,1518,3641,4216,94314.0130.31
197263,21524,80138,4147,8701,3476,52313.1727.65
197360,72725,31235,4157,3841,3806,00411.8924.81
197459,336x25,261x34,075x6,983x1,2735,710x11.1923.09x
197556,63925,11331,5266,7781,3335,44510.1621.55

In the 10 years to 31 December 1975 New Zealand gained by natural increase of population a total of 366,878.

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 1974, are taken from the United Nations Monthly Bulletin of Statistics.

CountryRate per 1,000 of Population
BirthsDeathsNatural Increase

*Rates for 1973.

Mexico46.3*8.2*38.1*
Israel28.27.320.9
Singapore19.95.214.7
New Zealand19.58.311.2
Japan18.66.512.1
Hong Kong19.35.214.1
Spain19.38.410.9
Australia18.48.79.7
France15.210.44.8
Italy15.79.66.1
Canada15.47.57.9
Norway14.99.95.0
United States15.09.15.9
Netherlands13.88.05.8
United Kingdom13.211.91.3
Switzerland12.98.54.4
Sweden13.410.62.8
Belgium12.611.90.7
Austria12.812.50.3
West Germany10.111.7-1.6

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.

Under section 14 of the Births and Deaths Registration Act 1951, provision is made for births not registered in the ordinary way to be recorded at a ater date in a special register kept by the Registrar-General. Such cases include elderly people requiring evidence of age for social security purposes. Until 1971 these late registrations were included in published live-birth statistics but they are now excluded. The numbers are normally relatively small; in 1974 they totalled 214.

NUMBERS AND RATES—The following table shows the numbers of births and the rates for the last 11 years. Late registrations (see above) have been excluded from all these figures. It will be noted that the birth rate, which fell in the early 1960s and then appeared to stabilise at 22 to 23 births per 1,000 of mean population, has now resumed the decline.

YearNumbersRates per 1,000 of Mean Population
TotalMaoriTotalMaori
196560,0477,77622.7939.63
196660,0037,74322.3738.25
196761,0227,99622.3738.47
196862,1128,08922.5637.96
196962,3608,16122.4337.41
197062,0508,19322.0136.68
197164,4608,36422.5036.51
197263,2157,87021.6733.36
197360,7277,38420.3930.51
197459,3366,983x19.4928.24
197556,6396,77818.2526.82

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 births per 1,000 of all women aged 15-44 years. 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"Crude" Birth Rate per 1,000 Mean Population
Married Women 16-44 YearsTotal Women 15-44 Years
1926176.992.121.23
1936155.179.018.07
1945186.5106.524.58
1951190.8123.025.62
1956191.7128.125.93
1961199.3140.626.99
1966155.2114.422.44
1971173.3112.922.50

The percentage of married women among women in the child-bearing age groups was 68.4 in 1971 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 numbers of births and deaths 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 1962, when the level dropped; this experience was also shared by Australia, Canada, and the United States. During the years 1962 to 1966 the crude birth rate fell from 26.16 to 22.37 per 1,000 of mean population. From 1966 until 1971 the crude birth rate remained relatively constant, but since 1971 the downward trend appears to have been resumed. In the following table the New Zealand crude birth rate is compared with that of Australia, Canada, and the United States.

CountryBirth Rate per 1,000 Mean Population
19671968196919701971197219731974

(Source: United Nations Monthly Bulletin of Statistics and Statistical Yearbook.)

New Zealand22.422.622.422.022.521.720.419.5
Australia19.420.120.420.621.720.518.918.4
Canada18.217.617.617.416.815.915.515.4
United States17.817.617.918.317.215.715.015.0

The decline of the birth rates over the period from 1961 has been the subject of discussion by demographers, notably at world population conferences. This change in fertility pattern has coincided in time with increasing use of oral contraceptives; their greater effectiveness in birth control appears to have had a significant influence on fertility. Demographers have emphasised the need for further research, stating that it is important to study demographic variables involved in the 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. It is important to determine the extent to which smaller families and postponed births are the result of changes in social attitudes and economic goals, and the extent to which they are the result of improved methods and knowledge of birth control having made possible a control of fertility previously considered desirable but largely unattainable.

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 zero population growth, and a higher rate a rising population.

Reproduction rates during the latest 6 years were as follows.

YearGross RateNet Rate
19691.6031.557x
19701.5441.500x
19711.5511.507x
19721.468x1.426x
19731.348x1.310x
19741.2561.221

SEX OF CHILDREN BORN—The numbers of boys and girls born during the latest 6 years are given in the following table.

In each year, more boys than girls are born, a disparity necessary to balance the higher death rates of males at every age level. There is a traditional saying "Boys are more difficult to rear than girls", and this is borne out by statistics. The death rate per 1,000 live births for babies under 12 months of age in 1974 was 18.26 for boys and 12.66 for girls; for children of from 1 to 4 years of age it was 0.86 for boys and 0.80 for girls; for children aged 5 to 14 years it was 0.48 for boys and 0.33 for girls; and the pattern repeated itself with each age group through adolescence and adult life.

YearNumber of Births ofMale Births per 1,000 Female Births
MalesFemales
197031,92430,2831,054
197132,99631,4641,049
197232,28830,9271,044
197331,09729,6301,050
197430,51128,8251,058
197528,87427,7651,040

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

YearTotal BirthsTotal CasesCases of TwinsCases of TripletsMultiple Cases per 1,000 of Total Cases
196962,56461,921627810.26
197062,20761,548647610.61
197164,46063,793649910.31
197263,21562,595594139.70
197360,72760,15356659.49
197459,33658,78953959.25

There were 58,789 confinements in 1974 resulting in live births; of these, 544 produced multiple living births and in a further 23 cases 1 of the twins was still-born. The ratio of multiple confinements with live births to total live confinements was 1:104. In eight additional cases both twins were stillborn.

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 5 cases of triplets in 1974 comprised 4 cases where they were all males and 1 case where they were all females.

19706472156736-----667911.0
19716492466799-----968810.8
1972594121161713-----1363010.1
19735661485883-2---55939.9
19745392385703-2---5*5759.8
Average of 5 years5991986257-1---863310.3

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
19701.043.83
19710.984.36
19720.973.65
19730.874.05
19740.805.74
Average of 5 years0.934.33

AGES OF PARENTS—Information as to the relative ages of parents of nuptial living children whose births were registered in 1974 is shown in the following table for the total population. Registrations of births under section 14 of the Births and Deaths Registration Act 1951 are excluded.

Age of Mother, in YearsAge of Father, in Years
Under 2020-2425-2930-3435-3940-4445-4950-5455-6465 and OverTotal Cases

*Including 3 cases of triplets, 17 cases where 1 of twins was still-born, and 2 cases where 1 of triplets was still-born.

Single Births
Under 209662,79344263124----4,280
20-241928,0228,4181,182232682284-18,148
25-2968599,3135,7971,074268722512217,428
30-341637303,2271,808486129401826,494
35-39-665281866637182552042,116
4,044-171753202163489-500
45 and over-----61983-36
Totals1,16511,73418,97510,5674,0451,67158718466849,002
Multiple Births
Under 203203-------26
20-24-587793-----147
25-29-1190721251---191
30-34--114320101-1-86
35-39---415142---35
40-44----1-3---4
45 and over-----------
Totals38918112851297-1-489
Grand Totals1,16811,82319,15610,6954,0961,70059418467849,491*

PREVIOUS ISSUE OF PARENTS—The following table gives for 1974 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 Nuptial Cases
0123456-910-1415 and Over

*This number represents 49,002 single cases and 489 multiple cases.

Under 203,2051,031682-----4,306
20-248,5906,8232,240494125212--18,295
25-294,7716,5194,1251,432480195961-17,619
30-349841,6181,7541,11354626927620-6,580
35-3924033436934732519429547-2,151
40-44544558666166123292504
45 and over142-46118-36
Totals17,84516,3748,6163,4541,541751803105249,491*

In the following table the total issue and average issue are shown for mothers by age groups where a birth occurred in 1974.

Age of Mother in YearsTotal MothersTotal IssueAverage Issue
Under 204,3065,5051.28
20-2418,29531,8381.74
25-2917,61940,3922.29
30-346,58020,7553.15
35-392,1519,1224.24
40-445042,6855.33
45 and over362547.06
Totals49,491110,5512.23

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 1974) born up to the present time to those mothers of nuptial 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: 1970, 2.44; 1971, 2.36; 1972, 2.29; 1973, 2.30; and 1974, 2.23.

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 Nuptial CasesTotal Nuptial 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
196853,58017,96033.528,16045.4312,57370.01
196953,87418,33134.037,97543.5112,35767.41
197053,32618,82835.317,79141.3812,45566.15
197154,87620,10136.638,37541.6613,25965.96
197253,27219,99137.537,67938.4112,52762.67
197351,04217,95835.186,39435.6111,65559.33
197449,49117,84536.065,77832.389,91955.58

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
1934194419541964197219731974
Under 146.2538.4742.6449.8538.4135.6132.38
126.7926.3030.5626.4224.2523.7323.21
210.2411.2811.5611.4216.3917.4218.48
36.167.885.955.079.9810.8011.92
43.967.183.302.825.306.086.94
5-95.497.365.053.565.215.906.52
10 and over1.111.530.940.860.460.460.55
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
1934194419541964197219731974
Under 208.907.339.0819.6420.5319.3217.96
20-2440.3941.7947.7152.6749.4547.9748.14
25-2932.7929.5427.7918.2822.8925.5926.74
30-3413.1014.6110.396.005.165.295.51
35-393.795.363.922.571.551.391.34
40-440.991.341.020.810.370.410.30
45 and over0.040.030.090.030.050.030.01
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; 1971, 23.40; 1972, 22.99; 1973, 23.16 and 1974, 23.29 years.

EX-NUPTIAL BIRTHS—The numbers of ex-nuptial births registered during each of the latest 12 years, with the percentages they bear to total births registered, are given in the following table. Comparisons of the ratio of ex-nuptial births to all live births (either on a year-to-year basis or on an international basis) should be made with caution. Some of the difficulties were discussed in supplements to the January 1967 and November 1975 Monthly Abstracts of Statistics. For example, the ex-nuptial ratio as a true indicator of ex-nuptial fertility is of limited value because it is influenced by extraneous factors. Ex-nuptial ratios may change not so much because of changing numbers of ex-nuptial births but because of a change in nuptial fertility experience as measured by nuptial birth numbers. This situation is well illustrated by experience during the 1962-73 period when ex-nuptial births increased from 5,227 to 9,206 while nuptial births showed an overall fall from 59,787 to 51,521, resulting in the ex-nuptial ratio exaggerating the "real" rise in the ex-nuptial fertility level. Again a, social factor to be borne in mind is that unmarried mothers are not infrequently de facto wives with comparatively stable relationships.

YearNumberRatio

*From 1971 excludes registrations under section 14 of the Births and Deaths Registration Act 1951.

†Ex-nuptial births as a proportion of total births.

19646,1899.91
19656,55410.89
19666,96011.56
19677,78312.72
19688,09413.00
19698,12712.99
19708,30013.34
19718,98113.93
19729,39414.86
19739,20615.16
1974*9,370x15.79
19759,40716.61

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
1966183,9966,94037.72
1971199,1478,98145.10

In 1974 the total number of ex-nuptial confinements was 9,298, of these 9,220 cases were single births, 72 were twins, while there were six cases of twins in which one child was still-born. The total number of ex-nuptial live births was 9,370. From the following table, it will be seen that of the 9,298 mothers, 4,245 or 45.65 percent, were under 20 years of age.

AgeNumber of Mothers
11-
121
1310
1456
15329
16728
171,045
181,087
19989
20821
21629
22552
23485
24-291,711
30-34574
35-39209
40-4468
45 and over4
Total9,298

Re-registration*—An ex-nuptial child whose parents have later married may be re-registered 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 re-registrations in each of the latest 5 years were as follows: 1970, 1,513; 1971, 1,749; 1972, 1,619; 1973, 1,482; 1974, 1,517.

The Children and Young Persons Act 1974 requires that all ex-nuptial births be notified to a social worker so that inquiries may be made concerning the circumstances of each mother and child for the purpose of offering advice and assistance.

*Was formerly known as Legitimation, but name was changed when the Status of Children Act 1969 was introduced.

The following table shows the outcome of the inquiries made in recent years. Inquiries relate to some births from the preceding year and do not cover all births in the year stated.

Location of Infants197219731974
No.%No.%No.%
Re-registered after marriage of parents313427442653
Remaining with mother (parents cohabiting)1,881242,037242,41127
Remaining with mother (parents not cohabiting)2,293302,455292,60629
Placed with relatives250329842343
Placed with strangers with view to adoption2,128281,883221,63318
Placed with strangers, no expressed wish to adoption971731691
In children's home or other institution on a long-term basis59136..32..
Committed to care of Social Welfare36..34..501
Not traced52371,210141,44816
Died146213721252
Totals7,7261008,4371008,873100

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

YearMalesFemalesTotal
19701,9721,8653,837
19712,0091,9673,976
19721,7791,8633,642
19731,7491,7753,524
19741,7371,6293,366

Of the 3,366 adoptions registered in 1974, 1,418 were children under the age of 1 year, 1,194 were aged 1 to 4 years, 498 were aged 5 to 9 years, and 256 were aged 10 years or over.

In 1972, for the first time for many years, there was a substantial drop in the number of adoption orders made by the Court and this was followed by a further drop in 1973 and in 1974. Of the 3,366 adoptions finalised in 1974, social workers of the Social Welfare Department were concerned with 2,976 or 88 percent. Maori welfare officers handled most of the others.

The following table, which relates only to cases handled by the department, shows the number and status of children adopted over the last 4 years.

Status of Children Adopted1971197219731974

*These are cases where, because one of the applicants is the child's natural parent, a social worker's report has not been called for.

Ex-nuptial2,6742,7132,5512,391
Nuptial506498451506
Not known*51698679
Totals3,2313,2803,0882,976

In 1974, 80 percent of the children adopted were born out of wedlock. Of these children born out of wedlock, 90 percent were aged less than one year at the time of placement for adoption. Sixty-one percent were placed with strangers.

The next table shows the age at placement according to the status of the children adopted in 1974.

AgeNuptialEx-nuptialNot KnownTotal

*These are cases where, because one of the applicants is the child's natural parent, a social worker's report has not been called for.

Under 1 year2952,157222,474
1-5 years37751113
6 years and over3814355
Not known*13614553334
Totals5062,391792,976

The following table shows the original relationship between adopted children and their new parents.

Relationship1971197219731974
Strangers2,1762,1362,0001,821
One parent and spouse738801770903
Relative or close friend317343318252
Totals3,2313,2803,0882,976

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 denned 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 0.85 per 100 births in 1974.

The registration of still births during each of the latest 6 years were as follows.

YearMale Still BirthsFemale Still BirthsTotalMale Still Births per 1,000 Female Still BirthsPercentage of Still Births to
Living BirthsAll Births
19703543176711,1171.081.07
19713383226601,0501.021.01
19723273166431,0351.021.01
19732842745581,0360.920.91
1974264247511x1,0690.860.85x
1975....472....0.83

The percentage of ex-nuptial births among still-born infants in 1974 was 19.96, and among infants born alive, 15.79.

Of the total of 511 still births in 1974, 440 were non-Maori and 71 Maori; of the Maori total 39 were males and 32 were females.

4 C—DEATHS

NUMBERS AND RATES—The death rate (by which is usually meant the crude death rate, the number of deaths per 1,000 of total mean population) is less subject to fluctuation than the birth rate. In the absence of wars, epidemics, and other large-scale disasters, it changes slowly. The New Zealand crude death rate was 8.53 in 1924 and fifty years later, in 1974, it was 8.30. In between, it had reached a peak of 11.05 in 1942, during the Second World War, and the figure for the latest year (1974) is the low point. In contrast, the birth rate (21.63 in 1924 and 18.25 in 1975) had been as low as 17.38 in 1935 and as high as 27.64 in 1947. Depressions, wars, peace, prosperity, and the popularisation of improved methods of birth control have all left their mark on the birth rate.

Under normal conditions, the most important factor affecting the crude death rate is the age-structure of the population, which (like the death rate itself) changes slowly. An aging population will tend to have a high death rate, while a young one (provided that infant mortality is not abnormally high) will have a low one.

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
197023,4411,39924,8409.036.268.81
197223,4541,34724,8018.755.718.50
197323,9321,38025,3128.745.708.50
197423,9881,27325,2618.585.158.30
197523,7801,33325,1138.345.288.09

The chief merit of the crude death rate is that it is easily calculated, requiring only the number of deaths and the size of the population "at risk". However, it is very misleading when comparisons are being made between two or more populations with different age-structures, such as the Maori and non-Maori populations of New Zealand. The Maori population is a "young" one, with a high proportion of children and young people in those age groups in which the death rate is normally very low, and relatively few elderly people in those age groups in which the death rate is normally high. The non-Maori population is older, with a considerably smaller proportion of children and young people and a larger proportion of elderly people. The result is that a comparison of crude death rates gives a false picture of Maori mortality as compared with non-Maori.

In the following table for 1973 adjustments made to effect a truer comparison show that mortality for Maoris is relatively higher than for non-Maoris; in addition, a comparison is supplied in age-specific rates for the two races in each sex (age-specific rates are the number of deaths per 1,000 (or per 10,000, etc.) of the population in the specified age groups).

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
Maori68.3152.460.16.529.547.3239.0943.1
Non-Maori95.6..44.14.816.917.3127.9741.9
Females
Maori47.00142.637.34.510.333.1178.3738.2
Non-Maori79.0..32.72.45.610.768.0552.5
Both Sexes
Maori57.8149.648.95.520.040.2209.1843.4
Non-Maori87.3..38.53.611.414.197.8632.9

For both Maoris and non-Maoris the death rate in males exceeds the death rate in ales 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
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
19729.127.898.50115
19739.357.658.50122
19749.037.568.30120
19758.897.308.09122

Deaths of males and females during the latest 3 years are shown in the following table.

YearDeaths
MalesFemalesTotal
197313,92911,38325,312
197413,75611,50525,261
197513,80211,31125,113

DISTRIBUTION OF DEATHS OVER THE YEAR—In 1974 the months during which the greatest number of deaths occurred were August, July and May, with totals of 2,444, 2,376, and 2,322 respectively. Excluding December (a proportion of deaths occurring in that month not being registered till January), February had the least number of deaths (1,711), followed by November with 1,827.

AGES AT DEATH—Deaths registered during the year 1974 are shown according to age in the following table.

Age, in YearsMalesFemalesTotal
Under 1557365922
1- 410997206
5- 96749116
10-148751138
15-1924195336
20-2420065265
25-2916575240
30-3415271223
35-39161121282
40-44265203468
45-49461295756
50-547124441,156
55-599785501,528
60-641,4628702,332
65-691,7651,0232,788
70-741,9571,4383,395
75-791,6491,6043,253
80-841,3171,7333,050
85-899631,4242,387
90-944087361,144
95-9975171246
100 and over52530
Totals13,75611,50525,261

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 1974.

Age, in YearsNumber of DeathsPercentage of Total DeathsPercentage of Maori Deaths in Total Deaths per Age Group
Non-MaoriMaoriNon-MaoriMaori
Under 59461823.9514.3016.13
5-14208460.873.6118.11
15-24514872.146.8414.48
25-441,0491644.3712.8813.52
45-645,35042222.3033.157.31
65 and over15,92137266.3729.222.28
  All ages23,9881,273100.00100.005.04

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
197117.911.070.461.441.332.897.3420.6948.39137.67
197319.00x1.060.501.821.362.717.5320.5949.17134.87
197418.260.860.481.601.472.627.3719.8947.02134.05
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
197115.100.820.280.560.911.874.7110.3725.47100.05
197313.30x0.870.260.610.771.844.3810.5626.55102.25
197412.660.800.330.610.702.074.7810.8526.3699.20
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
197116.540.950.371.011.122.396.0215.4335.94113.96
197316.22x0.960.381.231.072.285.9715.4336.92114.18
197415.540.830.411.111.092.356.1015.2235.84111.91

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
196864.6269.63
196964.6570.10
197064.4070.19
197164.7570.04
197264.6570.48
197364.0670.63
197463.8969.91

The average age of death of Maoris in 1974 was 45.81 and 47.32 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 1971 population census, together with mortality statistics for 1970-72.

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. Further details concerning life table methodology and construction and trends in New Zealand life expectancies can be obtained from New Zealand Life Tables 1970-72.

Exact Age Years)Life Expectancy (Years)
MalesFemales
069.0975.16
169.2775.15
268.3874.26
367.4573.31
466.4972.35
565.5371.38
1060.6666.49
1555.7861.59
2051.1656.74
2546.5351.89
3041.8047.03
4032.4037.46
5023.5228.37
6015.8219.91
709.8212.48
805.536.76
902.943.29
1001.231.31

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. This trend has continued up to 1970-72 for females, but the decline in male mortality between 1965-67 and 1970-72 was not sufficient to offset the increase between 1960-62 and 1965-67, and male life expectancy has not returned to the 1960-62 level. The following 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
1970-7269.0951.1615.8275.1656.7419.91

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 1970-72.

Exact Age (Years)Life Expectancy (Years)
MalesFemales
060.9664.96
161.5265.58
260.7964.80
359.8963.88
458.9662.94
558.0261.98
1053.2657.12
2043.9747.54
3035.1538.14
4026.5029.22
5018.9021.14
6012.9614.60
708.729.90
805.045.94

Life expectancy at birth for Maori males decreased by 0.48 years between 1965-67 and 1970-72 while that for Maori females increased by 0.18 years. This is the first time that a decline in Maori male life expectancy has been experienced in the history of Maori life tables—first produced in 1950-52. It can be attributed to increased mortality in most ages resulting from a greater number of fatal accidents and a higher incidence of cancer. A similar decline in life expectancy was experienced by non-Maori males between 1960-62 and 1965-67, while similar trends were evident in some other western countries about this time.

The expectation of life of Maoris is shorter than that of non-Maoris at all except the highest ages. A comparison at age 0 shows that life expectancy is 8.13 years greater for non-Maori males and 10.20 years greater for non-Maori females. For the period 1965-67, the differences were 7.23 years and 10.06 years respectively.

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.)

CountryPeriodLife Expectancy at Birth (Years)
MalesFemales
Australia1965-6767.6374.15
Canada1970-7269.3476.36
Denmark1971-7270.776.1
England and Wales1970-7268.975.1
France197268.674.4
Netherlands197371.277.2
New Zealand1970-7268.5574.60
Norway1971-7271.2477.43
Scotland1970-7267.1773.54
Sweden197372.1277.66
United States197267.475.2
U.S.S.R.1967-686474

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.

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 1965 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
197024,8405,4184,4749,89239.82
197224,8015,6554,78510,44042.10
197325,3125,9285,06310,99143.42
197425,2616,0735,19511,26844.61

Numbers and rates of cremations for statistical areas in 1974 are shown in the following table.

Statistical AreaDeaths RegisteredCremationsRate per 100 Deaths Registered
MalesFemalesTotal
Northland797714511614.55
Central Auckland6,3291,8911,7003,59156.74
South Auckland - Bay of Plenty3,1456514451,09634.85
East Coast47357349119.24
Hawke's Bay1,23228622951541.80
Taranaki87118714333037.89
Wellington4,6511,2291,1222,35150.55
Marlborough26941337427.51
Nelson6741069720330.12
Westland234139229.40
Canterbury3,8311,0298921,92150.14
Otago1,85047540588047.57
Southland9053741788.62
Totals25,2616,0735,19511,26844.61

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, 19 percent of non-Maori and 11 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.

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 (plague, smallpox, typhus, and malaria) are not listed in the table as there were no deaths from these causes in the years shown.

Cause of DeathNumber of DeathsRate per Million of Mean Population
197119721973197119721973
Cholera 1----
Typhoid fever-1----
Bacillary dysentery and amoebiasis1-----
Enteritis and other diarrhoeal diseases505337181812
Tuberculosis of respiratory system273933101311
Other tuberculosis, including late effects445255161818
Whooping cough13-11-
Streptococcal sore throat and scarlet fever1-----
Meningococcal infection335112
Measles58123 
Syphilis and its sequelae8106332
AH other infective and parasitic diseases839781293327
Malignant neoplasms, including neoplasms of lymphatic and haematopoietic tissue4,4864,5264,7081,5911,5521,581
Benign neoplasms and neoplasms of unspecified nature37322413118
Diabetes mellitus372459467132157157
Avitaminosis and other nutritional deficiency4412114
Anaemias456345162215
Meningitis43392715139
Active rheumatic fever545212
Chronic rheumatic heart disease249263212889071
Hypertensive disease354400426126137143
Ischaemic heart disease6,9327,1007,1132,4592,4342,388
Other forms of heart disease881624629312214211
Cerebrovascular disease3,3103,4473,5131,1741,1821,179
Influenza23316781122
Pneumonia1,1951,041935424357314
Bronchitis, emphysema and asthma9871,0301,117350353375
Peptic ulcer107130159384553
Appendicitis171513654
Intestinal obstruction and hernia909584323328
Cirrhosis of liver104125143374348
Nephritis and neophrosis12895146453349
Hyperplasia of prostate673964241321
Abortion-1----
Other complications of pregnancy, childbirth and the Puerperium, delivery without mention of complication14914535
Congenital anomalies303308342107106115
Birth injury, difficult labour and other anoxic and hypoxic conditions176163173625658
Other causes of perinatal mortality33229125211810085
Symptoms and ill-defined conditions10412596374332
All other diseases1,8642,1332,203661731740
Motor vehicle accidents674719837239247281
AH other accidents895904914317310307
Suicide and self-inflicted injuries237262261849088
All other external causes514971181724
Totals24,30924,79325,2908,6218,5018,490

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 75 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.

Cause of DeathNumber of DeathsRates per Million of Population (Non-Maori: Crude Rate—Maori: Adjusted Rate)
1972197319721973
Non-MaoriMaoriNon-MaoriMaoriNon-MaoriMaoriNon-MaoriMaori
Cholera1-------
Typhoid fever1-------
Enteritis and other diarrhoeal diseases3815271014651026
Tuberculosis of respiratory system29102013111007171
Other tuberculosis, including late effects401243121514216102
Whooping cough21--13--
Meningococcal infection215-132-
Measles441-110..-
Syphilis and its sequelae8242319127
All other infective and parasitic diseases8017661530922499
Malignant neoplasms, including neoplasms of lymphatic and haematopoietic tissue4,3092174,5052031,6072,8681,6462,555
Benign neoplasms and neoplasms of unspecified nature275231104983
Diabetes mellitus4213843433157480159422
Avitaminosis and other nutritional deficiency4-1111-43
Anaemias61244123351628
Meningitis3451981313725
Active rheumatic fever312311119
Chronic rheumatic heart disease21944178348243465320
Hypertensive disease3584238244134561140546
Ischaemic heart disease6,8492516,8612522,5553,6122,5073,652
Other forms of heart disease5804460425216747221412
Cerebrovascular disease3,369783,4081051,2571,0341,2451,448
Influenza28364310582340
Pneumonia9746788055363645322644
Bronchitis, emphysema, and asthma959711,045723589873821,023
Peptic ulcer124614910469654143
Appendicitis13213-5105-
Intestinal obstruction and hernia88780433512950
Cirrhosis of liver1169136743855077
Nephritis and nephrosis841112521316546237
Hyperplasia of prostate37263114562328
Abortion-1---6--
Other complications of pregnancy, childbirth, and the Puerperium, delivery without mention of complication8110436417
Congenital anomalies271373162610113211567
Birth injury, difficult labour and other anoxic and hypoxic conditions139241472652615467
Other causes of perinatal mortality257342292355878457
Symptoms and ill-defined conditions1205933451153479
All other diseases2,0201132,0621417541,1507531,371
Motor vehicle accidents606113700137226563256648
All other accidents8436183084314387303466
Suicide and self-inflicted injuries2557252995169250
All other external causes427611016342246
Totals23,4221,37123,8921,3988,73714,8928,73014,960

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 moat 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 and kidney 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 1975 by the National Health Statistics Centre of the Department of Health. This report covers mortality from cancer in 1972, and also surveys all cases reported to the National Cancer Registry in 1971 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 1973 there were 4,708 deaths from cancer, of which 203 were Maori. While the 1973 non-Maori crude cancer death rate of 164.6 was much higher than the Maori crude rate of 83.9 (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 RatiosNumber of Deaths from CancerCrude Death Rate per 100,000Standardised Mortality Ratios*

*Base years 1950-52 = 100.

  Males  Females 
19501,431148.2991,286134.697
19551,660151.31041,511142.2100
19601,724144.31011,566132.592
19652,034153.01121,783135.395
19682,225161.31171,844133.993
19692,282164.11191,875134.693
19702,436173.01262,024143.599
19712,479175.21262,007142.396
19722,411165.41212,115145.099
19732,567172.31262,141143.899

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 increased steadily from the 1960 level of 101 to 126 in 1973. 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 standardised mortality ratio for females remained fairly constant at around 93 from 1960 to 1969, but increased to 99 for 3 of the last 4 years. This increase can also be attributed to a steep rise in lung cancer among females.

A classification of cancer deaths during 1973 according to age subdivisions, ethnic origin, and sex is now given. Eighty-seven percent of deaths from cancer during 1973 were at ages 45 and upwards, and 65 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-Maori1611.72.6139.93.0
 Maori420.63.4210.72.9
5-14Non-Maori248.618.2197.229.7
 Maori12.64.0---
15-24Non-Maori239.55.6114.88.5
 Maori416.45.6312.612.0
25-44Non-Maori11734.720.011234.432.2
 Maori1245.79.71972.321.8
45-64Non-Maori848317.824.8665245.436.1
 Maori43387.716.245417.823.4
65 and overNon-Maori1,4321,339.718.11,225845.815.3
 Maori431,748.018.5271,158.815.7
  All ages Non-Maori2,460179.8*18.82,045149.4*18.9
 Maori10787.5*12.89680.1*17.1

Cancer contributes substantially to the total of non-Maori deaths at all ages. In the non-Maori population, one death in three among females of from 25 to 64 years of age is from cancer; among males in the same age groups the proportion is one in four.

A summary of all cancer deaths occurring in New Zealand during 1973 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 pharynx492675331725
Oesophagus7141112482838
Stomach24012036016181121
Intestine, except rectum261304565175204190
Rectum147105252997185
Larynx2953419311
Lung, bronchus, and trachea698193891468130299
Bone and connective tissue322254211518
Skin455398303633
Breast14494501302151
Cervix, uteri-8787-5829
Other and unspecified parts of uterus-5252-3517
Prostate260-260174-87
All other and unspecified sites508489997341329335
Leukaemia and aleukaemia123116239837880
Lymphosarcoma and other neoplasms of lymphatic and haematopoietic tissue10379182695361
Totals2,5672,1414,7081,7231,4381,581

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. 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
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
1970650132301750.210.226.615.4
1971643121351449.69.331.012.7
1972587151472143.811.339.418.0
1973664170342348.512.427.819.2

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 greater 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
1966-681969-711972-731966-681969-711972-73
Buccal cavity and pharynx598878876478
Oesophagus968896908396
Stomach646057565146
Large intestine, except rectum111126124888993
Rectum951131318489102
Biliary passages and liver125157159789683
Pancreas921031031069692
Larynx877091463247
Lung, bronchus and trachea211241229177162329
Skin (including melanoma)117141129142128142
Breast1252533100103103
Uterus, all parts---716969
Ovary, fallopian tube---97111110
Prostate104112118---
Kidney1131111027710079
Bladder, urinary organs11310712393104137
Brain, nervous system1101421607281156
Lymphosarcoma and reticulo-sarcoma92113126115104104
Hodgkin's disease148110126122116106
Leukaemia and aleukaemia112120118131129137

The upward trend in the total male cancer death toll can be ascribed chiefly to the rise in lung and bronchus cancer, already commented upon. Lung cancer among females has increased steeply in the last 2 years, after a slight drop in the 1969-71 period.

Heart Disease—Heart disease is still the leading cause of death in New Zealand, but the mortality rate has dropped a little in each of the latest five years for which figures are available, from 30.3 per 10,000 population in 1969 to 27.8 in 1973. However, when allowance is made for the general aging of the population by employing the standardised mortality ratio and taking 1950-52 as having a base rate of 100, it is seen that, for males, the 1969 level was the same as for 1950-52 and, by 1972, the rate had fallen to 93 (although, it is true, there was a slight increase to 95 in 1973). The rate for females had fallen to 80 by 1963, and it has continued to fall steadily since then, to reach a level of 66 in 1973.

A disease phenomenon of recent years has been the rapid increase in deaths assigned to coronary heart disease, and in 1973 no less than 28 percent of all deaths were due to this single disease entity. During the 10 years from 1963 to 1973 there was a rise of 15 percent for males and 17 percent for 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 below.

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.

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
19704,886993,405724,2281692,560177
19714,938983,413704,3131722,619176
19724,784933,515704,2621642,838187
19734,922953,361664,4351682,678173

Coronary heart disease is predominantly a disease of old are in both sexes, although among men appreciable numbers of deaths occur in middle age. There are marked differences in the mortality from the disease both between men and women, and between non-Maoris and Maoris.

The following table averages both the numbers and the age-specific rates for coronary heart disease in both non-Maoris and Maoris over the 5 years 1969-73.

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-Maori946.340128.099986.02,624257.7
Maori1110.62741.443108.163275.1
Females
Non-Maori231.6976.831726.02,125153.6
Maori54.31524.02568.939181.1

For non-Maoris at ages 45 to 54 years male coronary heart disease rates exceed female rates by over 4 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 over twice as great at ages 35 to 44 years, almost four times 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
19708152251,04015.1127.1716.72
19718442221,06615.0526.5416.54
1972x83015898814.9420.0815.63
197383614998515.6920.1816.22
197477314992214.8721.3415.54
197578412090415.7217.7015.96

Male rates of infant loss are about 40 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 1973. 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 1973

(Source: World Health Statistics Report, Vol. 28, No. 10.)

*1972 Rates.

Sweden9.9
Finland10.0
Netherlands11.5
Norway11.8
Denmark12.2*
Switzerland13.2
New Zealand16.2
Australia16.7*
England and Wales16.9
France15.5
Germany (East)16.0
Ireland18.0
Scotland19.0
United States17.6
Belgium17.0
Czechoslovakia21.2
Germany (West)22.7
Austria23.8
Bulgaria26.2
Italy25.7

One out of every seven infant deaths is a Maori infant death and the Maori rate of loss is just over 25 percent higher than 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 1973.

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-Maori28417865527310837
Maori431686780147
All races32719473594390984
Rates per 1,000 Live Births
Non-Maori5.33.31.29.95.815.7
Maori5.82.21.19.110.819.9
All races5.43.21.29.86.416.2

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 infant mortality rates per 1,000 live births for the two sexes combined at different periods during the first year of life are now given for a series of 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
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
19715.11.72.11.34.97.01.62.62.212.7
19724.91.62.31.34.94.81.32.51.410.3
19735.31.61.71.25.85.80.71.51.110.8

The following diagram illustrates infant mortality rates.

Causes of Infant Mortality—Deaths from the principal causes of infant mortality, and the rate per 1,000 live births, are shown in the following table for 1973.

Cause of DeathNumber of DeathsRate per 1,000 Live Births
Non-MaoriMaoriTotalNon-MaoriMaoriTotal
Influenza, pneumonia, and bronchitis92231151.73.11.9
Gastro-enteritis, diarrhoea, also dysentery99180.21.20.3
Congenital anomalies193202133.62.73.5
Neonatal disorders arising from certain diseases of the mother528601.01.11.0
Birth injury, difficult labour, and other anoxic and hypoxic conditions395440.70.70.7
Asphyxia of newborn unspecified313340.60.40.6
Haemolytic disease of newborn11-110.2-0.2
Hyaline membrane disease385430.70.70.7
Immaturity and multiple pregnancy531541.00.10.9
All other causes319733926.09.96.5
Total infant deaths83714798415.719.916.2

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.

CauseNumberRate
19721973
 19721973Non-MaoriMaoriTotalNon-MaoriMaoriTotal
Still births64855110.110.810.19.18.39.0
Deaths under 1 week5535218.88.68.78.78.08.6
Perinatal deaths1,2011,02218.719.418.817.716.317.5

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.

Cause197119721973
Pre-eclampsia, eclampsia and toxaemia unspecified-32
Abortion-1-
Complications of—   
  Pregnancy4-3
  Delivery336
  Puerperium733
Totals141014

DEATHS OF PRE-SCHOOL CHILDREN—A review of the mortality rates of children aged between one and under five years in New Zealand and in selected countries in 1972 has been prepared by the Department of Health. The data, abstracted from the World Health Statistics Annual, reveals New Zealand as having a relatively poor record in this field among the developed nations of the world. The Department of Health states that the purpose of the review is "to identify those causes of death which need special study if New Zealand's sorry performance in caring for its pre-school children is to be improved".

The table following lists the 25 countries which had lower mortality rates for pre-school children in 1972 than did New Zealand.

MORTALITY RATES FOR PRE-SCHOOL CHILDREN 1972

CountryDeath Rates per 100,000 Population Aged 1-4 Years

*1971.

(Source: World Health Statistics Annual 1972.)

Sweden47.6
Denmark63.5
Finland66.2
Israel71.6
Norway73.2
England and Wales74.8
France75.2
Czechoslovakia77.5
Hungary78.8
Netherlands79.3
United States*79.6
Scotland80.5
Ireland80.8
Greece81.7
Italy83.0
Switzerland84.0
German Federal Republic86.4
Australia*87.2
Canada87.7
Northern Ireland88.1
Belgium*89.9
Austria90.8
Spain90.8
Hong Kong95.0
Puerto Rico95.2
New Zealand95.3

Note: Countries with less than one million population have been excluded from table.

Principal causes of deaths among New Zealand pre-school children are shown in the next table, together with the death rates from these causes in Sweden (which had the lowest child-mortality rate of any country), England and Wales, and Australia.

CAUSES OF DEATH IN CHILDREN AGED 1 TO 4 YEARS 1972

Cause of DeathNumber of Deaths per 100,000 Children aged 1-4 Years
SwedenEngland and WalesAustralia*New Zealand

*1971.

Infective and parasitic diseases17118
Malignant neoplasm6545
Leukaemia2354
Meningitis11..2
Epilepsy..112
Acute respiratory infections1426
Viral and other pneumonia1786
Bronchitis, emphysema and asthma..112
Spina bifida..2..2
Congenital anomalies of heart4656
All other congenital anomalies5469
Motor vehicle accidents461115
Accidental drowning and submersion63119
All other accidents59911
All other causes1015149
All causes48758795

This review has been based upon one year's deaths only. The question of how representative the 1972 figures are of each country's mortality experience may be a matter open to discussion. Nevertheless, the difference between the New Zealand and the Swedish mortality rates among pre-school children is so large that some direct comparison is justified. If New Zealand is to approach the mortality rate of Sweden, five disease groups could well receive close attention, for each of which the New Zealand rate is substantially higher than that for Sweden. The groups are:

  1. Infective and parasitic diseases (New Zealand eight times higher).

    Although, among the countries surveyed, Australia (11 per 100,000) and Norway (9 per 100,000) had higher rates than New Zealand (8 per 100,000), the rate for Sweden was only 1 per 100,000. Included in the New Zealand deaths were 5 cases of measles and 2 each of chickenpox and meningococcal infections. The remainder included single cases of such diseases as pulmonary tuberculosis, rubella, and toxoplasmosis.

  2. Acute respiratory infections (New Zealand six times higher).

    The New Zealand rate (6 per 100,000) was the highest among the 26 countries listed in the survey. Seven of the countries had a rate no greater than 1 per 100,000.

  3. Viral and other pneumonia (New Zealand six times higher).

    The countries surveyed tended to fall into two groups, for example, Sweden, Denmark, Finland, Norway and France had rates of 2 or less per 100,000, while Israel, New Zealand, England and Wales, Czechoslovakia and Australia (in that ascending order) had rates between 5 and 8 per 100,000.

  4. Motor vehicle accidents (New Zealand four times higher).

    New Zealand had the highest rate among the surveyed countries (15 per 100,000), followed by Finland (13 per 100,000) and by Denmark and Australia, each with 11 per 100,000. Sweden had a very low rate of 4 per 100,000. Only 11 of the 36 New Zealand children killed in motor vehicle accidents were passengers, the remaining 25 being pedestrians.

  5. All other accidents (New Zealand twice as high).

    The highest rates were for France (13 per 100,000), Czechoslovakia and New Zealand, each with 11 per 100,000. Among the 26 New Zealand deaths assigned to this heading were 11 accidental falls. There were also three cases each of transport accidents (not involving motor vehicles) and inhalation and ingestion of food. Two pre-schoolers died of crush injuries and two of burns. It is interesting to note that only one case of accidental poisoning occurred.

DEATHS FROM EXTERNAL CAUSES—Deaths from external causes, apart from suicide, claim approximately 7 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. 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
197119721973197119721973

*Includes drowning from water transport.

Motor-vehicle accidents674719837235247281
Other transport accidents423331151110
Accidental poisoning41203114710
Accidental falls454527486158181163
Accidents caused by machinery4427251598
Accidents caused by fire and explosion of combustible material283648101216
Accidents caused by hot substance, corrosive liquid, steam, and radiation777222
Accidents caused by firearms171220647
Accidental drowning and submersion*135108121473741
All other accidental causes118117125414042
Homicide and injury purposely inflicted by other persons (not in war)2530259108
Totals1,5851,6361,756553561588

Drownings are a leading cause of accidental death in New Zealand. Included in the preceding table for 1973 are 33 deaths from drowning due to accidents in water transport.

Transport Accidents—The number and rate of deaths resulting from railway, motor vehicle, and aircraft accidents during each of the last 11 years are as follows. Road accidents are further analysed in the section on Roads and Road Transport.

YearDeaths Due to AccidentRate per 10,000 of Mean Population
RailwayMotor VehicleAircraftRailwayMotor VehicleAircraft
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
197112674120.042.350.04
19729719100.032.470.03
197314837120.052.810.04

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
197119721973197119721973
Home (including home premises and vicinity and any non-institutional place of residence)350392376122134126
Farm (including buildings and land under cultivation, but excluding farm and home premises)583750201317
Mine and quarry462121
Industrial place and premises323042111014
Place for recreation and sport141222847
Street and highway221624758
Public building (building used by the general public or a particular group of the public)131714565
Residentual institution (homes, hospitals, etc.)139142147494949
Other specified places93113118323940
Place not specified576876202326
Totals782833871273286292

Approximately 43 percent of fatal non-transport accidents occurred in or about the home.

Falls are the chief cause of home fatalities, exacting a heavy toll of the aged and infirm. This was 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.

Water Accidents—The following table shows drownings during 1974.

LocationAge in Years
Under 55-1516-3031-50Over 50Totals*

*Includes victims of unspecified age.

†Public and private.

Boating accidents111610437
Rivers and streams9887436
Seas and beaches-3115423
Harbours12-139
Tanks, ponds, troughs, sump holes2----2
Lakes, lagoons, and reservoirs21--3
Swimming pools and baths921-113
Fishing off rocks--3-14
Other11---2
Total2419402317127

Suicide—There were 252 suicidal deaths of non-Maoris in 1973—173 males and 79 females—the death rate per 100,000 of population being 12.6 for males and 5.8 for females. For Maoris there were 9 suicidal deaths—8 males and 1 female—the death rates per 100,000 of population being 6.5 for males and 0.8 for females.

Rates per 100,000 of population showing the age distributions, averaged over the years 1971 to 1973, are shown next for the total population, by age groups.

Age Group (Years)
Sex5-910-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-7980 +
Males0.11.18.211.010.113.015.117.022.727.023.821.715.937.733.428.1
Females-0.43.07.17.06.54.56.410.315.511.915.514.210.49.84.7

These figures show the typical increase in the suicide rates among the middle aged, and the generally lower suicide rate among women.

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

Annual Average DuringMalesFemales
1962-6483136
1965-6795142
1968-7098147
1971-7386x130x

Compared with the base period, the suicide rate among males has fallen slightly, while that for females shows a substantial rise.

4 D—MARRIAGES

GENERAL—Marriage may be solemnised in New Zealand either by a minister included in 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 be sought 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.

A Bill designed to increase the facilities for getting married (including the granting of the right for approved members of non-religious bodies to solemnise marriages) was presented to Parliament in 1975 but was not passed before the parliamentary session ended.

Particulars regarding divorce will be found later in this subsection.

NUMBERS AND RATES—The numbers of marriages and rates during the latest 22 years are shown below. The marriage rate, like the birth rate, has been declining in recent years.

YearNumberRate per 1,000 of Population
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
196824,0578.74
196924,9718.98
197025,9539.20
197127,1999.50
197226,8689.21
197326,2748.82
197425,412x8.35
197524,5347.90

Comparison with Other Countries—Marriage rates for certain countries for 1974 are given below. (Source: United Nations Monthly Bulletin of Statistics.)

CountryRate per 1,000 Mean Population
Australia8.3
Austria6.5
Belgium7.5
Canada9.1
Finland7.5
France7.6
Germany, East8.1
Germany, West6.1
Hungary9.6
Ireland, Republic7.3
Israel9.5
Italy7.3
Jamaica4.5
Japan9.2
Netherlands8.1
New Zealand8.4
Norway6.8
Spain7.6
Sweden5.5
Switzerland6.0
United Kingdom7.8
United States10.5
Yugoslavia8.5

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

YearSingleWidowedDivorcedTotal Persons Married
BridegroomBrideBridegroomBrideBridegroomBride
197023,00323,1101,0021,0351,9481,80851,906
197124,01424,1951,0001,0492,1851,95554,398
197223,60723,6611,0171,0812,2442,12653,736
197322,76822,9701,0201,0392,4862,26552,548
197421,70521,9629721,0352,7352,41550,824

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
197021,8262619162615142271,023260665
197122,8142559452485022501,133292760
197222,3102631,0342185292701,133289822
197321,4262531,0892445262501,300260926
197420,3462501,1092234952541,3932901,052

During the years 1938-40 there were 95 male divorcees who remarried for every 100 female divorcees who remarried. In the period 1970-74 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 1970-74 was that 105 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 of years but now appears to be levelling off. On 1 January 1971 the age of majority was lowered from 21. to 20 years of age. In 1974 one bride in every three was under 20 years of age, the proportion of grooms being one in twelve.

Of the persons married in 1974 10,165 or 20.00 percent, were under 20 years of age; 23,885 or 47.00 percent, were returned as 20-24 years; 8,294 or 16.32 percent, as 25-29 years; 4,181 or 8.22 percent, as 30-39 years; and 4,299 or 8.46 percent, as 40 years of age or over.

The following table relates to the 1974 year.

Age of Bridegroom, in YearsAge of Bride, in YearsTotal Bridegrooms
Under 2020-2425-2930-3435-3940-4445 and Over
Under 201,7663281521-12,113
20-245,4136,84559183162212,952
25-297442,9511,314227601215,309
30-341015476212689535141,681
35-39161612512401125140871
40-4445310211412211182588
45 and over848911201692081,2541,898
Total brides8,05210,9332,9851,0545754191,39425,412

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

PeriodUnder 21*21-24*25-2930-3435-3940-4445 and OverTotals

*Under 20 and 20-24 respectively from 1971.

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
19728.8353.9019.036.172.832.167.08100.0
19738.6552.5519.886.243.042.387.26100.0
19748.3150.9720.896.623.432.317.47100.0
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
197232.3345.959.443.651.881.555.20100.0
197332.2244.4910.633.801.991.675.20100.0
197431.6943.0211.754.152.261.655.48100.0

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

YearAverage Age at Marriage
BridegroomsBrides
196327.9324.63
196427.7424.45
196527.4324.24
196626.7623.65
196726.5323.45
196826.3323.29
196926.4523.56
197026.3623.45
197126.2523.40
197226.3823.54
197326.5423.68
197426.7823.94

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
Age in Years
197023.8540.3756.8521.2636.1350.07
197123.6640.3357.6421.1936.0250.91
197223.7340.0657.6421.2035.8050.67
197323.7639.2957.4521.3035.1251.39
197423.8439.1557.4521.4435.0651.04

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 1974 was 20 years. In the case of bridegrooms the most popular age has varied and for recent years it has been 21 to 24; in 1974, it was 21 years.

Marriage of Minors—Of every 1,000 men married in 1974, 83 were under 20 years of age, while 317 in every 1,000 brides were under 20, Since 1 January 1971 the age of majority has been 20 years. In 1,766 marriages in 1974 both parties were given as under 20 years of age, in 6,286 marriages the bride was returned as a minor and the bridegroom as an adult, and in 347 marriages the bridegroom was a minor and the bride an adult.

As already stated, the proportion of minors among persons marrying, which has been increasing over a fairly long period, now appears to be levelling off. One main reason for this is the changing age-structure of the population, with a slowly-diminishing proportion consisting of minors of marriageable age.

In the table below figures are given for the last 5 years.

YearAge in YearsTotal Minors
161718192016-20 Years16-19 YearsRate per 100 Marriages 16-20 YearsRate per 100 Marriages 16-19 Years
Bridegrooms
1970271936791,2262,1154,2402,12516.348.19
1971342517181,4582,5525,0132,46118.439.05
1972402297111,3922,6044,9762,37218.528.83
1973302466791,3182,5354,8082,27318.308.65
1974311916271,2642,4254,5382,11317.868.31
Brides
19706261,4392,4573,5203,82511,8678,04245.7230.99
19716971,6072,7563,6574,16912,8868,71747.3832.05
19727481,4942,7323,7124,11412,8008,68647.6432.33
19736931,4452,6803,6473,88912,3548,46547.0232.22
19746111,2812,5833,5773,66711,7198,05246.1231.69

MARRIAGES BY MINISTERS OF VARIOUS CHURCHES—Of the 25,412 marriages performed in 1974, Anglican clergymen officiated at 6,041, Presbyterians at 5,451, Roman Catholics at 3,646 Methodists at 1,751, and clergymen of other churches at 2,121, while 6,402 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
1968196919701971197219731974
Anglican26.6425.9526.3925.6425.0724.4523.77
Presbyterian23.4623.8523.5222.5522.6521.7321.45
Roman Catholic15.8315.3315.2415.4415.1314.7814.35
Methodist7.968.007.697.396.857.226.89
Others8.127.857.207.447.607.788.35
Before Registrars17.9919.0219.9621.5422.7024.0425.19
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 1971, 31.3 percent were recorded as adherents of the Anglican Church, 20.4 percent Presbyterian, 15.7 percent Roman Catholic, 6.4 percent Methodist, and 26.2 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 4,170 in February 1975 and the churches to which they belong are shown hereunder.

ChurchNumber
Roman Catholic Church883
Anglican (Church of England)736
Presbyterian Church of New Zealand664
Methodist Church of New Zealand336
Baptist223
Salvation Army244
Ratana Church of New Zealand133
Brethren135
Latter Day Saints118
Ringatu Church66
Assemblies of God54
Associated Churches of Christ63
Jehovah's Witness76
Seventh Day Adventist42
Apostolic Church29
Liberal Catholic Church20
Christian Revival Crusade8
Evangelical Lutheran Concordia Conference16
Absolute Reformed Maori Church of Aotearoa13
Congregational Union11
Church of Te Kooti Rikirangi17
Commonwealth Covenant Church11
Reformed Churches of New Zealand14
Evangelistic Church of Christ9
Elim Church8
Congregational Church of Samoa16
Church of the Nazarene12
Open Air Campaigners (NZ)10
Others203
Total4,170

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 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 led to an upsurge in petitions for divorce in 1969.

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 1 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 Granted

*Includes nullity cases which are usually very few; they totalled only two in 1971, and one in each of the three latest years.

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
19714,0723,5223,3472-
19724,2693,3873,4711-
19734,8303,9503,61633
19745,3684,6294,4572-

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

GroundsPetitions FiledDecrees Absolute Granted
Husbands' PetitionsWives' PetitionsHusbands' PetitionsWives' Petitions
19731974197319741973197419731974
Adultery682715413535477555333354
Desertion5311313814410910494128
Separation by agreement1,2121,2431,2791,3548881,1029251,183
Separation by Court order or decree14722023635283133164257
Living apart304326320333242310279307
Non-consummation168856675
Other62161833610
Totals2,4202,6272,4102,7411,8082,2131,8082,244

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 997 of the 4,457 cases where decrees absolute were granted during 1974 there was no living issue of the marriage. The number of living issue was 1 in 840 cases, 2 in 1,152 cases, 3 in 786 cases, and 4 or more in 682 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
1970197119721973197419701971197219731974
Under 5164184216191244182188168221250
5– 9427478465514639489538592574728
10–14191310343397459305341358386499
15–19219221266242300206197228258320
20–29332350335345419296325312305359
30 and over1391281251191529187636488
Totals1,4721,6711,7501,8082,2131,5691,6761,7211,8082,244

The number of living issue affected by the decrees absolute of their parents during each of the last 5 years were as follows: 1970, 5,927; 1971, 6,635; 1972, 6,872; 1973, 7,457; and 1974, 8,722.

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 1974.

Duration of Marriage (in Years)Age (in Years) at Marriage
Under 2020–2425–2930–3435–3940–4445 and over (Including not Stated)Total
Husbands (All Petitions)
Under 5393037618161034496
5–9207744202574632771,365
10–1411951117570291534953
15–19493141654931713628
20 and over41539292832410261,015
Totals4552,411910277146741844,457
Wives (All Petitions)
Under 521320430891121496
5–962750894342721541,365
10–144073956826191523953
15–19211297603114411628
20 and over24653415141174221,015
Totals1,7041,93840314086551314,457

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, unless the court is satisfied that an attempt at reconciliation would be inexpedient. Domestic proceedings became a separate division from civil and criminal proceedings in Magistrates' Courts. (See Section 8: Justice.)

In 23 centres local Marriage Guidance Councils provide trained conciliators and in addition to this the Court Conciliation Centre in Auckland, using counsellors trained in a marriage guidance setting, provide a full-time service.

In 1973–74 1,518 couples were referred by the Court and were dealt with by Marriage Guidance counsellors. In 32 percent of these cases conciliators were successful in helping clients to a resumption of the marriage or a better understanding of their difficulties, with a resultant simplification of the work of the Courts. When the contribution of the Court Conciliation Centre in Auckland is added, specialist help is being offered to over 80 percent of applicants to the Domestic Courts.

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. From 1959 to 1968 an adviser in marriage guidance was attached to the staff of the Justice Department. An advisory committee was also 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. Although the training system is kept under constant review, the procedures followed have become well established and administration has now been taken over largely by the National Council with the support and advice of the department.

There are now 24 councils affiliated to the National Marriage Guidance Council and these provide counselling centres staffed by over 180 accredited counsellors. 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. At the local level the work of 450 trained volunteers in the fields of counselling and marriage education is supported and co-ordinated by 7 local directors and 28 receptionists or secretaries.

The council has made a statistical inquiry into the nature of marriage counselling casework, which has yielded significant results. Of the 5,000 cases referred, over half were initiated in the first 10 years of marriage and a further 30 percent in the second 10 years. There were over 16,000 children of these marriages. In 51 percent of the cases the husbands occupation was described as "skilled, semi-skilled, or unskilled worker", and in 13 percent of cases husbands gave their occupations as "professional/ managerial".

A 'high proportion' (64 percent) of clients seek marriage guidance and counselling only when they are either contemplating separation or actually living apart, and the service is now training more people to act as tutors in marriage education and seeking other means of making better contact with married people before marital difficulties become too severe.

Educational work includes the conducting of courses for young couples in preparation for marriage, and parent groups. 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 recognition by the public of the importance of this service and a greater readiness of people in trouble to make use of it.

Chapter 6. Section 5 HEALTH AND HOSPITALS

5 A—HEALTH AND MEDICAL SERVICES

GENERAL—The nation's health is the responsibility of a partnership of central and local government, private medical practitioners, para-medical workers, charitable and religious organisations and private citizens, with the 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.

ADMINISTRATION—The functions of local authorities are defined by statute and regulation. Elected local authorities must appoint a sufficient number of health inspectors qualified under the Health Inspectors Qualifications Regulations 1975. 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 public health, 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.

Diseases which are scheduled in the Health Act 1956 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 Health 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 nutrition administration aims to protect the consumer. There is an extensive programme backed by legislation, to govern packing, labelling, storage, and sale of poisons. Special environmental problems, including radiation protection, occupational health, and atmosphere 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.

Family health responsibilities include 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 and for dependants up to the age of 18 years. Dental Health education is also undertaken.

The Department of Health is responsible for the organisation and control of nursing services to the public in general; in hospitals (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. Basic nursing education is provided in 27 hospital schools of nursing and 4 technical institutes. Post-basic nursing education is available from the New Zealand School of Advanced Nursing Studies (which is controlled by the Department of Health) and from Victoria and Massey Universities. Post-basic courses in teaching methods are available from teachers' colleges in Hamilton and Wellington, and 4 technical institutes have courses in Community Health Nursing.

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 Ministry of Agriculture and Fisheries. 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, nurses, etc.); hospital boards or the department (nurses, midwives, physiotherapists, health educators, laboratory technicians, radiographers, dietitians); and polytechnics (health inspectors, pharmacists, nurses).

The Department of Health works closely with and seeks the advice and help of boards, committees, and councils such as the Board of Health, the 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

  • Children's Health Camps Act 1972

  • Clean Air Act 1972

  • Dental Act 1963

  • Dietitians Act 1950

  • Food and Drug Act 1969

  • Hospitals Act 1957

  • Human Tissue Act 1964

  • Maternal Mortality Research Act 1968

  • Medical and Dental Auxiliaries Act 1966

  • Medical Practitioners Act 1968

  • Medical Research Council Act 1950

  • Mental Health Act 1969

  • Misuse of Drugs Act 1975

  • Nurses Act 1971

  • Occupational Therapy Act 1949

  • Opticians Act 1928

  • Physiotherapy Act 1949

  • Plumbers and Gasfitters Registration Act 1964

  • Poisons Act 1960

  • Radiation Protection Act 1965

  • 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 E. 10).

A general history of public health services may be found in A Health Service for New Zealand (parliamentary paper H. 23, 1974). This report contains radical proposals for a reshaped health service.

Activity Programme1972–731973–741974–75

*Mostly grants to hospital boards. Total grants in the three years above amounted to $230,784,051; $269,632,258; and $328,929,256 respectively.

†Mostly grants of Medical and Pharmaceutical Benefits, etc., under the Social Security Act 1964 for which expenditure in the three years above was $62,766,497; $75,170,332; and $91,372,514 respectively.

‡The Government provides a subsidy of $1 for $2 on the total cost of approved works for main water supply facilities, sewerage reticulation, and sewerage disposal schemes which have been put into effect by local authorities. Expenditure in the three years above was $3,090,079; $5,064,589; and $8,599,401 respectively.

§Previously included in Welfare Services.

||Expenditure funded from Works and Trading Account was previously in Vote—Works.

 $(000)
Administrative services2,7663,1643,608
Dental services10,60911,83716,469
Hospital services*242,365282,106343,387
Family health services5,5115,7837,788
Grants to Medical Research Council1,3532,5112,609
Medical services and drug control64,04376,63493,261
Public health and environmental protection7,33110,24014,679
Welfare services5,5976,7694,669
Housing for the elderly and youth hostels.--4,897§
Funded from Consolidated Revenue Account339,575399,044491,367
Psychiatric hospital buildings-2,7772,030
Public buildings construction-59201
Funded from Works and Trading Account-2,8362,231||
Totals339,575401,880493,598
  Less departmental receipts7577851,292
  Net expenditure338,818401,095492,306
Expenditure as percentage of gross national product4.54.65.2

ENVIRONMENTAL HEALTH: Local Authority 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 local authorities, but the Department of Health exercises general supervision. 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 employed by local authorities and conducts specialist and refresher courses for health inspectors.

Department of Health Control—The objectives of the Department of Health in environmental health control are: (a) to create and maintain a healthy environment for the general public by the application of principles of preventive medicine and the administration of legislation directly and indirectly related to this end; (b) to control air pollution; (c) to provide physical services and undertake research on all aspects of the use of ionising radiation with special emphasis on the medical applications and public health aspects. To monitor radiation exposure of the population from all sources and to take action to reduce this where necessary. To promote general understanding of the nature of the hazards involved in radiation exposure in their current perspective; and (d) to conserve hearing and detect its early deterioration.

Air Pollution Control—Air pollution, once accepted as the natural accompaniment of city dwelling and industrial production, has been widely recognised in recent decades as a health problem, especially in view of the growing scale of urbanisation and industrial activity.

The Clean Air Act 1972 provided for the control of all sources of air pollution, both existing and potential. It placed considerable emphasis on co-operation between the Central Government, local authorities, industry, and the public, and in effect placed on every person an obligation to keep air pollution to a minimum.

The provisions of the Clean Air Act 1972 included the following:

  1. standards could be prescribed in respect of the emission of air pollutants and failure to observe them made an offence;

  2. the Clean Air Council was set up to give advice, co-ordinate activities, promote research and evaluate control equipment, and publish reports, advice and information on the prevention and control of air pollution;

  3. as from 1 April 1974, a wide range of industrial processes were required to be licensed under the Act;

  4. clean air zones could be established, and local authorities were authorised to advance to householders the cost of converting domestic fires to comply with the Act;

  5. certain sections of the Act were applied (so far as they were applicable) to motor vehicles, aircraft, hovercraft, and locomotive engines, and power was given to make regulations on necessary modifications, the use of particular fuels, and the concentration or rates of emission of air pollutants.

The Clean Air (Licensing) Regulations 1973 came into force on 1 April 1974 and major work was done on the initial examination of industrial plants and the setting of licence conditions. By the end of 1974–75, 390 licences had been issued by the Department of Health to industrial works requiring category A licences, i.e., works using processes subject to licensing by the Department. This was estimated to be 90 percent of the total. An additional 360 industrial works had been licensed by local authorities under category B. This was estimated at 70 percent of the total number using processes subject to licensing by local authorities.

The first International Air Pollution Conference in New Zealand was held in Rotorua from 17 to 21 February 1975.

CONTROL OF DRUGS—The definitions of "drug" in the Food and Drug Act 1969 established 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.

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, paracetamol, and hexaclorophane.

Narcotics—Under the Misuse of Drugs Act 1975 the import, export, cultivation, production, possession, distribution, supply, and administration of a wide range of narcotic and other drugs is strictly controlled. Except for medical practitioners, dentists, pharmacists, veterinary surgeons, those having the care of patients being lawfully supplied with drugs, the patients themselves, and other specified persons, or those who have been issued with a licence under the Act, the procuration, manufacture, possession, consumption, supply, or offer to supply controlled drugs is a serious offence.

Controlled drugs are divided into three classes. The heaviest penalties are for offences involving drugs in Class A, which include heroin, lysergide, desomorphine, and cantharidin. Offences involving the possession or use of drugs in Class C, which include cannabis plants, fruit, and seeds, are to be punished with fines but not by imprisonment unless by reason of previous convictions or exceptional circumstances.

Dealing in narcotics is subject to heavy penalties.

To curb illicit drug abuse, a National Drug Intelligence Bureau has been set up jointly by the Departments of Health, Customs, and Police.

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 under-taken 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.

A Food Standards Committee, with a membership of highly qualified persons, meets regularly to discuss the latest technical advances in food production and to make appropriate recommendations for amendments to the legislation.

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—Since 1957 medical officers of health have had responsibility for occupational health. The objective of the occupational health programmes 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 Diseases—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 culture 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. This legislation is at present under extensive review.

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 conjunction with the Civil Aviation Division of the 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 has developed industrial health centres with financial support from the Waterfront Industry Commission in the case of harbour areas, and the Accident Compensation Commission in the case of general industry.

Pre-employment Examinations—Pre-employment medical examinations are required for young workers before entering factory employment.

National Audiology Centre—The National Audiology Centre assists with the early detection of deafness and conservation of hearing. The centre conducts and promotes research into noisy industries, occupational deafness, and other forms of deafness. An advisory service is provided for those working with deaf people and training is given to those responsible for testing groups for hearing loss.

Radiation Protection—The National Radiation Laboratory provides the administrative and technical services required by the Radiation Protection Act 1965 and Regulations 1973 and the Transport of Radioactive Materials Regulations 1973. Prior approval must be obtained for the import or export of any radioactive material. Each owner of irradiating apparatus (source of X-rays) or radioactive material must ensure that they are used only under the control of a person specifically licensed for the purpose.

The laboratory provides the licensees with free monitoring, advisory, calibration, or other services which will assist in achieving radiation safety. Trained officers regularly visit all places where sources of ionising radiation are used. A service is available for measuring the exposures received by radiation workers.

The laboratory advises the requirements for the transport and disposal of radioactive materials and is responsible for monitoring a wide range of environmental samples for natural or man-made radioactivity.

FAMILY HEALTH—Medical practitioners give antenatal, neo-natal, and post-natal attention under the Social Security Act. Free ante-natal clinics are established in connection with the St. Helens Hospitals, all public maternity hospitals and maternity wards. 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.

Approximately 99 percent of confinements take place in maternity hospitals or in maternity units of public hospitals. The medical care of the mother and child is based on co-operation between the Department of Health, hospital boards and the medical and nursing professions. All private maternity hospitals are licensed under the Hospitals Act 1957 and the Department of Health has responsibility for ensuring that regulations regarding buildings, equipment, and staff are observed. Medical officers of health, through their senior nursing staff, exercise general supervision over the work of private hospitals in the local areas.

Family Planning—General practitioners provide the major portion of family planning services. Contraceptives are provided free for those who need them for medical reasons, where cost would be a barrier. Since 1971 priority has been given to family planning as a health measure. In addition to the private doctor service 33 Family Planning Association clinics are now in operation in various centres of the country. Government provides financial assistance towards operating costs, education material, and to help establish new clinics.

A number of hospital boards have established family clinics within their obstetrics and gynaecology departments to provide additional facilities for the public and training for doctors, medical students, and nurses, and other boards are being encouraged to provide these facilities.

Child Health—The Department of Health provides a preventive child health service. Infants are examined by doctors at three stages between birth and 3 months of age and another medical examination is undertaken before the end of the first year for those requiring further investigation. Public health nurses undertake supervision of infants and pre-school children although the major proportion of this service is provided by the nurses of the Plunket Society. Where necessary the children are referred to family doctors or medical officers of the Department of Health.

A consultative service is provided for schools, with special emphasis on the health supervision of handicapped children, both in the normal schools and in special education classes. Nursing staff make regular visits to all schools and from pre-school record cards and by consultation with teachers and parents refer children for examination by medical officers. Correspondence School children are kept under health supervision as necessary and any school child requiring treatment is referred to the appropriate family doctor. Vision and hearing testing is carried out by trained staff for pre-school children at school entry and in Form I.

The Government supports the Children's Health Camps Board which maintains six permanent camps for the short-stay placement of children convalescent after illness, for those whose physical health is unsatisfactory, and for those suffering from minor emotional disorders. Medical officers select children for admission and undertake general health supervision of the camps. Children derive benefit from the ordered routine of camp life which provides a diet designed to improve nutrition and a balance of free activity, rest, and sleep. The Department of Education maintains school classes with emphasis on remedial teaching.

Immunisation Programme—Protection by two doses of the oral vaccine for poliomyelitis is available to all infants. 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 her child 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.

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. Most health education officers are women and the majority hold the diploma in health education issued by the Royal Society for the Promotion of Health. Advertisements on health subjects are screened on television and published in national periodicals. Leaflets, pamphlets, and posters are available on many health topics from district health offices.

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—New Zealand's dental health service combines a school dental service for children, dental benefits for adolescents, and private practice for adults. There are 14 dental districts, three schools for dental nurses in Auckland, Wellington, and Christchurch, and the dental school at the University of Otago.

School Dental Service—The objective of the service is to improve the dental health of the pre-school and school children by regular and systematic treatment at 6-monthly intervals, commencing at the age of 21/2 and continuing through the highest class at primary or intermediate school.

The school dental nurse, after completing the two-year training course, is posted to a school dental clinic where she provides routine dental care for children. A school dental nurse has a patient group of about 450 in a non-fluoridated area and up to 700 where the water is fluoridated. Regular visits are made to the clinic by the Principal Dental Officer and the Dental Nurse Inspector, who assist the dental nurse to maintain a high standard of performance in all aspects of the work. The School Dental Service Gazette is published bi-monthly as a media for continuing education.

The dental care comprises examination, cleaning, application of sod fluoride, fillings in temporary and permanent teeth, extraction of deciduous teeth, and dental health education. Some children are referred to dentists for additional care.

In 1975, 1,371 school dental nurses provided dental care for 623,636 children. The treatment included 2,248,326 fillings and 56,578 extractions. Indicators of the success of the service are the acceptance—64 percent of pre-school children aged 21/2 to 4 and 98 percent of the primary school children are enrolled, and the small number of extractions—less than 3 for every 100 teeth saved by fillings.

Adolescent Dental Service—Dental care for adolescents up to 16 years of age and, if dependent, up to 18 years of age is provided by private dentists as a dental benefit under the Social Security Act, the dentist being reimbursed on a fee-service basis. Children who remain at school after their sixteenth birthday and qualify for the extended family benefit, or who are otherwise dependent upon parents for support, continue to receive the dental benefit to their eighteenth birthday.

Eligibility for dental treatment as an adolescent is contingent upon a person's having undergone regular dental care, 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—Dental Health Education is an integral part of the school dental service and includes activities in the clinics and the classroom. Educational materials are produced by the Department of Health for the school dental service and for general use in the community. Materials specifically for dentists are produced by the Dental Health Committee of the New Zealand Dental Association.

Dental Research—The Dental Unit of the Medical Research Council carries out research in a wide range of dental problems. Further research is undertaken by the Dental School of the University of Otago and there is also a small research unit within the Division of Dental Health of the Department of Health.

Fluoridation—Approximately 64 percent of all persons living in water-reticulated areas are drinking fluoridated water, which reduces the need for dental treatment.

REHABILITATION OF DISABLED CIVILIANS—The rehabilitation of disabled and handicapped civilians has received increasing emphasis over recent years in New Zealand. 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.

Civilian rehabilitation centres for the treatment and overall restoration of those injured in employment or road accidents are established at Otara, under the Auckland Hospital Board's administration, and Palmerston North under the Palmerston North Hospital Board's administration. 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 in Rotorua, 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, Health, and Education, advise Government on steps to co-ordinate and promote rehabilitation in New Zealand.

PHYSICAL MEDICINE—Physical medicine is concerned with potentially disabling conditions such as rheumatic diseases, cerebral palsy, and other disorders of the locomotor system.

The national 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 overcome their disabilities. Social workers assist in bridging the gap between rehabilitation and vocational and social resettlement.

A cerebral palsy unit is 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 assessment only, or for admission and treatment. Cerebral palsy visiting therapist services are 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.

Cerebral palsy schools administered by education boards have been established in Auckland, Wellington, Christchurch, Dunedin, and Invercargill. Close liaison exists between the schools, the Rotorua unit, and the visiting cerebral palsy therapist. Parents seeking the admission of their children to one of the schools make application to the appropriate education board. A medical report on a child's condition is required by the schools.

HEALTH STATISTICS—The National Health Statistics Centre is responsible for the annual publication of Health Statistics Reports on mortality, morbidity, mental health, cancer, and hospital management as well as the publication of Trends in Health and Health Services every two years.

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.

Since July 1975 the Centre has been monitoring the incidence of selected congenital malformations reported by medical practitioners to the Health Department.

NATIONAL HEALTH INSTITUTE—The Institute is the Department of Health's centre for the scientific study of public health problems. It contains an epidemiology section and public health laboratories (microbiology, virology and environmental health).

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, hospital and private laboratories, and general practitioners, 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 1975 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; biology; pathology; rheumatic diseases; human nutrition; maternal and infant health; tumour virology; social medicine and community health.

The council maintains liaison with the research work being carried out by private medical research foundations and societies such as the Cancer Society of New Zealand, and regional 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 $2.5 million is incurred in supporting research projects at the University of Otago, the University of Auckland, the Christchurch and Wellington Clinical Schools, Massey University, and the institutions of the Auckland, Wellington, North Canterbury, Palmerston North, and Otago Hospital Boards.

The council employs a staff of about 50 full-time workers. A further 200 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 1976 was 6,058, but not all are in active practice in New Zealand.

The Medical Council is vested with certain disciplinary powers. Right of appeal to the Supreme Court is provided.

DOCTORS IN PRACTICE—ADMINISTRATION—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:

Type of PracticeDoctors

*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— 
  Psychiatric hospitals48
  Other35
Medical education not included elsewhere26
Other§66
Total3,182

In New Zealand the doctor to population ratio in 1971 was 1:850. For Australia in 1971 the ratio was reported by the World Health Organisation as 1:790 and for selected other countries in 1971 as: Sweden 1:720; Denmark 1:690; France 1:720; England and Wales 1:790; Canada 1:670; and the United States 1:620. The New Zealand target is 1:720. Medical graduates from the University of Otago have totalled 114 annually, from 1973 this output has been supplemented by graduates from the University of Auckland to a total of 165. Medical graduates are expected to reach 207 a year by 1977.

Between 1959 and 1972 the population per active general practitioner increased from 1,780 to 2,256. During the period 1972 to 1974 there was a slight improvement; population per active general practitioner fell to 2,169.

While there has been some improvement in recent years in the distribution of doctors in rural and semi-rural areas, the position in many urban areas remains unsatisfactory. There remains the intra-urban maldistribution, where well-established, middle-class areas tend to be relatively overprovided with general practitioners, while some other areas suffer from a shortage of general practitioners.

REGISTRATION COUNCILS AND BOARDS: Dentists—Under the Dental Act 1963 there was 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 practising dentists holding annual practising certificates at 31 May 1975 was 1,089. Under provisions of the Dental Technicians Regulations 1968, a Registration Board for Dental Technicians was constituted. In 1975 there were 380 registered dental technicians.

Nurses—Under the Nurses Act 1971 was 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.

The Nurses Amendment Act 1975 created a new class of registered nurses called registered comprehensive nurses.

During 1974-75 there were 22,710 practising registered nurses in New Zealand. Altogether, an estimated 72,000 trained nurses are on the register maintained by the Nursing Council.

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 registration and conduct of persons engaged in the practice of occupational therapy.

The Central Institute of Technology, Wellington, conducts the 3-year course of training and 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 200 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 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 270 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, a registrar (deputy chairman), and representatives of the Department of Education, the Municipal and Counties Association, the Gas Association, the Master Plumbers Society (2), the Plumbers, Gasfitters, 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—In 1975 there were 2,627 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, Upper Hutt, 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.

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 1,159 pharmacies in New Zealand. A survey in 1973 showed that on average there were 1.56 pharmacists per pharmacy; about 200 pharmacists work outside the retail trade in hospitals, Government departments and the pharmaceutical industry.

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 fee of $1.25 for a service provided in normal hours and up to $4.00 for a service rendered at night or on Saturdays, Sundays, or holidays; for social security beneficiary including those for whom the family benefit is payable and for patients approved as "chronicaly ill", the benefit ranges from $3 to $7. 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 inter-specialist referral, with the prior concurrence of the original doctor. For subsequent visits, the fee paid by the department reduces to $1.25 for each visit, except in the case of social security beneficiaries and pensioners and their dependants for whom the fee is $3. In designated rural areas, an incentive bonus is payable. In 1972 immunisation benefits were introduced; they apply to children and adolescents up to their sixteenth birthday; the benefit is $1.85 if the vaccine is administered by a doctor, or $1.55 if administered by a registered nurse in his employ.

Most doctors (91 percent) make a claim directly from the Department of Health and ask patients for the balance of their fees. A minority require their patients to pay the whole fee and make personal claims on the Department of Health.

The number of doctors providing general and specialist medical services in 1974 was 2,773 and the cost per head of population in the year ended 31 March 1975 was $7.70. The average population per active practitioner in 1974 was 1,959.

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 by their medical practitioners and which are included in the Drug Tariff.

Prescriptions passed for payment in the year ended 31 March 1975 totalled 22,229,521 or 7.2 per head of population. The average cost per prescription was $2.29, the cost per head of population being $18.45.

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 1975 are as follows:

  1. For surgical treatment $12.00 a day, with a minimum of $24.00.

  2. For medical (including psychiatric) treatment $9.00 a day (from 1 January 1976).

  3. For geriatric treatment $11.00 a day (from 1 January 1976).

  4. Hospital treatment for maternity patients $12.00 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, wheelchairs, orthopaedic implants in private hospitals, 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.

Psychiatric Hospitals—Treatment of patients in public psychiatric hospitals is also free. A licensed (private) psychiatric 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. Recognised specialists may make a charge on the patient over and above the benefit. Licensed maternity hospitals are entitled to receive fees of $12.00 in respect of the day of birth of the child and for each of the succeeding 14 days.

X-ray Diagnostic Services—These X-ray diagnostic services on the recommendation of a medical practitioner, attract a health benefit:

  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. Eligible X-ray examinations at public hospitals are free, but those undertaken by private radiologists are limited to a specified benefit. Additional charges are the patient's responsibility.

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 afforded by contracting physiotherapists is the subject of a benefit under the Social Security (Physiotherapy Benefits) Regulations 1951. The standard benefit is $1 for each recommended treatment, but a higher rate of $1.50 is payable for beneficiaries and their dependants who qualify for the higher medical benefit. Where patients are treated in groups the universal benefit is 40 cents per patient.

To qualify for the benefit, physiotherapy treatment must in all cases be recommended by a registered medical practitioner. Treatment is limited to 6 weeks on a single recommendation but in the case of certain specified illnesses the Director-General of Health may extend the period of treatment on any one recommendation up to 6 months.

Home-nursing Services—Under the Social Security (District Nursing Services) Regulations 1944, home-nursing services are provided free where the services are afforded by a registered nurse, midwife, or maternity nurse in the employ of the Department of Health, a hospital board, or an organisation recognised for the purpose.

Domestic Assistance—Monetary assistance is given to approved incorporated associations formed for the purpose of providing domestic help in the home, where it is required because of age and infirmity, or to support family situations in which the mother is incapacitated or needs help on account of family commitments.

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 or under 18 years if still attending school or otherwise dependent. Treatment may be provided in a State dental clinic, by a contracting dentist for whom there is a prescribed scale of fees, or in the dental department of a public hospital.

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—A free aid may be supplied, or a subsidy of $45 is payable towards the purchase of a hearing aid where the patient suffers a hearing loss which renders the use of an aid necessary. A subsidy of up to $70 is payable towards the cost of an aid for a patient under 16 years of age.

Eligibility on medical grounds for the provision of a hearing aid is to be determined by an otologist employed or engaged by a hospital board or the Department of Health.

Normally a patient will be eligible for the payment of the full benefit only once every 5 years. However, if in the opinion of the authorising otologist, a patient's existing aid is inadequate after less than 5 years from the date of its issue, and a new aid is required to improve hearing ability, the hearing aid benefit at full rates is to be payable.

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 the Accident Compensation Act 1972.

  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.

Orthopaedic Implants—Artificial hips and similar implants also qualify for benefit under the arrangements for artificial aids.

Wheelchairs—Manually operated wheelchairs are available through hospital boards on a free loan basis to disabled persons who require them on medical grounds. Motorised wheelchairs are the subject of a 50 percent benefit towards their cost. The balance of the cost may be assisted with grants from lottery funds.

The following table gives details of expenditure on the various classes of health benefits during five financial years.

Item1970–711971–721972–731973–741974–75
 $(thousand)
Maternity Benefits—     
  Medical practitioners' fees2,6703,3173,3643,2694,832
  Medical practitioners' mileage fees82105101101145
  Obstetric nurses' fees34224
 2,7563,4263,4673,3724,981
Medical benefits—     
  General medical services9,7859,69211,82017,37819,902
  GMS mileage181159151137128
  Specialist medical services1,2561,2861,7212,1482,253
  Rural practice bonus and other incentives292337405545425
  Immunisation benefit--127407433
Practice Nurse Subsidy----269
 11,51411,47414,22520,61423,410
  Private practice and post-graduate grants1132242738
  Special area and other arrangements — section 117 Social Security Act152117164153161
 163149189180199
Hospital Benefits—     
  Treatment in private hospitals—     
  maternity benefits377394397388368
  Treatment in private hospitals—     
  medical, surgical, and Karitane5,2915,9157,0167,5416,708
  Treatment in private hospitals—     
  geriatric benefit----2,384
  Treatment in approved institutions495526626700687
 6,1626,8368,0398,63010,147
Pharmaceutical Benefits—     
  Drugs supplied—     
  By chemists30,15432,48039,32344,39755,727
  By medical practitioners and Department of Health168206181207148
  To institutions and private hospitals462550515562604
 30,78333,23640,02045,16656,479
Supplementary Benefits—     
  Dental services2,8002,7992,8493,1354,404
  Laboratory services5,3356,5847,3557,8609,169
  Artificial aids1418212435
  Physiotherapy services234242246251613
  Radiological services7877577881,1841,600
  Specialist services (neurosurgery)4322-
 9,17410,40311,26212,45715, 821
Totals60,55265,52477,20290,418111,037

WELFARE SERVICES—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 1975 religious and welfare organisations provided 7,214 home and hospital beds for the elderly. Hospital boards maintain 1,020 old people's home beds, while approximately 4,700 of their hospital beds (42 percent) are required for care of the elderly sick, either on a short-stay or long-term basis.

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. At 31 December 1974 the number of meals delivered daily by the meals-on-wheels service was 4,440; the service is operated by 29 hospital boards.

Old People's Homes and Hospitals—Subject to maximum subsidies of $12,000 per bed for old people's homes and $16,000 for geriatric hospital beds, and certain other conditions, religious or welfare organisations providing accommodation for old people may be granted 100 percent of the approved building cost. In addition, a subsidy of up to $500 per bed is available towards initial land and land development costs. Since October 1974, the policy has been widened to provide an 80-percent subsidy towards the cost of approved improvements and the upgrading of existing accommodation, and 100 percent for fire protection work as required by the local authority. The administration of policy is a Department of Health responsibility.

During the year 1974–75, subsidies amounting to $4,547,920 were approved to assist in the provision of accommodation for 489 old people. From April 1950 to 31 March 1975, subsidies totalling $37,455,150 have been approved, and buildings erected as a result will accommodate 6,617 old people.

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.

National voluntary health organisations in New Zealand as at November 1974 are listed below.

There is no national index of voluntary organisations working in the health field. This list has been drawn from several sources, but may well be incomplete.

Family Health

  • Children's Health Camps Board.

  • The New Zealand Family Planning Association (***).

  • Royal N.Z. Society for the Health of Women and Children (Plunket Society).

  • Society for Protection of the Unborn Child.

  • New Zealand Crippled Children Society Inc.

  • New Zealand League for Hard of Hearing.

Mental Health

  • Al Anon Family Groups.

  • Alcoholics Anonymous.

  • National Society on Alcoholism and Drug Dependence (N.Z.) Inc.

  • Recovery (New Zealand) Inc.

Disease Control

  • Cancer Society of New Zealand.

  • Glaucoma Society.

  • New Zealand Haemophilia Society Inc.

  • National Heart Foundation of New Zealand.

  • National Multiple Sclerosis Society.

  • New Zealand Asthma Society Inc.

  • Muscular Dystrophy Association.

  • New Zealand Federation of Tuberculosis Associations.

  • The Arthritis and Rheumatism Foundation of New Zealand Inc.

  • Paraplegics Association of New Zealand.

  • Neurological Foundation.

  • Cystic Fibrosis Association of New Zealand.

  • Diabetic Association of New Zealand Inc.

Public Health

Nutrition Society of New Zealand.

Miscellaneous

  • New Zealand Red Cross Society Inc.

  • St. John Ambulance Association.

  • Rehabilitation League (Inc.).

  • Council of Christian Social Services.

  • New Zealand Association of Health, Physical Education and Recreation.

  • Australian and New Zealand Clean Air Society.

  • Laura Fergusson Trust for Disabled Persons.

  • Royal New Zealand Foundation for the Blind

Overseas Welfare

  • CORSO.

  • Medical Aid Abroad.

  • Volunteer Service Abroad.

  • Lepers Trust Board.

  • Leprosy Mission of New Zealand.

5B—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 29 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.

The report A Health' Service for New Zealand (parliamentary paper H.23, 1974) proposed that regional health authorities replace hospital boards from 1 April 1978.

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 religious and welfare organisations which provide homes and hospital beds for the elderly, and administers legislation governing the standards and oversight of old people's homes.

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 Management Services Research 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.

Hospital boards are required to operate their own ambulance services unless they enter into some arrangement with a subsidised voluntary agency. In this regard the Order of St. John and organisations such as the Wellington Free Ambulance perform valuable services.

HOSPITAL ACCOMMODATION: Public Institutions—The number of beds in public institutions available at 31 March 1975 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
General15,0334.811,53.13.8
Maternity2,9070.91,597.40.5
Total hospital beds17,9405.813,550.54.4
Non-hospital beds8806.114,26304.6
Totals18,8206.114,263.04.6

In the past some hospitals which provided geriatric treatment only were not included in general hospitals. These have now been reclassified with the result that available general beds show a marked increase while available non-hospital beds have decreased.

In addition to the 17,940 hospital beds in public institutions there were 4,534 (4,339 general and 195 maternity) in the 153 licensed private hospitals. If the beds in licensed private hospitals are included, the ratio of beds per 1,000 of population becomes 6.2 for general beds and 1.0 for maternity beds.

The average number of occupied hospital beds per 1,000 of population in hospital districts varies from 3.0 to 12.3. 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 department.

The number of institutions coming under the heading of public institutions for the year ended 31 March 1975 was 190, comprising 103 general hospitals, 67 maternity hospitals and 20 old people's homes.

A total of 363,589 persons were treated or maintained in public hospitals or similar institutions during the year ended 31 March 1975. This figure, which included persons in maternity beds and non-hospital beds in old peoples homes but not hospital outpatients, was equivalent to 12.3 percent of the population. The 1973-74 figure was 373,379.

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 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
1968-69276,248100.110,334.03.721.913,0454.72,923,5031,059.7
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
1971-72292,956100.810,400.23.627.513,6094.73,479,4631,197.7
1972-73307,562103.410,700.63.627.913,8464.63,904,8381,312.7
1973-74330,819108.711,850.53.927.914,8694.9....
1974-75  11,953.13.8..15,0334.8....

Census of Hospitals and Old People's Homes—A census of hospitals and old people's homes was held on 23-24 March 1971 at the same time as the Census of Population.

The ages of people in public, private and psychiatric hospitals and old people's homes in 1971 are shown in the following table.

AgesPublicPrivatePsychiatricOld People'sTotal
NumberRate*NumberRate*NumberRate*NumberRate*NumberRate*

*Age-specific rates per 1,000 population.

0- 47992.71700.6630.2--1,0323.5
5- 94741.5320.13571.2--8632.8
10-143851.314 5711.91-9713.2
15-194231.6280.18003.1--1,2514.8
20-244461.9480.27653.3--1,2595.4
25-293662.0280.16433.4--1,0375.5
30-343622.2530.35803.53-9986.0
35-393192.1380.35393.65-9016.0
40-444122.5770.56884.3130.11,1907.4
45-494893.1810.57324.6260.21,3288.3
50-545594.0740.58135.8-430.31,48910.6
55-596965.3810.68036.1940.71,67412.7
60-647876.9980.96996.12041.81,78815.7
65-697828.61441.66016.64254.71,95221.6
70-7490513.82333.55268.078812.02,45237.3
75-7992621.44059.34109.51,45533.63,19673.7
80-841,00237.056220.832211.91,91470.73,800140.4
85 and over1,13965.486549.721712.52,384137.04,605264.6
Totals11,2713.93,0311.110,1293.57,3552.6 31,78611.1

Waiting Lists—At the Census of Hospitals on 23 March 1971 there were 36,003 names on waiting lists for admission to public hospital, a rate of 12.6 persons per 1,000 residents. Some 26.6 percent of patients in hospitals at that date had been admitted from the waiting list; they comprised 3,001 persons.

STAFF—The numbers of staff employed in public hospitals and other institutions and activities controlled by hospital boards in the latest 5 years were as follows.

Category of StaffAt 31 March
19701971197219731974

*Includes duplication where persons provide medical services at more than one institution.

†This is the first year that a staff have been published as full time equivalent, previous years part-time staff were counted as full time, hence the reduction in staff numbers.

Institutional medical1,947*1,3091,3831,4721,648
Other professional and technical3,3322,8963,1503,3673,513
Nursing15,74014,35015,23716.36016,726
Other treatment staff6568739549791,043
Domestic and other institutional staff10,1269,63310,07410,25110,591
Administrative staff712690700743765
Domiciliary services1,182561593608641
Farm and garden6718141313
Other non-institutional180117137125160
Totals33,94230,447t 32,24233,91835,100

FINANCE: 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 set out in the following table.

YearAmount UpliftedRepayment*Balance Owing

*Includes payments from sinking funds.

  $(000) 
1969-7019,1709,436115,797
1970-7119,20010,043124,878
1971-7220,11810,574134,425
1972-7330,61914,439151,923
1973-7424,08314,453162,783
1974-7531,69117,603179,217

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.

Expenditure for both public and psychiatric hospitals is as follows:

Grants to hospital boards—1973-741974-75
Capital—$(000)$(000)
  Health centres202591
  Repayment of loan principal and payments to Sinking Fund12,50913,499
  Works and Equipment5,9027,448
 18,61321,538
Operating costs—  
  Basic operating costs242,496297,739
  Interest on loans8,1389,055
  E.D.P. reserve145124
  Commonwealth medical co-operation scheme5360
  P.A. management consultants5471
  Special items134342
 251,019307,392
 269,632328,929

PRIVATE HOSPITALS—At 31 March 1975 there were 153 licensed private hospitals, providing a total of 4,534 beds. Private hospitals are shown by type and by number of beds in the following table as at 31 March of the years stated.

Type of HospitalNumber of HospitalsLicensed Beds
197319741975197319741975
Maternity141212139111195
Medical and surgical3837361,1011,1601,177
Medical9194942,0092,2312,397
Medical and children's (Karitane)666250255255
Maternity, medical, and surgical333460460477
Psychiatric222333333
Totals1541541533,9924,2504,534

Hospital benefits are paid to patients in registered private hospitals according to the nature of the treatment given; for surgical and maternity treatment, $12 per day, and for medical (including psychiatric) treatment, 49.00 per day. A benefit for geriatric patients of $8 per day was introduced in 1974. This was increased to $11 in 1976.

The Government assists in the development of private hospitals by the provision of loan money at low interest rates. However, during 1974-75 this assistance was restricted to proposals for alteration and upgrading work. Amounts paid by way of private hospital loans during the latest 3 years were as follows: 1972-73, $398,859; 1973-74, $387,607; and 1974-75, $167,291.

PSYCHIATRIC HOSPITALS—The total expenditure on psychiatric hospitals (not including the cost of new buildings and additions) and particulars of receipts during 11 recent financial years are shown in the next table. This expenditure was incurred by the Department of Health until 31 March 1972, since which date psychiatric hospitals have become the responsibility of hospital boards.

Year Ended 31 MarchTotal ExpenditureReceiptsNet ExpenditureAverage Cost per Occupied Bed
 $(000)$(000)$(000)$
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
197230,06758529,4813,034
197334,39712734,2693,660
197442,28943141,8584,625

PUBLIC HOSPITAL PATIENTS: Principal Diseases and Disabilities—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.

The following summary shows the principal diseases and injuries treated, together with the number of deaths and the fatality rate percent of total cases, in public hospitals in 1972. The disease headings are the subtitles of the International Classification of Diseases. More detailed information is available in Hospital and Selected Morbidity Data, Health Statistics Report.

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 according to 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 1972

Disease or DisabilityTotal Discharges and Deaths in Public HospitalsDeaths in Public HospitalsFatality Rate Percent
Intestinal infectious diseases3,035431.4
Tuberculosis1,211413.4
Zoonotic bacterial diseases36--
Other bacterial diseases464398.4
Poliomyelitis and other enterovirus diseases of central nervous system41820.5
Viral diseases accompanied by exanthem1,025141.4
Arthropod-borne viral diseases5747.0
Other viral diseases1,72290.5
Rickettsioses and other arthropod-borne diseases16--
Syphilis and other venereal diseases17242.3
Other spirochaetal diseases85--
Mycoses8522.4
Helminthiases10432.9
Other infective and parasitic diseases30031.0
Malignant neoplasm of buccal cavity and pharynx3704813.0
Malignant neoplasm of digestive organs and peritoneum2,89780827.9
Malignant neoplasm of respiratory system1,94354828.2
Malignant neoplasm of bone, connective tissue, skin, and breast2,7811736.2
Malignant neoplasm of genito-urinary organs3,32641612.5
Malignant neoplasm of other and unspecified sites2,43560224.7
Neoplasms of lymphatic and haematopoietic tissue2,20730313.7
Benign neoplasms4,505170.4
Neoplasm of unspecified nature26251.9
Diseases of thyroid gland955151.6
Diseases of other endocrine glands3,0981805.8
Avitaminoses and other nutritional deficiency46281.7
Other metabolic diseases679202.9
Diseases of blood and blood-forming organs1,732442.5
Psychoses2,8481274.5
Neuroses, personality disorders, and other non-psychotic mental disorders4,105290.7
Mental retardation19042.1
Inflammatory diseases of central nervous system343319.0
Hereditary and familial diseases of nervous system15285.3
Other diseases of central nervous system2,9931765.9
Diseases of nerves and peripheral ganglia1,26980.6
Inflammatory diseases of the eye89630.3
Other diseases and conditions of the eye4,486110.2
Diseases of the ear and mastoid process3,67230.1
Active rheumatic fever59640.7
Chronic rheumatic heart disease848789.2
Hypertensive disease1,7801267.1
Ischaemic heart disease9,5681,67617.5
Other forms of heart disease4,35075017.2
Cerebrovascular disease6,5102,19733.7
Diseases of arteries, arterioles and capillaries2,76850618.3
Diseases of veins and lymphatics, and other disease of circulatory system6,4111131.8
Acute respiratory infections (except influenza)4,752230.5
Influenza32651.5
Pneumonia5,7364958.6
Bronchitis, emphysema and asthma7,2703795.2
Other diseases of upper respiratory tract10,5343-
Other diseases of respiratory system1,412876.2
Diseases of oral cavity, salivary glands, and jaws2,21820.1
Diseases of oesophagus, stomach, and duodenum2,5661264.9
Appendicitis5,835130.2
Hernia of abdominal cavity5,540410.7
Other diseases of intestine and peritoneum4,1631483.6
Diseases of liver, gall bladder, and pancreas4,8301683.5
Nephritis and nephrosis1,057918.6
Other diseases of urinary system3,994782.0
Diseases of male genital organs3,538511.4
Diseases of breast, ovary, fallopian tube, and parametrium2,45430.1
Diseases of uterus and other female genital organs9,72760.1
Complications of pregnancy2,5201-
Urinary infections and toxaemias of pregnancy and the Puerperium1,34620.1
Abortion5,4721-
Delivery1,69410.1
Complications of the Puerperium655--
Infections of skin and subcutaneous tissue3,22660.2
Other inflammatory conditions of skin and subcutaneous tissue81860.7
Other diseases of skin and subcutaneous tissue1,44260.4
Arthritis and rheumatism, except rheumatic fever4,494982.2
Osteomyelitis and other diseases of bone and joint4,703280.6
Other diseases of musculoskeletal system2,680110.4
Congenital anomalies7,0362032.9
Certain causes of perinatal morbidity and mortality3,1332136.8
Symptoms referable to systems or organs12,949120.1
Senility and ill-defined diseases2,1391316.1
Fracture of skull, spine, and trunk4,7021473.1
Fracture of upper limb4,018150.4
Fracture of lower limb6,8633605.2
Dislocation without fracture1,29720.2
Sprains and strains of joints and adjacent muscles1,10510.1
Intracranial injury (excluding those with skull fracture)8,7491101.3
Internal injury of chest, abdomen, and pelvis876677.6
Laceration and open wound of head, neck, and trunk2,02970.3
Laceration and open wound on upper limb2,65920.1
Laceration and open wound of lower limb1,56010.1
Laceration and open wound of multiple location22410.4
Superficial injury387--
Contusion and crushing with intact skin surface2,51850.2
Effects of foreign body entering through orifice1,02330.3
Burn2,043281.4
Injury to nerves and spinal cord35620.6
Adverse effect of medicinal agents3,307140.4
Toxic-effect of substances chiefly non-medicinal as to source1,247121.0
Other adverse effects1,737261.5
Special admissions without sickness3,86030.1
All conditions270,98612,4454.6

Duration of Stay in Public Hospitals—The average duration of stay in public hospitals in 1972 was 14.7 days. Among sufferers from specified diseases and disabilities, the longest average stays were made by those with cerebrovascular disease (64 days) and tuberculosis (60 days), followed by patients with diseases of arteries, arterioles and capillaries (42 days), psychosis (38 days), and arthritis and rheumatism (36 days).

Accident Cases—A summary is given below of accident cases treated as inpatients in public hospitals during 1972.

Type of AccidentTotal CasesPercentage of All Accident CasesAverage Stay (Days)Aggregate Stay (Days)Aggregate Stay as Percentage of Total
Transport—     
  Railway680.113.08860.1
  Motor-vehicle traffic11,17022.412.6140,61823.2
  Motor-vehicle non-traffic3520.79.83,4380.6
  Other road vehicles1,7693.66.511,4231.9
  Water1970.411.42,2500.4
  Aircraft340.116.75670.1
Total transport13,59027.311.7159,18226.2
Non-transport—     
  Accidental poisoning2,0394.12.55,0900.8
  Accidental falls11,64623.418.4214,39735.3
  Other accidents13,09426.38.6112,61318.6
Total non-transport26,77953.812.4332,10054.7
Surgical and medical complications and misadventures3,4416.916.556,8809.4
Late effects of accidental injury1,6073.220.633,1745.5
Suicide and self-inflicted injury2,6695.45.815,4092.5
Homicide and injury purposely inflicted by other persons1,5483.15.58,4971.4
Legal intervention3-8.726-
Injury undetermined whether accidentally or purposely inflicted1400.35.47500.1
Injury resulting from operations of war260.136.89560.2
Grand totals49,803100.012.2606,974100.0

The largest group comes 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.

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 second largest aggregate stay. It is interesting to note that there were almost twice as many admissions to hospital and almost twice 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.

Accidents in the Home—A high percentage of non-transport accidents, especially those involving young children and elderly people, occur in the home. Accidents in the home in 1972 are included by type of accident in the previous section, but they are not separated out from accidents sustained elsewhere. The following table shows the number of patients discharged from, or dying, in public hospitals after treatment for accidents sustained in the home. It includes only inpatients in public hospitals; not, of course, the large numbers of home accident cases treated in outpatient departments, doctor's surgeries, and in the home itself.

Cause of AccidentTotal PatientsAggregate Duration of Stay in Hospital
Accidental poisoning by— Days
  Drugs and medicaments9232,117
  Petroleum products and other solvents374676
  Pesticides, fertilisers, and plant foods116267
  Noxious foodstuffs and poisonous plants103134
  Other solid and liquid substances3021,079
  Gases and vapours20184
Accidental falls5,222111,666
Blow from falling object1151,573
Accidents caused by cutting and piercing instruments1,4698,510
Accidental burns1,30926,441
Accidents caused by foreign bodies6721,757
Accidents caused by machinery663
All other and unspecified accidents1,60511,813
Totals12,236166,280

Deaths in Public Hospitals—The percentage of deaths in public hospitals to all deaths are shown in the following table.

YearDeaths in Public HospitalsTotal DeathsPercentage of Deaths in Public Hospitals to Total Deaths
196110,28021,78247.2
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
197012,29124,84049.5
197112,27324,30950.5
197212,44524,79350.2

Age and Sex of Patients—The age and sex of patients discharged from or dying in public hospitals during 1972 are shown below.

Age GroupsMalesFemalesTotal
Under 1 year7,8125,85313,665
1- 4 years11,6878,42420,113
5- 9 years10,7547,76918,523
10-14 years8,3066,34014,646
15-19 years10,63111,59122,222
20-24 years9,41313,20722,620
25-29 years5,96510,56916,534
30-34 years4,9578,50713,464
35-39 years4,6046,82911,433
40-44 years5,3287,01012,338
45-49 years6,1307,29413,424
50-54 years6,7607,03213,792
55-59 years7,7486,53714,285
60-64 years8,2326,46514,697
65-69 years7,9596,17914,138
70-74 years6,5825,94612,528
75-79 years4,6575,0889,745
80-84 years3,0894,0877,176
85 years and over2,2363,4095,645
 132,850138,136270,986

PATIENTS IN PSYCHIATRIC HOSPITALS—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) was 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, domicile, race, and length of stay.

In 1967 the statistical system was enlarged to include, in addition to people treated as inpatients in psychiatric hospitals, people treated in psychiatric inpatient units in public hospitals. The system was further enlarged in 1969 and 1972 with the inclusion of alcoholics treated in Salvation Army institutions. 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 earlier years.

At the end of 1973 there were 9,999 people on the registers of psychiatric hospitals of the Department of Health, 146 in psychiatric units of public hospitals, and 166 in Salvation Army institutions, a total of 10,311. There were 13,002 registrations during the year (excluding transfers and changes of status), of which 10,795 or 83 percent were voluntary patients. The average number of occupied psychiatric hospitals beds was 9,140, which was 258 fewer than in 1972. The average number of resident patients per 100,000 mean population has declined steadily over the last 29 years.

The following table gives the annual averages and the rates per 100,000 mean population for those in psychiatric hospitals and public hospitals.

YearResident in Psychiatric HospitalOn Leave from Psychiatric HospitalTotal for Psychiatric HospitalsPatients in Public Hospitals
Average NumberRateAverage NumberRateAverage NumberRateAverage NumberRate
All Patients
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....
196910,245368.02,04973.612,294441.61585.7
197010,169360.61,66359.011,832419.61545.5
19719,807342.41,44450.411,251392.81314.6
19729,398322.21,49851.410,896373.61625.6
19739,140306.81,65855.710,798362.51635.5

First Admissions—In 1973 there were 3,301 first admissions (1,770 male and 1,531 female) to psychiatric hospitals, 1,883 (684 male, 1,199 female) to psychiatric inpatient units, and 45 males to Salvation Army institutions, a total of 5,229. The number of informal patients (4,370) exceeded the number of non-voluntary patients (859) by more than five to one.

The numbers and rates of first admissions together with the percentage of first admissions in total admissions and the percentage of informal patients in first admissions, are shown in the next tables.

YearsInformal PatientsNon-Voluntary PatientsAll Patients
TotalRateTotalRateTotalRate

*Average over 5 years.

1940-44*23614.499660.81,23275.2
1945-49*50227.91,15164.51,65392.4
1950-54*73336.61,37568.52,104105.1
1955-59*1,06647.51,40062.72,466110.2
1960-64*2,600103.81,12445.53,724149,3
1965-69*3,626133.397635.94,602169.2
19704,127146.486930.84,996177.2
19713,869135.180328.04,672163.1
19724,035138.486529.74,900168.0
19734,370146.785928.85,229175.5

NOTES—For 1962 and subsequent years, informal patient totals include voluntary patients. Since 1967 the figures include psychiatric inpatients in public hospitals. The figures from 1969 include patients in Rotoroa Sanatorium and the figures from 1972 include those in The Bridge in Wellington.

Admissions to psychiatric hospitals for alcoholism and drug addiction under the Alcoholism and Drug Addiction Act 1966 are shown in the following table. The 1974 figures are provisional.

HospitalSection 8Section 9Total
197319741973197419731974

*Figures include Carrington.

Oakley*60616148121109
Kingseat454229577499
Tokanui316631Q47
Porirua21727354842
Sunnyside23721124419
Cherry Farm241319174330
 176146163200339346
Rotoroa634410577361
The Bridge (Wellington)2216382524
Totals261206176225437431

Readmissions are not included in the above table.

Admissions under section 8 of the Act are made as a result of applications from the patients themselves; applications under section 9 are a result of applications made on the patients' behalves by reputable persons. The section 9 figures for both years include 1 patient transferred from a penal institution under section 21 of the Act. Rotoroa sanatorium and The Bridge, Wellington, are conducted by the Salvation Army.

On the preliminary figures for 1974 the average number of occupied beds in psychiatric hospitals was about 2.9 per thousand of population. This is the lowest figure recorded since 1907. No absolute conclusions can be drawn from a low bed-occupancy rate; but a consistently falling rate, despite substantial admission rates, can fairly be assumed to indicate an active philosophy of treatment and successful therapeutic programmes.

Diagnosis—The three leading diagnoses in 1973 were: depressive neurosis, 895 cases; alcoholism (all forms), 690 cases; and other personality disorders, 642 cases. These three diagnoses accounted for 44.4 percent of first admissions.

The numbers of first admissions to each division of psychiatric care by short list diagnoses are shown for 1973.

DiagnosisAll HospitalsPsychiatric HospitalsPublic Hospital Psychiatric UnitsSalvation Amy
Senile and pre-senile dementia23021515-
Alcoholic psychosis654223-
Other organic psychoses20416242-
Schizophrenia and paranoid states638390248-
Depressive psychosis532357225-
Other functional psychoses285157128-
Depressive neurosis895373522-
Other neuroses and psychosomatic disorders230118112-
Alcoholism6255334745
Other personality disorders642382260-
Transient situational disturbances and behaviour disorders of children24395148-
Non-psychotic mental disorders associated with physical condition1038023-
Mental retardation2842777-
No psychiatric diagnosis (includes observation)20312083-
Totals5,2293,3011,38345

Numbers and rates of first admissions by diagnosis are shown in the following table.

DiagnosisNumbersRates per Million of Mean Population
197119721973197119721973
Senile and pre-senile dementia208216230737477
Alcoholic psychosis764965271722
Other organic psychoses215224204757768
Schizophrenia and paranoid states538623638188214214
Depressive psychosis466480582163165195
Other functional psychoses224267285789296
Depressive neurosis831818395290280300
Other neuroses and psychosomatic disorders2602232.30917677
Alcoholism482555625168190210
Other personality disorders608739642212253216
Transient situational disturbances and behaviour disorders of children187142243654982
Non-psychotic mental disorders associated with physical condition8684103302935
Mental retardation30729528410730195
No psychiatric diagnosis (includes observation)184185203646368
  All cases4,6724,9005,2291,6311,6801,755

The first admission rates for mental retardation have decreased in the latest 3 years. Over the same period rates for other functional psychoses, alcoholism, senile and pre-senile dementia, and depressive psychosis increased.

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
197119721973197119721973
Senile and pre-senile dementia7610199273533
Alcoholic psychosis125106139443647
Other organic psychoses274229253967985
Schizophrenia and paranoid states1,7991,9952,192628684736
Depressive psychosis8158981,021285308343
Other functional psychoses540670699189230235
Depressive neurosis666729736233250247
Other neuroses and psychosomatic disorders204207205717169
Alcoholism1,2221,5031,587427515533
Other personality disorders7418851,008259303338
Transient situational disturbances and behaviour disorders of children102116130364044
Non-psychotic mental disorders associated with physical condition148110147523849
Mental retardation886865783309297263
No psychiatric diagnosis (includes observation)130111130453844
  All cases7,7288,5259,1292,6982,9233,065

Readmission rate is not necessarily an indication of therapeutic failure and may in many respects be a more accurate index of therapeutic vigour. It is still possible to encounter grossly over-simplified ideas with regard to the operations of psychiatric hospitals. For example it is sometimes assumed that discharge from hospital is, or should be, an indication of final and complete cure.

In certain respects the long-established practice of publishing readmission rates for psychiatric hospitals (no similar figures appear for general hospitals) seem to perpetuate this misconception. Readmission figures are sometimes quoted as evidence that psychiatric hospitals "do not actually cure people." As with many other types of illness psychiatric disorders may require more than one hospital admission before the condition is stabilised.

Discharges—There are three principal ways of being discharged from psychiatric 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 psychiatric 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 13,820 discharges in 1973. Of these, 11,091 were outright discharges, 2,423 were discharges on leave, and 306 were discharged "not committed".

The principal diagnoses were: schizoprenia and paranoid states 2,846 cases; all forms of alcoholism 2,268 cases; other personality disorders and depressive neuroses, each 1,630 cases.

The following table shows the number of discharges for 1973 by short list diagnoses.

DiagnosisOutright DischargeLeaveNot CommittedTotal
Senile and pre-senile dementia11048-158
Alcoholic psychosis113651179
Other organic psychoses2821172401
Schizophrenia and paranoid states1,883947162,846
Depressive psychosis1,41711151,533
Other functional psychoses7602002962
Depressive neurosis1,5754691,630
Other neuroses and psychosomatic disorders426131440
Alcoholism1,681398102,089
Other personality disorders1,354178981,630
Transient situational disturbances and behaviour disorders of children34988365
Non-psychotic mental disorders associated with physical condition164534221
Mental retardation785239101,034
No psychiatric diagnosis (includes observation)192-140332
Totals11,0512,42330612,995

Duration of stay—Over half (55.8 percent) of those discharged left hospital within a month of admission, 26.9 percent left in the next 2 months, and a further 7.8 percent were discharged in the subsequent 3 months. The average stay of all discharges was 32 weeks.

Deaths—In 1973 there were 581 deaths in psychiatric hospitals, 10 in psychiatric units of public hospitals and one in Rotoroa Sanatorium. In addition 66 died while on leave.

The principal diagnosis was senile and pre-senile dementia, 194 cases. Next came other organic psychoses, 92 cases, and mental retardation, 88 cases.

In 1973 92 people died during the first month in hospital, and a further 61 deaths occurred in people who had been in hospital for over 1 month but under 3 months.

The provisional total of deaths in psychiatric hospitals in 1974 was 539.

5 C—HEIGHTS AND WEIGHTS OF NEW ZEALAND CHILDREN

GENERAL—In recent years increased interest has been 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.

Surveys of the heights and weights of primary school children in New Zealand were made in 1913, 1925, 1934, 1954, and (most recently) in 1969. In 1973, for the first time, a survey was made of the development of pre-school children.

The various surveys of New Zealand school children have revealed a pattern of growth similar to that of children in other developed countries. The growth spurt appears between 11 and 12 years in girls and between 12 and 14 years in boys, and in both sexes is associated with early maturation. It is probable that in line with other countries the development of secondary sex characteristics are occurring earlier than in past years. Causes of earlier physical development are likely to have been multifactorial and to include better housing and education, improved nutritional standards, fewer debilitating diseases, and the effects of measures taken to prevent deficiency diseases.

New Zealand figures suggest that significant changes in height, which have been a feature of the past half-century, will not continue. There is reason to believe that the continued weight increases are indicative of an emerging problem of overweight for height at all ages. This suggests that in New Zealand obesity may become the main nutritional problem. In view of its relationship to cardiovascular and other diseases in the adult, obesity requires greater attention when the health and physical development of New Zealand children are considered.

PRE-SCHOOL CHILDREN—In early 1973 the Department of Health joined with the Plunket Society in the first national survey of the growth and development of pre-school children. Supine height, weight, chest, and head circumferences were measured. The age groupings as plotted consisted of one group for each month in the first year of life, and one group for each quarter year of life, and one group for each quarter year following. The sample consisted of 4,951 girls (of whom 570 were Maoris and 114 Pacific Islanders) and 5,161 boys (of whom 593 were Maoris and 123 Pacific Islanders). The following table shows smoothed mean measurements for New Zealand pre-school children in 1973.

AgeLengthWeightChestHead
YearMonthBoysGirlsBoysGirlsBoysGirlsBoysGirls
  cmkgcmcm
01456.0555.624.804.6437.2436.7338.6238.02
0257.7457.155.245.0138.4337.7339.4938.89
0361.2660.056.145.7340.2939.2741.0540.17
0464.3462.526.986.4041.7340.5242.3541.23
0566.4164.547.677.0442.9341.6543.4442.24
0668.0866.318.257.6443.9842.7544.3243.10
0769.6267.928.758.1444.9443.7245.0443.82
0871.0869.449.198.5545.7544.5245.6744.44
0972.4770.889.588.8946.4245.1846.1944.96
01073.8072.259.939.2046.9745.7246.6445.40
01175.0873.5410.259.4847.4446.1647.0445.78
1076.3274.7810.549.7447.8346.5247.3946.12
1379.7478.2111.2910.4548.7647.3448.2046.91
1682.8081.3111.9111.0849.4748.0048.7947.52
1985.5684.1612.4511.6850.0548.5849.2348.00
2088.0786.7412.9212.2450.5549.1549.5948.41
2390.3689.1213.3812.7951.0349.7049.9148.74
2692.4991.3313.8813.3351.4950.2450.1949.04
2994.4693.4114.3813.S551.9450.7550.4149.29
3096.3495.4014.8714.3952.3951.2450.6449.52
3398.1397.3115.3514.9152.8551.7350.8449.72
3699.9099.1615.8315.4253.2952.2051.0249.90
39101.63100.9316.3215.9253.7252.6751.1950.06
40103.39102.6916.8016.4254.1253.0951.3550.25
43105.13104.4017.2816.9254.5053.5051.5050.36
46106.84106.0817.7817.4354.8753.9051.6450.49
49108.49107.7618.3517.9755.2154.2851.7850.61
50110.09109.3818.9318.5555.5454.6451.8950.72

The growth patterns for length, as indicated by the quarterly increments, showed for both boys and girls a very rapid growth in the first year followed by a gradual decline to approximately 1 centimetre per quarter, the rate of growth which was maintained for the remainder of the child's early years until the growth spurt at the onset of puberty.

The pattern of growth for weight resembled that for length, a swift increase declining in rate to about 2 to 3 kilograms per year. This rate of gain stayed fairly constant from just under 2 years of age until the age of 8 to 9 years.

As a general statement, it can be said that the pattern of physical development of pre-school children in New Zealand is virtually identical with that observed in children in affluent communities in other countries. Most authorities now agree that little difference exists between the height-weight patterns of well-nourished children regardless of their ethnic origins.

A comprehensive report on this 1973 survey has been published by the Department of Health in its special report series under the title Growth of New Zealand Pre-School Children.

PRIMARY SCHOOL CHILDREN—Each successive survey of primary school children 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 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 surveys is related in the following tables.

MEAN HEIGHTS (cm)

Average Age (Years)19131925193419541969
BoysGirlsBoysGirlsBoysGirlsBoysGirlsBoysGirls

NOTE: 1934 values are converted from whole inches.

5    109.2109.2    
5 1/2      112.75111.68112.23111.51
6112.1112.6  114.3114.3    
6 1/2      118.72117.81118.34117.61
7117.8117.4  119.4119.4    
7 1/2      124.61123.60124.62123.87
8123.8123.4  124.5124.5    
8 1/2      130.20129.03130.09128.87
9128.7131.1  129.5129.5    
9 1/2      135.31134.42135.27134.28
10132.5132.5134 2134.4134.6134.6    
10 1/2  136.8135.8  140.46140.31140.10140.03
11136.5136.7138.9138.2137.2139.7    
11 1/2  141.0141.0  145.03146.35145.38147.66
12141.1141.8142.5143.9144.8144.8    
12 1/2  144.5147.6  150.47152.48151.26152.95
13145.6148.0146.8150.1149.9149.9    
13 1/2  149.4151.9  156.79156.92157.48158.02
14150.6152.1151.9153.8154.9154.9    
14 1/2  154.4155.7  162.94159.51164.56160.45
15155.2152.6  157.5157.5    
15 1/2      168.00161.16169.18162.21

MEAN WEIGHTS (kg)

Average Age (Years)19131925193419541969
BoysGirlsBoysGirlsBoysGirlsBoysGirlsBoysGirls

NOTE: 1934 values are converted from whole pounds.

5    19.118.6    
5 1/2      20.7220.0620.3319.93
620.420.7  20.920.4    
6 1/2      22.9222.4822.6422.30
722.422.1  22.722.2    
7 1/2      25.4625.0225.3525.30
824.824.3  24.924.5    
8 1/2      28.1327.8128.2227.73
927.126.6  27.727.2    
9 1/2      31.3230.9830.8730.77
1028.928.630.129.529.929.5    
10 1/2  31.430.4  34.4934.9633.9734.60
1131.431.432.632.232.733.1    
11 1/2  33.433.7  37.4939.3737.8840.49
1234.234.634.735.935.437.2    
12 1/2  36.238.4  41.7344.6442.3745.05
1337.639.938.140.939.942.6    
13 1/2  39.842.9  47.0249.8547.9350.69
1442.743.441.945.344.045.8    
14 1/2  44.047.4  53.2854.3354.5254.55
1545.445.5  46.749.0    
15 1/2      58.6756.6560.1358.16

A detailed report on the 1969 survey was published in the special report series of the Department of Health entitled Physical Development of New Zealand School Children 1969.

International Comparison—In the following table New Zealand figures are set alongside those of other national surveys.

In height New Zealand school children of 1969 compared very closely with Canadian children of the same year; the only marked difference was 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 showed 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 Age (Years)BoysGirls
U.S. 1963Canada 1969N.Z. 1969U.K 1965U.S. 1963Canada 1969N.Z. 1969U.K. 1965
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
Average Age (Years)BoysGirls
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 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 of 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.

Chapter 7. Section 6 SOCIAL WELFARE

6 A—SOCIAL SECURITY AND SOCIAL WORK

GENERAL—Social services and the whole concept of state-supported or state-subsidised social welfare are continually evolving in response to the changing needs of society and the greater recognition of the responsibilities of that society towards its less-fortunate or more-vulnerable members.

The New Zealand social security system has grown pragmatically to meet local needs, and in the light of local experience, rather than under the influence of social or political theories. Even the 1938 Social Security Act, rightly regarded as a landmark in the history of social welfare in New Zealand, did not introduce any sweeping theoretical changes, and since then ideas have been refined and enlarged rather than radically altered.

Nowadays the Department of Social Welfare, formed in 1972 from an amalgamation of the Social Security Department and the Child Welfare Division of the Department of Education, is the main Government agency in this field.

Also involved in social welfare are the Departments of Health, Education, Justice, Labour, and Maori Affairs.

DEPARTMENT OF SOCIAL WELFARE—The principal functions of the Department of Social Welfare are to:

  1. Administer the Department of Social Welfare Act 1971; the Children and Young Persons Act 1974; Part I of the Social Security Act 1964; the Family Benefits Home Ownership Act 1964; and to provide for the effective administration and servicing of the War Pensions Act 1954; and the Rehabilitation Act 1941.

  2. Advise the Minister on the development of social welfare policies for New Zealand.

  3. Provide such social welfare services as the Minister may from time to time direct.

  4. Provide for the training of persons to undertake social welfare activities in Government or voluntary organisations.

  5. Maintain close liaison with and encourage co-operation and co-ordination among any organisations and individuals (including departments of State and other agencies of the Crown) engaged in social welfare activities.

  6. Undertake and promote research into aspects of social welfare.

  7. Provide administrative services to boards, councils, committees, and agencies.

The objects of the department's administrative services are to provide such administrative support, advisory, training, and research services as necessary for the efficient and effective administration of the department's functions. The department is a principal adviser to Government on matters of social welfare policy. It also has particular responsibilities to private and voluntary organisations. Units with special responsibilities for liaison with such organisations and for publicity and information have been established so that the public are kept abreast of developments.

The objectives of the policy for benefits and pensions are:

  1. To safeguard individuals in the community against loss of income or reduction in income brought about by age, incapacity, widowhood, orphanhood, unemployment or other circumstances by providing income security at a level which will enable them to belong and participate in the community; and benefits for children as a contribution towards their maintenance.

  2. To provide assistance towards housing finance for families of moderate means by way of an advance of family benefit.

  3. To provide additional benefits for those whose income and financial resources are insufficient to meet their living costs and other commitments.

  4. To provide pensions on the death or disablement of members of the forces as recompense for physical loss, at a level reviewed and set each year at 1 April in accordance with movements in the Consumers Price Index; and to provide other allowances and concessions according to the nature and extent of disablement.

  5. To provide and maintain a service to ensure the rehabilitation and resettlement in civil life of former members of the forces.

The objectives of the policy for social work services are:

  1. To make better provision 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, maltreated, and delinquent children.

  2. To establish and maintain institutions, or arrange foster homes, for the care and control of children committed to the guardianship of the State.

  3. To promote and maintain a preventive work, social work, and general counselling service for persons and families facing social and economic difficulties.

  4. To promote and maintain an effective rehabilitation service to ensure that disabled persons are given encouragement, counselling, and assistance to restore them to a fuller and more meaningful life.

The social work services involve individual and family casework and general welfare work. Emphasis is given to the care and control of children including those with emotional or behavioural problems.

The residential programme includes the inspection of children's homes run by voluntary organisations and the licensing and supervision of child care centres in order to ensure satisfactory standards are maintained. This division also has a responsibility for children in licensed foster homes.

Added emphasis is to be given in the programme to the rehabilitation of disabled persons. Coordination with other agencies which also have responsibilities in this work, such as the Department of Health and Department of Labour, is achieved through representation of the department on the National Civilian Rehabilitation Committee, which also acts as an advisory body to Government on rehabilitation.

MAIN FEATURES OF SOCIAL SECURITY SYSTEM—The present system cannot be characterised according to any single principle, theory, or formula. As already stated, it has evolved from changing needs and experience in dealing with them. For example, it looks like a form of community insurance, but is not financed, funded, or administered on an insurance basis. It is financed from general taxation; but a person's benefit bears no relation to his tax contribution. While basically income-tested and selective as to need within clashes of benefit, it is also universally applied without regard to other income or means in three main cases (superannuation, family, and medical benefits) and in the lesser miners' benefit. It transfers income from the more to the less affluent mainly on the basis of greatest help for those in greatest need. It reflects the traditional humanitarian, egalitarian, and pragmatic approach of New Zealanders and, most importantly, reflects an acceptance of community responsibility for social welfare.

The main features of the system are:

  1. Eligibility for benefits (other than emergency) is based on residence for varying qualifying periods and not on the amount of tax paid.

  2. Benefits (other than family, miners', superannuation, and medical benefits) are subject to an income test with the amount of benefit being reduced if other income is over a prescribed level. Emergency benefits and additional benefits are subject to tests of both income and property.

  3. In paying superannuation and family benefit without any tests of income or need it is assumed that for everybody over 65 years and for all families with dependent children, a community-financed income supplement is necessary and desirable, irrespective of actual financial need or resources. Miners' benefit is not income tested, on the accepted assumption that if a person is disabled by disease arising from mining he needs to be compensated for losing income and enjoyment of life and that the income loss does not require to be established or tested.

  4. The concept of the family as the fundamental economic and social unit is recognised by the payments made in respect of the otherwise ineligible but dependent wife and children of a beneficiary; and the taking into account of the income of the husband or wife (legal or de facto) of a beneficiary when assessing the amount of those benefits subject to an income test.

  5. Contribution under a graduated income tax system and payment of benefits at a flat rate irrespective of contributions (that is, taxes paid) distinguishes the New Zealand system from many of those of other countries.

  6. The cash and medical benefits give a comprehensive coverage of need.

  7. Beneficiaries are given incentives to self-help and to work. From the start, amounts payable from standard benefits have been set below the average wages of low-earner groups; and small incomes, and most property, have been disregarded in assessing an individual's benefit. Conversely the income-tested age benefit for men over 60 years and some women over 55 years, superannuation for people over 65 years, and the benefits for widows with dependent children or over a prescribed age recognise these people's right to stop working if they want to.

  8. Funding is through taxation. The right to "contract out" on the grounds that the individual may not need, or qualify for, public aid is denied in the community interest, as it is with other State services such as education, defence, police.

  9. The Social Security Commission has wide discretionary power to grant, withhold, or reduce benefits, and a general power of direction is given to the Ministers of Health and Social Welfare.

  10. With certain exceptions no person is entitled to more than one analogous benefit from either New Zealand or overseas.

  11. Standard rates with supplements, rather than differential rates according to the class of benefit, relate benefits to need rather than to the cause of need.

ADMINISTRATION—The Social Security Commission in the Department of Social Welfare administers, under the direction of the Minister of Social Welfare, Part I of the Social Security Act 1964 dealing with cash 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 (see Section 5A).

The War Pensions Act 1954 is also administered by the Department of Social Welfare, which likewise handles ex-servicemen's rehabilitation.

Child welfare activities are governed by the Children and Young Persons Act and other legislation retailed later in this section.

FINANCIAL PROVISIONS—From 1 April 1964, when the Social Security Fund was absorbed into the Consolidated Revenue Account, 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. Details of medical benefits are set out in Section 5A—Health and Medical Services.

Payments—The New Zealand system has developed the following types of social security assistance.

Cash benefits as of right for those eligible by category, residence, and income, paid at flat standard rates (plus allowance for dependants) without regard to taxes paid.

Emergency benefits for those who need help but who are not, for any reason, eligible for standard benefits.

Additional benefit is available to beneficiaries who have limited income and assets, and replaced supplementary assistance from July 1975.

Medical and pharmaceutical benefits for all members of the community; free public and subsidised private hospital care.

Universally applied benefits (with no means test) for dependent children, and for those over 65 years of age.

Particulars of payments under the Social Security Act during the last 5 financial years are contained in the following table.

Item1970-711971-721972-731973-741974-75

*A considerable number of superannuation beneficiaries transferred to age benefits during the year following changes in tax law for those over 65 years of age.

†Expenditure for emergency benefit now included in expenditure for related benefit.

Cash benefits—$(thousand)
  Superannuation101,009114,575133,236*135,681140,950
  Age76,17388,441115,840*169,583224,853
  Widows15,93618,02621,15824,82127,967
  Domestic purposes----30,156
  Orphans179213235295381
  Family70,40273,886128,733160,103153,175
  Invalids6,9858,0179,83011,71013,665
  Miners9594939284
  Unemployment1,0042,6835,0343,4625,155
  Sickness7,1368,33311,36514,59015,886
  Emergency5,9488,61314,12519,526
Supplementary assistance3,1644,1714,1513,9125,420
Advances for repairs to homes616171101180
Employment subsidy for disabled civilians86846
Capitalisation of family benefit10,6496,6196,3327,1146,329
Total cash benefits298,749333,737450,211550,994624,207
Health benefits—     
  Maternity2,7563,4263,4673,3724,981
  Medical11,67711,62314,41320,79523,609
  Hospital6,1626,8368,0398,63010,147
  Pharmaceutical30,78333,23640,02045,16656,479
  Supplementary9,17410,40411,26212,45715,820
Total medical benefits60,55265,52477,20290,418111,037

About one-half of the total expenditure on cash benefits (including supplementary assistance advances for repairs to homes, and employment subsidy for disabled civilians) is paid without an income test.

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 MarchNational Income at Factor CostExpenditure*
Health BenefitsxFamily BenefitsOther BenefitsTotalPer Head of Mean Population

*Excluding capitalised family benefits.

†Prior to 1965 benefits were paid to public hospitals when beneficiaries were receiving treatment.

 $(million) Amount$
19704,097x52.472.3190.2314.9112.91
19714,684x60.670.4217.6348.7123.20
19725,535x65.573.9253.2392.6136.49
19736,489x77.2128.7315.1521.0177.67
19747,468x90.4160.1383.7634.3211.72
19758,162111.0153.2464.7728.9238.11
 Percentage of Expenditure to National Income
1970..1.31.84.67.7..
1971..1.31.54.67.4..
1972..1.21.34.67.1..
1973..1.22.04.98.0..
1974..1.22.15.18.5..
1975..1.41.95.78.9..

Government expenditure on social services (including health and education) is shown in relation to total Government expenditure in a table in the Statistical Summary at the back of this Yearbook.

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 1975 was 1,467,424, or 4,725 per 10,000 of population. A year earlier the corresponding figures were 1,390,690 and 4,570 respectively. Particulars of the various social security benefits in force at 31 March for the 4 latest years were as follows.

Class of Benefit1972197319741975

*About 25,000 superannuation beneficiaries transferred to age benefit during the year following changes in tax law for those over 65 years of age.

†Figures for emergency benefit now included with related benefit.

Superannuation149,190126,581*119,025114,834
Age106,681140,719*160,137174,514
Widows16,54016,96216,85416,738
Domestic purposes---17,231
Orphans306316387376
Family420,961429,804445,040452,389
Invalids8,6868,8429,1309,414
Miners77665245
Unemployment2,9351,7824832,894
Sickness6,8638,1627,3057,830
Emergency8,17711,36714,661
Supplementary assistance17,12017,76418,26019,480
Totals737,536762,365791,334815,745

In addition there were 1,178 pensions at 31 March 1975 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.

Relationship to Wages—In the following table, based on one compiled originally for the Royal Commission on Social Security 1972, standard weekly benefit rates are related to nominal award wages and average weekly earnings.

YearStandard Benefit Rate*Percentage of Nominal Award WagePercentage of Average Weekly Earnings
UnmarriedMarriedUnmarried BenefitMarried BenefitUnmarried BenefitMarried Benefit

*Standard rate includes age, widows', miners', invalids', sickness, and unemployment benefits (except that a lesser rate is payable to unmarried invalids and sickness beneficiaries under 18 years and unemployment beneficiaries under 20 years). Superannuation benefit became payable at half the shown married rate from 30 March 1960, while the higher rate for unmarried beneficiaries was extended to superannuation beneficiaries from 12 October 1960, A married superannuation beneficiary receives half the married rate.

†Relates to adult males only and is the average of a comprehensive survey of the wages of occupational groups used in the calculation of the Nominal Weekly Wage Rates Index compiled by the Department of Statistics. The average is determined after occupations are "weighted" according to their relative importance in the survey.

‡In the half-yearly survey, weekly wage payout and hourly earnings relate to all employees, males and females, adult and juvenile combined. Salaried executives are included but no working proprietors. Earnings include overtime, bonuses, and all allowances and special payments.

 $$%%%%
19505.0010.00....30.961.7
19557.0014.00....28.056.0
19609.5017.00....31.155.6
196510.6019.20....27.750.1
196610.6019.2029.152.826.748.4
196711.7521.5030.655.928.051.2
196811.7521.5030.054.827.249.7
196912.2522.5029.253.626.448.5
197013.2524.0029.553.526.347.6
197114.7527.0026.648.724.745.2
197221.0035.0033.255.431.151.8
197323.7039.5031.752.731.652.7
197426.8544.7032.654.230.350.5
197530.7551.2632.954.930.050.0

CASH BENEFITS—The rates of benefits have been increased from time to time, mainly as a result of the increased cost of living. More recent increases for age, invalids', widows', and miners' benefits are shown in the following table.

Date of IncreaseAmount of Increase per Week
Married CouplesUnmarried Beneficiaries
 $$
14 May 19691.501.00
15 Apr 19701.000.50
2 Sep 19702.001.00
9 Jun 19712.001.25
16 Feb 19722.001.10
5 Jul 19724.003.90
6 Jun 19732.501.50
1 Aug 19732.001.20
13 Feb 19741.200.80
3 Jul 19744.002.35
15 Jan 19753.201.90
2 Jul 19753.362.00
14 Jan 19764.072.45
28 Jul 19765.043.02

The list below gives a summary of the weekly rates for cash benefits. The term Unmarried includes those widowed or divorced. Later rates are included in the Latest Statistical Information section.

BenefitWeekly Rate
15 Jan 19752 July 197514 Jan 1976

†Subject to withholding tax for income-tax purposes.

Age*, Invalids* and Sickness*—$$$
Unmarried—   
  18 and over28.7530.7533.20
  Under 18 without dependants22.0023.5025.35
Married—   
  Husband or wife separately23.9525.6327.66
  Husband (wife included)47.9051.2655.32
Widows*28.7530.7533.20
Domestic purposes—   
Solo parent or woman alone28.7530.7533.20
Caring for sick or infirm—   
  Unmarried and 18 or over28.7530.7533.20
  Unmarried and under 1822.0023.5025.35
  Married23.9525.6327.66
Unemployment*—   
Unmarried person—   
  Twenty years and over28.7530.7533.20
  Under 20 years without dependants22.0023.5025.35
  Married man (wife included)47.9051.2655.32
*ANY OF THE ABOVE BENEFITS WITH DEPENDENT CHILDREN   
  Solo parent and 1 child44.9048.2652.32
  Solo parent and 2 children47.9051.2655.32
Increased by $65 a year ($1.25 p.w.) for each subsequent child   
  Married couple with 1 child50.9054.2658.32
Increased by $65 a year ($1.25 p.w.) for each subsequent child   
Superannuation—$$$
  Unmarried person28.7530.7533.20
  Married person23.9525.6327.66
Miners   
  Unmarried person28.7530.7533.20
  Married man (wife included)47.9051.2655.32
  Miner's widow27.1529.1531.60
Orphans14.4515.4516.65
Family   
  Each dependent child3.003.003.00
Additional benefit is available to beneficiaries with limited incomes and assets and may include an allowance in respect of accommodation costs and any special needs. Emergency Benefits—According to circumstances.

Standard Hospital Rate—The usual rate of benefit for a person whose benefit is reduced while in hospital is $8.00 a week, but this may be increased if necessary to meet continuing expenses.

Basic Income Exemptions—Superannuation, family, and miners benefits are paid regardless of the financial circumstances of the beneficiary. Other benefits are reduced if the income of the beneficiary and spouse is more than the income exemption. The basic income exemptions at the end of 1975 were as follows:

  • Age Benefit—$884 a year increased by $13 a year from age 65, for each year application was deferred between the ages of 60 and 65, provided age 60 was attained on or before 1 November 1972.

  • Widows Benefit and Domestic Purposes Benefit for solo parents and women alone—$884 a year increased to $1,092 a year if the applicant has a dependent child.

  • Invalids Benefit and Domestic Purposes Benefit for person caring for sick or infirm—$884 a year.

  • Sickness and Unemployment Benefits—$17 a week (but see below regarding unemployment benefits and personal earnings).

  • Orphans Benefit—$260 a year.

Adjustment of Benefit for Income Above Exemption—Age, invalids, widows, and domestic purposes benefits are reduced by $1 for every complete $2 a year of income over the appropriate income exemption and up to $1,300 a year, then $3 for every $4 a year.

Sickness benefits are reduced by 10c for every 20c over $17 a week up to $25 a week, then 15c for every 20c a week of income.

Unemployment benefits are reduced by 10c for every 10c of personal earnings in excess of $10 a week. The first $10 a week of personal earnings (if any) is added to other income and the benefits are reduced by 10c tot every 20c of other income over $17 a week up to $25 a week, then 15c for every 20c s week.

Orphans benefits are reduced by $3 for every complete $4 a year of income over $260 a year.

Superannuation Benefits—Every person over the age of 65 years who satisfies the prescribed residential qualification is entitled to a 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.

Age Benefits—Every person who has attained the age of 60 years is entitled to receive an age benefit, subject to residential qualifications and an income test.

Age benefits are payable, in the discretion of the Social Security Commission, to unmarried women between 55 and 60 years of age who are unable to engage in regular employment.

The basic rate for a male recipient is doubled when his wife is ineligible for any benefit.

At 31 March 1975,12,579 husbands received benefits on account of dependent wives who were not eligible for benefits in their own right.

Age of Beneficiaries—The following table shows the estimated age distribution of persons on superannuation and age benefits at 31 March 1975 and of persons granted age benefits in 1974.

Age Group (Years)Benefits in Force At 31 March 1975Age Benefits Granted During 1974
SuperannuationAge
 MalesFemalesMalesFemalesMalesFemales
 number
Under 60---500-385
60-64--14,85824,9486,4509,049
65-6924,59022,93620,03527,6713,5132,625
70-7415,49416,12416,10422,0781,6171,963
75-798,23810,2157,23816,1805471,236
80-843,9116,2673,04910,967247661
85 and over2,5574,5022,5568,330181422
Totals54,79060,04463,840110,67412,55516,341

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.

The following table affords an analysis of widows' benefits in force at 31 March 1975, according to the ages of beneficiaries and the numbers of dependent children. (Deserted wives (906) are also included.)

Age Group (Years)Number of Dependent Children
Nil12345 and overTotal
Under 25..634262..113
25-29..91141621713324
30-34..662121398753557
35-3939124275211121111880
40-44219358341228116741,336
45-4992869638014290812,287
50-542,4878602938525103,755
55-595,36455211924626,687
60 and over1,1701843010411,399
Totals10,2272,9941,82890746731515,738
Number of children included..2,9943,6562,7211,8681,76613,005

Domestic Purposes Benefits—Persons who qualify for domestic purposes benefit are:

  1. A woman with a dependent child or children who is living apart from and has lost the support of or is inadequately maintained by her husband, or who is divorced from her husband, or whose husband has been a mental patient for 6 months or a prisoner;

  2. An unmarried mother of one or more dependent children;

  3. A father of one or more dependent children who has lost his wife by death, divorce or some other cause.

  4. Women without dependent children who come within the definition of "a woman alone", which is a woman who has never been married or who has lost the support of her husband, and who has cared for dependent children or for incapacitated relatives.

  5. Other persons qualifying for the domestic purposes benefit are those required to give full time care and attention at home to a person who would otherwise have been admitted to hospital. In the case of both a solo parent and a woman alone de facto marriages are considered as marriages.

Orphans' Benefits—A benefit in respect of 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. The number of benefits in force at 31 March 1975 was 376 (in respect of 471 children).

Family Benefits—The rate of the benefit is $3 a week for each child, until he or she reaches 16 years, or, if a full-time school pupil, the end of the year in which 18 years is reached.

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 or a child who has commenced his first year of intermediate or 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 1975 was 156,767 and the amount lodged during the year was $50,380,035. The total number of benefits in force at 31 March 1975 was 452,389 covering 1,031,757 children, compared with corresponding figures of 445,040 and 1,029,160 at 31 March 1974. At the end of the 1974 school year there were 70,700 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 1975 classified according to the number of children for whom the benefit was paid.

Number of Children in Each CaseBenefits at 31 March 1975
1137,580
2157,978
395,930
442,931
515,554
66,473
72,694
81,208
9489
10 and over229
Total461,066

The average number of children in respect of whom benefits were 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, 2.51 in 1965-66, 2.38 in 1971-72, 2.36 in 1973-74, and 2.31 in 1974-75.

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 up to $1.50 of the weekly family benefit in respect of each 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 for each additional 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)
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
19725,3089,9207,031
19737,165..6,332
19745,980..7,114
19756,565..6,329

Invalids' Benefits—An invalids' benefit is payable if a person is—(a) is totally blind; or (b) is permanently and severely restricted in his capacity for work as the result of an accident or by reason of illness or of any congenital defect.

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 within certain limits be increased by up to 25 percent of his personal earnings. The personal earnings of a severely disabled beneficiary may be disregarded in whole or in part in computing his benefit.

Miners' Benefits—A miner's benefit is payable to any person who, while engaged as a miner in New Zealand, contracted pneumoconiosis or any other occupational disease and is thereby permanently and seriously incapacitated for work, provided that compensation in respect of the same disability is not being received.

Unemployment Benefits—An applicant for unemployment benefit is required to satisfy the Commission: (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 Commission 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.

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 $17 a week. For personal earnings of the applicant exceeding $10 a week the deduction is 10c for 10c of the excess. For income which is not earnings in excess of $17 a week the deduction is 10c for 20c up to $25 a week and thereafter 15c for every complete 20c.

The number of applications for unemployment benefits dealt with during the years ended 31 March 1974 and 1975 were 12,281 and 17,378 respectively, 8,184 persons being granted a benefit in 1973-74 and 11,920 in 1974-75. At the end of March 1975, 2,894 benefits were in force compared with 483 at the end of the previous year. Payment of additional benefit for a dependent wife was included in 157 of the benefits in force at 31 March 1974 and in 698 of the benefits in force at 31 March 1975.

Sickness Benefits—A person over the age of 15 years who is 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 number of applications for sickness benefits dealt with during the years ended 31 March 1974 and 1975 were 42,837 and 37,072 respectively. The number of persons granted sickness benefits was 38,506 in 1973-74 and 33,020 in 1974-75.

In the following table sickness benefits which ceased during the calendar year 1974 are shown according to the duration of the sickness benefit (based on a 20 percent sample of the estimated 36,500 benefits which ceased).

Period on Benefit (Weeks)Number of Benefits
MalesFemalesTotal
Up to 58,3402,90011,240
5- 85,7602,1707,930
9-122,8601,4804,340
13-253,7004,1907,890
26-381,2201,4302,650
39-51530340870
52-77510150660
78-10330070370
104 and over400150550
Totals23,62012,88036,500

The following table gives a classification of sickness benefits according to the disease suffered by the beneficiary. The data were obtained from an analysis of a sample of 10 percent of the benefits which ceased during the calendar year 1974.

Disease CategoryMalesFemalesPercentage of Total
Infective and parasitic diseases121584.9
Neoplasms40111.4
Endocrine system, metabolic, and nutritional diseases54182.0
Diseases of the blood and blood-forming organs990.5
Mental disorders30718513.5
Diseases of the nervous system and sense organs109253.7
Diseases of the circulatory system206446.8
Diseases of the respiratory system212667.6
Diseases of the digestive system3159111.1
Diseases of the genito-urinary system72342.9
Complications of pregnancy, childbirth, and the puerperium-50213.8
Diseases of the skin and subcutaneous tissue122274.1
Diseases of the musculoskeletal system and connective tissue120364.3
Congenital anomalies19100.8
Symptoms and ill-defined conditions230888.7
Accidents, poisonings, and violence4297613.9
Totals2,3651,280100.0

Benefit on Death—As from 1 April 1975, a lump sum benefit is payable following the death of persons under 65 years of age, who leave dependants not entitled to lump sum payment under the Accident Compensation Act. A dependent widow or widower (including a party to a de facto relationship) will receive $1,000, and subject to a maximum of $1,500 for children, each dependent child will be paid up to $500.

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.

Additional Benefit—Additional benefit is available to social security beneficiaries and others who have limited income and assets.

Married couples may receive up to $10 a week, and single persons may receive up to $6 a week. Either may receive up to a further $6 a week for accommodation costs, and up to $2 a week for special needs (e.g., costs associated with health). Under special circumstances, lump sum payments may be authorised.

Since 1973 a telephone rental concession equal to one-half of the amount of the rental may be granted to persons in receipt of age, invalids', widows', or related benefits. Since 1 January 1975 a concession equivalent to one-half of a television licence fee has also been available for these persons.

Disability Allowance—A disability allowance of up to $8 a week was introduced from 10 October 1975 for disabled persons receiving an income tested benefit or for persons whose income is such that they could qualify for an income tested benefit. The allowance can also be paid in respect of the disabled wife or child of such a person. The purpose of the allowance is to meet special expenses arising from the person's disability, such as transport costs, special diet, domestic help or medicines not on free list, etc.

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 superannuation, miners, orphans or domestic purposes benefits) 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.

Reciprocal benefits in force in New Zealand at 31 March 1975 comprised 621 age benefits; 46 widows benefits; 43 invalids benefits; 2 sickness benefits, and 3 unemployment benefits—a total of 715, compared with 761 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.

Reciprocal benefits in force in New Zealand at 31 March 1975 comprised 4,680 superannuation benefits; 8,267 age benefits; 266 widows benefits; 2 orphans benefits; 131 invalids benefits; 11 sickness benefits, and 5 unemployment benefits—a total of 13,362, compared with 12,929 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 unemployment benefits under the National Insurance Act.

The qualifying age for retirement pensions 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 an 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.

FRIENDLY SOCIETIES—Friendly societies or lodges had a membership of 58,000 in 1974 compared with 113,000 in 1938 before the introduction of social security. They provide sickness and death benefits for members. The funds of the lodges totalled $44.2 million in 1974.

Specially Authorised Societies—The majority of new societies registered under the Friendly Societies Act in recent years have been specially authorised societies in the form of credit unions; the number of such societies registered is now 143 and their funds totalled $27.2 million in 1974.

Medical Care Societies—The provision of benefits to provide part or all of the costs of medical or surgical attendance in return for voluntary contributions may be administered through a separate fund of a traditional friendly society or through a society providing only such benefits, including the costs of private hospital treatment. The latter type of society may be registered under the Friendly Societies Act 1909, but at least two are known not to be so registered. It is, therefore, not possible to give comprehensive statistics of either membership or funds related to such benefits. The number of individuals covered for such benefits is approximately 400,000 in societies registered under the Friendly Societies Act solely for the purpose and could be in excess of this figure in respect of traditional societies.

SOCIAL WORK—The establishment of the Department of Social Welfare from 1 April 1972 has resulted in a widening of the scope of social work formerly undertaken by the Child Welfare Division of the Department of Education and the Social Security Department. Although much of it is still concerned with the care, protection, and control of children and young persons, it now includes counselling work with the mentally and physically disabled, solo parents and their children, and the aged. The department now maintains a team of social workers and other staff who provide a general, individual, and family welfare counselling and guidance service for all age groups as well as undertaking general field investigation and inquiry work.

Services For Community Care—Assistance is given to community organisations providing care and training in the community for the handicapped, both physically and mentally, and for socially deprived children and pregnant women.

Financial assistance is given by way of subsidy to establish and operate residential homes, day care centres and sheltered workshops. At 1 April 1975 the range and levels of available subsidies were as follows:

  1. Socially deprived children (i) 50 percent of capital cost of establishing residential accommodation and $7 per week for each child in residence, (ii) 66 2/3 percent of capital cost of establishing day care centres and $4.50 per week per child attending.

  2. Mentally handicapped persons: 100 percent of capital cost of establishing residential accommodation (with a limit of $8,000 per bed), and $3.50 per day for each child in residence.

  3. Physically and/or mentally handicapped persons: 66 2/3 percent of capital cost of establishing day care, sheltered workshop, and training facilities and 75 percent of cost of staff salaries.

  4. Unsupported pregnant single women, and women with young children: 70 percent of capital cost of establishing residential accommodation (with a limit of $2,400 per bed). Other assistance to organisations in this field include:

  1. An advisory service covering a wide range of activities from forward planning to details of administration and design;

  2. The engagement of Ministry of Works in the search for, inspection of and purchasing of suitable properties, on behalf of any organisation wishing to establish a subsidisable social welfare facility.

Standards of care and training are set by regulations, requiring residential and day care centres to be registered, and by periodic inspections to ensure that the standards are being maintained.

Children and Young Persons Act 1974—The Children and Young Persons Act was enacted in 1974 and came into force from 1 April 1975. The Act replaced the Child Welfare Act 1925 and makes provision for preventive and social work services for children and young persons whose needs for care, protection, or control are not being met by parental or family care and who are, or are at risk of becoming, deprived, neglected, disturbed, or ill-treated, or offenders against the law. The new Act makes a distinction between a child who is defined as a person under 14 years, and a young person who is defined as a person over 14 and under 17 years. Children's Boards have been established throughout New Zealand as a preventive measure to keep children out of court.

Social Work with Children and Young Persons—Besides clerical officers, social work services involve over 450 social workers and over 475 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 Act; 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 about 100 honorary social workers, who are people of integrity and local standing in their communities.

Institutional care facilities include long-term training centres for difficult and delinquent children, short-term facilities providing classification, emergency, and temporary care for both infants and older children, and family homes which provide care for children of all ages either on a short-term or long-term basis.

Social workers undertake a wide variety of miscellaneous investigations and inquiries concerning the welfare of children. In the year ended 31 December 1974, 20,057 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 30 percent of children born out of wedlock are 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. Further details are given in section 4b, Births.

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 liaisons and in the proportion of mothers wanting to undertake the sole care of a child.

Under the Adoption Act 1955 a social worker must give prior approval to the placement for adoption of a child or young person under 20 years of age, 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.

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 28 consecutive days for payment or reward must have her home licensed by a social worker. At 31 December 1974 social workers were visiting 251 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 $7 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 and Young Persons' Courts—These Courts are presided over by stipendiary magistrates who are authorised to exercise jurisdiction in Children's and Young Persons' 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 are not open to the public. 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 Children and Young Persons Act, is a boy or girl up to 17 years of age.

Children's Courts deal with cases of children brought either (a) on a complaint, under the Children and Young Persons Act 1974, that a child or young person is in need of care, protection or control, or (b) being a young person, is charged with an offence. After the court has heard the complaint or the charge, and considered the social worker's report, the child or young person—according to the needs of the case—may be placed under the guardianship of the Director-General of Social Welfare, or placed under the supervision of a social worker for a period (usually one or two years), or discharged with an admonition. Orders for the payment of restitution may be made against either the child or young person or parent, and fines also may be imposed. Alternatively, if the case warrants it, the child or young person may be sent to borstal or to a detention centre or placed on probation.

Appearances before the Children's Courts in the three latest calendar years and the rates per 10,000 children aged 10 to 17 years, are given in the following table.

Reason for AppearanceAppearancesRate
197219731974197219731974

*These appearances represented 10,395 individual children.

For offences against special Acts, regulations, or bylaws9621,0301,007202120
For more serious offences10,15710,05710,381212205209
Subtotals11,11911,08711,388232226229
On "complaints" under the Child Welfare Act1,9301,8841,899......
Totals13,04912,97113,287*......

The decisions made in Children's Courts are shown in the summary below for the three latest calendar years.

Decision197219731974
Placed under the guardianship of the Director-General of Social Welfare1,0581,0791,028
Placed under supervision of social workers4,0673,6263,637
Admonished and discharged with or without costs, restitution, or fine5,2945,5465,591
All other decisions2,6302,7203,031
Totals13,04912,97113,287

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 1974, 12,588 cases were dealt with under this scheme without prosecution, compared with 11,570 cases in the preceding year.

Rates of Children's Court appearances for all offences per 10,000 of population of relevant age are shown in the following table.

Age of Child (Years)BoysGirls
197219731974197219731974
10323230324
118881877910
12198168181333033
13350324310717385
14514518503122118120
15725725754175151173
161,0761,1081,085224203210

The table shows clearly the way in which offending rates become higher with each year of age. It also shows that girls have relatively low rates compared with those for boys.

Since over 60 percent of all juvenile offending is accounted for by boys in the 14- to 16-year old age group the following table presents more detailed information on the offending rates for these groups per 10,000 of mean population in each age group.

Offences14 years15 years16 years
197219731974197219731974197219731974

*Include offences against licensing laws, traffic offences, etc.

All offences excluding technical offences500497481669660699926949937
Technical offences*141922566355150158148
All offences5145165037257237541,0761,1071,085

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 and Young Persons' Court may make an order placing the child under the guardianship 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 placed under the guardianship of the Director-General 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 15,550 children under the control and supervision of the Director-General of Social Welfare and his officers at 31 December 1974, 6,588 were under the guardianship of the Director-General and were placed as shown in the following summary.

Category197219731974
Residing in individual private homes (foster homes, employers' or relatives homes)4,2044,5724,747
In institutions administered by the Department of Social Welfare or Department of Justice (including those temporarily admitted)1,1841,2501,232
In hospitals (including psychiatric hospitals)138138111
In residential schools and colleges (including schools for handicapped children)183174176
In private institutions229293322
Attending university or teachers' training colleges121-
Totals5,9506,4286,588

For the children requiring institutional care and training the Department of Social Welfare 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. Three 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 in 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 12 girls' homes and boys' homes in the larger centres and 3 reception centres (at Auckland, Hamilton and Greytown) 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 92 homes in operation at 31 March 1975, approximately a third 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. Some 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 3,302 children under supervision at 31 December 1974.

Preventive cases, numbering 3,751 at 31 December 1974, 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 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 Maori Women's Welfare League 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 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 at the pre-school level.

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 Affairs Department through the activities of its social services 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.

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 do 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 1975 amounted to $150,000.

The Maori Affairs Department again primarily through its social services 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.

An inter-departmental committee fosters and finances research into social and educational aspects of Maori and Islander welfare.

Maori community officers are intended to carry out quite a different range of functions from those of other social workers. They are not intended to replace child welfare officers, probation officers, truant officers, and so on. Although they are available when other social workers encounter problems which are peculiarly Maori, their primary function is to work with groups rather than individuals. For example, it is not strictly a Maori community officer's duty to deal with a Maori child playing truant from school, but if truancy is a common problem amongst Maori students in any locality, it is the community officer's duty to hold discussions with parents and try to convince them of the importance of ensuring that their children attend school regularly. A great deal of the time of the welfare staff is occupied in informing Maori and Island parents of vocational opportunities open to their children, in recruiting and organising vocational training groups for school leavers, stimulating the formation of play centres and other pre-school groups, and in dealing with youth problems in the cities.

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 has developed from one which initially gave limited compensation for those returned from active service to one of comprehensive coverage for ex-servicemen who are disabled or incapacitated at any time of their lives as a result of their service, and for their dependants and also for the dependants of those who have died as a result of war service.

The war pensions legislation is designed to provide (a) basic pensions to compensate for disablement or death, which provide for physical loss and are therefore compensatory in character, and (b) supplementary pensions, in appropriate cases, to meet loss of income. The latter depend on the means of the pensioner and are economic in character, acting as income maintenance and being therefore similar to social security benefits.

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—For many years social security monetary benefits and war pensions have been administered by the same department.

The authority for paying war pensions is vested in the War Pensions Board, an independent body appointed by the Minister in Charge of War Pensions, with a chairman, a medical member, and a representative of the members of the forces appointed on the nomination of the New Zealand Returned Services Association. The administration of the War Pensions Act is, however, the responsibility of the Secretary for War Pensions who acts under the general direction and control of the Minister.

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. The pensions for war disablement and war widows are now adjusted annually on a cost of living basis.

PensionWeekly Rate
15 January 19752 July 197514 January 1976

*Adjusted annually at 1 April in relation to movements in the consumers price index. The increase at 1 April 1974 was $1.80 and at 1 April 1975 $2.60 for total disablement pension.

†Subject to means test on income.

 $$$
Disablement pension*   
Total disablement19.5022.1022.10
Special additional pension for blindness or serious disablement11.7013.3013.30
Economic pension   
Unmarried person28.7530.7533.20
Married person23.9525.6327.66
Wife's pension23.9525.6327.66
War widow's pension—   
Basic pension*14.4016.3016.30
Economic pension28.7530.7533.20
Mother's allowance—   
One dependent child16.1517.5119.12
Two dependent children19.1520.5122.12
Increased by $1.25 a week for each subsequent child   
Orphan's pension15.5016.5017.70
Child's pension3.003.003.00
Widowed mother's pension (totally dependent)—   
Basic pension14.4016.3016.30
Economic pension28.7530.7533.20
Widowed mother's pension (partly dependent)—   
Basic pension4.004.004.00
Economic pension26.5028.5030.95
War service pension and war veteran's allowance   
Unmarried28.7530.7533.20
Married male23.9525.6327.66
Married female23.9525.6327.66
Age supplement (each)1.501.501.50
Gratuity (veteran's widow)43.1547.0549.50
Dependent children (replacing the rates shown where there are dependent children)   
Solo parent and one child44.9048.2652.32
Solo parent and two children47.9051.2655.32
Increased by $1.25 a week for each subsequent child   
Married couple and one child50.9054.2658.32
Increased by $1.25 a week for each subsequent child   

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 $17 a week or $884 a year. In the case of a widow supporting a dependent child or children the allowable income without reduction in pension is, however, $21 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.

The social security legislation permits basic war disablement and war widows' pensions to be paid concurrently with any social security benefit and to be entirely disregarded for income tests.

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 1939 may receive a war service pension but not an age supplement. In addition to pensions for wives and children, a pension may be granted to any member of a deceased or disabled serviceman's family.

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. At 31 March 1975 there were 4,358 economic pensions in force.

War Veterans' Allowances—These make provision on economic grounds for ex-servicemen, mainly of the First World War, who have become unfit for permanent employment by reason of mental or physical incapacity. At 31 March 1975 there were 8,391 allowances in force.

War Service Pensions—From 1 April 1971 the war service pension is payable on economic grounds 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.

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 determining 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.

The war service pension will ultimately be the only war pension paid for economic reasons. The rates and income exemption for this pension are similar to social security benefits and, by agreement with the War Pensions Board, the same general rules of treatment of income and assets are applied. In most respects, therefore, the war service pension is similar to its civilian counterparts, the age, sickness, or invalids' benefit as appropriate.

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. At 31 March 1975 there were 4,322 war service pensions in force.

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.

ADDITIONAL BENEFIT—Additional benefit, which replaced supplementary assistance from 2 July 1975, is available to recipients of income-tested pensions and allowances, on a similar basis to social security additional benefit. During the year ended 31 March 1975, there were 630 supplementary assistance and additional benefit grants, totalling $130,000, compared with 343 supplementary assistance grants totalling $131,046 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 1974-75, 1,100 bursaries were granted, expenditure being $182,040 for the year. The 1973-74 figures were 1,121 bursaries and $102,701.

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 beneficial to former members of the forces.

STATISTICAL REVIEW OF WAR PENSIONS, ALLOWANCES, ETC.—During the year ended 31 March 1975 the department dealt with 2,932 applications for war pensions. Of these, 750 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, war veterans' allowances, war service pensions, and pensions in respect of peacetime forces. The total for the previous year was 3,092. Of these, 798 were in respect of the applicant's own disability.

The number of appeals to the War Pensions Board dealt with in 1974-75 was 208, of which 71 were upheld.

The following table shows for all classes of war pensions the number in force, except peacetime forces and war service pensions, 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
19708,83624,25425512,032625842345,839
19718,25024,04423011,7015261042344,689
19727,64023,27523710,183426649041,861
19737,05823,0752409,808222550740,717
19746,46722,7652349,175220547139,139
19755,91322,3862328,391221463037,579
Expenditure $(000)
19706,3039,4345414,19541057130,077
19716,2099,8246015,10251277331,292
19726,53011,9077015,43051477334,036
19736,92114,7408416,399515510338,272
19747,06917,4259617,794219513142,541
19757,45221,57910918,62722255047,846

The foregoing figures of expenditure include the following:

  1. Travelling allowances of $2.30 a week, paid to 834 pensioners at 31 March 1975.

  2. Clothing allowances, of which 1,142 were being paid at 31 March 1975.

  3. Gallantry awards of which 202 were being paid at 31 March 1975.

The following are not included:

  1. Costs of certain medical treatment not available under social security, amounting to $225,574 in 1974-75.

  2. Railway and bus concessions to pensioners with severe disablement and locomotive disabilities, costing $38,733 in 1974-75.

  3. Funeral grants which cost $71,000 in 1974-75.

  4. Loans towards the purchase of motor vehicles by certain seriously disabled pensioners (18 loans in 1974-75 totalling $21,050).

Administration costs in connection with war pensions and allowances are included in the administration costs of the Department of Social Welfare which are given in Section 6a.

Pensions paid in respect of all wars and types of service are shown by class in the following table.

At 31 MarchDisablement PensionsDependants of Disabled Ex-membersOn Account of DeathTotal
WidowsParents and Other Dependants
First World War, 1914-18
19705,1065823,135138,836
19752,9421962,76965,913
Second World War, 1939-45
197020,8629532,09234724,254
197519,4903132,38519822,386
K Force
19702361054255
1975225322232
Vietnam Force
19727312177
1975136241143
Peacetime Forces
19751,039465131,121
Other
197540112154

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 men who have served in South-east Asia for 6 months prior to 1 April 1972 and for 12 months after that date.

Application for housing loans, which attract a 3 percent concession rate of interest, and interest free furniture loans of $400, must be lodged within 5 years from the date of return to New Zealand after qualifying service or 2 years after discharge from the forces whichever is the later.

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 3 latest years ended 31 March was as follows.

ItemYear Ended 31 March 1973Year Ended 31 March 1974Year Ended 31 March 1975
 $(000)$(000)$(000)
Educational facilities, including books, tuition fees, and subsistence allowance221718
Trade training—   
Salary subsidy91310
Training of blinded ex-servicemen141919
Loans—   
Interest concessions950761716
Loans authorised4,1614,7815,313
Reserve Fund contribution11278103
Totals5,2685,6696,179

6 C—SUPERANNUATION

GENERAL—For many years the Government, local authorities, and increasing numbers of employers have operated superannuation schemes to enable employees to make provision for their retirement in addition to the benefits provided by social security.

The Government Superannuation Fund in its present form was established on 1 April 1948, amalgamating funds which had been in existence since the early 1900s. Its revenues consist of member's contributions, subsidies from the Consolidated Revenue Account, trading departments, and other bodies, and interest earned on investments.

The National Provident Fund was established on 1 March 1911, with the object of providing a superannuation scheme for the general public. It also provides superannuation for the employees of local authorities and other approved bodies, and maintains an investment pool in which local bodies invest their surplus funds and which provides an important source of their loan finance.

Following the passing of the New Zealand Superannuation Act 1974, the New Zealand Superannuation Fund came into existence on 1 April 1975. The operation of this scheme was described in the 1975 Yearbook. The scheme was abolished by the present Government in July 1976. Some details of the new Superannuation Scheme were included in the 1976 Budget and are summarised in the Latest Statistical Information section at the back of this Yearbook.

GOVERNMENT SUPERANNUATION FUND—The Government Superannuation Fund is administered by a board comprising the Minister of Finance as statutory chairman, the Secretary to the Treasury as deputy chairman, the Chairman of the State Services Commission, the General Manager of Railways, the Director-General of Education, and the Post Office, the Commissioner of Police, and five members appointed on the nomination of various employee organisations and one on the nomination of the Minister of Defence.

Membership—All State employees may belong to the fund and this covers those in departments under the control of the State Services Commission, the Education Service, the New Zealand Railways, and the Post Office. Membership is compulsory for permanent members of the armed forces, the Police, the Prison Service, judges of the Supreme Court, Maori Land Court judges, magistrates, members of Parliament, and members of the Cook Islands, Niue, and Tokelau Islands public services. In addition, from 1 January 1964 membership has been compulsory for permanent employees of the Government, except married women, from age 17 to age 24 years.

Contributions—Deductions are made from basic salary on a sliding scale according to the age from which membership of the fund dates. These are at the rate of 6 percent to age 29 years increasing by 1 percent steps each succeeding 5 years of age until a maximum rate of 11 percent is payable from age 50 years. From 1955 contributors have been able to elect to contribute at 60 percent of normal rates and be eligible for only that proportion of the standard benefits.

Credit may be purchased in certain circumstances for periods of Government service not currently ranking and for full-time study or periods of training outside Government service and which resulted in a qualification being gained. Certain intervals in Government service may also be purchased for superannuation purposes. The costs of buying credit for these periods varies according to age and salary at the time of purchase.

Benefits—The principal objective of the fund is the payment of an allowance on retirement, which is usually between ages 60 and 64 years, but may be earlier with the consent of a contributor's controlling authority and of the board where retirement is because of medical unfitness for further duty. Standard retiring allowances are calculated at one one-hundred-and-twentieth of the average of a contributor's salary over the final 5 years of service, for each year of contributory service, plus an equal amount for the first 40 years of service. In some cases of short service the average of the salaries over the final 3 years of service is used. Up to a quarter of the annual allowance may be surrendered on retirement in return for a cash payment of nine times the amount commuted. Those reaching normal retiring ages may also elect to receive a higher rate of allowance to age 65 years in return for a lower rate thereafter when they qualify to receive the social security universal superannuation benefit.

On death before or after retirement an allowance at the rate of half the allowance a contributor would have received had retirement occurred on the date of death, or half the allowance actually being paid at the time of death, is payable to any surviving spouse, for life or until remarriage. To this is added $78 a year for children to age 16 or 18 years where schooling is extended, or possibly to a higher age in the case of inability to earn a living because of physical or mental reasons.

All allowances are paid in advance in instalments each 28 days and no recovery is made where an entitlement ceased during a benefit period.

A cost-of-living adjustment scheme was introduced in 1969 providing for allowances to be increased relative to movements in the Consumers Price Index. Existing and future contributors pay an extra 1 percent of their salaries to participate but those already retired at the time the scheme was introduced receive an ex gratia adjustment based on 70 percent of price movements. Those who were already contributors in 1969 receive the basic 70 percent adjustment plus the proportion of the remaining 30 percent that the period paying the extra contributions bears to their total superannuation service. The adjustments reflect price rises that occur from age 60 years for superannuitants and age 55 years for widows.

Special Conditions—Armed forces contributors may qualify for a retiring allowance after completing their engagements with not less than 20 years' service, whatever their age at the time. In 1972 a special variation of the cost-of-living adjustment scheme was introduced allowing this group to pay an additional 0.7 percent of salary additional to the rates payable under the main adjustment scheme, in return for which they now receive adjustments after age 60 years for price movements since retirement.

Female contributors who were employed before the introduction of equal pay for women in the State Services in 1962 still retain some special conditions related to the former entitlement of women to retire on completion of 30 years service or on reaching age 55 years, but those joining the fund since 1962 have the same conditions as males.

Judges of the Supreme Court contribute at the rate of 8 percent of their salaries and their retiring allowances are based on a varying formula which produces a maximum of two-thirds of the final salary after 20 years' service. They normally retire on attaining age 72 years and with service up to 10 years they are paid the appropriate proportion of an allowance of a quarter of their salary. Each year of service beyond 10 attracts an addition to the allowance of one twenty-fourth of salary up to 20 years. A widow of a judge receives half her husband's entitlement with a minimum of 15 percent and a maximum of 25 percent of his final salary.

Magistrates and judges of the Maori Land Court contribute at the rate of 9 percent of their salaries for retiring allowances based on one thirty-sixth of their final salary for each year of service, up to a maximum of two-thirds after 24 years' service. They normally retire at age 60 years and the widow's benefits are calculated as for judges.

Members of Parliament contribute at the rate of 11 percent of an ordinary member's salary for an allowance based on one thirty-second of an ordinary member's salary at the point of retirement for each year of service, up to a maximum of two-thirds after approximately 21 years' service. They qualify for an allowance from age 50 years on retiring from Parliament after not less than 9 years' service or not less than 8 years if this covers the duration of at least three sessions. The standard provisions for spouses and children apply.

Police and Prison Service contributors are obliged to retire at age 60 years and to enable older entrants to attain additional superannuation service their service is counted as 1 year and one-seventh if they join the fund after age 25 years. A lesser fraction is added for those joining between 20 and 24 years. Increased rates of contributions are payable by those whose service is scaled up. The standard benefits apply.

Statistics—As at 31 March 1975 there were 120,042 contributors to the Government Superannuation Fund who paid $44,023,107 into the fund during the year. At the same time there were 29,396 super-annuitants who were entitled to $44,526,477 a year, made up as follows:

Qualification for AllowanceMalesFemalesTotalAnnual Allowances
    $(000)
Retired for age or length of service15,2993,36818,66736,546
Retired for ill health8241921,0161,134
Widows-8,4468,4466,748
Children6795881,26799
Totals16,80212,59429,39644,526

Accumulated funds at 31 March 1975 amounted to $305,609,877. Total assets, which amounted to $306,850,272 included investments in Government stock, $301,986,600; interest due and accrued, $3,713,086; contributions in course of transmission etc $867,582; and cash in hand and at the bank $283,004.

The average effective interest earning of the fund for the year ended 31 March 1975 was $5.46 percent.

As at 31 March 1975, contributors to the Government Superannuation Fund were distributed as follows:

Branch of ServiceNumberPercentage of Total
Armed Services12,15210.1
Education Service34,84729.0
Police4,2073.5
Post Office18,89315.7
N.Z. Railways9,9108.3
Public Service37,20331.0
Other employers2,8302.4
Total120,042100.0

The following table gives a summary of financial statistics, together with the numbers of contributors, for the latest available 6 years.

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)
1970105,00017,5727,27722,74130,250151,831
1971107,85723,5908,25528,06231,084174,843
1972109,01529,1709,64229,14133,267203,516
1973113,12132,18211,32531,13636,131234,894
1974114,98437,23713,16332,24339,094267,244
1975120,04244,02315,21837,80644,526305,610

In the Parliamentary Superannuation Account revenue was $223,471, including contributions and subsidy each of $105,065 and interest $13,341. Expenditure on retiring and other allowances was $130,652.

NATIONAL PROVIDENT FUND—The National Provident Fund is administered by a board comprising the Minister of Finance as statutory 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 fund now provides services in five separate areas:

  1. Public Fund—The two oldest pension schemes have catered for the general public on an individual basis, sometimes with encouragement from their employer or as members of a group.

  2. Local Authorities Superannuation—Three schemes cover employees of all local bodies, quasi-government and other approved organisations, firemen, and nurses.

  3. National Superannuation Schemes—Two employer subsidised schemes are available, one for farm employees and the other for any employees of companies, firms, Government departments, or local authorities willing to become contributing employers. A further scheme is available for the self-employed.

  4. Supplementary Scheme—This scheme offers a choice of benefits beyond the minimum requirements of compulsory superannuation.

  5. Local Authorities Investment Pool—This ancillary activity enables local authorities to invest surplus funds at interest..

The State guarantees the benefits payable under all the schemes and meets all administration expenses. There are some elements of State subsidy in the public fund and local authority schemes, and a guarantee of minimum interest earnings in the national schemes.

Public Fund—Membership was available to any resident of New Zealand from age 15 to age 59.

The first scheme of the fund, the Level Premium Scheme, available since 1911 and now closed to new members, enables contributors to purchase a pre-determined weekly pension from age 60 years by paying fixed regular contributions according to age on joining. For the first $20 per week a State subsidy of 25 percent is built into the contribution rates and after 5 years' membership contributors qualify for incapacity, widows', and dependent children's allowances.

The Annual Single Premium Scheme, which has been available to individuals and the self-employed since 1958, accepts contributions of any amount from members at any time. The contributions paid during each year are applied at the end of that year towards the purchase of a pension from age 60 years according to the contributors' then age. Only the first $1,000 contributed each year attracts State subsidy and this ceases once the aggregate pension purchased reaches $20 per week. There is a widow's benefit.

In both schemes contributors may defer for up to 5 years the start of their pensions, which then increase by 10 percent each year of deferment and contribution may continue. On accepting the pension, or at age 65 years, contributors may vary the amount payable by surrendering up to a quarter in return for a lump sum equal to nine times the annual amount foregone. Level Premium Scheme members may choose a joint and survivorship option, which is a reduced pension payable for a life to either the beneficiary or their surviving spouse. The Annual Single Premium Scheme offers the choice of surrendering part of the pension entitlement to purchase an annuity for an approved dependant or an additional entitlement for a widow.

Local Authorities Superannuation—The schemes provide superannuation with the contributions and benefits related to salaries and service for local government employees, with schemes to suit the special needs of firemen and nurses and variations for the aircrew of the National Airways Corporation and Air New Zealand.

The standard conditions are substantially the same as those for the Government Superannuation Fund set out in the section on that fund. As there is provision for transfer to and from that fund, State and local authority employees have a wide range of employment possibilities open to them without loss of accrued superannuation rights.

A scheme for adjusting allowances in accordance with rises in the cost of living was introduced on 1 April 1971 for the contributing employees and superannuitants of contributing authorities which agreed to pay the extra subsidies involved. This was almost 2 years later than the cost-of-living adjustment scheme of the Government Superannuation Fund. Similarly the increase in the basic rate of adjustment to 70 percent took effect from October 1974, 6 months after the Government scheme but otherwise the adjustment schemes are similar.

National Superannuation Schemes—The national scheme for farm employees was originally prepared at the request of the Federated Farmers of New Zealand to assist in retaining farm employees. Contributions may be from 50c per week up to 5 percent of gross earnings and are subsidised by an equal amount from the employer. These aggregate payments accumulate at compound interest until retirement, normally between ages 60 and 65 years, when the credit may be used to purchase an annuity for life, or up to half may be used to purchase an annuity for a wife. Up to a quarter of the credit may be taken as a lump sum or a greater proportion where there is a demonstrated housing need. Pensions paid to members age 66 years or older, or widows age 56 years or older, are adjusted annually as reserves allow and when cost-of-living increases are warranted. If a contributor dies before retirement his widow is entitled to the benefit of his credit in the fund immediately, or she may defer her election. A contributor may withdraw his personal contributions plus 3 percent compound interest after a minimum period of 10 years from joining, or may cease to contribute temporarily or permanently but still retain his accrued rights with his credit continuing to earn interest and bonus until retirement. The scheme is now closed to new members as an approved restricted scheme.

The National Superannuation Scheme is a general extension of the farm employees' scheme and any employee is eligible to join, provided his employer is willing to subsidise contributions on a dollar-for-dollar basis. The two schemes were similar except for the right to take more than a quarter of the credit at retirement in a lump sum. However, the National Superannuation Scheme has been amended to become an approved alternative to the New Zealand scheme. There are now minimum contribution rates in accordance with those prescribed in the New Zealand Superannuation Act, transfer values are payable, withdrawal rights apply only to those leaving New Zealand permanently, the accumulated credit on retirement will be transferred to and cost-of-living adjusted pensions paid from the annuity account of the New Zealand fund and options available to the surviving spouse on the death of a contributor before retirement include the right to uplift the total credit. The National Superannuation Scheme for the Self-employed is similar to the amended national scheme, except that contributions of any amount may be made at any time and there is of course no employer subsidy. The scheme should cater for those in the New Zealand or national schemes as employees who wish to continue making provision for retirement on becoming self-employed and thus exempt from compulsory superannuation.

Supplementary Schemes—The Supplementary National Superannuation Scheme is designed to accept contributions beyond the minimum rates stipulated by the New Zealand Superannuation Act and will pay benefits in a similar manner to the national scheme. However there will be the additional right to withdraw contributions after 5 years' membership and to take a refund of contributions and interest on retirement instead of a pension. There is a built-in widow's cover for death before retirement, but to provide for a widow after that time the contributor has the option of surrendering up to half his credit at retirement to purchase an annuity for any spouse.

Possible Amendments—As stated, a number of the schemes provided by the National Provident Fund have been amended to agree with the requirements of, or in the light of, the New Zealand Superannuation Scheme introduced 1 April 1975. Should this scheme be replaced by another, there may be further amendments or changes in those already introduced.

Investment Pool—The Local Authorities Investment Pool continues to be the main avenue for the temporary investment by local authorities, and other approved bodies, of surplus loan moneys and reserve funds.

Despite a substantial growth in the number of transactions in the pool during the year ended 31 March 1975, the balance of $143.1 million was only slightly above that of $140.6 million as at 31 March 1974. The 1975 balance of $143.1 million was maintained only because of the decision of the Accident Compensation Commission to channel its investment in local authority securities through the Fund by placement of moneys in the pool. Without this support, the pool balance at 31 March 1975 would probably have been less than $130 million. A main cause of the increased number of transactions was obviously the fact that local authorities were calling on reserves and pool deposit to assist in meeting normal expenditure and capital works programmes.

The following table shows the various terms for which money is deposited and the different classes of organisations supporting the pool as at 31 March 1975.

Class of Local AuthorityAt Call3-6 months6-12 Months1 and Under 2 Years2 and Under 3 Years3 and Under 5 YearsSpecial TermSinking FundsTotal
$(million)
Cities and boroughs17.0242.0014.2385.1231.9348.844-5.47344.637
Counties3.9420.5860.6790.7540.3371.813-1.4849.595
Electric power boards1.8530.1410.3400.3100.1755.187-3.41411.420
Fire boards1.0070.0150.0590.1470.1050.136-0.1971.666
Harbour boards2.8060.2132.8451.7940.3914.007-1.10813.164
Hospital boards5.1431.6054.1622.8930.5971.684-10.67426.758
Sundry local authorities2.4830.1832.2271.8180.4542.610-1.46111.236
Other approved bodies9.8710.3280.6831.2460.5350.31111.632..24.606
Totals44.1295.07215.23314.0854.52824.59211.63223.811143.082

About one-half of the pool is made up of short-term deposits of up to 12 months which cannot be expected to be retained in the fund for very long, so that a considerable portion must necessarily be invested in readily realisable short-term Government stock. There is however a relatively stable balance in the pool, principally of longer term money, from which the fund is able to augment substantially its investable income for lending to local authorities and other organisations using the fund for their staff superannuation.

Investments by Fund—During 1974-75 the level of demands made on the fund by local authorities for loan assistance exceeded $90 million. In its role as a lender of last resort to local authorities, and in its endeavour to ensure that any urgent or essential works were not unnecessarily deferred or delayed because of a lack of loan finance, the fund's lending for 1974-75 exceeded the moneys available for investment. It was necessary therefore for the fund to realise $46 million of its holdings in Government securities. However, $11 million was reinvested in Government stock before the end of the year.

The growth in the fund's lending to local authorities in recent years is shown below:

Year Ended 31 MarchNo. of ApplicationsAmount Considered $(million)Amount Approved $(million)
197037821.620.2
197139832.931.1
197244038.034.9
197351250.347.5
197453852.247.6
197567891.383.2

While the net amount of local authority loans approved to 31 March 1975 was $83.235 million, the total amount actually paid out by the fund from 1 April 1974 to 31 March 1975 was $88.580 million.

Comparative Survey—The following table provides a survey of financial and other statistics of the National Provident Fund for the latest available 3 years.

Item 1972-731973-741974-75
New contributors during yearNo.8,78515,73357,070
Total contributors at end of yearNo.52,21663,431115,788
Local authority scheme—    
ContributorsNo.17,55317,21317,550
Contributions$(000)16,58518,03420,731
Public Fund—    
ContributorsNo.34,66346,21898,238
Contributions$(000)5,3878,12412,134
Pensions and allowances at end of yearNo.8,6048,9199,391
Income—    
Contributions$(000)21,97226,15932,865
Interest$(000)11,67213,26915,770
Government subsidy$(000)4,1444,5914,917
Total income$(000)37,78944,01853,552
Outgoings—    
Pensions and allowances$(000)5,7496,9857,322
Other benefits$(000)1,9832,8593,622
Total outgoings$(000)7,7329,84410,944
Investment pool at end of period$(000)146,235140,615143,082
Funds at end of period$(000)194,503227,677270,147

PRIVATE SCHEMES—There is a great diversity in the pattern of benefits and scheme design generally in existing private schemes even though substantial numbers do fall into broad categories. Numbers of funds or employers at 31 March 1973 covered by a survey of staff superannuation funds are shown in the following table, along with members.

Type of FundNumberMembers

*Including approximately 5,000 Government and local authority employees.

Private lump sum funds3,994110,834
Private pension funds45950,917
Employers participating in the National Provident Fund schemes (including Govt. and Local Auth.)1,19112,960*
Totals5,644174,711

Thirty-six self-superannuation schemes had a membership of approximately 60,000. Under the New Zealand Superannuation Act 1974 alternatives to the New Zealand Superannuation Scheme required the consent of the Government Actuary.

Chapter 8. Section 7 EDUCATION AND SCIENCE

7 A—EDUCATION

Public discussion of education has often been spirited and controversial. What people care about they are prepared to argue about. But on one matter of fundamental importance there has been broad, if often implicit, agreement. It has long been accepted by New Zealanders of all ages and in all walks of life that, whatever else it should or should not do, the public system of education should provide opportunity for all children, regardless of background, ability, and promise, to develop their abilities so that their lives may become personally satisfying and socially useful. The continuing thrust of policy has been towards the creation of opportunity through education (Public Education in New Zealand, Department of Education, 1973.)

GROWTH OF EDUCATION—Since 1945 education in New Zealand 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 1974 the combined enrolments had risen to almost 940,000 or 31 percent of the population. This growth is accounted for by increased births for the major part of the period; a marked tendency for pupils to stay on longer at school and also to undertake further education after leaving school; and the development of new educational services. In the last 25 years pupils in primary schools have almost doubled and pupils in secondary schools have increased almost fourfold, while the number of students in universities has more than trebled 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 17.0 percent in 1973-74.

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 OF EDUCATION—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 central administrative body directing education is the Department of Education, whose permanent head is the Director-General of Education. The department consists of professional and administrative officers with its head office in Wellington. To bring administration closer to schools and institutions in the system the department has regional offices in Auckland, Wellington, and Christchurch, each under the control of a superintendent.

The Department of Education, in discharging its responsibility to the Minister for administration of the system, advises the Minister on policy and development, controls the expenditure of money voted, ensures that schools are built and equipped when and where required and that teachers are recruited and trained, checks that standards are maintained in all schools, both State and private, and assesses the efficiency of teachers. An important professional function of the department is to conduct curriculum revision and development and to recommend curriculum changes to the Minister.

Machinery for planning in the broadest sense as it affects national development is the concern of the Educational Development Council. It also considers the establishment of priorities in educational development.

The control and management of State primary schools is the responsibility of the 10 education boards, and local secondary school boards control State secondary schools. These boards 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 the 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.

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.

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—The members of education boards have in the past been elected solely by members of school committees on a ward system, but provision has now been made for the appointment to each board of a teacher to represent all teachers employed by the board.

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 and provision has recently been made for the election of teacher representatives. The boards 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 Councils—Technical institutes, including the Technical Correspondence Institute are controlled by councils with members representing business and industry, local authorities, the university, and governing bodies of secondary schools.

Community Colleges—Amendments to the Education Act in 1974 created a new category of institution "Community Colleges" designed to meet continuing education needs in provincial centres particularly. They are governed as Technical Institutes.

Teachers' College Councils—Teachers' college councils have the usual administrative functions, combined with some professional responsibility for the training of teachers. They include representatives of education boards, of the Department of Education, the university, and of the teachers' organisations.

Educational Development Conference 1974—Wider facilities for pre-school education, greater community-school participation and more flexibility in the school curriculum were among the major recommendations made in a top-level report to the Government in December 1974. The 140-page 110-recommendation report came from the Advisory Council on Educational Planning, and represented the outcome of the Educational Development Conference held throughout New Zealand earlier in 1974.

This conference and its working parties and associated study groups represent easily the biggest study of education ever undertaken in New Zealand, with some 60,000 people taking part, mainly in study groups throughout the country.

The council said there should be five main thrusts in education development:

  1. There should be much greater attention to pre-school facilities which should be doubled over a five to 10-year period;

  2. Although educational opportunity is available to all, many fail to take advantage of it. There should be a wide-scale attack on this problem, with special attention to "under-achievers", and to more flexibility in the whole system;

  3. More positive efforts should be made to ensure realistic parent and community participation in education, beginning with the early childhood years;

  4. There should be continuing education for all, with an open-door policy wherever feasible. The philosophy of "second chance" education is strongly supported; and

  5. Delegation of authority and responsibility is clearly desired, together with strengthening and reorganising the Department of Education.

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 (in some cases) a boarding allowance 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 rose by stages to 37 1/2 percent in 1975. Associated government controls are applied before new independent schools can be built, and there is a requirement that after a transitional period, new teacher entrants to independent schools must possess certain minimum qualifications.

In October 1975, the Private Schools Conditional Integration Act was passed to enable the voluntary integration of private schools into the State system.

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.

PUBLIC EXPENDITURE ON EDUCATION—The following table shows the net expenditure from public funds on each branch or service of education for the latest March years.

Item1973-741974-75
Programme—$(000)$(000)
I—Administration and General6,6669,048
II—Pre-school Education3,7115,162
III—Primary and Secondary Education  
Administration and support services60,57577,700
State primary education131,267152,442
State secondary education86,876102,607
Assistance to private schools8,66111,668
Special education5,3766,293
Sub-total292,755350,710
IV—Higher Education—  
University education78,65790,400
Teacher training35,24739,751
Senior technical education20,69828,528
Sub-total134,602158,679
V—National Library2,4733,031
Totals440,207526,630

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 net expenditure on education and relates it to total Government expenditure in national accounting terms. The share of public expenditure devoted to education has 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 MarchNet Education Expenditure*As Percentage of Total Government Expenditure
Current (Salaries, etc.)BuildingsTotalCurrent Education ExpenditureTotal Education Expenditure

*Including Child Welfare up to 1972 and National Library Service.

†About 66 percent of present current expenditure is on salaries of teachers and other staff.

‡Government expenditure in national accounting terms is the total net expenditure on Central Government plus Central Government gross capital formation. Details of Government expenditure prior to 1947 are not available in their present form.

 $(million)percent
194613.32.415.7
195644.212.857.07.910.2
1966112.528.0140.510.312.9
1970173.433.9207.312.615.0
1971221.244.4265.613.716.4
1972284.750.4335.115.117.8
1973315.661.2376.813.916.6
1974375.065.2440.214.7x17.3x
1975440.086.6526.613.716.4

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.

A fuller breakdown of net expenditure on education in 1974-75 is given in the following table.

$(000)ExpenditurePercentage of Total
Administration and general9,0481.7
Pre-school education5,1621.0
Primary and secondary education350,71066.6
University education90,40017.2
Teacher training39,7517.5
Senior technical education28,5285.4
National Library3,0310.6
 526,630100.0

The following figures relate Government net expenditure on education to gross national product and mean population.

Year Ended 31 MarchExpenditure from Public FundsExpenditure as Percentage of Gross National ProductExpenditure per Head of Mean Population

*Provisional.

 $(000)percent$
1965128,9883.749.59
1966140,5093.753.08
1967157,2094.058.33
1968173,0494.263.27
1969186,0164.367.40
1970207,3424.3x74.35
1971265,5544.8x93.79
1972335,0515.2x116.48
1973376,8395.0x128.51
1974440,2075.1146.96
1975526,6305.6*172.08

An international comparison of public expenditure on education as a percentage of gross national product is given in the following table for selected countries. Educational expenditures in many countries have been rising twice as fast as national income. These figures, which refer to the year 1971, are taken from the U.N. Statistical Yearbook.

 Expenditure on Education as Percentage of G.N.P.
Australia4.6
Austria4.8
Canada8.5
Denmark7.6
France3.5
Germany, Federal Republic of4.5
Italy4.8
Japan4.3
Netherlands7.9
New Zealand4.8
Switzerland4.3
United States6.7

International comparisons need to be treated with reserve because of the differing education systems and expenditure measures.

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
1966479264
1967528304
1968559295
1969578302
1970603376
1971666451
1972847570
1973810551
1974888434
1975780480

The year 1974-75 was one of considerable activity in education building. Five new secondary schools, 9 new primary schools, 2 new intermediate schools, and 2 Form I-VII schools were opened at the beginning of the 1975 school-year.

Building expenditure for 1974-75 was as follows:

 $(m)
Universities (including equipment)19.8
Education buildings57.6
Technical institutes6.5
Teachers colleges4.3
Pre-school buildings0.9

Most new secondary school building work since 1971 has been carried out to the S68 standard plans. The plans provide for flexibility of usage and a good standard of teaching amenity. During 1974 work was started on a new prototype design for secondary schools. The details of this new school, the "Whanau school", were announced by the Minister of Education in September 1975. A period of relative stability in primary school rolls has been used to introduce progressively the smaller class programme. This has accelerated the need for extra classrooms.

The period since the Second World War has been one of remarkable growth in secondary school enrolment. In part this results directly from increases in child population, which are known well before the pupils reach the secondary school level. Not so firmly predictable, however, is the length of stay of pupils at secondary school. The present trend towards longer stay has been unexpectedly accelerated or retarded from year to year according to conditions prevailing at the time. In these circumstances accurate planning schedules, in curriculum and in teaching methods have required additional or modernised accommodation. In urban areas particularly, where it is seldom easy to procure the large block of land (some 20 acres) needed for buildings and recreation, schools have tended to become very large and large schools require specialised accommodation.

Proposals prepared in the Department of Education for building and other capital requirements of technical institutes and teachers' colleges are considered, before submission to the Government, by special works committees representative of the Department of Education, the Ministry of Works and Development and the Treasury. Major capital works undertaken in recent years have included 2 new primary teachers colleges (North Shore and Hamilton) and major additions made to the existing permanent colleges following the introduction of 3-year training for primary teachers. A college for the secondary division of the Christchurch Teachers College has been built on a new site adjacent to the University of Canterbury. Senior technical education has also required substantial new buildings or additions to existing buildings, the biggest single project being the Central Institute of Technology.

University Buildings—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. 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: 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; 1971-72, $14.6 million; 1972-73, $20.1 million; 1973-74, $18.6 million; 1974-75, $19.8 million.

During 1974, the Government approved a building programme for the 5 years ending on 31 March 1979 setting out the University Grants Committee's latest assessment of the needs of the universities for capital works. Including the balances still to be spent on jobs under construction the total of the 5-year programme was over $148 million. New works included in the programme were teaching buildings for the growth of the existing universities and for the expansion of medical education.

Technical Institute Buildings—The current 5-year building programme for technical institutes which is kept under review by the Technical Institutes Works Committee is estimated to amount to $87.7 million, with $10.8 million allocated during 1975-76.

Teachers Colleges—The current 5-year building programme for teachers colleges is estimated to cost $28.99 million, with $6.0 million allocated for expenditure during 1975-76.

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 Institution197319741975

*Includes 173 kindergarten trainees.

†Includes 1,122 through Correspondence School.

Pre-school   
  Playcentres20,79221,64322,400
  Kindergartens28,58030,17132,357
 49,37251,81454,757
Primary   
  Primary schools under board control393,987389,319390,444
  Intermediate schools71,63277,41277,316
  Forms 1 and 2 at Form 1 to 7 schools3,8394,7995,015
  Chatham Islands schools154127155
  Correspondence school887799963
  Departmental special schools543475587
  Royal New Zealand Foundation for the Blind11816898
  Private primary schools50,71150,57450,745
 521,871523,673525,32
Secondary   
  State secondary schools168,217173,909184,225
  District high schools and area schools3,7613,0873,016
  Correspondence school697586709
  Private secondary schools30,20131,01431,804
 202,876208,596219,754
Technical   
  Technical Correspondence institute17,67918,74919,634
Other technical institutes—   
  Full-time students3,1823,3533,666
  Part-time students36,95133,97733,091
Technical classes at other institutions—   
  Full-time students196208174
  Part-time students43,67851,22059,324
 101,686107,507115,889
Teacher training   
  Teachers colleges7,811x7,6167,211x
  Kindergarten training centres409388568
 8,220x8,0047,779
University institutions   
  Full-time internal students25,85925,06125,875
  Part-time internal students9,36410,43811,056
  Extra-mural students3,5494,1135,191
  Agricultural short courses204229280
  Medical short courses1910834
 38,99539,94942,436
Totals923,020x939,543965,938

TEACHING STAFF—Statistics of full-time teaching staff at all educational institutions are shown in the following table.

Institution19731974
MalesFemalesTotalMalesFemalesTotal

*Includes 589 manual training assistants employed at manual training centres in 1973 and 610 in 1974.

Kindergartens737737..742742
Primary—      
  State6,78811,38318,1717,20011,20018,400
  Private2751,3851,6602841,4021,686
 7,06312,76819,8317,48412,60220,086
Secondary—      
State5,8833,8839,766*6,0303,4709,500*
Private7377201,4577657151,480
 6,6204,60311,2236,7954,18510,980
Technical institutes and New Zealand Technical Correspondence Institute1,1041351,2398801401,020
Teachers colleges490152642426111537
University institutions2,1542612,4152,4492302,679
Totals17,43118,65636,08718,03418,01036,044

The leveling-off in the growth of primary school rolls which, on the basis of known births, is expected to continue until at least 1979, combined with a higher retention rate of teachers in the service, has resulted in a favourable staffing situation in primary schools. This enabled all primary schools in 1974 to be staffed on a ratio of 1 teacher to every 35 pupils. In addition, approval was given for the appointment of 400 teachers in February 1975 as a first step towards the implementation of a 1:20 teacher-pupil ratio in infant classes.

Improved pupil-teacher ratios have also been approved for secondary schools.

The growth in school and university student population is illustrated by the diagram below, which is drawn on a logarithmic scale.

Overseas Students—Overseas students attending New Zealand institutions at 1 July 1974 totalled 3,901, of whom 1,224 were from the South Pacific area and 2,141 from South-East Asia.

Projected Students—A projection of education rolls, made in 1974 by the Department of Education and based on policies and trends at the time, is set out in the following table.

PeriodRolls
Pre-School KindergartenTotal PrimaryTotal SecondaryTertiary*

*Equivalent full-time students.

Actual—197430,171523,000208,60054,168
Projected—198043,600520,500229,10062,700
198555,600526,200238,70063,900

ANNUAL EXAMINATIONS: 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 1 year on a single-subject basis—to a maximum of 6 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 University Entrance Board.

The University Bursaries examination and the University Entrance Scholarship Examination, taken by secondary school pupils usually in Form VII, are also conducted by the University Entrance Board; they are competitive examinations for supplementary awards for study at a university.

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 University Entrance Board for admission to a university in New Zealand and satisfactorily completed an advanced course of 1 year.

Examination passes at other than university examinations are set out in the following table.

YearSchool Certificate*OtherUniversity Entrance*University Entrance ScholarshipUniversity Bursaries A and B

*Includes Certificate of Attainment.

†Includes Trained Teachers' Certificates, Technological, Engineers' and Surveyors' Assistants, Public Service Shorthand Typists Examinations up to 1970. From 1971 the number includes Trained Teachers Certificate, Diploma of Teaching, Technical Teachers Certificates, City and Guilds of London Institute Examination. Technological, Engineers, and Surveyors Assistants and Public Service Shorthand Typists Examination are not now administered by the Department.

‡From 1968 School Certificate figures have referred to passes in one or more subjects.

196011,6601,4645,35450206
196528,5021,6548,56390454
197042,5442,65413,2051163,103
197145,0781,04713,7541203,460
197246,98792514,2911313,588
197347,6651,20314,4291333,600
197448,87890414,5171393,730
YearTechnician Certificate 3-year CourseN.Z. Certificate 5-year CourseCertificates Issued
IntermediateFinalTradeAdvanced TradeIndustrial Practice
19607729911389
1965143871801,21690936
19701517875595,77940833
19711458576062,73367118
19722469646472,38463628
19732941,2007192,51074720
19743341,2008782,11564516

In 1974 there were 1,173 candidates for the University Entrance Scholarships examination and 139 scholarships were awarded; 1,028 unsuccessful scholarship candidates and 5,302 others (6,330 in all) were candidates for bursaries and 3,730 bursaries were awarded.

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
196921,58010,6981,953
197022,60210,8152,390
197123,61511,3722,382
197224,57211,9652,326
197324,84012,3902,039
197424,84912,2002,317

SPECIAL EDUCATION—Whenever possible, handicapped children are enrolled with other children, at ordinary pre-school services and in ordinary classes at their local primary or secondary school. When necessary, buildings are modified, special equipment is provided, and ancillary staff are appointed to assist their teachers, who are advised on suitable teaching programmes by the Department of Education inspectors of schools and psychologists, and by other specialist advisers.

A comprehensive range of special education services has been developed for those handicapped children whose special needs cannot be met in ordinary classes through these measures. Small part-time groups for handicapped pre-school children are attached to selected kindergartens and playcentres. Education boards provide special classes and resource centres at primary schools or separate special schools for pupils who are backward (mildly or moderately mentally-retarded), intellectually handicapped (more seriously mentally retarded), deaf, visually handicapped, physically handicapped or maladjusted.

The education boards also administer special classes in hospitals, special schools in psychiatric hospitals, speech clinics and reading clinics, and employ itinerant teachers to assist children in ordinary classes who have a hearing handicap or serious reading difficulties.

Special classes for deaf, backward, and maladjusted pupils are provided at selected secondary schools.

The Department of Education itself administers 6 residential schools—2 for deaf children (which also admit day pupils), 2 for backward children and 2 for maladjusted children. The Department also provides the teaching services in Department of Social Welfare institutions for socially maladjusted children, and the education service in penal institutions administered by the Department of Justice.

This network of special schools and classes is supported by 3 specialised guidance services which also assist children in ordinary classes. The Hearing Assessment and Guidance Service offers guidance to the parents and teachers of deaf children. The Visiting Teacher Service provides liaison between teachers and the parents of pupils whose progress at school may be hampered by home difficulties. The Psychological Service provides a comprehensive diagnostic and advisory service for children who have learning or social difficulties. It maintains a close liaison with all secondary school guidance staff and with all health, education, and welfare services for children. These three services assisted approximately 30,000 pre-school and school age children in 1974.

In 1974 some 1,300 teachers were employed in the special education and guidance services. A total of 9,600 children was enrolled in special classes and schools, and 4,200 children received part-time assistance at speech or reading clinics.

The following table shows the number of pupils receiving special education at primary and secondary schools (including intermediate, correspondence, and special schools) at 1 July 1974.

GroupBoysGirlsTotal
Visually handicapped134136270
Visually and hearing handicapped403474
Hearing handicapped400300700
Speech handicapped3,4431,4894,932
Physically handicapped165100265
In health camps14197238
In hospitals328241569
Intellectually handicapped9847251,709
Backward2,3141,4013,715
Home emergency7962141
Maladjusted393217610
Educationally retarded329105434
Correspondence school:   
  Individual programme9369162
  Home training section9784181
Totals8,9405,06014,000

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 are not enrolled in State primary schools except in a very few areas. Pre-school education is provided mainly by 2 national voluntary organisations which receive support from the State. Some assistance from Government is also available to voluntary educational organisations for handicapped pre-school children, and to voluntary social welfare agencies for children needing full day care. Other institutions include informal family play groups, private and community kindergartens, and play centres which operate independently and receive no direct Government financial assistance.

The Government pays the full cost of new sites for free kindergartens and recognised playcentres, a subsidy of $4 to $1 for buildings, and a subsidy of $2 for $1 for equipment. The maintenance of the buildings is the financial responsibility of the Government. In areas of special need, the cost of buildings and equipment may be met in full by the Government. Grants are made available to both organisations for administration and day to day running costs.

In July 1974 there were 30,171 children enrolled at 375 free kindergartens and 21,643 children at 666 recognised playcentres. Another 7,500 children below 5 years of age were enrolled in other pre-school groups.

Kindergarten teachers are now trained in the 7 teachers colleges and the Government gives training and student allowances on the same basis as primary and secondary teachers. Playcentre supervisors are trained part-time within their own associations and work on a part-time voluntary basis.

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, usually after 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 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 Forms I and II, French. At the Forms I and II levels, creative crafts such as woodwork, metal work, homecraft, and sewing are available to both girls and boys.

Teachers have the assistance of specialist teachers in a variety of fields, including science, physical education, art and crafts, reading, mathematics, music, Maori language programmes, and language programmes for Maori children. 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.

The Basic Equipment Grant enables all schools to build up an adequate supply of teaching equipment and is supplemented by free textbooks, basic primer readers, art, craft, and physical education equipment. Schools also receive a book grant to purchase additional textbooks and other reading materials.

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 1 JulyPupils at 30 SeptemberPupils at End of Year
19702,257462,041479,315486,438
19712,268462,866479,531487,926
19722,250464,310480,836490,002
19732,234465,773484,350495,961
19742,218466,858485,360496,442

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 Years19731974
BoysGirlsTotalBoysGirlsTotal
528,40227,23955,64129,51927,77957,298
628,14227,18655,32828,49027,41055,900
727,68126,49654,17728,53527,49556,030
828,10726,55454,66127,61626,54954,165
929,11927,61556,73428,41226,63255,044
1029,53628,77958,31529,39528,03857,433
1129,26427,97757,24128,94927,49656,445
1227,40926,08253,49128,19826,57754,775
1310,9787,96918,94710,6747,88018,554
14550349899517323840
1557551128659145
16 and over117110227117112229
Totals239,362226,411465,773240,508226,350466,858

Size of Classes—The size of classes at State primary schools at 30 September are shown in the following table.

Pupils in Class1971197219731974
Under 315,8486,5417,4719,044
31–353,6704,3855,2445,895
36–404,9184,2793,2601,897
41–4581047626123
Totals15,24615,68116,23616,859

NOTE—Prior to 1970 special classes were excluded from this table, but from 1970 onwards special classes are included in the official size of class statistics. The table includes intermediate schools and departments and Chatham Islands schools.

As already stated, during 1974 good progress was made in reducing class sizes. The percentage of classes with over 40 pupils dropped to 0.7 percent compared with 1.6 percent the previous year, and the percentage of classes with 35 or fewer pupils rose to 88.6 percent compared with 78.3 percent in 1973.

Maori Pupils—At 1 July 1974 there were 74,283 Maori children attending State primary schools and 2,974 attending private primary 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 131 intermediate schools and 2 intermediate departments at the end of 1974, numbered 75,502. Of all children in Forms I and II at State primary schools at 1 July 1974, 66.1 percent were enrolled at the intermediate schools. The ages of pupils on the roll at 1 July of each of the latest 3 years were as follows.

Age, in Years197219731974
BoysGirlsTotalBoysGirlsTotalBoysGirlsTotal
10324441765363441804280458738
1110,69111,92222,61311,47612,42923,90512,53513,48926,024
1216,21715,56531,78217,41716,73634,15319,10918,17437,283
136,8485,00511,8536,9745,20212,1767,3675,49612,863
14287182469345229574303174477
159122114620141024
16 and over213123
Totals34,37833,12867,50636,58935,04371,63239,60937,80377,412

Private Schools—The following table contains the principal statistics of private primary schools.

YearNumber of SchoolsPupils atTeachers
1 July30 SepEnd of yearMaleFemaleTotal
197033850,90452,01552,2322521,4041,656
197133951,00951,86352,5872421,3851,627
197233150,85952,12452,3732531,4071,660
197332450,71151,86151,8752751,3851,660
197431950,57451,49551,6042841,4021,686

The majority of the schools included in the preceding table are Roman Catholic Church schools, of which there were 239 in 1974 with 43,877 pupils and 1,344 teachers. The remaining private schools comprised 49 church schools of other denominations, with 244 teachers and 5,894 pupils, and 21 undenominational schools, with 92 teachers and 1,861 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 Schools and Area SchoolsPrivate Secondary SchoolsTotal
196920466116386
197021061115386
197121957115391
197222355114392
197322950114393
197423348112393

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. In 1974, 25 of the State secondary schools enrolled only boys and 25 schools only girls, with 183 schools co-educational. Most of the private schools are single-sex schools. There were 74 State secondary schools with over 1,000 pupils.

The inspection of secondary schools is carried out by inspectors of secondary schools attached to the Department of Education. In 1974 there were 50 inspectors. The entitlement is 65.

The numbers of each sex attending schools providing secondary education at the end of 1974 were: State secondary schools, 84,928 boys and 81,202 girls; secondary departments of district high schools, 1,906 and 1,621; private secondary schools, 14,990 and 15,240; full-time pupils in the secondary department of the Correspondence School numbered 225 boys and 511 girls.

Maori pupils—At 1 July 1974, 21,808 Maori pupils were receiving secondary education. This number comprised 19,798 pupils attending State secondary schools and 2,010 pupils attending private secondary schools.

About 1 in 6 secondary pupils in the North Island is now Maori. There is a steady improvement in the number of Maori pupils passing the School Certificate Examination and progressing to Forms VI and VII. In 1974 31 percent of Maori pupils progressed to Form VI, compared with 11 percent in 1966.

Secondary School Hostels—In 1973 there were 37 hostels for State secondary schools. A programme for 5-day hostels at certain rural secondary schools is being developed to strengthen rural secondary education.

Attainment Levels of State and Private Secondary Schools—The following table gives particulars of pupils who left schools providing secondary education, classified according to years of attendance and attainments.

Year of Attendance19731974Attainments19731974
First1,5791,464University scholarship137138
Second8,4318,279University bursary3,4503,495
Third18,53417,415Higher School Certificate2,9812,967
Fourth17,62316,996University Entrance7,1967,304
Fifth10,68410,647Sixth Form Certificate6,2026,063
Sixth and over477391School Certificate (three or more subjects)6,4666,093
   School Certificate (one or two subjects)7,8237,337
   No attainments23,12321,795
Totals57,37855,192Totals57,37855,192

Probable Destination of State and Private Secondary Pupils—An indication of the vocations intended to be followed by pupils leaving secondary schools is contained in the next table.

Probable DestinationBoysGirlsTotalBoysGirlsTotal
  1973  1974 
Full-time education at university3,6421,9955,6373,6412,0415,682
Further full-time education—      
  Teachers college3981,4241,8223111,3361,647
  Kindergarten T.C.52512565208213
  Technical training8015601,3617976891,486
  Commercial training1541,3411,4951141,3251,439
  Art54911456393156
Technical traineeships—      
  Draughting cadets3259441927991370
  Technical trainees9793101,2899663341,300
Health services1063,1923,2981183,1623,280
Office—      
  Government6761,4112,0877211,5212,242
  Local authority148348496110396506
  Private enterprise1,3515,6176,9681,2635,0346,297
Shop and warehouse assistant1,4442,8164,2601,1642,4893,653
Skilled trades—      
  Government7919388489498992
  Local authority2043223622823251
  Private enterprise7,2509108,1606,1408376,977
Farming3,0723113,3832,6602962,956
Factory and clothing workers1,7561,8243,5801,6751,7073,382
Domestic work and home1131,3941,5071701,4221,592
Armed forces6879077769299791
Other6,1053,2139,3186,2093,7719,980
Totals30,06127,31757,37828,22026,97255,192

CURRICULUM DEVELOPMENT—The Curriculum Development Unit, established in 1963 following a recommendation by the Currie Commission on Education, has an essentially co-operative role in New Zealand education. The principal functions of the unit are to prepare, co-ordinate and revise curricula and syllabuses at all school levels; to provide handbooks and resource materials for teachers; to initiate pilot schemes of new courses and methods; to bring new or revised methods to the attention of teachers; and to assist teachers themselves in developing curricula at the local school level. Professional officers in the unit have responsibility for development in areas including science, mathematics, English, social studies, Maori language and studies, foreign languages, music, libraries, audio-visual media, drama, physical education, reading, and examinations and tests.

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 25 years. Three types of composite schools have been developed in recent years to bring together larger concentrations of children from Form I and above: Form I–VII schools; area schools; and district high schools (reorganised type).

The first Form I–VII school was opened in 1962 and by 1975 there were 32 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.

However, a large number of Form I and II children remain in the country districts too small to support a Form I–VII school.

In these districts, area schools and district high schools (reorganised type) have been established.

The area school is a unified school providing education from the infant stage to Form VII for all children in the immediate vicinity, and from Form I upwards for children from contributing schools over a wider area. The first area school was opened in 1969, and there are now 4 of these schools. More recently, 9 district high schools have been reorganised and are operating on the same basis.

Transport and Boarding Allowance—In recent years school transport facilities have been steadily developed until now over 16 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.

The trend towards consolidating small country schools and improving educational facilities in larger rural centres has been paralleled by the continuing movement of families into provincial towns and cities. These factors are resulting in only a relatively small increase in transport services.

Pupils carried by the school transport services have increased from almost 113,000 (including rail transport) in 1971 to 115,600 in 1974, while the number of separate transport services has decreased from 2,550 to 2,515. These services covered a total of over 23,300,000 miles for the year, at a cost of approximately $10 million.

School boarding bursaries were increased in 1972 from $200 to $300 a year. The number of pupils receiving boarding bursaries is declining and stood at 3,629 in 1974.

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 1974, according to the type of school attended.

Type of SchoolPupils on RollPupils Transported to SchoolPupils Receiving Boarding Allowance
State primary schools466,73164,77099
State secondary schools (including district high schools)208,01045,1451,999
Private primary schools50,5752,400151
Private secondary schools31,0143,3411,380
Totals756,329115,6563,629

Correspondence School—Correspondence classes are conducted for the education of children in very remote areas and for 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 enrols teachers for the Diploma in Teaching courses.

In 1975 there were 8,539 pupils on the roll of the Correspondence School, 1,326 being in the primary division, 810 full-time and 5,324 part-time students in the secondary division, 819 students taking the Diploma in Teaching course, and 203 students studying for Trained Teachers' Certificates. The staff of the school consists of the principal, deputy principal, 223 teachers, 26 tutors, and 45 clerical personnel.

A new building to house the school is to be completed in 1977.

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 judged 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 (Health and Medical Services) of this Yearbook.

TRAINING OF TEACHERS—In 1974 there were 8 teachers colleges (North Shore, Auckland, Auckland Secondary, Hamilton, Palmerston North, Wellington, Christchurch, and Dunedin), with staffs totalling 603 (481 males and 122 females). At 1 July 1974 there were 9,931 students in training. This number includes 1,803 holders of secondary teacher studentships (Division U) and 238 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 819 graduates undertaking training for secondary teaching.

The minimum entry qualification for admission to primary teacher training (Division A) and for entry to the secondary 3-year commercial course and the 3-year home-economics course, is Sixth Form Certificate with acceptable grades in four subjects. University Entrance is required for the 3-year Division B course in general secondary subjects, and the 1-year Division C course is for graduates. Other specialist secondary training courses of 1 year's duration for adults include woodwork and metalwork, commercial, music, and Maori language and these courses have various minimum entry requirements.

The following table shows the number of students in these three divisions at 1 July.

YearDivision ADivision BDivision C
MalesFemalesMalesFemalesMalesFemales
19701,3624,817233214248294
19711,3284,919265245228346
19721,4414,997289223325396
19731,4934,671243183448371
19741,5214,358252200317400
19751,4144,186244195319409

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 teaching course. Specialist studentships are available to selected students who wish to become speech therapists or teachers of deaf children.

The normal period of training for teaching is 3 years. Courses may be shortened to 2 years for students partway through degree courses and to 1 year for university graduates and specialists courses such as are mentioned above for secondary teaching as well as those courses for speech therapists or teachers of the deaf or children with handicaps.

A concurrent secondary teacher training course (Division B) was introduced in 1966. The course provides for up to 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 the secondary division of Christchurch Teachers College.

Successful Division B students may complete the teachers college course with six units of a degree or equivalent and apply for a Teachers University Studentship for a year of full-time university study in order to complete a degree. Under the provisions of this concurrent course a successful student may commence his career of teaching as a teacher-trained university graduate in 4 years. This is the same period of time taken by students who are awarded a studentship for 3 years full-time university study (Division U) followed by the 1-year course of teacher training for graduates in Division C.

A total of 1,564 students were admitted to secondary training courses in 1974 compared with 1,445 in the previous year.

The ages and classification of students at teachers colleges at 1 July 1974 are shown in the following table.

CourseUnder 17 Years17 Years18 Years19 Years20 Years21–24 Years25 years and OverTotal
MFMFMFMFMFMFMFMFCombined
Division A                 
  First year18504851605231281776964724413294921,3401,832
  Second year1143453212744810618215810837354631,3191,782
  Third year413960715545926125941964961,4621,958
Specialist5121102191230157691
Graduate (1-year course)11532112223455161216
Totals18514991941,1012941,2443327305255421252241,5214,3585,879
Division B                 
  First year351515942232342660
  Second year491215123916616945114
  Third year314132612286113149129278
Totals35151921303040164102194252200452
Division C (Total)6302323177953317400717
Other courses2459171431931454864331395
Totals                 
  197420545492091,2113151,3453688439409922683292,1545,2897,443
  1973119466942051,2903601,4683477689819372863422,2265,5187,744
  1972168718992701,4513241,4883338319858841403432,1245,9648,088
  1971253579192101,5343451,5173247897797271803551,8975,8947,791
  197053691,0912851,6673501,3483286446795951872911,8985,6897,587

NOTE—In addition the following students on studentships and bursaries were enrolled at teacher colleges in 1974:

 MFTotal
Division S (primary teacher studentship)75182257
Division U (secondary teacher studentship)9199401,859
Division Bs (secondary bursar studentship)353974
Secondary teacher bursaries7512

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. Books for children and young people are sent on repository loans or on exchange to approximately 2,430 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 2,082,946 requests were filled during the year ended 31 March 1975.

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.

The National Film Library lends 16 mm educational films free of charge to schools and to community organisations through its 3 branches located in Auckland, Wellington, and Christchurch. In addition, the Wellington office also offers a service to Western Samoa, Tokelau, Niue, Pitcairn, and the Cook and Chatham Islands.

With over 38,000 prints of some 10,000 titles, the library is possibly the world's largest free loan film organisation and each week over 12,000 films are issued to some 3,000 educational institutions and over 4,000 community organisations. Each year substantial sums of money are spent by the Education Department to add new prints and to support the direct service provided by the library.

In addition to films the Wellington branch also offers an audio-disc loan service, an audio-tape reel/cassette copying service, and a sample sheet music service. These services are available to educational institutions only.

The disc library has in stock over 8000 discs, comprising 3,950 titles, and issues during 1974–75 totalled 12,219.

The tape duplicating section each week sends out 500 copies of the 3,000 masters at present held by the library and sells recorded cassettes to schools at cost.

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 Publications—The 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 5 and 6 times a year, while Parts 3 and 4 for the senior classes appear four times a year. Bulletins dealing mainly with literature and language, social studies, science, history and geography, particularly of New Zealand, are published every year for primary and secondary schools. 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.

Te Wharekura, a bulletin in the Maori language published three times a year, and Te Tautoko, a supplementary textbook, are issued free to secondary pupils studying the 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 issued for the New Zealand Broadcasting Corporation to accompany the broadcasts to schools, and for the Vocational Guidance Office; and the department also publishes occasional reports and studies.

VOCATIONAL GUIDANCE—Assistance with careers, and with occupational and educational choices, is offered through Vocational Guidance Centres in Auckland, Papatoetoe, Hamilton, Napier, Wellington, Lower Hutt, Christchurch and Dunedin. An information service about occupations, training, entry requirements, etc. is available to members of the public, who may make appointments with vocational guidance staff for individual assistance or to discuss the vocational plans of their children.

Vocational guidance officers also provide a support service to secondary schools and encourage them to develop vocational programmes for their students. Within the schools, either careers advisers or, in a growing number of schools, guidance counsellors, are responsible for helping students with their vocational plans. Vocational guidance personnel assist by visiting the schools in the district and interviewing young people the school staff feel need extra help. They provide the schools with up-to-date information about training, employment and occupations. Seminars for school personnel are arranged to help keep them informed.

School work is supplemented by careers exploration courses of various kinds which enable young people to gain a more realistic understanding of the opportunities available to them.

Adults wishing or needing to change their occupation, and who are seeking second chance training or education, can also be assisted by vocational guidance officers.

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 regulation 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 for admission 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 are 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 expand existing classes as necessary where student numbers increase and, subject to the scrutiny of the Curriculum Committee, to offer such 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 architecture, 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-moral 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 $300 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—A new system of bursaries for students entering upon a university course has been introduced for 1976.

Fees Bursaries are awarded to students following part-time or full-time courses who have qualified for entrance to the university. These bursaries provide payment for tuition fees.

Tertiary Bursaries are awarded to students who hold University Entrance and Higher School Certificate, or certain Sixth Form qualifications, and are tenable for any recognised course at a university in each year of the bursary. Also, a student who is credited with 2 units in any year or 3 units over a period of years will qualify for a tertiary bursary.

A tertiary bursary may be held with a fees bursary. It allots $24 per week for a full-time student, increasing to $27 a week in the fourth and subsequent years. The allowance is abated by $11 if the student is not required to live away from home to attend university. Special rates are available for married students.

The tertiary bursary is also tenable for full-time courses at technical institutes and teachers colleges.

Supplementary Allowances of $250 a year are awarded to students who gain A or B passes in the university bursaries examination. Payment is made in a lump sum in the first year a tertiary bursary is held.

All these bursaries are subject to strict rules as to terms and suspension. 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 a subsequent year of study he is credited with a prescribed number of passes.

Further details of the amounts payable and other conditions for these bursaries are available from university liaison officers and from the Head Office of the Department of Education, Wellington.

Students—In 1974 there were 35,449 students actually in attendance at the seven universities; 3,858 were graduates, 31,641 undergraduates (1,205 were enrolled in more than one course). In addition, there were 4,113 students attached to the various universities, but exempt from lectures, and 337 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
197022,3109,5981,4721,06634,446
197123,23410,8551,7551,41337,257
197223,47711,5751,7991,37838,229
197322,97512,2481,8851,66438,772
197422,68512,8142,0232,09039,612

The following table gives particulars of internal students who were taking definite courses at universities, including agricultural college, during 3 recent years. Additional information is published in Education Statistics of New Zealand available from the Department of Education, Wellington.

Course197119721973
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Agriculture1,7131101,81,6161151,7311,3501461,496
Architecture489415304354147643157488
Arts and music5,5666,59612,1625,3756,64412,0195,1206,78111,901
Commerce,2563103,5663,2133933,6063,1665083,674
Divinity204241411513215
Education4728641,3365981,0881,6866481,1251,773
Engineering2,308222,3302,319322,3512,376442,420
Fine Arts1321442761471583057576151
Technology182362182874833532861389
Home Science246246138239240240
Law1,9102632,1732,165892,5541,9764182,394
Medicine and Dentistry1,0652421,3071,217271,5041,2743661,640
Physical Education8612721392 233119166285
Science5,1971,4576,6544,9281,4996,4274,6071,5186,125
Surveying1211211101101141115
Veterinary Science286543403056236732372395
Others1,1325861,7181,5627552,3171,9229852,907
Totals23,93511,10235,03724,38411,89136,27523,84212,56636,408
Adjustment for students enrolled in more than one course7012479489073161,2238673181,185
Total23,23410,85534,08923,47711,57535,05222,97512,24835,223

Students on the books of the university institutions in 1974 are shown in the following table.

AucklandWaikatoMasseyVictoriaCanterburyLincolnOtagoAll Universities
MFMFMFMFMFMFMFMF
Internal students                
  Full-time4,5181,9699274821,9078582,5461,4163,4091,313780843,1321,72017,2197,842
Part-time1,7111,3503765995017101,2618379488686446056045,4664,972
  All internal students6,2293,3191,3031,012,4081,5683,8072,2534,3572,181844883,7372,32422,68512,814
External students                
  Taking courses at Massey University6710015181,4201,58677109606043591,6821,932
  Taking courses at own university138 954331131213876341158
  All external students20513424231,4201,58612014073721811352,0232,090
  All students6,4343,4531,3271,1043,8283,1543,9272,3934,4302,253844883,9182,45924,70814,904
  Overseas students included in totals452948334186774121565001045652841081,973578

Internal students by years of university study in 1974 are shown in the following table.

Year of University StudyFull-time StudentsPart-time StudentsAll Internal StudentsOf these, Overseas Students numbered*
MFTotalMFTotalMFTotalMFTotal
First4,5132,2616,7747811,6682,4495,2943,9299,223458154612
Second3,6802,0445,7246019601,5614,2813,0047,285307102409
Third3,1661,7504,9165396131,1523,7052,3636,06827886364
Fourth2,4899413,4308196201,4393,3081,5614,869350104454
Fifth1,5854222,0077804171,1972,3658393,20430969378
Sixth or later1,7864242,2101,9466942,6402,7321,1184,85027163334
Totals17,2197,84225,0615,4664,97210,43822,68512,81435,4991,9735782,551

The ages of internal students at universities in 1974 are shown in the following table.

Age in Years at 1 JulyFull-time StudentsPart-time StudentsAll Internal Students
MenWomenTotalMenWomenTotalMenWomenTotal
Under 181,5061,0572,5631596017601,6651,6583,323
183,1591,8134,9723028001,1023,4612,6136,074
192,9341,6304,5643666069723,3002,2365,536
202,6971,2643,9614383978353,1351,6614,796
212,0936992,7925023828842,5951,0813,676
221,5083931,9015192828012,0276752,702
239262171,1434862016871,4124181,830
246011477484091695781,0103161,326
25–291,2383261,5641,148891,7372,3869153,301
30–343261184444963388348224561,278
35–3911981200289211500408292700
40 and over11297209352396748464493957
Not stated
Totals17,2197,84225,0615,4664,97210,43822,68512,81435,499

Holders of bursaries in 1974 by year of bursary, are shown in the following table.,

Year of BursaryFees BursariesFees and Allowance Bursaries
Full-time StudentsPart-time StudentsBursariesBursaries and Boarding Allowances
MaleFemaleMaleFemaleMaleFemaleMaleFemale
First8676322222651,7107201,9001,070
Second29114668881,1487061,622935
Third904192809435761,336720
Fourth2497536673260968308
Fifth337712130167512133
Sixth192437671717332
Totals1,3248375714974,8422,3466,5113,198
  Combined totals2,1611,0687,1889,709

In 1972 Master Bursaries were replaced by further steps of the Fees and Allowance Bursaries.

The nature of residence of full-time students at universities in 1974 is shown in the following table.

Nature of ResidenceAucklandWaikatoMasseyVictoriaCanterburyLincolnOtagoAll Full-time StudentsOf These, Overseas Students Numbered
MFTotalMF
Living at home3,7114934581,9591,8831447146,3972,9659,3624027
In halls of residence5313858714238402831,3033,1771,4594,636402160
Boarding447240139176416441381,2043961,60026587
Sharing flat or house with other students1,6112651,1491,1721,5783932,1945,6452,7178,362888151
Other, and not known1872614823255037963051,1017621
Totals6,4871,4092,7653,9624,7228644,85217,2197,84225,0611,671446

Occupations of part-time university students in 1974 are shown in the following table.

OccupationMalesFemalesTotal
No occupation other than study640343983
University staff538228766
Teacher6114951,106
Teachers college student9302,0192,949
Government employee7213741,095
Local body employee134127261
Private employment1,5124681,980
Self-employed person14642188
Housewife678678
Full-time student at technical institute61723
Other occupations228181409
Totals5,4664,97210,438

Totals of assisted overseas students at New Zealand universities in 1974, by the nature of the assistance, are shown in the following table.

Nature of AssistanceMalesFemalesTotal
Assisted by the New Zealand Government—   
  Colombo Plan25991350
  Island Territories Scholarships16925
  Commonwealth Scholarships20626
  Aid to Africa Scholarships12315
  Others7411
  314113427
Other assistance from—   
  Fijian Government38341
  Tongan Government55
  Other Governments (Malaysia, Victoria, Queensland)112
  WHO, UNESCO, Fulbright, CORSO1111
  MARA Awards719
  Other47855
  10913122
  All assisted overseas students423126549

Graduates—The numbers of degree graduates from New Zealand universities for the year ending with the graduation ceremony in 1973 and 1974 are shown in the following table.

CourseFirst DegreePost-graduatePost-graduate Honours
197319741973197419731974
Agriculture2179
Agricultural Engineering25
Agricultural Science108105442520
Architecture494141
Arts1,7091,756144197293306
Commerce44752626252021
Dental Surgery444562
Divinity166
Education41605252
Engineering (Chemical)5465
Engineering (Civil)120137
Engineering (Electrical)851002429716
Engineering (Mechanical)88104
Engineering (Science)1110
Fine Arts712122
Forestry Science1724
Home Science112111
Horticultural Science19262342
Law302336271531
Medical Science107
Medicine and Surgery124158
Music3933446
Pharmacy11182
Philosophy2399
Science1,1511,2641161287191
Social Science40832363
Technology2835322
Veterinary Science3837
Totals4,5765,088393434439482

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 1973.

DegreeMinimum TimeMinimum Time + One YearMinimum Time + Two YearsMinimum Time + Over Two YearsAll Students
TotalWomenTotalWomenTotalWomenTotalWomenTotalWomen
Bachelor Honours          
  Arts47251045729
  Law4261085656
  Science17060257119667
  Engineering134331511731
  Other5015215315
Totals4431068012156544118
Bachelor          
  Arts6584075122962221263071381,699967
  Commerce1542816735119784552475
  Law1001193542236127119
  Science538194351811171462121,068301
  Engineering108861361182482
  Medicine and Surgery114183436415821
  Agriculture and horticulture721248415413916
  Other287908722369273437124
Totals2,0317601,3784475931595421594,5441,525

Staff—The staffing of university institutions in 1974 is shown in the following table.

PositionFull-time StaffPart-time Staff
MFTotalMFTotal
Teaching posts—      
  Full professor36363691111
  Senior lecturer, associate professor, reader, lecturer-in-charge1,122891,21181485
  Lecturer7477482122020240
  Junior lecturer, assistant lecturer1874523261768
  Instructor and demonstrator, engaged in teaching301646651171822
Totals, established teaching posts2,4492302,6791,0242021,226
Other staff—      
  Technician, research assistant, and other technical staff not engaged in teaching7822291,011173047
  Library staff8030538575101176
  Administrative staff, clerical and office staff2908741,1641093103
  Groundsmen, tradesmen, cleaner, etc.453165618111188299
Totals, non-teaching staff1,6051,5733,178213412625

Of the full-time teaching positions, there were 51 positions filled temporarily and 21 not filled, and of the part-time positions 1 was filled temporarily.

TECHNICAL EDUCATION—In 1945 technical education was a varient 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 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 13 technical institutes and one community college, supported by apprentice and other tertiary vocational courses provided in 6 secondary schools.

This transformation is the result of a number of policy decisions which have created a demand for types of education and training in the post-secondary phase of a person's career.

The passing of the Apprenticeship Act 1948 made it compulsory for apprentices to undertake technical classes; the establishment, in 1949, of the Trades Certification Board and of national trades examinations gave point and direction to apprentice studies; the passing of the Technicians Certification Authority Act 1958 and the introduction of New Zealand Certificates gave encouragement to technician studies; the approval by the Government, in 1969, of the establishment of technical institutes in centres where there is sufficient technical work to occupy 10 tutors full-time advanced the opening of minor institutes in provincial centres by several years; the approval by the Government, in 1972, of the establishment of community colleges allows traditional technical education to be provided in conjunction with other educational services meeting the specific circumstances of the local community, particularly in the non-metropolitan provincial centres. There has been increasing investment in technical institute buildings: more than $6.5 million was spent in the 1974–75 year alone. Technical institute bursaries, which were introduced first in 1965, have now been discontinued and from this year, 1976, technical institute students on full-time year-long courses will be eligible, along with university students and teacher trainees, to receive the Standard Tertiary Bursary.

Technical education in New Zealand is still developing and expanding at a very rapid rate. It is being developed through national and regional technical institutes as well as smaller technical institutes or community colleges in provincial centres. The Central Institute of Technology, which gives a predominantly national block course service but also provides some special courses of a national character such as pharmacy, chiropody and occupational therapy, opened in 1960. In 1972 the institute moved to its permanent accommodation at Heretaunga—a building project costing $5.5 million. Included in this contract is a 500-bed hostel.

Technical institutes have been opened in the 6 main centres of population, and, with the opening of Manukau Technical Institute in 1970, the first of a number of suburban institutes was opened to serve the greater Auckland area. The second, Carrington, opens in 1976. Since 1971, institutes have also been opened in the provincial centres, Invercargill, Nelson, and New Plymouth.

The full list of technical institutes is as follows; Auckland, Manukau, Carrington, Waikato, Taranaki Polytechnic, Palmerston North, Central Institute of Technology, Wellington Polytechnic, Nelson Polytechnic, Christchurch, Otago Polytechnic, Southland Polytechnic, and the New Zealand Technical Correspondence Institute. In addition, the Hawkes Bay Community College, which has enough technical education courses to justify calling it a small technical institute, opened in 1975. More community colleges or technical institutes are likely to be opened in the next 10 years in Northland, Rotorua, Porirua, Wanganui, Timaru, and Tauranga.

A standing committee on relationships in tertiary education has been set up to consider the problems of placement of courses and the rationalisation of tuition in the technician, semi-professional, and professional fields.

Trade and Technician Courses—The beginnings of technician training date from the early 1950's 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. This led, in 1960, to the establishment of the Technicians Certification Authority to prescribe courses and syllabuses and conduct examinations for technicians, and to grant diplomas or certificates.

The term "technician" covers a wide field, but national New Zealand Certificate courses have been devised for engineering, draughting, draughting (architectural), science, building, land surveying, quantity surveying, and commerce. In addition, there is a certificate in garage management, and courses leading to technicians' certificates in radio telegraph and telephone engineering, surveying, automotive engineering, electricity, and civil draughting, and for forest rangers and hospital officers. The instruction for New Zealand Certificate courses is part-time, or by regular intermittent periods in full-time classes, or by correspondence from the Technical Correspondence Institute supplemented in science and workshop subjects by short practical courses at an institute. In a few cases, study can be taken at full-time courses in a technical institute, but for the first 2 or 3 years only. All New Zealand Certificates require students to be suitably employed during the last 2 stages of the course.

During the last 12 years there has been a spectacular increase in the range of technician courses and the number of students studying for New Zealand Certificates. New Zealand Certificates awarded annually have increased from 29 in 1960 to 878 in 1974.

Apprenticeship training accounts for over 40 percent of the enrolment load of technical institutes. Examination prescriptions for a full range of trade courses and shorthand typing are prescribed by the New Zealand Trades Certification Board, which conducts 2 qualifying and trade certificate examinations for apprenticeship, and usually an advanced trade certificate examination to be taken at about the end of the apprenticeship. Up to 31 March 1975, this Board has issued 41,881 New Zealand trade certificates and 11,135 Advanced Trade Certificates.

Apprentices in almost all trades are obliged to spend at least 3 years in vocational part-time studies. However, the long established pattern where apprentices attend evening theory classes and short block or day release courses for practical training, is undergoing a radical change. An incentives scheme, approved by Government in 1974, subsidises the wages of apprentices on block training and encourages the adoption of lengthened block courses, particularly in the first year of training.

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 courses in commerce, work study, electronic data processing, journalism, and in industrial and commercial design. In addition, instruction is given on the examination syllabuses devised by independent organisations such as the New Zealand Society of Accountants, the Chartered Institute of Secretaries, and New Zealand Institute of Valuers.

Statistics of students taking full-year courses in technical education at 1 July 1974 are shown in the following table. Courses are classified according to the International Standard Classification Level of Education.

Full-time Courses: As at 1 July 1974MalesFemalesTotal Students
Level 3   
  General commercial411,3371,378
  Health related29168197
  Agriculture11
  Trade, craft and industry31097407
  Other courses61218
Level 5   
  Data processing92534
  Accounting12133154
  Medical/paramedical179419598
  Fine arts363672
  N.Z. certificates35391444
  Other courses128130258
Totals1,2122,3493,561
Part-time Courses: As at 1 July 1974Day or Day and Evening CoursesEvening Courses OnlyCorrespondence CoursesMaleFemaleTotal
Level 3      
  Technicians' Certification Authority courses671471,3421,527291,556
  Apprentice2,70710,88011,43724,06595925,024
  Vocational3,54315,7081,5399,65011,14020,790
Level 5      
  Technicians' Certification Authority courses3,9681,6672,3826,7681,2498,017
  Professional and advanced technical3,2683,6682,0497,6371,3488,985
Level 9      
  Non-vocational2,85738,96511,43030,39241,822
  16,41071,03518,74961,07745,117106,194
Block Courses Held During 1974Student-weeksMalesFemalesTotal Students
Trade courses57,68319,48758120,068
Technicians Certification Authority courses and N.Z. Certificate courses13,3842,3691622,531
Other courses15,0243,0114953,506
Totals86,09124,8671,23826,105

New Zealand Technical Correspondence Institute—The Department of Education established the Technical Correspondence School (now the Technical Correspondence Institute) in 1946, and from small beginnings, with a staff of a half dozen or so, this institute now employs some 450 full-time staff. With over 20,000 students on the roll, the Technical Correspondence. Institute is easily the biggest single educational institution in the country. It teaches one-third of all students enrolled at technical institutes in New Zealand. The Institute writes, illustrates, and prints the material for all the courses offered by it, as well as writing and publishing authoratitive textbooks on technical subjects with accent on New Zealand law, practice, and conditions. The eight text books at present in print are widely used not only by Technical Correspondence Institute students but also by all other technical teaching institutions, tradesmen and technicians, and even the general public.

The Technical Correspondence Institute parallels the teaching standards of other technical institutes, and also provides instruction in many subjects not taught elsewhere. Of the apprentices who sit the annual examinations of the Trades Certification Board, some 40 percent are directed to enrol at the Technical Correspondence Institute.

The Institute also prepares a large percentage of candidates for the Technicians Certification Authority examinations in engineering, building, commerce, draughting, and science as well as for other professional and industrial examinations. Voluntary students studying for advanced trade, technician or professional qualifications comprise about two-thirds of the roll. The Technical Correspondence Institute offers over 900 subjects, from ladies' hairdressing, plumbing, and agriculture to airline pilots' licence and professional accountancy. To enrol at the Technical Correspondence Institute students must be engaged in the vocation relevant to their course of study, hence their correspondence studies are supported by practical experience. In some cases, laboratory work or practical instruction is required as part of the course. In such cases students attend short block courses at the Central Institute of Technology or other institute.

Vocational Training Council—This council was established by the Vocational Training Act 1968. Its responsibilities and activities are set out in Section 32, Employment. There are 26 industry training boards set up under the council.

EDUCATIONAL QUALIFICATIONS OF LABOUR FORCE—The Census of Population and Dwellings includes a question on the highest educational and vocational qualifications obtained. An analysis concerning persons in the labour force in 1971 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 nursing, commercial, engineering, draughting, etc.

†Includes electricians', plumbers', carpenters', joiners', radio and T.V. servicemen's, and motor mechanics'.

The labour force at the 1971 census comprised 784,969 males and 333,866 females.

University—   
  Doctorate1,3441161,460
  Master's degree4,8741,2276,101
  Bachelor's degree23,1324,91928,051
  Diploma8,2931,79110,084
  Other78482
Teacher's Certificate15,06819,73634,804
Secondary—   
  Higher School Certificate or equivalent, University Scholarship8,5244,26812,792
  University Entrance48,86225,40774,269
  School Certificate67,14951,244118,393
  Other32,81618,26251,078
Professional certificate*28,71031,12759,837
Trade certificate87,3241,76289,086
Other vocational19,8745,71525,589

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 principally 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 (updated in 1972).

In its research programme, the council has concentrated on New Zealand problems, and its main publications (55 research reports and 25 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. The Council also publishes a number of periodical publications, newsletters, the New Zealand Journal for Educational Studies, and a special research information package for teachers.

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 this country, and also in Australia.

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 seven local institutes for educational research in Auckland, Wellington, Christchurch, Dunedin, Palmerston North, Hamilton, and Suva (Fiji).

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. The capital resources of the foundation are $2,304,000. Some of the principal purposes for which the Board of Trustees is empowered to apply the income of the foundation include the educational and vocational training of Maoris; 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. The bulk of the foundation's income is expended on grants to individuals. During the 1975 academic year, assistance totalling $605,600 was granted to 1,313 pupils and students. 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 made to 191 students in 1975.

POLYNESIAN EDUCATION FOUNDATION—In 1972 a Pacific Islands Polynesian Education Foundation was set up on similar lines to the Maori Education Foundation. The aim is to assist New Zealand resident Pacific Islands families to further the education of their children.

EDUCATION OF MAORI AND PACIFIC ISLAND CHILDREN—During 1970 the National Advisory Committee on Maori Education, a body representative of the Departments of Education and of Maori Affairs, Maori leaders throughout the country, controlling authorities and teachers' organisations, held a number of meetings and study courses to establish priorities in the many proposals advanced by the department, the advisory committee, and teachers to improve the education of Maoris. The report of the committee was published in 1970, and during 1970 and 1971 action was taken to put many of the recommendations into effect, or to amend or accelerate moves already under way. The main recommendations concerned the pre-service and in-service training of teachers, the strengthening of the advisory service, extended provision for pre-school children, additional staffing for schools with a high proportion of Maori and Pacific Island pupils, the teaching of Maori language in schools and the introduction of studies in Maori in past and present New Zealand society as a part of the Forms I–IV social studies syllabus.

Policies have been introduced to meet these recommendations, especially through teacher training. All teachers' colleges now have courses in Maori language and Maori studies, and a special one-year course to train Maori-English speakers to teach Maori in secondary schools, began in 1974. Recently emphasis has been placed on educational provision for Pacific Islanders living in New Zealand. The establishment of a Pacific Islanders Educational Resource Centre, an English language teaching unit, and a supplementary training course for Pacific Island-trained teachers are evidence of this.

The educational performance and progress of Maori and Pacific Island children as a whole group has not equalled that of other New Zealand children for a variety of complex reasons, largely linguistic and cultural. Generally, Maori and Pacific Island children have not stayed on as long at secondary school and relatively few of those doing so have continued their education at the tertiary level. In some cases, this has not been possible economically. Strenuous efforts have been made, particularly in recent years, to encourage Maori children to continue their education by increasing the appreciation of their problems on the part of teachers, by creating school situations conducive to a desire for further education, and by involving parents more closely in their children's education. Practical assistance has been given by increasing the number and value of scholarships awarded each year by the Department of Education. The Maori Education Foundation has also given valuable help to Maoris, at the senior levels of education particularly. The importance of, and the opportunities available in, vocational education beyond the secondary school level have been brought to the notice of young Maoris through the schools and through vacation courses. Special trade training courses for Maori boys have been set up and extended.

If the efforts to upgrade the education of Maori and Pacific Island children are measured solely in terms of the proportion who pass subjects in the School Certificate examination, who obtain a trade certificate or a New Zealand certificate at the technician's level, or who complete a university degree, it is obvious that there is still much room for improvement. But it is fair to state that a good deal has been achieved at all levels of education and that there is a greater awareness of the value of education on the part of children and parents. In the whole country, too, there is a better informed appreciation of Maori and Pacific Island Polynesian society and culture and of the need for special measures so that all children of these races in New Zealand receive the maximum benefit from the opportunities offered them.

CONTINUING EDUCATION—Under the Education Amendment Act 1974, a new definition of "continuing education" was introduced which, among other effects, removed a previous legal distinction between non-vocational and vocational education.

In 1973 a feasibility study was published on the setting up of a community college in Hawke's Bay and the college opened in 1975. Further studies have been conducted and one on Northland has been completed.

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.

University Extension—Although full responsibility and control of their continuing 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 plan and develop sections of the department's programme or have special responsibility for a geographical area and its programme. All 6 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 about 40). 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. While most universities continue to provide substantial extension programmes of liberal studies for the general public, there has been a rapid increase in programmes designed for specialised groups, largely occupational. Some of these are national in scope.

Secondary Schools—Most organised adult education is being done by evening classes in secondary schools. Since the revision of the School Certificate regulations to allow single subject passes, there has been some increase in adult classes leading to the School Certificate Examination, but there is a very wide range of other examinable and non-examinable courses. A new provision to the Education Act in 1975 allows adults to return full-time or part-time to secondary schools, in day classes. There has also been an increase in the number of technical institutes which cater for a wide variety of education interests.

Correspondence Education: Main agencies are the Correspondence School (about 5,500 adult students), the extramural studies of Massey University (4,300), and the Technical Correspondence Institute (21,000).

Voluntary Agencies—Many voluntary organisations make some provision for continuing education. For most of them, such as the Play Centres Federation, continuing education is incidental to other purposes. The following two organisations, however, have continuing 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, and are now funded annually through the Department of Education. In Auckland and Canterbury there is a full time organising tutor provided by the technical institute. District councils, 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 national liaison committee of the Countrywomen's Institute and the Women's Division of Federated Farmers has regional committees at Auckland, Hamilton, Palmerston North, 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 and Westport. These centres received some assistance, directly or indirectly, from public funds. A new "Community Action Programme" in the Wairarapa region is being supported by Government under the provisions for community centres.

INTERNATIONAL EDUCATION—A new division in the Department of Education, the International Education division, has recently been set up. This division, in liaison with the Ministry of Foreign Affairs, organises training programmes in New Zealand for trainees from other countries, answers inquiries from overseas about the New Zealand education system, arranges for the placement of Colombo Plan students, administers the Commonwealth Education Scheme, the New Zealand-Japan exchange programme, and other matters on international education.

In the Pacific, the Department of Education on request fills about 130 teaching and educational administrative positions. Officers and teachers serving in the Islands have their service, grading and superannuation rights protected. Advisory visits are made to most of the Islands, and supplies of resource material and apparatus are sent regularly to some countries. The division is continuing to print books in the vernacular for some areas.

The International Education Division operates a scholarship system giving Island students education and training not otherwise available. In 1975, 368 students attended New Zealand schools, trade centres, teachers' colleges, universities, Government departments, private firms, and (abroad) the University of the South Pacific, Fiji School of Medicine, Fiji School of Nursing, and the Honiara Technical Institute. The same year, 20 teachers from the Pacific attended a 3-month in-service multiple class course at Christchurch. The numbers of students in Island schools sitting New Zealand examinations continues to increase: in 1974 there were 6,116 candidates for New Zealand School Certificate from 76 Island schools, compared with 5,325 from 69 schools in 1973. The Department of Education is assisting Island governments with curriculum development and evaluation, and is providing alternative papers at School Certificate level.

Organisation for Economic Co-operation and Development—Membership of the Organisation for Economic Co-operation and Development in 1973 enabled New Zealand to participate in the activities of its Education Committee. In 1975 New Zealand also became a member of OECD's Centre for Educational Research and Innovation and the programme on educational building.

SECTION 7 B—SCIENCE AND SCIENTIFIC SERVICES

"The day of the pioneer is almost over. The men who broke in the soil gave place to a generation of empirical farmers and pastoralists who made good with the powerful aid of the natural and virgin fertility in the soil. Today, the third generation realises that Nature's bank has a balance which may be exhausted like their own; that her capital must be carefully husbanded and put out wisely to the most profitable use; that more intensive cultivation brings its own difficulties of infection and disease; that increasing crops must find markets overseas which are in the grip of international competition and where the prize goes without favour to the best product with the most regular supply." (Report on the Organisation of Scientific and Industrial Research in the Dominion of New Zealand. Sir Frank Heath, 12 March 1926.)

The above quotation from the report made 50 years ago on the proposed structure and formation of the Department of Scientific and Industrial Research has, in many ways, a very modern ring. In recent years, mankind as a whole has been forced to a belated recognition that Nature's bank balance is not inexhaustible, and that natural resources must be carefully husbanded, developed, and preserved from waste and pollution if living standards are to be raised in the less-developed countries and the quality of life preserved in the more-fortunate countries.

Although economic growth and higher living standards continue to depend on increased productivity and full development of natural resources, it is becoming increasingly recognised that economic growth in itself does not guarantee improvement in general social development. Improvement in the quality of life is perhaps a more desirable element of growth to strive for.

In past years, agricultural production in New Zealand has been promoted extensively by scientific research, and similar developments are now taking place in manufacturing industries. The example set by agricultural extension officers in fostering the practical application of research results have not been overlooked, and current emphasis in manufacturing is similarly on translating experimental findings into tangible benefits. At the same time the objectives underlying particular research programmes and their potential for yielding appropriate benefits are being more critically assessed.

Science and technology and their products cannot be separated from the social and political environment in which they develop and on which they exert their own effects. The recent period has been marked by rapid advance of scientific and technological progress, most evident in the development of industrialisation with accompanying urbanisation, and resulting in changes in our culture and society. Scientific research is needed to understand and minimise the human problems created by these rapid changes, and so the emphasis of scientific development is continually changing too. Greatly increased research effort is being directed towards quantifying and solving social and environmental problems.

More than three-quarters of the scientific research in New Zealand is financed from Government sources. The Government itself engages in research on farming, forestry, mining, manufacturing, building and transport, the environment, health, and social and economic factors, and provides other scientific services, e.g., publications and forensic services. 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.

Government also supports science as a cultural, educational, and intellectual activity through the schools, universities, and museums, and in other ways. Developments in scientific equipment have made possible most scientific advances (including those related to environmental and social problems), but the calibre of the scientists who devise and operate the equipment is of greatest importance, and Government recognises the continued need for education and training in scientific skills and the scientific attributes of open-mindedness and critical analysis. The high reputation of our scientists is shown by their frequent invited participation in international research activities and overseas aid programmes. The liveliness of our scientific community is shown by the proliferation of learned societies. Many of these societies are also placing increased emphasis on communicating an appreciation of scientific endeavour to members of the community who have hitherto been largely unaware of, or apathetic to, science, and it could be held that improved communication is the key to further scientific and technological progress.

DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH—This year sees the 50th anniversary of the formation of the Department of Scientific and Industrial Research. In 1926 the government invited Sir Frank Heath, Secretary of the DSIR (U.K.) to visit New Zealand and advise on the outlines of a suitable organisation for promoting the application of science to the primary and secondary industries. After travelling throughout the country visiting scientific establishments and talking to scientists, manufacturers, and farmers, Sir Frank prepared a report which was presented to Parliament in May 1926. The recommendations in the report for the structure and formation of a Department of Scientific and Industrial Research were adopted and implemented by the passage on 31 August 1926 of the Act establishing the new department. The existing services of the Dominion Laboratory, Meteorological Office, Geological Survey, Dominion Observatory, and Stone-testing Laboratory and Petrological Advisory Service, together with technical control of the Samoan Observatory administered by other Government departments, were regrouped to form the nucleus from which the DSIR has grown to its present size of 21 divisions and branches.

The Heath Report (quoted at the head of this section of the Yearbook) was a remarkably perceptive and far-sighted document which forecast the way in which the department has in fact developed over the years. When dealing with the primary industries, the report noted the widespread appreciation held throughout the country of the importance of applying science to their development, and acknowledged that the dependence of the country's prosperity on these industries required that agricultural research must have priority over that for the secondary industries. This has since been the pattern of activity, with a major part of the department's work always aimed at finding and developing ways of obtaining more efficient production from the land (soil, plant, and crop studies) and solving problems resulting from more intensive pasture, crop, and livestock production.

More recently, a recognised need to broaden the basis of the economy has focused the attention of the department on means of achieving greater diversification of primary production with more emphasis being placed on the development of local processing of agricultural, forestry, and mineral resources.

Despite an expressed interest by manufacturers in the application of science to the secondary industries, Sir Frank Heath considered that the diversity of manufacturing processes made it impossible for the State to employ sufficient numbers of staff to solve all the manifold problems arising in day-to-day operations. In addition, the fact that 80 percent of factories employed less than 21 workers apiece meant that few concerns could afford to employ scientists.

To overcome these constraints to the application of science to industry, which still exist even if to a lesser extent than in 1926, DSIR industrial research has, as recommended in the Heath Report, concentrated on introducing or improving technologies which are basic to many if not all manufacturing processes. At the same time, the department has maintained a growing liaison service to help solve immediate manufacturing problems as they arise. The report, drawing on experience in Great Britain, also advocated the formation of co-operative research associations in which manufacturers with common interests combine to support, with government financial assistance, research and development of benefit to the whole of their particular industry, but which would be beyond the means of individual members of the association. This policy has been followed from the first years of DSIR until there are now 11 research associations, the most recent having been formed in December 1974.

The definition in the Heath Report of the functions of DSIR as being "to encourage scientific research and to organise its application to the primary and secondary industries" has guided the growth and development of the department and is still valid today, although tempered by an increasing commitment to research on environmental and social considerations.

Agricultural Production and Processing—A large and sustained research effort, involving over one-third of the scientists and technicians in DSIR, is devoted to increasing the diversity and quality of agricultural products, and improving the efficiency of their production. Special efforts are being made to increase the range and value of animal feeding stuffs available.

Agricultural production may be increased by broadening the range of plants available for particular environments and by improving those environments for the different plants. DSIR is continuously surveying soils to assess their suitability for particular crops, including pastures and forest species, and forms of land use. The demand for information about basic soil resources continues to grow, and there is also a need for interpretation of this information so that it can be used in the solution of production and environmental problems. The Soil Bureau has a large team continuously working on these basic aspects, using computers and other modern equipment as they become available.

One of the main factors influencing growth is soil moisture, and major soil groups are being classified by moisture availability. At the same time the responses of different pasture plants, and forage plants such as maize and sorghum, to moisture stress and other adverse climatic and soil conditions are being studied in the controlled-climate laboratory at Plant Physiology Division. A breeding programme is assessing plants for the wetter hill country, and the improvements possible with irrigation of the drier hill country are being demonstrated.

As well as covering specialist disciplines of plant ecology, physiology, breeding, and nutrition in relation to pasture plants. Grasslands Division has five research committees to deal with projects for specific regions and their particular farming systems. These committees integrate the research findings of this division with those of other DSIR divisions (such as Plant Physiology, Applied Biochemistry, and Entomology) and the Ministry of Agriculture and Fisheries and elsewhere. For high-country farming, prospects for irrigation, production of seeds of clovers, and broadening the range of pasture species are being developed. In other regions, research is concentrated on filling feed ‘gaps’, in winter for dryland and hill country, and in late summer for Northland. There is intense effort on ameliorating wintering systems for sheep.

Considerable effort has been devoted to using clovers for nitrogen fixation in pastures, and this has become even more important with recent concern over the side effects of fertiliser nitrogen on the environment and the rapidly increasing cost of this fertiliser. At Applied Biochemistry Division, integrated studies involve nitrogen fixation, photosynthesis, and mineral cycling in the soil-plant-animal system. The nutritive value of proteins in foods and feeds is investigated, particular emphasis being given to leaf protein concentrate as a food for animals and, ultimately, for humans. Special effort is devoted to the flavour of mutton. Studies also include the possibility of using other natural resources such as seaweeds and wood wastes.

With all advances there are usually unforeseen problems, and a check is kept on the effects of different cropping systems on the soil structure and availability of nutrients to plants, together with any correlations that appear to exist between pasture management systems and deficiency diseases of livestock, such as grass staggers.

New Zealand is particularly active in developing alternative methods of pest control that will reduce the use of toxic chemicals, because insecticide residues in exported animal products are now required to be absent or extremely low. Work at Entomology Division towards control of the grass grub, our most economically harmful pest, includes basic research on the chemicals in pastures which attract it, as a preliminary to pasture breeding studies or for formulation of poisoned baits, and research on bacterial or virus diseases that specifically attack the pest. Another aspect of biological control is the elimination of weeds, and experimental work is being done on the suitability of various insects for controlling thistles in pastures and arable land

Breeding of new varieties of plants with improved resistance to pests or diseases or with improved yields can result in big increases in production without the need for greatly increased input, and this is a major objective of Crop Research Division. Some success has been had in producing varieties of peas resistant to wilt, and ryecorn resistant to rust, and work continues on brassicas resistant to aphids and viruses, and potatoes resistant to viruses. Several high-yielding cereals have been produced, for example, varieties of barley, maize, and semi-dwarf wheats. Sorghums and various subtropical grasses are being evaluated as forage crops. Increased emphasis is placed on crops for processing, and work is being done on potatoes for canning, instant mash, and crisps, and on peas and tomatoes that can be harvested mechanically. New types of oilseed crops are being evaluated for a vegetable-oil industry, peppermint is being developed for its essential oil, and wild Solanum species are being developed as a new drug-producing crop.

Soil-borne diseases of crops are difficult to control, and, as well as breeding for resistance, work is being done at Plant Diseases Division on other means of overcoming these diseases. Work is also being done on fruit, both with a view to preventing problems such as bitter pit in apples and frost damage to apricots, and on developing less well known fruits such as kiwifruit and tamarillos for overseas markets.

As well as giving high yields, wheat varieties must have improved milling and baking qualities. At the Wheat Research Institute fundamental work on the milling process is being done, partly with the aim of simplifying testing for milling quality.

Most of the other agricultural processing work is done in support of work at research associations to which DSIR contributes finance, such as the Dairy Research Institute, the Meat Industry Research Institute, the Wool Research Organisation, and the Leather and Shoe Research Association. A noteworthy current project at the Dairy Research Institute is the attempt to produce a butter that will spread easily when taken from the refrigerator, and the low-melting butter that has been marketed in New Zealand is being superseded by an improved type with more of the spreading characteristics of margarine. At the Meat Industry Research Institute work is being done both on speeding up conditioning time by high-voltage stimulation immediately after slaughter and on improvements to tenderness by hanging carcasses in the squatting position. Expansion of facilities and staff, for studies on hygiene of meatworks and diversification of products and markets, is completed.

Part of the work of the Wool Research Organisation has been devoted to improving the acceptability of New Zealand crossbred wool for yarns. A range of acceptable semi-worsted hand-knitting yarns has been produced, and the self-twist spinning machine has been found to be adaptable to these slightly coarser wools. A new method of making yarns with variegated colours has been patented.

At the Leather and Shoe Research Association, Palmerston North, studies are continuing on the prevention of grain defects in sheepskins.

A Logging Industry Research Association was formed in late 1974 to undertake research into all aspects of logging, from extraction from the forest to semi-processing and transport to the factory or dockside.

Other Primary Production—Other work on forestry is done, in consultation with the Forestry Service, by Ecology Division and Soil Bureau, both dealing with aspects of the ecology of native forests. Ecology Division's main interest in this respect is in the food and population changes of opossums in the Orongorongo Valley.

Staff at Chemistry Division are investigating the chemical composition of radiata pine wood and bark, and the possibility of commercial production of tall oil, and the Physics and Engineering Laboratory is studying wood structure using the scanning electron microscope and has produced original and attractive books on the subject.

Geological Survey has intensified the search for exploitable industrial minerals and rocks (see Minerals section). The survey is also the permanent repository for all earth science information, including oil prospecting done by private groups. The recent concern about energy supplies has drawn attention to the work of various DSIR divisions on coalfield prospecting and the utilisation of ash from coal-fired power stations; on testing geothermal sources for potential for development in electric power production and other industrial purposes; and on computer modelling of the flow from Kapuni natural gas field. The first of several studies on New Zealand's energy resources has been issued.

The Soil Bureau has surveyed peat deposits from Chatham Island, Chemistry Division is investigating the potential of peat for yielding wax similar to montan wax, and the possibility of using peat after wax extraction for fuel, fertiliser, or plant growth medium is also being examined. Chemistry Division has set up a pilot plant for producing titanium dioxide from West Coast ilmenite. The Institute of Nuclear Sciences has found that the Waikato River has a potentially useful content of heavy water.

In collaboration with the Fertiliser Manufacturers' Research Association, considerable work is being done on means of producing usable fertilisers from Christmas Island "B" and "C" phosphates.

Manufacturing—High priority is being given to research on manufacturing and to industrial liaison to which considerable increase in staff is being assigned.

A Science in Industry Unit co-ordinates and facilitates liaison with industry through the various divisions dealing with industrial problems, and advises the department on how to match its allocation of resources to the needs of industry. One result of this has been the establishment of a Testing Laboratory Registration Council (TELARC), under which laboratories have their testing facilities certified. This enables companies to adhere more closely to standards of machining strength, safety, and so on required of exported manufactured goods. The standards of any laboratory must be calibrated periodically against the national standards held at the Physics and Engineering Laboratory. The need for making accurate and reproducible measurements becomes greater as industrial technology increases in sophistication.

The Auckland and Christchurch Industrial Development Divisions and the Physics and Engineering Laboratory (in Wellington) between them provide an extensive liaison service for all kinds of industry in all parts of New Zealand. Each has its own staff of liaison officers who make contact and pass on information about industrial needs to appropriate expert consultants in their industrial division or in other industrially oriented divisions, such as Chemistry Division and Institute of Nuclear Sciences. In all the help to industry, close collaboration is maintained between several divisions, the research associations, and university engineering departments.

The Physics and Engineering Laboratory has a management advisory service, consisting of scientists with direct working experience in industry who advise on production control and costing so that technical advice offered is used most effectively. The group advises firms on use of computers, and has published a directory of all known computer installations in New Zealand.

Other experience with computers, in control of laboratory experiments, is also being applied in industry, for example in process control for milk-powder drying and in electronic weighing and grading of sheep carcasses.

Advice has been offered on various aspects of automation, particularly on numerical control of machine tools, a procedure well suited to short-run production of precisioned equipment.

Equipment now in use at Auckland Industrial Development Division enables production machining problems to be reproduced in the laboratory, and there is a "quick-stop" facility so that equipment is used to show where improvements can be made in minimising cutting forces, in optimising tool type and drill speeds, in lubrication, and so on. A widespread cause of lowered machine performances is incorrect balancing and excessive vibration, and advice on routine balancing has been successfully applied in industries ranging from papermaking to power generation.

This division has designed and built a carbon dioxide laser primarily in response to industrial inquiries about the use of lasers for cutting and drilling materials that are difficult to deal with by conventional methods.

Apart from standards testing and advisory work, the Christchurch Industrial Development Division has designed and built prototype industrial machinery, for example a knotting machine for producing string loops for holding lamb carcasses in position in the freezer, and a hydraulically operated wool-coring machine, for extracting samples from the highly compressed wood-hard bales used in recent years.

Projects tackled range from developing strong light plastic sheeting to replace glass in glasshouses, to trials in impregnating wooden golf-club heads with plastic (in collaboration with the Institute of Nuclear Sciences).

Apart from pilot-plant and other studies towards development of new products in the way of minerals, fertilisers, and fine chemicals already mentioned and work on aspects of energy production, especially from geothermal sources, Chemistry Division is involved in helping industry control its undesirable by-products. A noteworthy project, in combination with the Wool Research Organisation, is the cleaning of woolscour effluents; this has the added advantage that the lanolin removed from the effluent is marketable. The Institute of Nuclear Sciences also is actively involved in pollution control studies and uses radioactive tracers and mathematical models to simulate tidal motion and predict sewage dispersion.

Building and Construction, Transport—Most of the work of DSIR in these spheres is done in support of various research associations and other Government departments. For example, advice is given about corrosion prevention in pipes, turbines, and other equipment in geothermal power stations, in electrical conductors, in underground gas and water pipelines, and in water piping in buildings. Mathematical assistance has been given in computer modelling of the electricity supply system, geological advice has been given on the siting of power stations, and help has been given in cases of turbine blade failure and to prevent earthquake damage of electrical sub-station gear. A wide variety of building materials, such as paints and wood finishes, adhesives, and plastics, metal, plaster, and stone components is tested for suitability for the job, strength, permanence, and the presence of undesirable chemicals.

A special study in DSIR is the design and construction of buildings to resist earthquake damage. A design in which load-bearing and vibration-damping structures are separated, leading to more efficient functioning of each, has been patented. The Physics and Engineering Laboratory has also been perfecting a solar heater for hot-water systems in private houses. Staff are collaborating with the Building Research Association in a survey of thermal insulation requirements in houses. The association has been studying timber house framing with a view to revision of the code of practice, and has done considerable work towards preparation of a New Zealand code for fire resistance of buildings.

The Concrete Research Association, in collaboration with Chemistry Division, has been studying the behaviour of aggregates in relation to dimensional stability of concrete, and the use of pumice as a concrete aggregate. Work at the Pottery and Ceramics Research Association has dealt with bond strength between mortar and brick, and the testing of structural strength of brick masonry walls.

A problem that is becoming increasingly recognised is that of noise, the main source of which is road traffic, and DSIR has surveyed various urban and suburban areas to help specify requirements for insulation against noise. Studies have also been made of airport noise.

The Physics and Engineering Laboratory has constructed a portable light-meter for use in assessing the influence of inadequate street lighting on traffic accidents.

A national transport policy study was assisted by Applied Mathematics Division in the development of mathematical models, particularly for the rail and air parts of the study.

Natural Environment—A large part of DSIR's work concerns provision of information about the environment, and this work has been extended by the need for specialised comment on environmental impact reports. The information should help to minimise environmental deterioration and be a guide to the wise management of natural resources. Many projects are handled in co-operation with other Government departments, and several are done on a contract basis by university departments.

Geophysics Division is investigating a possible physical basis for earthquake prediction and a soundly based warning system for volcanic activity. The Seismological Observatory maintains a network of recording stations throughout New Zealand and extending to the islands of the southwest Pacific and to Antarctica.

Of continuing importance is the regional surveying of geophysical properties, geological strata, and soil parent materials. The Geology of New Zealand, recording in two volumes 100 years of geological observation, has been published, and recently completed work means that comparable sets of maps on geology, soils, and parent rocks on a scale of 1:1,000,000 are available.

A network of stations attached to Physics and Engineering Laboratory studies various aspects of the upper atmosphere, such as its physical properties, and electromagnetic and corpuscular radiation streaming through. They also provide information to help correlate conditions in the ionosphere with meteorological phenomena. In a joint project with the Meteorological Service, acoustic radar equipment has been built to provide knowledge of changes in structure of the lower atmosphere. This will also provide information about atmospheric "inversions" that trap gaseous pollutants over industrialised areas. Precise measurements are being made of the increases in carbon dioxide in the atmosphere resulting from combustion of fossil fuels.

The Oceanographic Institute is well on the way to completing its survey of the ocean floor around New Zealand on a scale of 1:1,000,000 and is carrying out more detailed seismic and magnetic surveys. Studies are being made of the sediments on the continental shelf and the slope, a practical outcome of this work being provision of guidance on the siting of and gas pipelines and power cable on the sea floor. The off-shore sea current circulation has been defined in general terms, and detailed surveys of particular areas such as the Foveaux Strait — East Cape region have begun. Marine minerals, such as manganese nodules, have been investigated with a view to commercial exploitation. Bathymetric surveys of major lakes have been made.

Additions to the series of monographs on the marine fauna of New Zealand are continually being produced as a basis for ecological studies concerned mainly with fish that feed on the sea floor and with all species in the food chain. A great deal is known now about diatoms and copepods in the plankton, which forms the first part of the food chain on which all life in the sea depends, but studies continue on the effects of variability of the environment and productivity of species themselves.

Part of Ecology Division based at Lake Taupo has started detailed studies of the lake and its catchment area and of other lakes in the Rotorua area. A complete registry of the nutrient status of lakes is being compiled. Ecology Division is also mapping the distribution of birds, lizards, frogs, and bats, and making complete studies of the ecology of various islands, e. g., Campbell Island and the Auckland Islands. Effects of birds and mammals on agricultural land and their ecology in forests are being studied.

Botany Division is completing a survey of all reserves and some national parks. Volumes 3 and 4 of Flora of New Zealand, dealing with grasses and monocotyledonous weeds respectively, are being compiled, and work continues on production of publications in the series Chromosome Atlas of the New Zealand Flora.

Work in the Antarctic and the Pacific Islands is described in the Overseas Territories section.

Scientific Services—Chemical work in the investigation of crime and toxicology, and chemical and bacteriological examination of food, pharmaceuticals, and water supplies form a large part of Chemistry Division's service to other departments.

The department undertakes blood alcohol analyses on behalf of the Ministry of Transport and the Police Department, and a booklet describing the results and their relationship to road traffic accidents has been published.

Chemistry Division is also called on to advise on safe handling of toxic chemicals, and there have been several occasions when a harbour board or a fire service has asked for help in dealing with a chemical spillage.

Applied Mathematics Division is sometimes asked to help with advice for social services, and developed a mathematical model to help Treasury formulate the New Zealand superannuation scheme introduced by the previous Government.

The Information Service edits and publishes all the DSIR publications and maps mentioned and many others, and offers a publication service to all New Zealand scientists in its research journals, New Zealand Journal of Agricultural Research, New Zealand Journal of Experimental Agriculture, New Zealand Journal of Botany, New Zealand Journal of Geology and Geophysics, New Zealand Journal of Marine and Freshwater Research, New Zealand Journal of Science, and New Zealand Journal of Zoology.

The department's reputation for expertise and standards of service is high with the general public and overseas, as well as in scientific circles in New Zealand. Its activities, achievements, and organisation are described in detail in the annual publication DSIR Research, available from the department, and its annual report to Parliament, available from the Government Printer.

Grants paid in 1974–75 to research and allied institutions by DSIR are shown in the following table.

InstitutionsAmount
 $(000)
Universities (Auckland, Canterbury, Lincoln, Massey, Otago) and University Grants Committee155
Research associations— 
  Building Research Association238
  Coal Research Association123
  Concrete Research Association50
  Dairy Research Institute520
  Fertiliser Manufacturers' Research Association93
  Launderers, Drycleaners, and Dyers Institute18
  Leather and Shoe Research Association70
  Logging Industry Research Association1
  Meat Industries Research Institute455
  Pottery and Ceramics Research Association43
  Wool Research Organisation385
New Buildings120
Overseas institutions— 
  Commonwealth Agricultural Bureaux87
  International Atomic Energy Agency57
  Others16
New Zealand institutions— 
  Carter Observatory45
  Cawthron Institute124
  Royal Society of New Zealand97
  Testing Laboratory Registration Council40
  Energy Research and Development Committee418
Total3.154

Staff numbers and expenditure by DSIR for 1974–75 in scientific activity classifications are given in the following table.

ActivityStaff as at 31 March 1975Departmental ExpenditureGrantsTotal
  $(000)$(000)$(000)
Agriculture—Production7286,9733117,284
Agriculture—Processing646501,3341,984
Building and construction787864441,230
Manufacturing2742,6531192,772
Minerals1231,2991931,492
Natural environment4034,5231664,689
Energy research418418
Public building construction1,9271,927
Other activities2832,8621693,031
Total1,95321,6733,15424,827

MINISTRY OF AGRICULTURE AND FISHERIES—Almost all agricultural research within the Ministry of Agriculture and Fisheries is now conducted by the Research Division, which has a staff of approximately 260 scientists and 540 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 about 60,000 samples of soil from farms and experimental areas are analysed for pH and major elements as a basis for fertiliser recommendations by farm advisers.

Research work is carried out at seven stations, at smaller experimental stations and areas, and on farmers' properties throughout the country. Major work areas of the seven stations are: animal and plant production (Invermay); animal production and some local diseases (Ruakura Animal); animal health (Wallaceville); hill country (Whatawhata); soil fertility and plant production (Ruakura Soil and Field); irrigation (Winchmore); and horticulture (Levin). In addition, field research staff investigate local problems throughout the country and test, on experimental areas and farms in a range of environments, the findings of research stations. 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 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 900 m) 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 and seventy kilograms of milkfat or beef per hectare; 340 kg of lamb and over 110 kg 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.

Major sheep and cattle breed evaluation and improvement projects, in which both local and exotic stock are represented, fall into two groups: collaborative studies on properties administered by other Government departments, and integrated breeding studies on research stations in both the North and South Islands.

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 hypomagnesaemia 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 problems, and to new ones as they arise.

OTHER GOVERNMENT DEPARTMENTS—The Department of Scientific and Industrial Research and the Ministry of Agriculture and Fisheries are responsible for nearly 74 percent of the total Government science expenditure. A number of other departments do, however, undertake research. The departments concerned and the expenditure involved are listed in the table on page 231, and more details of their research activities are contained in the appropriate departmental sections.

SCIENTIFIC RESEARCH OUTSIDE GOVERNMENT DEPARTMENTS—The bulk of university funding comes direct from the Department of Education's Vote but university research is funded through the University Grants Committee. A number of Government departments are, however, substantially increasing their contact with the universities by granting research contracts for specific programmes of research.

There are 11 industry research associations which are funded jointly by Government and the industry they serve. The present associations are the Building Research Association, the New Zealand Coal Research Association, the New Zealand Dairy Research Institute, the New Zealand Fertiliser Manufacturers' Research Association, the Research Institute of Launderers, Drycleaners and Dyers, the New Zealand Leather and Shoe Research Association, the Logging Industry Research Association, the Meat Industry Research Institute of New Zealand, the New Zealand Concrete Research Association, the New Zealand Pottery and Ceramics Research Association and the Wool Research Organisation of New Zealand. The total cost of the government funding for 1974–75 was $195,300. A new scheme which involved the classification of the associations into categories, with differing dollar-for-dollar subsidies, was introduced from 1 April 1975.

The only major endowed research organisation in New Zealand is the Cawthron Institute at Nelson which was established in 1920 with a bequest of $500,000 under the will of Thomas Cawthron. As the value of the investment of the bequest has declined the institute has received increasing income from other bequests, chemical services earnings, and from a Government grant which comprises about 47 percent of the institute's income.

The organisation of medical research is described in Section 5A, Health and Medical Services, under the headings Medical Research Council and National Health Institute.

THE PRESENT ORGANISATION OF SCIENTIFIC RESEARCH—Decisions on national scientific policies are made by the Minister of Science and Technology and the Cabinet, subject to the guidance and control of parliament during the annual consideration of the Estimates.

Scientific research in New Zealand is carried out by the research divisions of 15 Government departments, universities, joint Government/industry-funded research associations and private organisations, such as the Cawthron Institute, which receive government assistance. Accurate statistics on proportionate expenditure on research are not yet available but means of obtaining the necessary information are being studied, as the data is needed both for internal use and for OECD comparative purposes. It is certain, however, that the majority of research in New Zealand is funded by Government departments, of which 73.5 percent is expended by DSIR and the Ministry of Agriculture and Fisheries.

Advising the Government on a co-ordinated national policy for scientific research, which takes into consideration the work of all these agencies, is the role of the National Research Advisory Council (NRAC), which was established on 1 April 1964 to advise the Minister of Science and Technology 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;

  3. the promotion of co-operation with the governments of, or organisations in, other countries, or with international organisations, in scientific matters;

  4. any other matters that are appropriate for the carrying out of any of the above-mentioned functions, or that are referred to it by the Minister.

The National Research Advisory Council Act 1963 provides for six members, including the chairman, to be appointed by the Governor-General and for three ex-officio members, the Director-General of Agriculture and Fisheries, the Director-General of Scientific and Industrial Research, and the Secretary to the Treasury. The council is assisted by three advisory committees (each chaired by a council member), covering the fields of primary production, manufacturing and processing, and research related to the natural and social environment.

By Government directive, all departmental proposals involving the establishment of new scientific activities or the major expansion, reduction, or modification of existing activities are referred to the council for evaluation, as are proposals likely to make substantial demands on scientific manpower or other scientific resources.

In 1974 the then Ministers of Finance and Science asked the NRAC and the newly-established Planning Advisory Group to report jointly on the broad considerations involved in achieving a greater integration between science policy and economic development, the rate at which resources for science should be expanded, the basis on which the Governments' science resources should be available to the private sector, and the institutional framework for advising the Government on the allocation of scientific resources. A working party was established to study these issues.

All Government science activities and science groups are dealt with in one forward programme, the Science Budget, which is prepared annually to assist the council in advising government on the appropriate allocation of resources to various areas of scientific activity.

The Science Budget is an accumulation of the portions of the Votes of Government departments expended on scientific research. Each department's work is classified according to 11 major activity headings, rather than by scientific disciplines. The council ascertains what work is under way in each activity, the resources devoted to it, and the relevant cost. Forecasts of costs and resources needed to maintain existing levels of effort are obtained on a 3-year forward planning basis and the council analyses proposed new work and extensions of existing efforts.

This background information enables the council to recommend to the Government desirable growth rates in scientific and directly-supporting manpower for each activity, with an estimate of the likely cost. Manpower, as the most common and constant factor in scientific planning and expenditure, is a prime consideration in recommendations. As the council is a purely advisory body, the actual disbursement of Science Budget funds remains the responsibility of the Government departments concerned.

The following tables show the Government expenditure and manpower by department and scientific activity. Expenditure on public buildings is excluded.

GOVERNMENT EXPENDITURE ON SCIENCE BY DEPARTMENT

DepartmentGross Expenditure on ScienceGrants*
1972–731973–741974–751972–731973–741974–75

*Included in gross expenditure in previous columns.

  $(000)  $(000) 
Agriculture and Fisheries9,00410,71212,849399705593
Defence7421,0267841231
Education8771,0051,1208329351,033
Electricity101218976
Forest Service2,8583,3334,070342129
Internal Affairs2503354601
Justice292836
Labour167183242876
Lands and Survey151516151516
Maori Affairs421421
DSIR16,15418,92422,4822,1182,2192,736
Social Welfare587712145
State Services Commission424353
Transport3,5474,0944,3234226
Works and Development1,7022,1051,453155180186
Total35,45941,89448,0283,6284,1244,613

GOVERNMENT EXPENDITURE ON SCIENCE BY SCIENCE BUDGET ACTIVITIES

ActivityGross Expenditure on ScienceGrants
1972–731973–741974–751972–731973–741974–75

*The activity "Fundamental Research" has been deleted and the expenditure allocated to other activities.

Note—Government expenditure on buildings solely for scientific use is not included in the above tables. The figure for 1974–75 was $5,968,000.

  $(000)  $(000) 
Agriculture15,18418,28921,2541,8122,1292,237
Forestry3,3973,8834,348372532
Fisheries1,2071,0321,262231724
Minerals1,2011,3471,492155149193
Manufacturing1,9572,2602,772128110119
Building and construction9641,2031,656204251450
Transport879830783655357
Natural environment8,11610,03110,847299352362
Social sciences538675870202264314
Human health593677838131619
Fundamental research822*411*
Other scientific services1,4151,6451,906686747806
Total35,45941,89548,0283,6284,1244,613

SCIENCE BUDGET MANPOWER

STAFF CEILINGS 1974–75

Activity 
Agriculture1,898
Forestry464
Fisheries107
Minerals129
Manufacturing279
Building and construction129
Transport69
Natural environment1,027
Social sciences84
Human health81
Other scientific services112
Total4,379

GOVERNMENT RESEARCH EFFORT

Year Ended 31 MarchGross Expenditure on SciencePercentage of Total Government ExpenditureTotal Staff Employed

*Including expenditure on public buildings for science.

 $(000)  
197231,061x1.283,691
197337,5231.323,930
197443,7921.314,214
197550,3731.204,379
197660,8081.13 

Two grant-schemes which are at present outside the Science Budget are those operated by the New Zealand Energy Research and Development Committee, which made grants totalling $417,885 during 1974–75, and the Industrial Research and Development Grants Advisory Committee which recommended grants totalling $1,357,669 during 1974–75.

In a study by the Organisation for Economic Co-operation and Development (OECD) on reviews of national science policy, the following comparisons were 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.

In another study OECD has calculated civilian research and development expenditure as a percentage of gross national product to give the following country comparison. (This omits military and defence expenditure which inflates the expenditure unevenly for many countries.)

Source: Review of National Science Policy of Netherlands, 1973

CountryYearPercent of GNP
United States19672.2
Netherlands19672.15
United Kingdom1966–671.7
France19671.6
West Germany19671.5
Japan19671.4
Canada19661.1
Norway19670.9
Belgium19670.85
Italy19670.65
Ireland19670.6
Austria1966–670.6
Greece19660.2

Bibliography—Further information on New Zealand scientific services may be obtained from:

  • Department of Scientific and Industrial Research: Annual Reports, Parliamentary Paper G.21.

  • Ministry of Agriculture and Fisheries: Annual Reports, Parliamentary Paper C.5.

  • Medical Research Council: Annual Reports, Parliamentary Paper E.11.

  • National Research Advisory Council: Annual Reports, Parliamentary Paper G.20.

  • Industrial Research and Development Grants Advisory Committee: Annual Reports, Parliamentary Paper G.19.

  • Otago University Science Students' Association: Science Record (this contains the only published list of science research topics studied in all New Zealand universities).

  • 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 9. Section 7 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—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—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 responsibilities by five standing committees each specialising in a particular area of the law. These committees consider topics referred to them by the Minister and report thereon to him. Until recently the Law Revision Commission, a large advisory body, also assisted the Minister of Justice. In 1975 it was replaced with a smaller and more informal Law Reform Council. The Council comprises the Minister of Justice, the chairmen of the 5 standing committees, and the permanent heads of the State agencies involved in law reform. Its aim is to provide a means of communication among the committees and with those involved in the implementation of their reports.

Public Acts and regulations are drafted in the Parliamentary Counsel 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 has 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. Under the Domestic Proceedings Act 1968, particular magistrates are appointed by the Governor-General to exercise the domestic jurisdiction of the Magistrates' Courts. Children's and Young Persons' Courts hear cases against those under 17 years of age.

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 $5,000 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 are a Chief Justice and 19 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 administrative tribunals under the following Acts: War Pensions Act, Sale of Liquor Act, Cinematograph Films Act, Animal Remedies Act, Land Act, Medical Practitioners' Act, Pharmacy Act, Nurses Act, Trade Practices Act, Distillation Act, Mining Act, Coal Mines Act, Town and Country Planning Act, Soil Conservation and Rivers Control Act, and Clean Air Act. 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 60. 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 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 (a list was published in the 1971 and earlier issues of the Yearbook).

JURIES—The institution of the jury is regulated in New Zealand by the Juries Act 1908. Subject to certain exceptions, every British subject between 20 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; judges and members of the Industrial Court; 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 December 1975 there were 3,352 members of the New Zealand Law Society holding practising certificates.

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 punishment 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.

Persons on probation at 31 December were as follows: 1968, 4,318; 1969, 4,868; 1970, 5,204; 1971, 5,878; 1972, 5,837; 1973, 6,305; and 1974, 6,602. In December 1974, of all offenders on probation and in penal institutions, 73 percent were on probation.

Periodic Detention—The Criminal Justice Amendment Act 1962 made provision for sentences of periodic detention. Pursuant to this legislation residential work centres have been set up in Auckland, Otahuhu, Hamilton, Lower Hutt, Wellington, Christchurch, Dunedin, and Invercargill. These are available for offenders under 20 years of age. 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 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. Non-residential centres have been opened at Auckland, Christchurch, Hamilton, Lower Hutt, New Plymouth, Otahuhu, Papakura, Wellington, Whangarei, Tokoroa, Rotorua, Gisborne, Napier, Palmerston North, Wanganui, Tauranga, Nelson, Dunedin, and Invercargill. At 31 March 1974 there were 1,191 detainees reporting.

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—

  • 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.

  • 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.

  • 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.

  • 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 the use of 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 the 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
19701041886
197111110101
19721021785
197314919130
19741011883

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
Total Cases
1970755178395123677291,0721521,224
19711,0596450831604101,112411,153
19721,2918675239576141,328531,381
1973x1,3337381041393141,203551,258
19741,39716286248745101,607581,665
Distinct Persons
19703353121816119733723360
19713633123616147538321404
19724293029120156944729476
1973x45229296201511244732479
1974587444283577550540545

Of the 631 distinct persons indicted during 1974, 463 were convicted, 2 were awaiting trial, and 113 acquitted, and the prosecution was not proceeded with in the remaining 53 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
1970269898571,22414017545360
19712697701141,15316418060404
19723109471241,38119521467476
1973x472694921,25824217463479
19744341,0791521,66526220875545

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 Offence19701971197219731974

*Includes persons charged with murder but convicted of manslaughter.

Murder75295
Attempted murder1133
Manslaughter*66121015
Traffic offences involving death or injury31582
Assaults and wounding5881109117x113
Sexual offences58645786116
Other offences against the person76712x8
Robbery, burglary, and breaking and entering6475735679
Theft, receiving, and fraud848411090114
Other offences against property2019232613
Forgery and uttering72822
Other offences4560676375
Totals360404476479x545
Per 10,000 mean population1.281.411.631.61x1.79

Sentences imposed in the Supreme Court during each of the latest 5 years were as follows:

Sentence19701971197219731974

*Also includes persons committed into the care of the Department of Social Welfare.

Probation (under Criminal Justice Act)6540635289
Ordered to come up for sentence1313162812
Discharged99104
Fined36544462x72
Imprisoned233243291267x284
Detention centre (includes periodic)*1173238x59
Borstal training924202017
Preventive detention2412
Detained in mental institution1116
Totals360404476479x545

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. 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 33,948 convictions against females in 1974 out of a total of 292,157 convictions, and 29,861 females were included in the 238,572 distinct cases.

Type of Offence19701971197219731974

*Excludes driving with excess blood alcohol. This is included in Other offences against good order, together with convictions for failing to take breath or blood tests. Convictions for these offences totalled 8,300 in 1974.

†Excludes offences of negligence or drunk in charge causing death or injury; conversion; drunk in charge including excessive blood alcohol; failing to take breathalyser or blood tests; failing to stop after accidents involving injury.

‡From 1 April 1969 excludes overparking offences and from 1 July 1971 some speeding offences, both handled by traffic controlling authorities and previously dealt with as court cases.

§Not offences; included only for administrative purposes. Since 1 January 1970 maintenance, separation, and paternity orders have been returned separately under the Domestic Proceedings Act 1968, statistics for which may be found at the end of this section.

||Counting only the principal offence in cases where a person is charged simultaneously with two or more offences. Prohibition orders are excluded.

Common assault2,6033,0853,4053,7613,643
Sexual offences558638693704628
Other offences against the person1,6071,7221,8742,5572,854
Theft6,7177,3897,4567,8458,375
Wilful damage1,3171,4801,7512,0222,127
Other offences against property (including forgery)10,55611,76712,32111,88412,272
Drunkenness (including drunk in charge, etc.)*4,1433,7583,1113,0214,488
Offensive conduct or language, and vagrancy5,8476,0395,3285,4446,740
Other offences against good order4,3856,2477,4728,7959,690
Breach of probation880937819811819
Offences relating to narcotics2354815321,0961,641
Failing to pay maintenance1,2281,3181,5101,3011,339
Other offences relating to administration of justice, drugs, etc.1,0641,2911,1231,5361,592
Failing to furnish return and making false return of land and income1,8251,7133,3023,6822,666
Unlawfully on licensed premises and other breaches of Licensing and Sale of Liquor Acts6,0867,2547,0286,2937,080
Deserting merchant ships17395523738
Other offences6,3366,4877,4977,6886,770
  Sub-totals55,56061,70165,27468,47772,762
Minor traffic offences159,655179,230166,457193,886219,395
Application for prohibition order§595176218213180
Applications for maintenance, separation order, etc.§136
Application for paternity order§28
Totals215,974241,107231,949262,576292,337
  Distinct Cases||176,851199,732190,019213,945238,572
Rate per 10,000 mean population for convictions, excluding minor traffic offences and applications197.0215.4223.8225.7238.9

The next table classifies the result of hearing in all distinct cases heard in 1974.

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 180,577 of the cases where fines were imposed.

†Mostly orders made.

Committed for trial or sentence22933652625684
Imprisonment5351,1011,034363403,073
Detention in detention centre76244119564499
Periodic detention356850992144212,363
Detention in borstal institution, etc.9435672456573
Released on probation5711,998693215883,565
Convicted and ordered to come up for sentence if required412599366249541,680
Fined*3,5555,627195,6871,79312,031218,693
Convicted and discharged (or pay costs)2344635,4533145517,015
Suspended imprisonment (maintenance cases)767767
Miscellaneous276969116134415
Dismissed, withdrawn, or struck out1,0011,57318,5391,9061,59324,612
Discharged under section 42 of Criminal Justice Act198515753791861,731
Total distinct cases7,28813,731223,8296,10914,713265,670

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 and from 1 July 1971 some local authorities and the Ministry of Transport have imposed speeding infringement penalties.

The following table analyses all traffic convictions dealt with in Magistrates' Courts for the latest 5 years.

Offence19701971197219731974

*Excludes trailers and caravans.

Reckless, dangerous, or careless use or driving of motor vehicle causing death106949810891
Reckless, dangerous, or careless use or driving of motor vehicle causing injury166206215221240
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing death5491914
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing injury7862020
Failing to stop motor vehicle after accident involving bodily injury89156242349303
Unlawfully converting vehicle to own use1,6941,8031,8981,8791,878
Driving, or in charge of, motor or other vehicle under the influence of drink or drug4,2735,7366,6367,8978,702
Exceeding speed limits45,42747,90232,80839,06842,511
Reckless, dangerous, or careless use or driving of motor vehicle28,60633,42833,13835,76139,165
Reckless, dangerous, or careless use or driving of other vehicle1961391118983
Incorrect lighting of vehicles5,5985,6755,8416,0546,518
Offences relating to the registration, etc., of motor vehicles7,8329,0419,68511,90612,839
Offences relating to driver's licence17,57219,37717,59720,56123,363
Breaches of parking regulations26,00634,35534,07239,25343,902
Other traffic offences28,41829,30233,20541,19451,014
Totals165,995187,226175,561204,379230,643
Convictions per 1,000 of mean population58.8765.3660.1968.6175.77
Convictions per 1,000 motor vehicles*137.33147.14130.13142.13152.20

The previous table excludes charges for which persons were sent up from the Magistrates' Courts to the Supreme Court for trial or sentence. In 1974 there were 5 such charges for driving offences causing injury or death, 33 for converting a motor vehicle, and 13 for other traffic offences.

Disqualifications of drivers by length of disqualification are shown in the following table.

Period for which Driver Disqualified19701971197219731974

*In addition, 42 provisional motor cyclists were disqualified. 22 for less than 3 months, 15 for 3–6 months, 3 for 6 months to 1 year and 2 for 1 year or longer.

Under 3 months2,6612,5622,1183,1923,687
3 months and under 6 months6,1464,5814,6386,8776,444
6 months and under 1 year3,3234,6635,4117,2307,617
1 year and under 2 years4,4804,0955,0267,0997,376
2 years and under 3 years9691,0451,1281,3921,867
3 years and under 4 years1,197513408431553
4 years and under 5 years9433343151
5 years and over122165140162213
Total disqualifications18,99217,65718,90326,41427,808*

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. Children's Courts, in which there were 66 convictions for drunkenness in 1974, are not included in this table.

YearConvictions for DrunkennessPer 1,000 of Mean Population
MalesFemalesTotalMalesFemalesTotal
19703,9591844,1432.810.131.47
19713,6021563,7582.520.111.31
19722,9441673,1112.020.111.07
19732,8891323,0211.940.090.97
19744,2832054,4882.810.131.47

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 180 in 1974, 213 in 1973, 218 in 1972, 176 in 1971, and 595 in 1970. In addition, in 1974, 7,490 persons were convicted of driving or attempting to drive with excessive blood alcohol concentration compared with 6,751 in 1973.

Offences by Women—Of the 331,192 charges dealt with in the Magistrates' Courts in 1974, 37,464, or 11.31 percent, were preferred against females. This figure showed an increase of 4,94 from the 1973 total of 32,516.

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.

Offence19701971197219731974
Common assault65104134138141
Drunkenness184156167132205
Burglary, breaking and entering, etc.106104109157141
Theft1,5711,7711,8842,0552,224
Fraud and false pretences386534462801703
Offensive conduct or language251273245257333
Vagrancy2712591488080

Women received into prison under sentence during 1974 numbered 208 compared with 214 in 1973. The more prevalent offences concerned were (with the previous year's figures in parentheses); robbery and stealing from the person, 10 (7); burglary, breaking and entering, etc. 16 (21); theft, 47 (50); fraud and false pretences, 20 (17); failing to pay fine, 26 (34); breach of probation, 12 (18); and common assault, 4 (7).

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 10 years 1965 to 1974, the number of convictions in the Magistrates' Courts (excluding minor offences), increased by 8.73 per 1000 of mean population. Most categories of serious crime show an upward trend. Total convictions for offences against the person (of which common assault and assaulting, resisting or obstructing the police form the major proportion), increased by 127 percent, property and forgery convictions increased by 89 percent.

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 1965, 32 percent of persons sent to prison were 20 years of age or younger; in 1974 the proportion had risen to 43 percent. Similarly, 65 percent of those imprisoned in 1965 were under 30 years of age, in 1974 the proportion had risen to 76 percent.

Age in Years196519701971197219731974
15285688698284
16117223317321289301
17228380474485430440
18267454508490532437
19241427454464403423
20238437509442426369
21–247221,0441,2151,113979933
25–29459600701702667590
30–34313387421436384348
35–39271253298296252278
40–44227222254239194222
45–49158196205199137173
50–5412695150129127113
55–59685858534960
60–64381627392622
65–6912121219913
70 and over714543
Totals3,5204,8615,6955,5014,9904,809

PROBATION—The following figures show the number of persons placed on probation during each of the latest 12 years.

YearNumber Admitted to Probation
19632,162
19642,024
19652,456
19662,773
19673,033
19683,345
19693,794
19704,062
19714,274
19724,687
19735,311
19745,647

The next table gives the number of male offenders in each group placed on probation during 1974, together with the period of their probation.

Age in YearsPeriod of ProbationTotal
MonthsYears
12141516171819202122 1/23
Under 17292..6551303......123..5794
17367..40713021..112223846
18–19513..6541364..11183..101,142
20–2448116613365131151141,091
25–29166..263..1451....4216390
30–39135..252..971....4416311
40–466..8....32....218..5131
50–5929..3....14......10..763
60–698................4....15
70 and over2......................2
Totals2,05912982261,6254457005564,785

A total of 862 women and girls were placed on probation during 1974. Of these, 395 were on probation for 1 year, 13 for 15 months, 274 for 18 months, 165 for 2 years, and 15 for 3 years.

PRISONS AND PRISONERS—The New Zealand prison population is accommodated in 30 institutions comprised of 17 prisons, 5 borstals, 3 detention centres, and 5 police jails. Any person serving a sentence of not more than 30 days may be detained at any police station, which is also deemed to be a prison for that period.

The prison population during the year 1974 is shown in the following table.

CategoryMalesFemalesTotal
Persons in prison at 1 January 19742,465972,562
Receptions during the year (including multiple receptions of the same person, but excluding transfers)9,78859110,379
Discharges during the year (including multiple discharges of the same person, but excluding transfers)9,85145310,304
Persons in prison at 31 December 19742,355852,440
Daily average number of prisoners2,358992,457

The number of inmates in penal institutions reached a peak in early 1972, but declined sharply towards the end of that year. The number of offenders in custody at the end of December 1974 was the lowest for 4 years.

Not all prisoners received were actually persons undergoing sentence on conviction for criminal offences. Many, for example, are in custody awaiting their trial. In 1974, 113 debtors were released after being detained or imprisoned for non-payment of debt following a court order; 43 were classed as mental defectives and transferred to mental hospitals, while 4,897 persons were not returned to prison after release for hearing of the charge, having been acquitted, fined, placed on probation, etc.

The following table analyses the ages and offences of distinct persons received into prison under sentence during 1974.

Age, in YearsOffences Against the PersonBurglary, Theft, and FraudConversion, Wilful Damage, etc.Vagrancy and DrunkennessOther OffencesTotal
Sexual OffencesAssaultsOther
Under 217126718741315605822,054
21–242611972725480375933
25–291758111522366263590
30–392852314913130251626
40–4926286010133138395
50–598103825560173
60 and over53881438
Totals181537391,4204175321,634,809

The next table gives particulars of ages and length of sentence of distinct persons received into prison under sentence during 1974.

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 life imprisonment.

‡Includes borstal detention and two prisoners sentenced to preventive detention.

Under 2118916179311031117592,054
21–2417120533717923144933
25–291251421851161471590
30–39167155175972471626
40–49135103955165395
50–596545371943173
60 and over1291042138
Totals8648201,632576104487654,809

The special types of detention (or imprisonment) imposed during 1974 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
15161718192021–2425–5455–59Total
Borstal training—          
  Males7315219215795264699
  Females711221310154
Detention centre11261701249133545
Preventive detention22

Of the total of distinct persons received into prison in 1974, 71 percent had been convicted for an offence on at least one previous occasion, and 46 percent of these had been convicted more than six times.

The number of prisoners received to serve a sentence imposed during the year 1974 for criminal offences was 5,326 but deducting multiple receptions of the same prisoner, the number of distinct persons was 4,809 (4,601 males and 208 females). The corresponding total for 1973 was 5,457, and there were 4,990 distinct persons (4,776 males and 214 females).

An analysis is given below for the 5 latest years of distinct persons received into prison according to nature of sentence.

Nature of Sentence19701971197219731974
Imprisonment3,6544,2444,1253,7063,499
Detention centre442558563558545
Borstal training764889813725763
Preventive detention1412
Totals4,8615,6955,5014,9904,809
  Rate per 10,000 of mean population17.2119.8818.7016.7515.80

The next table shows the number of persons in prison at 31 December in each of the latest 11 years.

At 31 DecemberPersons in PrisonProportion per 10,000 of Population as at 31 December
Undergoing SentenceOn Remand and Awaiting Trial, etc.TotalUndergoing SentenceTotal in Prison
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
19712,544922,6368.889.20
19722,447842,5318.398.68
19732,3711962,5677.838.48
19742,2951452,4407.427.89

Classification—The key to successful penal work lies in understanding the individual prisoner, and in order to assist the prisons administration to this end classification boards operate in the main reception prisons, Auckland, Wellington, and Christchurch. Similar boards also function at the main reception Borstal institutions.

A census of convicted persons under the jurisdiction of the Department of Justice was taken as at midnight on 4 July 1972. This included persons sentenced to probation, periodic detention, and all forms of custody (borstal, detention centre, and prison).

The census revealed that a high proportion of persons included had had previous penalties. As would be expected this was most marked among prisoners. Seventy-two percent of male prisoners and 42 percent of females had been in penal custody before the present sentence. (Penal custody included prison, borstal, or detention centre. Comparable figures for males in other treatment categories were 31 percent of borstal trainees, 24 percent of probationers and parolees, 23 percent of periodic detainees, and 2 percent of detention centre detainees.

The great majority of persons in the census were aged 24 years or less—72 percent of the total.

In general the level of education reached by the persons in the Department of Justice census was low. Only 22 percent of male and 24 percent of female sentenced persons remained at school beyond Form IV.

An ethnic breakdown of sentenced persons showed that of the males 57 percent were New Zealand-born of non-Polynesian stock, 35 percent were Maoris, 2 percent were immigrant Polynesians, and 6 percent were other immigrants. The figures for females were 51 percent New Zealand-born of non-Polynesian stock, 42 percent Maoris, 2 percent immigrant Polynesians, and 5 percent other immigrants. Of those males in penal custody, 50 percent were New Zealand-born of non-Polynesian stock, 41 percent were Maoris, 2 1/2 percent were immigrant Polynesians and 6 percent were other immigrants.

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 17 full-time teachers serving in Auckland Prison, Mount Eden Prison, Christchurch Prison, Tongariro Prison Farm, Waikune Prison, Christchurch Women's Prison, Rolleston Prison, Wi Tako Prison; Waikeria and Waipiata Youth Institutions; and in Arohata and Invercargill Borstals. Part-time teachers provide a service for all other institutions. Teachers seek to help those prisoners whose educational attainment is such that they are disadvantaged in the community. They also assist those who are undertaking further education or technical courses either by correspondence or in prison classes. Such courses may be at any level ranging from illiteracy to university degree work. The interest thus shown by prisoners is encouraging, as in many cases it gives a prisoner better social and employment skills thereby reducing the chances of 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.

Psychological Services—Psychologists from the Department's Psychological Services are available to provide assessment and treatment and to assist the administration with decisions relating to an inmate's rehabilitation.

Not all assessments lead to psychological treatment. Of those that do, some will result in direct treatment by the psychologist in the from of counselling, psychotherapy, group therapy, or behaviour therapy. Others are dealt with by the combined efforts of the institution staff and psychologist to improve the offender's behaviour.

Referral may be through a classification or other committee of which a psychologist may be required to be a member but many inmates seek referral themselves.

Professional staff may be required to assist in developing programmes dealing with groups of offenders and in the psychology in-service training courses for prison 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, and at Auckland, Wellington, and Christchurch for adult male 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 dependants 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 guidance 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 5 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 one half or 3 1/2 years of his sentence whichever first occurs 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 6 years were as follows:

YearBorstal DetentionImprisonmentPreventive DetentionPersons on ParoleTotal
19691,6733835171,763
19701,764442291,839
19712,084259162,134
19721,794421361,855
19731,732345111,782
19741,710338281,779

Of the cases coming before the boards in 1974, there were 752 recommendations made for release on probation and 12 persons on parole were favourably recommended for discharge.

JUVENILE OFFENDERS—Children's Courts were originally established in New Zealand under the Child Welfare Act 1925. The Children and Young Persons Act 1974, which came into force on 1 April 1975, renamed these Children's and Young Persons' Courts.

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 and Young Persons 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 and Young Persons Court.

Unless no other suitable room is available, sittings of the Children and Young Persons Court are not held in a courtroom. Proceedings in Children and Young Persons 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 and Young Persons 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 has been recorded.

The cases heard by Children's Courts in the latest 3 years resulted as follows:

DecisionTotal ChargesDistinct Cases
197219731974197219731974

*Includes periodic detention.

Dismissed or withdrawn1,4901,8631,7958871,084976
Admonished and discharged5,1015,0145,3862,8732,9342,900
Committed to care of Social Welfare Department3,2452,9882,8771,2411,1341,102
Placed under supervision8,2597,7857,4153,5323,4573,209
Committed to an institution*2,1552,2832,733609665739
Fined3,7744,2304,6852,7333,0863,242
Otherwise dealt with2,4182,8343,1261,0991,2441,397
Total cases26,44226,99728,01712,97413,60413,565

The following table shows the number of cases dealt with in Childrens' 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
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
197121,2344,40425,63810,5542,83513,389
197222,1664,27626,44210,3422,63212,974
197322,8144,18326,99710,9942,61013,604
197423,6034,41428,01710,8382,72713,565

Detailed statistics for Children's Court cases during each of the latest 5 years are as follows:

Type of Offence19701971197219731974

*Includes forgery and uttering. NOTE—Distinct cases figures are included in those for total charges.

Total Charges
Sexual offences144185153182196
Assaults5347838181,0601,012
Other offences against the person63596785113
Robbery, burglary, and breaking and entering4,6876,5016,2526,2946,207
Theft, receiving, and fraud6,3927,5908,1627,5127,892
Unlawful conversion of vehicles3,0193,2713,9604,2864,579
Wilful damage5238129041,0221,150
Other offences against property*925207255295319
Offences against good order1,8992,2402,2662,5922,936
Indigent op delinquent child2,3001,9221,5901,5721,441
Other offences1,0162,0682,0152,0972,172
Totals21,50225,63826,44226,99728,017
Distinct Cases
Sexual offences116139113130146
Assaults429632678851841
Other offences against the person5849577780
Robbery, burglary, and breaking and entering1,9752,7672,6082,6082,565
Theft, receiving, and fraud3,0273,5293,5603,4233,613
Unlawful conversion of vehicles8711,2331,3051,5761,476
Wilful damage262399436461476
Other offences against property*38233818398
Offences against good order1,2491,4421,3641,5881,666
Indigent or delinquent child2,0261,7711,4371,4591,255
Other offences1,2421,3951,3351,3481,349
Totals11,63713,38912,97413,60413,565

CIVIL JURISDICTION: Supreme Court—The jurisdiction of the Supreme Court is twofold, original and appellate. It has by statute a general jurisdiction to administer the laws of New Zealand. One important aspect of this original jurisdiction is an inherent power to control inferior Courts and judicial tribunals through the writs of certiorari and prohibition. This is essentially a power to determine the limits of jurisdiction of other Courts and is to be distinguished from its appellate function by which the Supreme Court reviews a case which was properly heard and determined by a lower Court. An appeal to the Supreme Court lies only where it is provided for by statute. With certain exceptions, all cases determined in the Magistrate's Court are subject to appeal to the 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)
19641,9671062413451,601889
19652,183982963192,1051,181
19662,555892963252,4191,370
19672,9521662734253,3731,850
19682,9761573405783,5651,917
19692,9351332794693,9762,165
19703,2731143625363,2461,712
19713,8491203936394,4602,569
19723,9031083495374,7512,484
19733,8651002923874,1762,527
19744,311803944775,0963,142

Court of Appeal—During the 5 years 1970 to 1974 there were 293 civil appeals, of which 105 were allowed, and also 5 cases removed to the Appeal Court, 2 resulting in judgment for the plaintiff, and 3 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 for $(000)NumberTotal Amount Claimed $(000)Total Amount for which Judgment Entered $(000)
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
1971120,38815,32675,0357,5976,663
1972132,03620,12677,0579,5018,009
1973115,30519,66270,2679,5718,450
1974125,19224,11775,95111,1459,459

The average amount claimed in each plaint was $81 in 1964 and $193 in 1974.

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 now administered by the Accident Compensation Commission by virtue of section 12(4) (a) of the Accident Compensation Amendment Act 1974 in place of the Crimes Compensation Tribunal.

The availability since 1 April 1974 of compensation under the Accident Compensation Act 1972 has had a significant impact on the criminal injuries scheme, which should phase itself out. The accident compensation scheme caters for all personal injury by accident in New Zealand, and thus covers the whole range of listed criminal injuries, with the exception of pregnancy by rape and criminal infection with disease. The accident compensation scheme is designed as a fund of first resort and in practice the two schemes have merged in all but the exceptions mentioned and the residual area of property damage caused by escapers.

The following table gives details of proceedings under the Act.

Action19701971197219731974
Applications filed4067768755
Cases in which an award made3346484544
Amounts of awards$14,552$28,156$18,902$18,570$23.718

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.

Of the applications received by the 19 district legal aid committees during the year ended 31 March 1975, 10,584 applications were granted, 570 were refused, 192 were withdrawn, and 431 lapsed.

The amount paid out in legal aid in the year ended 31 March 1975 was $706,921; set off against this were contributions of $67,008 from legally aided persons and recoveries of costs of $127,639. The net cost was $512,274.

Comparatively few problems have been presented to district legal aid committees. Such problems as do arise are referred to the Legal Aid Board which gives advice or makes a ruling as required in the particular case. It is expected that legal aid applications will continue to increase as the legal aid scheme becomes more widely known.

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 heating 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 -say require a lawyer to be provided—at public expense—to assist the court.

The second major aim of the Act is to encourage by all practicable means the reconciliation of 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 1974 of applications and orders made under the provisions of the Domestic Proceedings Act 1968.

Nature of OrderApplicationsOrders Made

*Custody, 1,629; guardianship, 10; Custody order in favour of mother, 1,464; in favour of father, 95; in favour of the parties and divided, 70.

†Maintenance also granted in 911 cases.

Separation4,6561,680
Maintenance5,1781,873
Custody or guardianship4,8461,639*
Non-molestation2,221250
Tenancy356131
Matrimonial home2,640521
Paternity2,196976
Consent to marry6444
Minor's contracts213

The following were the grounds for the separation orders: serious disharmony, 1,540; defendant's conduct, 106; assault, 5; disharmony and conduct, 29. Sixty-seven of the applicants were husbands.

Relative ages of parties when separation order made in 1974 are given below.

Age of Husband (in Years)Age of Wife (in Years)
16–1920–2425–2930–3435–3940 and overNot KnownTotal
16–198311---13
20–2441186222---251
25–2961461752031-351
30–34-23134107164-284
35–39-437917025-227
40 and over-41737793232462
Not known-22-148392
Totals55368388258169357851,680

The next table shows, in the case of separation orders for 1974, the age of wife at separation and duration of marriage.

Duration of Marriage, in YearsAge of Wife (in Years) at date of separation order
16–1920–7425-2930–3435–3940 and overNot KnownTotal
Under 1-1--11-3
114227328359
2245862393105
311951862710149
45752814378140
5-56324388111
6-44385573102
7-1353922382
8-3541143277
9-1621645492
10–14--90141403113315
15–19---44806016200
20–24----181083129
25 and over-----1008108
Not known1--32118
Totals55368388258169357851,680

The next table gives details as to the amounts of weekly maintenance ordered in 1974.

Amount OrderedOrders for Weekly Payments in Support of
Wife onlyChildren onlyWife and ChildrenHusband and ChildrenTotal Orders
$ Under 1--4-4
1–4561-12
5–9289623-147
10–144210153-196
15–192670961193
20–2432502001283
25–29177234-258
30–3415132551284
35–3961172-179
40–4913204-208
50 and over1-108-109
Totals1733471,35031,873

Numbers of children involved in custody orders granted in 1974 are given next.

ItemNumber of Children InvolvedTotal
123456789
Number of orders428550351163893310321,629
Total children4281,1001,0536524451987024183,988

The amount of weekly maintenance payments ordered in 1974 in the case of paternity orders are set out below:

AmountNumber of Orders
$ Under 11
1-26
3-428
5-6144
7-8114
9-1078
11–1475
15–19167
20–24169
25–2991
30–3971
40–4412
45 and over3
Total orders959

POLICE—The Police Service in New Zealand is a national one maintained by Central Government. The law relating to its establishment and regulation is contained in the Police Act 1958.

Organisation—The national administrative and operational control of the Police Service is vested in a Commissioner who is responsible to the Government through a Minister of Police.

Apart from criminal investigations and the normal police duties under the statutes, other functional responsibilities include crime prevention, youth aid, training, and coping with armed offenders.

For operational purposes New Zealand is divided into 16 police districts. Auckland district, by virtue of its greater population, is controlled by an assistant commissioner. Other districts, because of their varying size, are commanded by officers ranging in rank from chief inspector to chief superintendent.

Policing is maintained by a system of mobile patrols and foot ‘beats’ co-ordinated by an effective communications net which permits cohesion and direction of operations.

In addition to the enforcement 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, Misuse of Drugs Act, Transport Act, Pawnbrokers Act, Secondhand Dealers Act. They also undertake certain inquires 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 34 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 8 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 19 and 34 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 1/2 months' course of training at the Police College, 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 1975, inclusive of 159 women police, was 4,119. Women police are called upon to perform similar duties to male staff and have equal pay, status, and opportunity. In addition to members of the Police Force, the Police Department employed 490 civilian staff.

Chapter 10. Section 9 DEFENCE

Table of Contents

DEFENCE POLICY—The maintenance of defence forces and a defence potential in New Zealand are related to the 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 objectives of New Zealand's defence policy may be summed up as the preservation of the security, national interests, and independence of New Zealand; the provision of assistance to maintain the stability and security of New Zealand's partners; and the provision of material backing to political efforts to preserve peace through the United Nations or through regional arrangements. Defence policy has been elaborated in parliamentary papers A.19 in 1961, A.8 in 1966, and A.5 in 1972. International relationships are discussed in Section 2 of this Yearbook.

CONTROL AND CO-ORDINATION OF DEFENCE—The Governor-General as Commander-in-Chief is empowered to raise and maintain the Royal New Zealand Navy, 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.

The Chief of Defence Staff is principal military adviser to the Minister; he is convenor 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 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 3 services. The Secretary to the Treasury and the Secretary of Foreign Affairs are associate members. 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 of important matters of defence policy.

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 provide regular forces for low intensity ground/air/naval operations in a variety of situations in our area of direct strategic concern.

  2. To provide regular forces for maritime reconnaissance/surveillance patrols over New Zealand territory and the surrounding waters.

  3. To maintain forces trained and available for use in a major emergency.

In addition, they discharge, wherever possible, a number of secondary roles, including:

  1. Assistance to the New Zealand community.

  2. The provision of mutual assistance, including technical aid, to certain countries in Southeast Asia and the South Pacific.

  3. Contributions to United Nations peace-keeping operations

Co-operation With Other Countries—To facilitate exchanges on military matters New Zealand defence liaison staffs are maintained in London, Canberra, Washington, Kuala Lumpur, Singapore, Indonesia and Thailand. In addition some members of these staffs are duly accredited to other countries. The United Kingdom, Australia and Malaysia have service representatives attached to their respective High Commissions in Wellington and there are service attaches on the staffs of the United States and French Embassies 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.

The Defence Scientific Establishment has been responsible for useful savings of foreign exchange, both in the rejection of faulty equipment as a result of metallurgical testings, and in enabling tasks previously carried out overseas to be undertaken in New Zealand. Electronic equipment produced by the Defence Scientific Establishment which has commercial potential has been made available to New Zealand industry for development and production and the work of defence scientists could result in the introduction into industry of new techniques bringing more economical production.

LEGISLATIVE AUTHORITY FOR THE ARMED FORCES—The principal statutes governing the armed forces are the Defence Act 1971 and the Armed Forces Discipline Act 1971. These rationalised command and provided the services with a common disciplinary code.

DEFENCE EXPENDITURE—Expenditure on defence in the 3 latest years ended 31 March was made up as follows.

Item1972-731973-741974-75
 $(m)$(m)$(m)
Personnel79.7689.72101.60
Travel, transport, and communications4.945.266.52
Maintenance, operation, upkeep, and rental7.858.7410.73
Materials and supplies19.2117.7126.95
Services2.812.993.34
Other operating expenditure0.921.251.17
Grants, contributions, subsidies0.080.050.06
Capital works1.302.002.99
Capital equipment12.9512.7813.49
Totals129.82140.51166.85

About 77 percent of the Defence Vote is spent within New Zealand, mainly on salaries, capital works, servicing, and general operating costs, so that there is an important feedback into the economy. Attempts are being made to become more self-supporting logistically.

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
196887.116.8x2.1
196985.346.3x2.0
197089.726.1x1.9
1971109.076.3x2.0
1972121.176.0x1.9
1973129.825.11.8
1974140.514.7xl.6x
1975166.864.51.7

STRENGTH OF ARMED FORCES—The following table gives the strengths of the regular forces of the three services over the last 12 years.

As at 31 MarchNavyArmyAir ForceTotal
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
19722,9665,4494,22212,637
19732,9725,4984,31912,789
19742,8455,5534,23212,630
19752,8505,5234,29712,670

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 Navy 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 Navy 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 and Administration—The Chief of Naval Staff exercises command and control 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 1975 were:

*On loan from U.S Navy

  One frigate on station in the Malaysia/Singapore area as part of the NZFORSEA national force. The remaining ships in commission are normally employed on exercises in New Zealand and overseas and undertake visits around New Zealand and the South Pacific, and to foreign ports.
Frigate (Leander class)Waikato
 Canterbury
Frigates (Otago class)Otago
 Taranaki
Survey shipMonowai 
Research shipTui* 
Ocean minesweepersKiama InverellTraining and fishery protection. (Kiama—Operational Reserve).
Motor launchesSevenFishery protection, training, survey work, harbour duties, RNZNVR Divisions.
Patrol craftFourFishery protection.

The naval base at Devonport, Auckland, consists of the office of the Commodore Auckland (the administrative authority of the RNZN); HMZN), HMNZS Philomel (the naval barracks and base support establishment), HMNZS Tasman (specialist training schools), the Royal New Zealand Naval Hospital, the Naval Supply Depot, and the Dockyard.

The dockyard is under the charge of a Captain Superintendent and is capable of refitting ships up to light cruisers. The RNZN Armament Depot is situated at Kauri Point and the RNZN Hydrographic Office is at Takapuna.

HMNZS Tamaki is the new entry seamanship and artificer apprentice training establishment for the Navy and is located at Narrow Neck, Devonport, Auckland. HMNZS Irirangi is the naval radio receiving and transmitting station and is situated at Waiouru.

HMNZS Wakefield is the administrative unit for RNZN personnel in the Wellington area.

Strength of the Navy

CategoryAt 31 March 1973At 31 March 1974At 31 March 1975
Regular Forces   
Officers (male and female)29529930
Ratings2,5802,4462,442
WRNZNS ratings97100100
Total2,9722,8452,850
Non-regular Forces   
Royal New Zealand Naval Reserve officers655
Royal New Zealand Naval Volunteer Reserve all ranks295363314
Royal New Zealand Naval Fleet Reserve ratings2,1912,4012,544

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 stores assistants, cooks, stewards, writers, shorthand typists, motor-transport drivers, teleprinter operators, and medical assistants.

Royal New Zealand Naval Volunteer Reserve—There is a division of the Royal New Zealand Naval Volunteer Reserve in each of the 4 main centres—Auckland, Wellington, Christchurch, and Dunedin—where reservists are given the basic elements of naval training.

THE ARMY—The New Zealand Army is raised, maintained, and organised under the authority of the Defence Act 1971, and the policy outlined in the Defence White Paper 1972. It comprises a Regular Force, Territorial Force, and the Army Reserves.

New Zealand has maintained militia forces since the passing of the Militia Act of 1845. The first regular forces were the Armed Constabulary formed in 1846. The oldest continuously serving unit in the Army traces its history to February 1864.

Formed Army units have been dispatched overseas on active service in the Boer War, World War I. World War II, occupation forces in Japan, plus Korea, Malaya and Borneo and subsequently Malaysia, and Vietnam. Units have been stationed in Malaysia and subsequently Singapore since the termination of active service in Malaysia in 1966.

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; or the 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 organised into two commands, each with 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. This involves the administration, maintenance, development and control of all Army land, buildings, equipment, vehicles, and training facilities; the preparation and conducting of training courses, promotion courses and examinations for all Army personnel; recruiting; development of a progressive welfare policy for the Army; and the provision of financial support and advice.

  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, i.e., 1 Infantry Brigade Group, 3 Infantry Brigade Group, and Logistic Support Group.

Units and staff deployed overseas remain under national command.

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 normally volunteer for a minimum period of 3 years.

  2. Territorial Force Enlistment—Men between the ages of 18 and 44 are accepted for service in the Territorial Force providing that they are British subjects, are medically and dentally fit, and, if Pacific Islanders, have been granted permission to reside permanently in New Zealand. Women who are single and between the ages of 18 and 35 (nurses to 40) and who meet the above requirements are also acceptable. In all cases voluntary service is to retiring age for rank with right of release at any time during service.

Strength of the Army

CategoryAt 31 March 1973At 31 March 1974At 31 March 1975

*Reduction due to phasing out of National Service.

Regular Forces   
Officers (male and female)717733739
Other ranks4,5814,6124,573
RNZNC and NZWRAC (other ranks)200208211
Total5,4985,5535,523
Non-regular Forces   
Territorial Force (all ranks)3,1554,9035,618
Officers Reserve601616566
Class A Reserve Other ranks4,7252,75597*
Class B Reserve1,9832,0481,928

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 in New Zealand is divided into two Groups; and one squadron with fixed and rotary winged aircraft forms a part of the New Zealand forces based in Singapore. Operations Group, with Headquarters at RNZAF Base Auckland, is responsible for all operational functions and advanced pilot flying training, and Support Group, with Headquarters at RNZAF Base, Wigram, is responsible for all formal individual training (except advanced pilot training) and certain support functions.

The RNZAF provides support for the search and rescue organisations in New Zealand and the South Pacific area, and for the New Zealand civil defence organisation. In addition, the RNZAF provides support to civil and government agencies, which cannot be provided by civil aviation facilities.

The operational units of the RNZAF comprise: a medium/short range squadron based in Singapore as part of the New Zealand Force South-East Asia; maritime, long and medium-range transport and helicopters squadrons based at RNZAF Base, Auckland; and ground attack and communications squadrons at RNZAF Base, Ohakea.

Engineering—The engineering branch of the RNZAF has been restructured and now consists of 2 divisions, electrical and mechanical. Direction of RNZAF engineering services is co-ordinated by 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.

Strength of the Air Force

CategoryAt 31 March 1973At 31 March 1974At 31 March 1975
Regular Forces   
Officers (male and female)713704701
Airmen (male and female)3,3203,2253,254
WRNZAF—airwomen286303342
Totals4,3194,2324,297
Non-regular Forces   
Territorial Air Force118142139
Active Reserve464442413
General Reserve933849807

ARMED FORCES OVERSEAS: Five Power Defence Arrangements—The Anglo-Malaysian Defence Agreement, under which New Zealand had maintained forces in Malaysia as part of a Commonwealth Strategic Reserve, was terminated in October 1971. It was replaced by the 5 power defence arrangements, effective November 1971 by which Australia, New Zealand, and the United Kingdom separately concluded agreements with Malaysia and Singapore. Within the framework of these arrangements, and at the request of the governments of Malaysia and Singapore, the three first-mentioned nations agreed to station elements of their armed forces in these countries. These elements were initially grouped into an ANZUK force, but the decision by Australia in 1973 to withdraw a substantial portion of its ground forces from the region led to New Zealand and the United Kingdom's deciding to establish separate national command arrangements. Accordingly, with effect from 31 January 1974, command of the New Zealand elements of the ANZUK force was transferred to the Commander, New Zealand Force South-East Asia. This New Zealand contribution to stability in the area currently comprises a frigate on station for a part of each year, an infantry battalion, an air transport squadron, a headquarters, periodic deployment of RNZAF strike aircraft to the area, and sundry supporting units. The withdrawal of British Forces from the area was due to be complete by April 1976.

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. In 1975 there were five New Zealand observers in the area.

Mutual Assistance Overseas:Malaysia and Singapore—In addition to direct military help in maintaining security in the area, New Zealand has since 1964 undertaken a programme of defence aid to Malaysia and Singapore. Armed-forces students from both countries are being trained in New Zealand and, in addition, New Zealand military personnel are seconded to the Malaysian and Singaporean armed forces to assist with training.

Indonesia and Papua - New Guinea—New avenues are being explored for the establishment of bilateral co-operation. Indonesian officers have been given training in New Zealand whilst New Zealand dental officers have undertaken a series of lectures at the Armed Forces Dental Institute at Jakarta. New Zealand officers are also attached as instructors to the PNG Joint Services College at Lae.

Fiji—Apprenticeship and other trade training is provided for Fiji military forces personnel in New Zealand. In addition. New Zealand personnel have been attached to the Royal Fijian Military Forces to assist in the establishment of trade training schools and in the administration of the RFMF. Relief assistance in the form of RNZAF transport, construction materials, and several RNZE detachments was also given to Fiji and the Gilbert and Ellice Islands following Hurricane Bebe in November 1972.

Tonga—A New Zealand Army officer is seconded as commander of the Tonga Defence Force. Cadets and NCOs are given technical training and other courses of instruction at New Zealand Army schools. Officers from the marine detachment of the Tonga Defence Force have been given training relating to the operation and maintenance of fishery protection vessels.

Cook Islands—A combined Army, RNZAF, and Ministry of Works and Development team studied the feasibility of reconstructing a harbour on the islands. As a result Army engineers, assisted by RNZAF transport, were deployed in June 1974 to reconstruct harbour facilities at Atiu. The harbour was opened on 11 July 1975.

Antarctica Support—New Zealand activities in Antarctica rely heavily on logistic support coordinated with the United States. The main defence contribution is related to the provision of RNZAF transport flights to McMurdo assisted by a mobile air movements team and Army cargo handlers. Both helicopter and transport aircrew are also assigned for duty with the United States forces.

Other Assistance in the Community: Hydrographic Survey—During 1975 three survey motor launches, together with two shore-based boats, have been engaged in a re-survey of those areas in the northern Hauraki Gulf which were dependent on old Admiralty lead-line surveys. In September 1975, HMNZS Monowai arrived in Scotland for conversion to a surveying ship as a replacement to Lachlan. Conversion work is scheduled to be complete in September 1976.

Fishery Protection—In 1975 four new patrol craft were formally commissioned into the RNZN and are now employed, in co-operation with the Ministry of Agriculture and Fisheries, on operational patrols around the New Zealand coast.

Search and Rescue—All 3 services support the civil defence and search and rescue organisations. During the year 1 April 1974 to 31 March 1976 the RNZAF took part in over 90 search and rescue (SAR) operations, and recovered some 60 people. Although the majority of lives were saved by Iroquois helicopters within New Zealand, RNZAF aircraft flew 460 hours on SAR tasks in localities stretching from the southern oceans of New Zealand to the Pacific Islands and Malaysia. The Army participated in 15 SAR operations during that period while ships of the RNZN have also been instrumental in the rescue of small pleasure craft.

Miscellaneous—Other assistance provided to the community ranges from airborne surveillance of foreign fishing vessels to fire-fighting and co-operative tasks with the Forest Service, NZR, NZED, and Meteorological Service; explosive ordnance disposal; assistance in civil emergencies; and participation in pageantry and ceremonial occasions.

New Zealand Cadet Forces—A reorganisation of the non-regular forces, commenced in 1970, was embodied in Part III of the Defence Act 1971. The Act established the New Zealand Cadet Forces, in their own right and not as parts of the armed forces as before.

The Act authorises the Defence Council to raise and maintain elements of the sea cadets, school cadets and air training corps and also to allocate funds exclusively for the support of cadet activities as distinct from those of the armed forces. Civil sponsoring bodies for the cadet forces, recognized by the Act, which share responsibility for the corps with the Ministry of Defence are the Navy League of New Zealand, the Air Cadet League, and the Dominion Council of the Returned Services Association, The conditions and limitations of Government support given in the Act, together with tangible community support, show the cadet forces as a youth and leadership scheme operating under the auspices of the Ministry of Defence.

The strength of the New Zealand Cadet Forces during 1975 included 1,100 Sea Cadets led by 90 Sea Cadet Corps officers in 15 towns and 8 school units; 4300 School Cadets led by 90 School Cadet Corps officers in 21 school units; and 2,650 Air Cadets led by 165 Air Training Corps officers in 41 towns and 8 school units.

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.

Second World War, 1939-45—The net intake of men to the armed forces—i.e., exclusive of transfers between the services and of re-entries—during the Second World War 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.

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.

These national plans indicate resources available, the particular requirements to be incorporated in regional and local authority plans, and basic procedures for action in a civil defence emergency for communications, fire fighting services, law and order, medical arrangements, public relations, supply and services, traffic control, transport, and welfare and evacuation. A plan for Government Action in Major Disaster outlines the role of Central Government and of individual Government departments.

The preparation of local civil defence plans and the establishment and training of an organisation to implement such plans and make them functional is the responsibility of local authorities. Every local authority is required by the Civil Defence Act to have an operational civil defence plan. The plan must be approved by the Ministry of Civil Defence and up-dated as changes in national plans or conditions in the area affect it.

The Ministry of Civil Defence assists local authorities by conducting training and other courses for their key personnel and also makes officers available to help them run their own courses. Training manuals and operational forms for use by local authorities are supplied by the ministry. The Government pays a $1 for $1 subsidy on certain categories of civil defence expenditure by local authorities. Examples are salaries of civil defence staff and cost of radio equipment, erection of civil defence headquarters, training equipment, first aid training, etc.

There is provision in the Civil Defence Act for the recruitment and training of civil defence police and traffic officers. During a civil defence emergency these recruits are employed on the more routine duties thus releasing the highly trained permanent personnel for more important duties related to the situation. The establishment of civil defence police and traffic officers are 3,500 and 2,000 respectively.

Chapter 11. 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
196430,076
196535,258
196639,760
196742,692
196846,118
196942,669
197037,525
197141,639
197239,270
197344,779
197445,932
197552,196

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.

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.

During 1974-75 the Maori Land Court conducted 74 sittings throughout New Zealand and dealt with some 9,357 applications, from which a total of 24,829 orders were made.

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 4,000 sq metres or over designated or zoned as reserves for recreation or other purposes, and all islands or parts of islands within 150 kilometres of the mainland, and the Chatham Islands. The legislation covers rural and farm land of 2 hectares 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 2 1/2 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 purpose and that the land is not an 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.

Part II deals with the control of sales and also leases (for 3 years or more) of farm land to prevent undue aggregation. The consent of the court is required unless the purchaser or lessee 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 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 available 11 years. (1 hectare = 2.47 acres.)

Year Ended 31 MarchUrban PropertiesRural PropertiesAll Properties: Total Consideration
NumberAreaConsiderationFreeholdTotal Freehold and Leasehold
NumberAreaConsiderationNumberConsideration
  hectares  hectares    
   $(m) (000)$(m) $(m)$(m)
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
197276,5437,442786.89,106514190.09,499198.6985.4
197394,0158,8551,068.010,760620260.611,178271.91,339.9
1974110,73210,8621,641.414,494897470.915,064491.62,133.0
197585,6748,2131,618.211,173692493.711,660517.02,135.1

Price levels as measured by the farm land sale prices index, continued to rise with the rate of increase in all districts being much greater than in 1972. The change in the average level of prices in 1974 showed a 48 percent increase over the whole country.

For urban transfers, in the four main regions in 1974, the highest average sale prices for sections and houses were in Christchurch and Wellington respectively. The average sale prices for sections and houses respectively were as follows: Auckland $9,974 and $26,940, Wellington $7,813 and $26,723, Christchurch $10,510 and $22,750, Dunedin $42,08 and 515,884.

Urban Land Transfers—The following table shows urban land transfers by consideration group for March years.

Consideration GroupFreeholdLeaseholdAll Urban Transfers
NumberTotal ConsiderationAverage ConsiderationNumberTotal ConsiderationAverage ConsiderationNumberTotal ConsiderationAverage Consideration
$ $(million)$(000) $(million) 1974-75$(000) $(million)$(000)
Under 2,0006,1827.11.13340.31.16,5167.41.1
2,000–2,9993,8949.32.41130.32.34,0079.52.4
3,000–3,9993,62112.23.4800.33.43,70112.53.4
4,000–9,99915,429100.66.53942.66.615,823103.26.5
10,000–19,99921,150321.215.267210.415.521,822331.615.2
20,000–49,99930,197848.828.175020.727.630,947869.628.1
50,000–199,9992,589202.578.2907.381.62.679209.878.3
200,000 and over16763.4379.61211.1926.117974.5416.2
All groups83,2291,565.018.82,44553.121.785,6741,618.118.9
     1973-74    
Under 2,00010,30312.31.22300.21.010,53312.61.2
2,000–2,9996,68515.92.41200.32.46,80515.22.4
3,000–3,9995,88719.93.4920.33.35,97920.23.4
4,000–9,99923,153151.16.54182.86.823.571153.96.5
10,000–19,99937,743554.814.76359.014.238,378563.814.7
20,000–49,99922,883631.327.61955.427.923,078637.227.6
50,000–199,9992,192175.480.0484.185.62,240179.680.2
200,000 and over13855.0398.7102.8283.714857.9390.9
All groups108,9841,616.314.81,74825.114.3110,7321,641.414.8

In general, transactions included in the under $4,000 group would involve vacant sections, although most building sections are now priced above this level.

Urban land transfers involving consideration between $10,000 and $19,999 would be, in the main, residential properties, although there are many houses in the next highest group, particularly in the main urban areas.

The range of transactions involving $50,000 or above would represent mainly commercial and industrial properties.

The following table shows urban land transfers by land registration districts.

Registered in Land Registration District1973-741974-75
NumberAreaTotal ConsiderationNumberAreaTotal Consideration
  hectares (000)$(million) hectares (000)$(million)
North Auckland35,4703.6602.432,2713.3694.2
South Auckland18,0581.9227.010,8821.1181.5
Gisborne1,1420.112.38270.111.7
Hawke's Bay4,0110.654.23,4180.354.9
Taranaki2,9380.334.82,4560.234.7
Wellington19,8771.7331.213,5371.1280.5
Marlborough1,3250.114.91,0740.116.8
Nelson2,5520.333.61,5260.227.1
Westland5690.13.5419..4.1
Canterbury14,8181.4218.611,1751.0207.1
Otago6,5210.671.95,3440.470.5
Southland3,4510.337.02,7450.334.9
Totals110,73210.91,641.485,6748.21,618.1

The urban areas of Auckland are included in the North Auckland Land Registration District.

Rural Land Transfers—The following analysis shows transfers of rural freehold properties classified by size groups.

Size Group (Acres)*1973-741974-75
NumberAreaTotal ConsiderationNumberAreaTotal Consideration

*1 acre = 0.405 hectare.

  hectares (000)$(million) hectares (000)$(million)
Under 307,82826.3136.06,20320.7153.1
30–4979312.721.75959.422.9
50–991,53845.354.11,10332.657.5
100–1491,07752.949.185241.654.2
150–2491,17392.062.882664.857.3
250–4991,126160.770.9806116.666.4
500 and over989506.676.4788405.982.3
Totals14,494896.6470.911,173691.7493.7

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)*1970-711971-721972-731973-741974-75

*1 acre = 0.405 hectare.

 $$$$$
Under 301,422.641,370.261,640.822,091.162,988.50
30–49402.04434.78545.33693.89982.40
50–99339.34328.55380.32483.01713.59
100–249211.06215.72240.24312.67424.14
250–499121.15112.09130.53178.60230.59
500 and over41.4642.2944.7861.0682.08
Weighted overall average price per hectare315.80312.36373.95467.03643.28

The following table shows all rural land transfers, freehold and leasehold, by land registration districts for the year ended 31 March 1975.

Registered in Land Registration DistrictFreeholdLeaseholdTotal
NumberAreaConsiderationNumberAreaConsiderationNumberAreaConsideration
  hectares (000)$(million) hectares (000)$(million) hectares (000)$(million)
North Auckland3,355143.9140.1554.31.93,410148.2142.0
South Auckland1,982113.9113.5605.62.82,042119.5116.3
Gisborne23633.28.3123.50.524836.68.8
Hawke's Bay55844.829.0457.63.660352.432.5
Taranaki60546.427.2365.61.264152.128.4
Wellington1,20494.453.0386.81.61,242101.254.6
Marlborough23219.17.2279.61.225928.78.4
Nelson29314.67.4284.90.532119.67.9
Westland837.42.4231.70.61069.23.1
Canterbury1,35092.562.68313.25.61,433105.768.2
Otago61537.618.56616.73.268154.331.7
Southland66043.924.3141.10.767445.025.0
Totals11,173691.7493.748780.623.311,660772.4517.0

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 jurisdiction under 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 or 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. The Act provides that these local authorities may assess valuations for rating purposes for such farmlands lower than the normal rateable values.

Equalisation of Values—The Rating Act, Part IX, provides for an equitable adjustment of rates 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 several 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 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)
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
197214,331.35,046.3
197315,657.25,704.1
197417,871.76,778.3
197524,383.510,433.6

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 and rateable values are analysed in more detail.

As at 31 MarchGross ValuesRateable Values
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.

‡In interpreting these figures it is essential to realise that substantial boundary changes take place from time to time.

  $(million)  
  Counties  
19694,482.01,486.04,213.91,432.5
19704,855.11,586.24,564.11,525.5
19715,193.81,759.94,860.51,685.1
19725,516.62,085.85,176.82,015.6
19735,890.62,407.95,524.72,325.5
19747,014.13,123.16,584.23,011.3
19757,972.64,206.97,396.94,056.1
  Cities and Boroughs  
19696,839.02,212.66,232.02,047.3
19707,638.52,580.46,953.52,384.9
19718,088.02,724.87,379.12,527.4
19728,790.82,956.18,029.12,747.8
19739,741.93,291.68,910 83,051 9
197410,830.23,648.19,932.13,376.4
197516,379.86,219.115,115.65,717.3
 Independent Town Districts 
196928.76.626.26.3
197022.04.119.33.8
197123.84.420.74.0
197223.94.520.84.1
197324.74.621.74.3
197427.37.024.86.5
197531.07.527.97.1
  Grand Totals  
196911,349.73,705.210,472.13,486.1
197012,515.64,170.711,536.93,914.2
197113,305.64,489.112,260.34,216.5
197214,331.35,046.313,226.74,767.5
197315,657.25,704.114,456.25,381.7
197417,871.76,778.316,541.26,394.3
197524,383.410,433.622,540.59,780.6

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 hut 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. The gross capital value figures shown below have been compiled on the level of values as at 31 March 1975.

Territorial AreasGross Capital Value
 $(million)
Counties13,321.1
Cities and boroughs25,333.4
Town districts45.2
 38,699.7

A comparison of these figures with the gross values shown for the year ended 31 March 1975 given previously, illustrates the point that valuation statistics tend to have the effect of delaying the appearance of current movements in the property market.

The next fable shows the percentage distribution of area and population as at 31 March 1975, and of rateable property values between the different types of local authority districts also as at 31 March 1975.

Local Authority DistrictAreaPopulationRateable Property Values
Capital ValueUV/LVValue of Improvements

*Balance made up of persons on shipboard and extra-county islands.

  Percentage Distribution 
Counties98.524.832.841.526.1
Cities and boroughs1.274.867.158.473.7
Town districts (independent)0.20.10.10.2
Totals100.0100.0*100.0100.0100.0

Particulars of values for each county, borough, and independent town district in considerable detail are contained in the annual report, Local Authority Statistics, published by the Department of Statistics.

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 1,144 registered valuers at 31 March 1975.

Chapter 12. Section 11 TRANSPORT

11A—GENERAL

Throughout the world the social and economic significance of transport services has established a strong public interest in transport. This interest has frequently been reflected in extensive Government participation in transport operations.

New Zealand, as a nation dependent on overseas trade and geographically remote from many of its trading partners, relies more heavily on transport than do many other countries. During recent years its transport industry has been the subject of a comprehensive examination and review by the Government. Transport has far-reaching effects on the economy, on society, and on the environment, and it was the recognition of the close link between transport and the general welfare of the community that highlighted the need to establish a transport policy as an integral part of New Zealand's broad development strategy.

Transport in New Zealand is complicated by the geographic configuration of the country, the separation into two main islands, the location of the main urban areas, the number and situation of the main ports, the seasonal nature of much of the production, and the large proportion of one-way loading in the internal transport system. In its overseas trade the country is mainly dependent on overseas shipping companies to carry its exports to distant markets and bring in imports.

TRANSPORT AND THE ECONOMY—The significant influence of transport on all sections of the economy can be shown in a number of ways.

Relationship with Economic Development—One of the key elements in the attainment of a high standard of living in this country has been the development of an efficient internal transport system. There is no doubt that the establishment of rail and road links from the interior to the coastal ports was a prerequisite to the large-scale development of New Zealand's primary industry during the last century, and that it was the growth of international sea-transport and of a fast, regular service of refrigerated cargo ships that enabled New Zealand to evolve from a subsistence economy to one of the world's major exporters of meat and dairy produce.

The priority given today by the international financial institutions to transport development in the less economically advanced countries of the world is further recognition of the importance of an adequate transport system as one of the foundations for national development.

Relationship with Industry—Transport is also an integral part of the production process. It supplies the factories with raw materials, and carries away the manufactured goods. It supplies the transport services by which the men and women who work in the factories travel to and from their homes. The efficiencies which have been achieved as a result of the greater concentration of industrial plant in recent years can to a certain extent be attributed to the development of technologically advanced and efficient transport services.

Relationship with Distribution—Transport, as a key means of the mass distribution of goods, ensures that ample supplies and a wide variety of goods are readily available within all centres of population. The standard of living enjoyed by people living in the ever-growing urban concentrations that are a feature of developed countries depends ultimately on efficient national and international transport systems. Additionally, ready transport availability from the point of production to the points of consumption reduces the need for large warehouse holdings of goods. The reduction in warehouse costs can assist in the lowering of retail prices.

Relationship with Costs—Transport costs make up a substantial part of the price of a product. The cost of transport as a portion of the total cost of a product varies from a small percentage to major portion. Obviously, transport costs make up a greater proportion of the cost of a bulky raw material than of a sophisticated manufactured item.

Relationship with the Economy—It is estimated that the transport industry provides employment for over 11 percent of the labour force, and that the cost of moving goods and people is over $2,000 million each year. This figure provides an indication of the substantial sums spent on transport annually by private motor-vehicle owners, road carriers, bus operators, rental vehicle firms, taxi proprietors, freight forwarders, shipping companies, and aircraft operators as well as the considerable amount of expenditure on our roads, ports, airports, and railways by both central and local government. In addition, the Central Government, through its ownership of Air New Zealand Ltd., the National Airways Corporation, Safe Air Ltd., the Shipping Corporation of New Zealand and the New Zealand Railways Department, has acquired assets valued at over $550 million in transport services in this country. As well as contributing to the provision of transport facilities through the payment of certain road, air, and sea user charges, the transport industry, through the payment of income tax, customs duties, sales tax, local body rates, the local authority petroleum tax and various registration and licence fees, contributes a significant amount to the annual taxation revenue of the country. Furthermore, transport is a major consumer of industrial goods. It utilises large portions of the country's rubber, lead, zinc, steel, copper, and aluminium needs for instance, and its high consumption of imported oil products has been a matter of national concern in recent years. Finally, as a major consumer of industrial products and as a means of distributing exports to our distant and diverse markets, transport has a significant effect on the country's balance of payments.

Relationship with the Physical Environment—The roads, airports, ports, railways, and pipelines of this country have an effect on the communities surrounding these facilities. They affect the location of manufacturing, retailing, and the distribution industries and influence the character of an area. On the other hand, they can divide communities and create noise and aesthetic problems as well as problems of pollution. Environmental and aesthetic considerations have received increased attention in recent years. For example, the environmental aspects of major roading schemes are carefully considered in relation to their purpose, need, design, benefits, and detractions.

TRANSPORT AND SOCIETY—Apart from the various considerations outlined in the previous paragraphs which closely affect the quality of life in this country, transport has numerous other effects on our society. For instance, the availability, type, and extent of transport can influence the character of a city or suburb. A city or town can be dominated by its port or its rail facilities just as a suburb can become, owing to its transport system, largely a "dormitory" suburb of a distant commercial area.

An efficient network of roads and other transport services both serves to knit together a community and discourages narrow parochialism by providing the means of cheap, convenient, and comfortable travel by which mental horizons are widened and the bonds of family or friendship kept strong. If the economic life of a country is heavily dependent on its transport system, so too is its social and cultural development.

The effect on a community of a change in transport policy must therefore be carefully evaluated by those responsible for running the country.

11 B—SHIPPING

PORT DEVELOPMENT—In recent years the development of the container ship, the unitised cargo ship, the roll-on roll-off ship, and barge-carrying systems such as the "lash" (lighter aboard ship) system have brought about a world-wide revolution in the handling of maritime cargoes, and a new concept of the co-ordination of transport through the substitution of capital-intensive for labour-intensive operations. In this revolution New Zealand is fully involved.

A cargo-handling co-ordination committee serviced by the Marine Division of the Ministry of Transport is affiliated to an international association with a control office in the United Kingdom.

To ensure the control of harbour development a New Zealand Ports Authority has been established. Amongst its several functions is the fostering of an efficient and integrated ports system and, to that end, the preparation of a national ports plan.

Under this plan, harbour authorities must obtain the authority's approval for major capital projects, e.g., container cranes, storage sheds, tugs. Consents granted during the year ended 31 March 1975 involved developments costing $9.66 million.

A recently introduced feature in port development has been the introduction of offshore loading terminals (for bulk loading of ironsands) at Waverley near Wanganui, and Taharoa near Raglan.

The New Zealand Ports Authority designated Auckland and Wellington as the first container ports and both have installed containerised cargo facilities. Subsequently Lyttelton and Port Chalmers were designated as the South Island container ports. A container service to the United States began in August 1971 and to the United Kingdom in September 1972 from the ports of Auckland and Wellington. Port Chalmers is also included as one of the New Zealand container ports in one of the New Zealand - United States container runs.

CONTAINER TRAFFIC—Cellular container ships working at container terminals made 119 ship voyages for the year ended 30 September 1974 compared with 78 the previous year. They handled 830,256 tons of cargo (loading 381,273 tons, and unloading 448,983 tons) and averaged 7.55 days on the coast; in terms of 20 ft equivalents, 87,646 containers were handled.

In its assessment of future container traffic the New Zealand Ports Authority has projected the minimum number of container loads likely to be shipped in 1980 and 1990 as follows.

PortProjection Year
19801990
ExportsImportsExportsImports
Auckland53,00041,00063,40040,000
Wellington55,60013,70052,4005,700
South Island22,30011,20066,1007,100
Total container loads130,90065,900181,90052,800

U.K./Europe Trade—Associated Container Transportation (A.C.T.) in conjunction with the Australian National Line (A.N.L.) operate five vessels (four A.C.T. and one A.N.L.) which serve both New Zealand and Australia. These vessels call at Auckland and Wellington. The Hamburg Sud Line also operates one small container vessel between New Zealand and Europe. This vessel calls at the above two ports and Port Chalmers.

East Coast-North America Trade—This trade is almost completely containerised. A.C.T. and A.N.L. have combined to form the PACE Line which operates five vessels (four A.C.T. and one A.N.L.) in similar fashion to their combined U.K./Europe service. The Columbus Line operates three vessels which call at Auckland, Wellington, and Port Chalmers. Farrell Lines operate four vessels which call only at Auckland and Wellington.

West Coast-North America Trade—This is the only other trade at present served by cellular container vessels. The Columbus Line operates three vessels on the trade and they call at Auckland, Wellington, and Port Chalmers. The Pacific Far East Line operate two container vessels and two "lash" vessels. These ships call at Auckland, and occasionally a vessel calls at Lyttelton.

Trans-Tasman—Following a boom period towards the end of 1974, there was a dramatic down-turn la trans-Tasman cargoes resulting in a number of vessels being laid up for varying periods. The Union Steam Ship Company, the largest shipping company in the trans-Tasman trade, operates both roll-on roll-off vessels and conventional cargo ships. Roll-on roll-off ships on the regular trans-Tasman run during 1974-75 included the Maheno, the Marama, the Union Sydney, and the Union Wellington. Conventional cargo ships included the Union Aotearoa, the Union Australia, the Union New Zealand, and the Union Auckland.

During 1975 the Union Steam Ship Company began implementing its decision to replace existing conventional vessels (almost all of which have now been disposed of) with roll-on roll-off and bulk carrier vessels.

Pacific Islands—Regular shipping services between New Zealand and the Pacific Islands in 1974-75 were mainly provided by the Shipping Corporation of New Zealand, with the Toa Moana and the Lorena, and by the Union Steam Ship Company, with (among other ships) the container ship Union South Pacific, and the Luhesand.

In 1974 the South Pacific Forum established a Regional Shipping Council, the task of which is to organise studies and investigations as a basis for deciding on the establishment of a regional shipping venture of some type, and to improve shipping services throughout the region. New Zealand is a member of the Regional Shipping Council. A marketing survey is being undertaken, following which recommendations will be made to the Council and the Forum.

Inter-island and Coastal Services—A regular ferry service across the Cook Strait between Wellington and Picton, at the head of the Marlborough Sounds, is provided by rail ferries operated by the Railways Department. The ferries Aramoana and Aranui, which carry passengers and freight, normally make 25 round trips per week throughout the year. Two other ferries, the Arahanga and the Aratika, carry freight but have limited accommodation for truck drivers and others whose vehicles are being carried (the Aratika is to be converted to carry passengers and freight). A timetable is operated providing for 12 round trips per week for the Arahanga and the Aratika.

During the year ended 31 March 1975 the four ferries in service carried 622,686 ordinary passengers, 49,040 excursion passengers, 132,746 passengers' motor vehicles, 7,180 trucks and trade cars or vans and 1,358,524 manifest tonnes of other goods. Gross revenue from the ferry service amounted to $13,729,850, resulting in a loss for the year of $2,192,655.

The roll-on roll-off ferry Rangatira providing a regular inter-island service between Wellington and Lyttelton continues to operate at a considerable financial loss. The Union Steam Ship Company have sub-chartered the vessel to the Ministry of Transport in the interim while the Government considers alternatives for inter-island services.

Most of the ships engaged in the coastal trade are relatively small, exceptions including the Shipping Corporation of New Zealand's Coastal Trader and the occasional coastal voyages of the Union Steam Ship Company's trans-Tasman vessels carrying cars, sugar, or other cargoes. Coastal shipping trade includes the shipment of coal from Westport to Portland, the movement of newsprint from Mount Maunganui to the South Island, the cartage of cement, the Onehunga-Nelson trade, and shipping bulk cargoes out of Nelson.

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.

A special article in the 1974 Yearbook (pp. 1065-77) is related to New Zealand ports and shipping developments.

SHIPPING CORPORATION OF NEW ZEALAND—In 1974 a Government-owned shipping corporation was set up to establish and operate shipping services as empowered by the Shipping Corporation of New Zealand Act 1973. The Shipping Corporation of New Zealand formed a subsidiary called the New Zealand Shipping Line which (from, and in conjunction with, the Shaw Savill and Albion Company) purchased two ships of 12,227 tons, now known as N.Z. Waitangi and N.Z. Aorangi which carry 24 and 18 containers on deck respectively. These are engaged on New Zealand - United Kingdom trade.

The Corporation itself operates a number of ships engaged in the coastal and Pacific Islands trade. They include the Coastal Trader, a roll-on roll-off vessel on the Auckland-Lyttelton-Timaru-Dunedin run; the Toa Moana and the Lorena, both trading with the Pacific Islands; and the Bulknes, carrying aluminium ore for the Bluff smelter. In addition, the Corporation acts as operating agents for Shaw-Savill ships, with the exception of passenger liners, and as agents for Lloyd Triestino vessels.

As from 1977, the Shipping Corporation will enter the proposed new New Zealand - United Kingdom/Europe container service under an arrangement whereby space will be allocated for its containers on British and Continental vessels.

In 1978, the Corporation will introduce its 42,000 ton container vessel, now on order from a West German shipyard, to this service, giving New Zealand the capacity to lift a substantial proportion of the New Zealand - United Kingdom trade.

During 1975, a new company (Container Terminals Ltd.), in which the Shipping Corporation has a majority shareholding was formed to operate the Wellington container terminal. The minority shareholders comprise the other shipping lines which use the terminal.

In addition to the proposed entry into the U.K. container trade, the Corporation is also exploring a number of other areas Negotiations are in train for Corporation entry into the Japan container service; a feasibility study is being carried out on involvement in the Arabian Gulf; and involvement in the trade to the East and West coasts of North America is being considered.

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)
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
19713,55116,7407,7538,50411,30425,244
19723,77018,9677,9809,77911,75028,746
19734,03021,0348,73610,99212,76632,027
19743,83120,5368,39011,28112,22131,817
19753,69220,0988,25711,08111,94931,179

All Calls of Overseas Vessels—The following table shows for 3 recent years the number of calls and net tonnage of overseas vessels arriving at New Zealand ports, either direct or coastwise.

Port197219731974
Number of CallsNet Tonnage (000) of VesselsNumber of CallsNet Tonnage (000) of VesselsNumber of CallsNet Tonnage (000) of Vessels
Bay of Islands291832313725199
Whangarei1341,6121321,7271311,763
Auckland1,0995,3291,1366,1881,1006,218
Onehunga261060295128
Raglan211--
Taharoa3242016228237
Tauranga4751,9815262,3394651,987
Gisborne321352713429123
Napier2441,1842341,1182241,017
Taranaki129679128635136665
Waverley171731717321214
Wanganui682212
Wellington4982,6595423,1365443,276
Picton271102812924128
Nelson111523115617105600
Westport1082121811
Greymouth537521
Lyttelton4451,9144751,9704891,921
Timaru11755911154291429
Oamaru--521
Otago191980210962198894
Bluff1708932101,005158822
Totals3,77018,9674,03021,0343,83120,536

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 passing through all ports for the last 11 years. Cargoes handled by waterside workers comprise about two-fifths, with tonnages of approximately 12.8 million tons in both 1973 and 1974. The charging and discharging of oil tankers has contributed about one-third to total tonnages in recent years, and other bulk cargoes are loaded and unloaded by special methods. Over half of coastal and trans-Tasman cargoes are handled by roll-on-roll-off methods, in 1974, 2.2 million tons out of 4.0 million tons.

YearInward*TranshipmentsOutward*Total Tonnage
CoastalOverseasCoastalOverseas

*Excluding transhipments.

†Transhipments included twice.

‡Manifest tonnes (000)

manifest tons (000)
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
19716,2288,478816,0485,29326,209
19726,8949,202946,7526,22829,265
19737,39410,767946,7907,42332,561
19748,32112,0261547,8697,45635,981
19757,75510,2271117,1886,73332,126

Figures for 1974 and 1975 in the previous table are in manifest tonnes, and therefore not directly comparable with earlier figures. Conversion of earlier figures to metric equivalents would not be meaningful for the reasons explained earlier. The "tonnes" used in 1974 and 1975 were, in fact, a combination of measurement tonnes of 1 cubic metre and/or 1,000 kilogrammes.

With the rise of ports handling specialised cargoes and major ports mechanically handling bulk loads and goods in containers on and off cellular container ships, the pattern of cargo movements has changed rapidly. Technical developments in packaging (containers, pallets) and transport (bulk loading) has tended to concentrate mechanised handling of cargo through a few ports with the consequent displacement of the manual labour of waterside workers.

A summation of cargo movements through ports shows that total tonnage throughputs of New Zealand ports have more than doubled since 1962 largely as the result of the double handling of oil to and from the refinery, and the growth of exports of forest products. Tonnages of farm produce—butter, cheese, meat, wool, and fruit—have remained stable over the years but have dropped from 8.1 percent of total throughput in 1964 to 5.1 percent in 1975. The figures and percentages for different types of cargo are given in the following table. Transhipments have been included.

Item1972197319741975

*Mostly refrigerated, except wool.

†Metric measure. Not directly comparable with earlier figure.

 Tons (000)Tons (000)Tonnes(000)Tonnes (000)
Inward cargo16,19118,25520,50218,094
Outward cargo13,07414,30615,47914,032
Total throughput29,26532,56135,98132,126
Some Principal Farm Products*    
Butter139171148163
Cheese99918079
Meat, frozen731741680763
Wool378321285315
Fruit, fresh269292316315
Totals, farm products1,6161,6161,5081,635
Percentage of throughput5.55.04.25.1
Forest Products    
Totals—timber only2,1862,2781,7261,048
Percentage of throughput7.57.04.83.3
Bulk Commodities    
Cement1,2041,4131,4901,456
Coal and coke347304282298
Grain419356291217
Fertilisers1,7142,1141,8091,531
Sand1,4442,3773,0052,731
Totals, bulk commodities5,1286,5646,8776,233
Percentage of throughput17.520.219.119.4
Oil Products    
Totals, oil products10,53110,66311,87411,094
Percentage of throughput36.032.733.034.5
Other Cargo    
Totals, other cargo9,80411,44013,99612,116
Percentage of throughput33.535.138.937.7

The next table shows for each port the total inward and outward cargo in 1974. Loadings of bunker fuels amounting to 490,471 tonnes are not included. A large proportion of the coastal movement concerns oil tankers working from the Whangarei refinery, while the movements of cars by tourists builds up the Wellington, Picton, and Lyttelton tonnages.

PortInward*TranshipmentsOutward*Total Tonnage
CoastalOverseasCoastalOverseas

*Excluding transhipments.

†Transhipments included twice.

 manifest tonnes
Parengarenga7,904--78,659-86,563
Houhora3,989----3,989
Awanui10,079----10,079
Mangonui6,043--1,508-7,551
Whangaroa1,772----1,772
Bay of Islands4,311---13,13617,447
Whangarei365,4063,801,095-3,563,23448,8377,778,572
Mangawhai---11,387-11,387
Auckland1,481,6503,539,28430,180208,650740,8546,030,798
Onehunga149,11522,40614759,00961,984292,808
Raglan43,723----43,723
Taharoa----1,308,3561,308,356
Thames13,064--1,499-14,563
Tauranga651,489470,852-28,8661,616,6012,767,808
Gisborne20,9129,062-92525,12056,019
Napier269,905376,453-950425,8221,073,130
Taranaki474,608372,434-222,001160,6641,229,707
Waverley----1,268,1671,268,167
Wanganui69,555981---61,536
Wellington1,908,4531,611,996100,5951,620,090450,0575,791,786
Picton1,167,7572,852-1,057,62024,5842,252,813
Nelson178,95455,63855934,633445,665716,008
Tarakohe30,858--273,116-303,974
Westport2,30714,306-275,164700292,477
Greymouth3,548948-12,3363316,865
Lyttelton865,213929,88220,402362,391186,7272,385,017
Chatham Islands7,888--1,889-9,777
Timaru165,99470,671-25,158141,592403,415
Oamaru---55025575
Otago234,603257,7562,15519,915223,054739,638
Bluff186,246489,741-7,013314,415997,415
Half Moon Bay5,134--2,143-7,277
Totals8,321,48012,026,357154,0387,868,7067,456,39335,981,012

Transhipment—Cargo under this heading was 154,000 tonnes. However, the port of Wellington showed an increase of 46,000 tonnes for the 1974 year.

Inward Overseas Cargo—The following table shows the tonnage of some major items of inward overseas cargo handled in 1974. Transhipments are included.

PortIron and SteelMachineryFertilisersMotor Spirit, KeroseneOil, Other MineralMotor Vehicles and PartsGypsum, Plaster of Paris
 manifest tonnes
Whangarei72317163,026 3,615,6551,81117,770
Auckland550,961163,231337,832356,57412,277412,22793,880
Tauranga15,431-224,37040,354---
Napier10,223479285,42012,413-11,259-
Taranaki18,48014,037269,967--26,415-
Wellington137,07477,8711,606296,13667,050334,737102
Nelson7371,0745,867-3830,81613,660
Westport------14,306
Lyttelton86,27924,098122,910168,50011,596104,35223,366
Timaru9282,15651,030--9,137-
Otago16,2422,87976,14623,80675,3915,974
Bluff9,987853161,97717,260-787-
All other ports2561,427--8646-
Totals847,321288,1221,700,151915,0433,706,631938,078169,058
PortFresh FruitGrainSugarTextilesAll Other GoodsTotal
 manifest tonnes
Whangarei----2,0933,801,095
Auckland93,510132,417186,403120,8671,108,4433,568,622
Tauranga-32,560--158,137470,852
Napier1,9782,053-8452,544376,453
Taranaki-14,414--29,121372,434
Wellington4,8836745655,867683,4551,659,511
Nelson--2502073,54856,197
Westport-----14,306
Lyttelton39,38110,356744,212302,380937,437
Timaru2,702109-334,57670,671
Otago---1,734127,225259,904
Bluff2--40298,835489,741
All other ports5,8357,8861,8904518,40336,396
Totals148,291200,469188,606223,0892,788,76012,113,619

Outward Overseas Cargo—In the section dealing with the export trade it is pointed out that pastoral products make up over 80 percent by value of New Zealand's exports. The following table shows how the various ports participated in the handling of the volume of the main items in the outward overseas cargo, including transhipments, during 1974.

PortButterCheeseOther Milk ProductsFrozen and Preserved MeatsHides and SkinsTallowWool
 manifest tonnes
Bay of Islands3,161-3,7666,152---
Whangarei17,2852827,8411,84535 -
Auckland42,4908,445147,330134,33018,60415,48840,375
Onehunga8061261,8403,89821,192-
Tauranga42,4502,833198,032880-1,3901,552
Gisborne--1610,765-321,763
Napier172106,27573,36214,1539,77946,311
Taranaki24,78238,86216,98325,8161,5391,6191,359
Wellington15,40917,56739,457170,91626,7045,19190,321
Picton--303,751-758221
Nelson421,252-2,65574-110
Lyttelton106265,01228,3466,9726,65528,187
Timaru-1,07773579,1753,2344,99117,700
Otago-38-11,6452,0513,80219,918
Bluff2752,590-98,0374,7919,61029,903
All other ports---25   
Totals146,72773,654447,317651,59878,15960,716277,720
PortFresh FruitBeans and PeasPaper, Newsprint, etc.Timber, SoftwoodIron SandAll Other GoodsTotal
 manifest tonnes
Bay of Islands-----5713,136
Whangarei-----1,59448,837
Auckland9,3711833,51413,4612311,709745,302
Onehunga1,0614422,2773,208-47,25962,111
Taharoa----1,308,356-1,308,356
Tauranga2,511-175,929954,708-236,3161,616,601
Gisborne---8,796-3,74825,120
Napier54,582114-92,418-128,601425,822
Taranaki---16,251-33,453160,664
Waverley----1,268,167-1,268,167
Wellington2,0543,659791,288-130,492503,137
Picton4,29815-12,579-2,93224,584
Nelson73,19766-367,398-871445,665
Lyttelton80613,7701,4095,791-92,453190,037
Timaru-7,961---26,719141,592
Otago11,09580-89,763-84,657223,054
Bluff-126-61,644-107,439314,415
All other ports-----733758
Totals158,97526,416183,2081,627,3102,576,5251,209,0337,517,358

PORTS AND SHIPPING IN THE FUTURE—The revolution in cargo handling brought about by containerisation and similar developments has already been outlined. The effect on New Zealand within the next few years must be a major rationalisation of ports and shipping services. Containerisation involves major changes through the whole chain of cargo transportation and handling end in road, rail, and port facilities and capabilities. It means fewer ships, but much bigger and faster carrying much greater tonnages. In the U.K. trade, about 70 percent of northbound refrigerated cargo and 97 percent of general cargo will be containerised. On current planning, the shipping lines envisage that from 1979 onwards there will be an average service frequency of one ship every five days, each calling at two or three ports.

Larger faster ships will require further expansion of ports and land-based facilities. Present indications are that Auckland and Wellington will each require three container berths and three cranes. The Ports Authority has resolved that the South Island should also have two container ports—at Port Chalmers and Lyttelton—each with one berth and one crane. It has been estimated that loaded container volumes in the trade between New Zealand and U.K.-Western Europe in 1978 will total about 88,000 per annum—55,000 northbound and 33,000 southbound. Total container movements, involving loading, unloading, and the positioning of empties, will greatly exceed these figures and are estimated at about 196,000 per year.

MARINE OFFICERS' CERTIFICATES—The examinations for masters, mates, and engineers serving in the mercantile marine are conducted by the Marine Division of the Ministry of Transport, the regulations relating to these examinations being similar to those of the Department of Trade and Industry with such modifications as are necessitated by local conditions. The U.K. Department of Trade and Industry recognises the following certificates only as of Commonwealth validity: Extra Master, Master, First Mate, and Second Mate 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 Department of Trade and Industry. There are examinations for masters and mates, and for marine engineers in both the foreign-going and home trade.

SHIP SURVEY STATISTICS—The Marine Division of the Ministry of Transport carries out the survey of ships as required by the Shipping and Seamen Act 1952, and 1,254 certificates of survey were issued in 1974. 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 6,968 kilometres of coastline there are 227 navigation aids. These aids comprise 25 manned lighthouses, 100 automatic lights, 74 day beacons, 14 navigational buoys, 3 fog signals, and 13 radio beacons, and represent a capital investment of $5 million approximately. Their provision, maintenance, and servicing is a responsibility of the Marine Division of the Ministry of Transport, and involves an expenditure of approximately $1 1/4 million annually. Lighthouse tenders, aircraft, helicopters, and road transport along with a number of workshops are used to provide the mariner with reliable navigational aids. Light dues collected from ships meet most of the running costs of the service.

The "Zenon gas" light installed on Tiritiri Matangi Island, the main coastal approach light tower to Auckland 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 Transport, 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.

Shipping accidents reported during the year ended 31 December 1974 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
Passenger3----3
Cargo-23-38
Fishing941713447
Dredges, tugs. etc.111--3
Pleasure craft2635311412118
  Totals3942522719179

Fishing boat accidents resulted in the loss of 13 vessels and 7 lives on the New Zealand coast, while 4 boats were lost on the coast of the Chatham Islands. Pleasure craft casualties resulted in 21 deaths.

PLEASURE CRAFT—The Census of Population and Dwellings 1971 revealed that 77,529 households (9.7 percent of all households) had one or more pleasure boats. Of such households, 50,971 were in main urban areas as shown in the following table.

Urban AreaHouseholdsHouseholds with Boats*

*One or more.

Whangarei9,3441,825
Northern Auckland32,9905,505
Western Auckland24,0083,338
Central Auckland89,9638,701
Southern Auckland42,2385,399
Hamilton21,8392,241
Tauranga11,7371,866
Rotorua9,7491,165
Gisborne8,316577
Napier12,604913
Hastings12,998957
New Plymouth11,519666
Wanganui11,192610
Palmerston North16,427944
Upper Hutt Valley8,083445
Lower Hutt Valley26,0611,736
Porirua Basin11,339964
Wellington42,7912,431
Masterton5,458351
Nelson10,9051,526
Christchurch81,7055,664
Timaru8,589492
Dunedin32,8431,927
Invercargill14,140728
Totals of 24 urban areas556,83850,971
Percentage of total100.09.2

Means of propulsion of the 77,529 boats enumerated were as follows: outboard motor 35,101; inboard motor 18,651; inboard jet motor 1,494; sails and engine 1,180; sails 9,413; oars and paddles 10,645; other means and not specified 1,045.

11 C—RAILWAYS

RAILWAYS DEVELOPMENT—A network of railways extending over nearly 5,000 kilometres 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 nearly 9,000 route kilometres of highways; and a rail and road vehicle and passenger ferry service across Cook Strait between Wellington and Picton. A total staff of some 22,000 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 30-hectare Te Rapa marshalling yard near Hamilton. This 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 24-kilometre Kaimai Deviation, including a 9-kilometre tunnel through the Kaimai Hills, which will shorten the railway distance between the Waikato and the Bay of Plenty districts.

Also under construction is the 9-kilometre Mangaweka Deviation between Mangaweka and Utiku. This deviation which includes three tall bridges with a total length of 610 metres will eliminate a difficult section of the main trunk line which is very expensive to maintain and replace it with a low-maintenance, all-weather, high-speed route.

A loan of $4.13 million was drawn from the International Bank for Reconstruction and Development early in 1971 to assist a 6-year railway capital development programme. The loan was to 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 followed upon an I.B.R.D. loan of $36 million made available in 1965 to cover the overseas content of the cost of 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, 1,902 route kilometres of State-owned railways were open for traffic, and by 31 March 1900 almost 3,400 route kilometres in 10 separate sections were in use. The 594-km trunk line between Christchurch and Invercargill was completed in January 1879, but it was November 1908 before the 686-km 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 line to be completed was that from Christchurch to Picton, in 1945. Since then, between 1950 and 1957, 101 km of branch lines were 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.

* A special article in the 1963 issue of the Yearbook (pp. 1175–1195) outlined the first 100 years of railway development in New Zealand.

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.

EXTENT OF THE SYSTEM—The total route length of railways vested in the New Zealand Government Railways Department and open for traffic at 31 March 1975 was 4,797 kilometres—2,610 kilometres in the North Island and 2,187 in the South Island. In addition, the Railways Department was working traffic over a further 7 kilometres of railways owned by other Government departments. Double line was worked over a total of 254 route kilometres, of which 208 kilometres were in the North Island.

A total of 100 route kilometres of railway electrified on the 1,500-volt direct current, overhead contact system was in use at 31 March 1975. The 14-kilometre Otira - Arthur's Pass section of the South Island transalpine line, including the Otira Tunnel, was electrified in 1923; the 11-kilometre Wellington - Johnsonville line in 1938; and the 39-kilometre 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 35 route kilometres, was completed in July 1955. The 10-kilometre 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 were constructed by the Public Works Department, now the Ministry of Works and Development, and handed over to the Railways Department upon completion. Recent practice has been for the Ministry of Works and Development to construct the earthworks, bridges, tunnels, and buildings, and for the Railways Department to lay the tracks and install signals.

Track—All track is laid to a nominal gauge of 1,067 mm. The major routes are laid with rails 85 or 91 lb per yard (42.2 or 45.1 kg/m) but these lines will be progressively relaid with rails weighing 50 kg per metre. Secondary and branch lines have generally been laid with rails weighing 55,70, and 72 lb per yard (27.3, 34.7, and 35.7 kg/m) and the practice is to relay these lines with heavier rails from the main lines. Treated Pinus radiata sleepers, laid about 1,480 per kilometre, have gradually replaced Australian hardwood sleepers, and locally manufactured concrete sleepers are also being used on selected areas on the main routes. Track with fishplates and bolts at every joint is progressively replaced with rails welded at the joints on all major routes and on some secondary lines.

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 90 kilometres. The longest railway bridge is that over the Rakaia River, 55 kilometres south of Christchurch. Completed in 1939 to replace an original timber structure of the 1870s, it is 1743 metres in length.

The highest viaduct is the Mohaka, completed in 1937 to carry the Napier - Gisborne railway 97 m above the bed of the Mohaka River. Twenty-one New Zealand railway viaducts altogether carry the rails more than 33 m above the streams they cross.

Tunnels—There are 183 railway tunnels, with an aggregate length of 85 kilometres in use, 107 in the North Island and 76 in the South Island. The two longest tunnels are the Otira (8.5 kilometres) on the Midland Line in the South Island, opened in 1923; and the Rimutaka (8.8 kilometres) on the Wairarapa line in the North Island, opened in 1955. Excluding city tube railways, these stand nineteenth and sixteenth respectively in a list of the world's longest railway tunnels. The Kaimai Tunnel, under construction on the Kaimai Deviation, will be 8.8 kilometres 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 and Aranui are each designed to carry a maximum of 30 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 just over 1,000 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 December 1972, and a fourth vessel, Aratika, in September 1974. Both are of a larger design than the first two ferries and are designed for freight only in rail and road vehicles, 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 1975 a fleet of 36 was in use on passenger services, the latest three having been placed in service in 1972.

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 450 kW motor coach and two trailer coaches weighs 98 tonnes unladen, measures 57.5 m overall, and seats 200 passengers. This stock can accelerate rapidly from stops and operates up to 80 km/hr in normal service.

Wagons—The Railways Department's fleet of goods and livestock wagons at 31 March 1975 totalled 29,530, with a total carrying capacity of 463,380 tonnes. 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 249 privately-owned wagons are also in use, mainly for petrol and cement traffic.

SPECIAL SERVICES—A fast daytime express diesel railcar with hostess service was introduced between Wellington and Auckland in October 1968, running three times a week each way. In December 1972 the Blue Streak railcars used on this run were transferred to the Wellington - New Plymouth route. New Silver Fern diesel-electric railcars, fully air-conditioned, took over the Wellington-Auckland service, the frequency of which was doubled to six times a week.

Meanwhile, in December 1970, the Southerner diesel-powered express trains with refurbished cars and on-train buffet service were introduced between Christchurch and Invercargill, and in September 1971 two complete new air-conditioned sleeping-car trains were placed in service between Wellington and Auckland. These overnight Silver Star expresses provide the highest standard of passenger travel comfort on New Zealand Railways.

Another refurbished express train, the Endeavour, was placed in service between Wellington and Napier in November 1972. The ordinary express train services between Wellington and Auckland were also upgraded with the introduction of the Northerner expresses in November 1975. Buffet or dining cars on the Southerner, Silver Star, Northerner, and Endeavour provide light meal and refreshment services for passengers.

MOTIVE POWER—From 1949 steam power was 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 by 1971 with the exception of two retained for a Lumsden-Kingston tourist vintage train. In November 1972 15 "DX" diesel electric locomotives weighing 97 tonnes and with double the horsepower of the "DA" class locomotives were introduced to haul express trains between Wellington and Auckland. Another 34 of this class began to enter service in 1975.

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
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
19720.293.42.20.63.6
19730.294.31.90.53.2
19740.194.52.00.52.9
19750.194.62.10.52.8

There were 281 main-line diesel-electric locomotives at 31 March 1975, and 14 electric locomotives apart from 280 diesel 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

*Deficit recovered from General Reserve.

†Deficit met by National Development Loans.

‡Deficit recovered from vote: stabilisation.

  $(thousand) 
197099,72994,1215,607
1971105,242112,827-7,585*
1972122,368126,696-4,328
1973134,990138,340-3,350
1974152,179160,832-8,653
1975153,911199,171-45,260

The chief items of expenditure for 1974–75 were: wages $124,657,359; locomotive fuel (including electricity), $6,102,101, stores and material, $22,564,638; depreciation, $12,907,702; miscellaneous, $32,938,709.

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.
$(thousand)
197083,19416,53579,83614,286+3,358+2,249
197186,99918,24396,50216,324-9,503+1,919
1972101,29621,072107,27719,419-5,981+1,653
1973112,16222,828117,19721,143-5,035+1,685
1974125,78926,390135,36325,469-9,574+921
1975124,92128,990166,65732,514-41,736-3,524

The respective Island figures of revenue and expenditure for railway operation only (i.e., omitting subsidiary services) are given below for the 1974–75 year.

AreaRevenueExpenditureNet Revenue or LossRatio of Expenditure to Revenue
 $(thousand)percent
North Island90,833115,325-24,492127.0
South Island34,08851,332-17,244150.6
Total124,921166,657-41,736133.4

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
1972–731973–741974–751972–731973–741974–75
 $(thousand)
Advertising service355319322268272293
Departmental houses1,0461,1061,2302,3202,4532,944
Road services—      
  Passenger and goods9,93210,25011,33010,00310,96913,354
Cook Strait rail ferry service9,76912,77913,7308,55211,77515,923
Miscellaneous1,7261,9362,378
Totals22,82826,39028,99021,14325,46932,514

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 ParcelsCatering ServicesTotal
 $(thousand)
19705,67275,7091,81383,194
19715,83079,0992,07086,999
19727,01092,0182,268101,296
19737,174102,7742,214112,162
19747,501115,8202,468125,789
19757,949114,1892,783124,921

The revenue from passenger fares and luggage during the year 1974–75 represented an expenditure on railway travel of $2.60 per head of mean population. The total railway operating revenue was equal to $40.82 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*Catering ServicesTotal

*Includes superannuation subsidy.

 $(thousand)
197019,27820,47811,83323,4752,8561,91679,836
197124,10523,76214,04628,8673,4532,26996,502
197226,71224,58815,60032,6175,2822,478107,277
197329,89926,31416,94334,6195,9013,521117,197
197432,57332,23419,45540,1306,9154,056135,363
197538,90937,10725,81751,7798,1204,925166,657

Expenditure has been influenced by progressively higher rates of pay and improved conditions of employment, as well as higher costs of fuel and materials.

Capital Expenditure—The expenditure on capital works and new equipment is set out in the following table.

ItemYear Ended 31 March
197319741975

*Ministry of Works and Development expenditure on railway works not included in this summary prior to 1 April 1974.

 $(000)$(000)$(000)
Plant and equipment2,1987922,942
Works programme5,0387,52916,400*
Rolling stock11,7146,5658,657
Motor vehicles1,0298191,256
Rail ferries3,4425557,342
Totals23,42116,26036,597*

This capital expenditure has been met from the department's own depreciation reserves, National Development Loans, a loan granted by the International Bank for Reconstruction and Development, and overseas credits.

The relative proportions of capital funded from these sources were as follows:

SourceYear Ended 31 March
197319741975
 $(000)percent$(000)percent$(000)percent
Railway depreciation18,0297712,8517913,08636
National Development Loan1,514917,01146
I.B.R.D. loan2,47411
Overseas credits2,918121,896126,50018
Totals23,42110016,26110036,597100

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.

This was followed by a steady decline in passenger journeys in the face of competition from other forms of transport, the fall in non-suburban passenger traffic being attributed to the increased use of private cars and the development of air services. The introduction of new and upgraded train and railcar services, however, has resulted in a reversal of this trend since 1972–73.

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
 (000)(000)(000)$(000)$(000)$(000)
197019,1831,84821,0312,1813,4915,672
197119,0971,91121,0082,2103,6205,830
197218,3351,78020,1162,7944,2167,010
197317,0601,50518,5652,9374,2377,174
197417,2121,73218,9442,9664,5357,501
197517,0041,89018,8942,9614,9887,949

GOODS AND LIVESTOCK TRAFFIC—The following table shows the volume of goods and livestock traffic in tonnes and tonne-kilometres, and the revenue received from goods, livestock, and parcels traffic consigned by rail.

Year ended 31 MarchGoods and Livestock Carried (excluding Parcels)Total Revenue from Goods, Livestock, and Parcels Traffic
TonnesNet Tonne-kilometresNorth IslandSouth IslandTotal

*Revenue from rail parcels traffic was $2,913,416 in 1973–74 and $2,955,696 in 1974–75.

 (000)million$(000)$(000)$(000)
197011,7782,741.654,21021,49975,709
197112,0402,872.657,10721,99279,099
197211,4922,776.966,32725,69192,018
197312,3213,065.074,02628,748102,774
197413,3783,627.582,92132,899115,820*
197512,8833,608.282,13932,050114,189*

RAIL FERRY TRAFFIC—Traffic statistics for the rail ferry service across Cook Strait between Wellington and Picton are given in the following table.

Year ended 31 MarchNumber of Return CrossingsTotal Passenger JourneysMotor Vehicles (of all kinds)Freight in Railway Wagons
NumberManifest TonnesDeadweight TonnesManifest Tonnes
19701,049433,69989,055452,399515,397764,132
1971996447,21590,533459,908506,297698,958
19721,031508,80795,942487,385521,314673,049
19731,319545,407109,816557,865627,934826,945
19741,790599,064126,925644,779932,4691,238,191
19751,872671,726139,926769,5941,021,8131,358,524

Financial statistics for the Cook Strait ferry service are as follows.

Year Ended 31 MarchRevenueExpenditure, Total
PassengerRefreshmentPassengers Motor VehiclesGoods (Rail and Road)Total
 $(000)$(000)$(000)$(000)$(000)$(000)
19707202028934,0765,8914,495
19717972269594,2156,1975,346
19721,1143051,2125,2597,8906,604
19731,4633281,5456,4339,7698,552
19741,6343871,8288,93012,77911,775
19751,7694931,9249,54413,73015,923

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 1975 was 21,222 (excluding 517 sea-going staff employed on the Cook Strait rail ferries), compared with 20,835 a year earlier.

ACCIDENTS AT LEVEL CROSSINGS—Accidents at level crossings with roads resulted in the death of 16 people and injury to 58 others in 1974–75; in the previous year 8 were killed and 36 injured. In furtherance of departmental policy, an additional 18 automatic road-crossing alarms were installed in 1974–75.

PRIVATE RAILWAYS—There are a number of short private railways in New Zealand, principally lines serving colleries and other industrial undertakings. There is an 11-km 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 10-km private line from Awakeri to its 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 distance over which licences were held rose from 418 to 9,641 km. 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 11D), and maintains in its fleet almost 25 percent of all the vehicles used to provide road passenger services throughout the country. At 31 March 1975, the Railways Department's road services branch employed a staff of 1,584.

Suburban bus services at Auckland, Rotorua, Hastings, Hutt Valley, Wellington-Khandallah, Titahi Bay, Paraparaumu, and Dunedin, with a fleet of 242 vehicles at 31 March 1975, carried 12,460,000 passengers and earned a total revenue of $2,182,203 All the other road passenger services, both long and short distance, with 600 coaches, buses, and other vehicles, carried 8,308,000 passengers and earned a revenue of $8,412,806. The routes of the services in operation at 31 March 1975 covered 8,876 km of highway.

In addition to the road passenger services, a small number of road goods services were operated. Goods traffic on these services, for which some 77 motor vehicles were maintained, produced a further $735,132 in 1974–75. A 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 Kilometres 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.

†From 1 April 1972 the cost of Rail Ancillary goods road service was no longer included in Road Services revenue and expenditure.

    (000)$(000)$(000)
19569,40076335619,2715.175,036
19619,25873533221,3705,6745,638
19669,42672937822,2976,3856,343
19699,52476537222,5857,2087,241
19709,53377737722,1757,7607,714
19719,56177637922,6338,5218,787
19729,58878637621,76310,39610,393
19739,61277836020,8669,93210,003
19749,61276935920,94710,25010,969
19759,68876036920,76811,33013,354

11 D—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 90,000 kilometres of road and over 1.5 million motor vehicles, while the population census in 1971 revealed that there were 37,790 road transport drivers, 18,215 persons whose occupations involved carrying and cartage services, 37,277 persons occupied in the repair, servicing, and sale of motor vehicles and 8,604 persons engaged in motor-vehicle assembly and body building. It has been estimated that more than 1.7 million people hold drivers' licences.

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 permits 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 tonne/kilometres of freight carried, road transport has doubled in the last 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.

Annual roading expenditure by Central and local Government now considerably exceeds $100 million. 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.

During 1974–75 a detailed check was made of a large sample of existing bridges. Many of these were built 30 to 40 or more years ago and, while they were apparently still in reasonable condition, construction procedures and design standards then in use did not meet current motor transport requirements. The survey confirmed that many of these bridges warrant strengthening or replacement, and meanwhile load restrictions are necessary. The National Roads Board is to centralise control of the bridge replacement programme, and has set a target level of $8 million to be spent annually on bridges and approaches.

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 1,500-metre Thorndon overbridge on the Wellington Motorway is the largest bridge contract in the history of the Ministry of Works and Development.

In the Auckland metropolitan area during 1974–75 efforts continued to be concentrated on the completion of the link between the southern motorway and the harbour bridge, while in the Wellington area the Terrace Tunnel project continued to dominate the highway programme.

Details of formed roads and streets at 31 March 1974 are given in the following table.

Nature of SurfaceCities and BoroughsCountiesTown DistrictsTotal
County RoadsState Highways and Motorways
   km  
Paved or sealed9,69624,4679,54112443,828
Metal or gravel66040,0069155341,634
Unmetalled936,22734376,670
Totals, formed roads10,44970,70010,79918492,132

There are 9,773 bridges of 7.6 metres and over with a total length of 277,480 metres.

Auckland Harbour Bridge Traffic—From May 1959, when the toll bridge opened, to March 1975, Auckland harbour bridge has carried 205 million vehicles. In the 1974–75 year the bridge had a daily average of 64,642 vehicles crossing it: the highest daily figure being a record 84,790. With traffic totals continuing to grow it is estimated that the eight-lane facility will reach its ultimate carrying capacity in the early nineteen eighties.

Traffic totals for March years are shown in the following table.

Class of Vehicle1969–701970–711971–721972–73*1973–74*1974–75

*From April 1972 one-way (northbound) toll collection was introduced and no specific vehicle analysis is now available for southbound traffic.

†Estimated.

‡Tolls on omnibuses were removed in December 1974 and these vehicles are now classified as Exempt Vehicles.

   (thousand)   
Cars13,97615,63017,3189,52210,34811,139
Motor cycles, etc.248277365219248272
Buses270270268137136
Exempt vehicles505519543301339299
Commercial vehicles1541411266360100
Southbound......10,24411,11911,785
Totals15,15416,83618,62020,48522,25023,594

Christchurch-Lyttelton Road Tunnel—This tunnel was opened in 1964 and is approximately 2 kilometres long. There is an increasing volume of traffic using the Christchurch-Lyttelton road tunnel as shown in the following table for March years.

Class of Vehicle1969–701970–711971–721972–731973–741974–75
Cars991,4001,081,6641,223,8441,330,0971,447,3851,470,310
Motor cycles, etc.62,00359,90471,79972,33674,58377,696
Buses14,37714,32115,78123,28123,47721,954
Trucks and extra axles200,505215,929218,373245,506256,612278,336
Non-revenue traffic34,13836,14835,30237,38039,37939,994
Totals1,302,4231,407,9661,565,0991,708,6001,841,4361,888,290

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 and 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 and Development, 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 Development, 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 matters. 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:

  • to administer the National Roads Fund.

  • to provide a roading system adequate for New Zealand's needs.

  • to advise Government on all matters concerning roading including the provision of finance.

  • to assist and advise local authorities on roading problems.

  • to undertake at intervals of not more than five years a comprehensive survey of the roading position 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 and Development 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 and Development 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 and Development 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 and Development as required, e.g., bridge design, land purchase, accounts, legal, etc.

For State highways and motorways, the Board meets the full cost of construction and maintenance, while the maintenance and construction of county roads and municipal streets are subsidised by the Board. Some 93 percent of State highways are now sealed. The National Roads Board is the controlling authority for State highways. As the Board's agent, the Ministry of Works and Development 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 (4c per litre) is paid into the National Roads Fund. An equivalent mileage tax is payable for diesel-powered motor vehicles: 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 $2.67 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. Receipts are less collection expenses.

Item1972–731973–741974–75
Receipts—$(000)$(000)$(000)
  Petrol tax (net)78,49385,30285,265
  Mileage tax5,6795,6916,787
  Fees and charges—   
  Heavy traffic fees10,79411,52112,073
  Contribution from Consolidated Revenue Account3,0007001,250
  Miscellaneous receipts—   
  Repayments of plant purchases1
  Repayments of advances to local authorities5610
  Rents627747891
  Sales of land and buildings1101011,200
  Interest on plant purchases
  Bailey bridging hire55388
  Interest on investments9297101
  Miscellaneous63569539
Total receipts98,869104,787108,204
Expenditure—   
  Highways maintenance15,70516,70219,662
  Highways construction37,96435,91340,602
  Local authority roading subsidies and grants41,11541,13646,063
  Local authorities advances65650
  Administration and general expenses—   
  Ministry of Works administration4,9954,0275,811
  Fees and travelling expenses353437
  Miscellaneous expenses8168181,166
  Bridging expenses—   
  Bailey bridging, etc.154122130
  Unauthorised expenditure934
Total expenditure100,85898,761113,524
  Balance in Fund at end of year2,0188,3012,981

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.

Class of Expenditure1970–711971–721972–731973–741974–75

*Includes motorway structures.

   $(thousand)  
Construction and improvement26,38525,97429,35227,03427,638
Bridges and other structures*4,7386,6748,6128,87912,964
Maintenance, repairs, etc.14,01414,35715,70516,70219,662
Totals45,13747,00553,66952,61560,264

State Highways—The National Roads Act provides for the declaration of roads as State highways with the approval of the Minister of Works and Development. 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 length 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.

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. The National Roads Board also produces complementary guides to good practice, and standard specifications for roading materials and construction methods.

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 length of motorways in use at 31 March 1975 was 116 kilometres.

New Sealing—During the year ended 31 March 1975, 64.2 kilometres of new sealing on highways was completed, giving an aggregate of 10,706 kilometres of sealed highway, 93 percent of the total length. New bridging totalled 2.3 kilometres.

National Roading Expenditure—Details of Now Zealand public roading expenditure financed from the National Roads Fund, the Consolidated Revenue Account, and local authority funds (both from revenue and loans) are summarised as follows:

Item1973–741974–75
 $(000)$(000)$(000)$(000)
State highways expenditure 52,615 60,264
Subsidised highway, section 12A 593 513
County roading expenditure—    
  From county funds19,984 21,660 
  From National Roads Fund23,529 25,070 
From Consolidated Revenue Account (vote: "Roads")2,026 2,219 
   45,539 48,949
Municipal roading expenditure—    
  From municipal funds24,463 29,935 
  From National Roads Fund15,815 19,206 
   40,277 49,141
   139,024 158,867

NOTE—Table above does not include subsidies paid under section 12A of the National Roads Act to the Auckland Harbour Bridge Authority ($1,000,000) and the Christchurch Road Tunnel Authority ($200,000).

Local Authority Roading—The National Roads Board pays a basic subsidy at the rate of $1.50 for each $2 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, and approves grants in special cases.

In recognition of the urgency and importance of the country's bridge renewal problem, the Board makes generous grants for local authority bridge replacements. 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 1975 there have been 2,244 bridges completed, totalling 46,000 metres.

For the year ended 31 March 1975 the following amounts were paid to local authorities from the National Roads Fund for roading.

Local AuthoritySubsidyGrantsTotal
  $(thousand) 
Municipalities12,1377,08619,223
County councils13,91611,16725,083
Totals26,05318,25344,306

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 city areas 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 of road construction. Under this heading subsidies are paid to local authorities for the construction of new roads giving access to farmlands being brought into production. This Vote also finances access roads 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 1975 was $2,218,670.

Overall Roading Expenditure—The following table shows the total expenditure on roading from all sources for the year ended 31 March 1975.

National Roads Fund—$(000)$(000)
  State highways60,264 
  Subsidies, etc. - local roading45,990 
   106,254
Consolidated Revenue Account (Vote Roads)2,219 
Local authority funds—  
  Municipalities29,935 
  County councils21,66051,595
Total 160,068

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
196527.6758.8286.492.41x
196629.6369.5299.152.56x
196731.3467.4898.822.45x
196831.6360.9592.582.21x
196936.0966.20102.292.31x
197035.5873.93109.512.23x
197139.5979.46119.052.15x
197241.6182.46124.071.92x
197345.7495.40141.141.88x
197447.3397.90145.231.68x
197555.03103.83158.861.69*

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, have been credited to the Consolidated Revenue Account since 1 July 1967.

The various types of motor vehicles licensed as at 31 March in each of the last five years are itemised below.

Type of Vehicle19711972197319741975
Cars908,253955,4461,020,7781,078,7951,129,611
Rental cars3,6614,0074,1975,0385,279
Private taxicabs15912912999132
Light goods service vehicles (i.e., gross laden weight 2 tons and under)110,385117,441122,485129,863132,150
Heavy goods service vehicles (i.e., gross laden weight over 2 tons)71,37773,18472,16970,26474,626
Contract vehicles1,1821,1391,1171,1091,205
Omnibuses2,6432,6132,5642,5392,617
Public taxicabs2,9182,9372,9933,0463,113
Service coaches470489536515513
Motor cycles32,09939,32647,47660,49366,815
Power cycles20,97423,61424,95026,65526,841
Totals, motor vehicles1,154,1211,220,3251,299,3941,378,4161,442,902
Trailers, including trailers exempted from payment of annual licence fees and caravans224,667238,798256,281279,650304,883
Dealers' cars3,7094,0474,1314,1824,191
Dealers' motor cycles133172222262321
Vehicles including cycles exempted from payment of annual licence fees (farm tractors, etc.)81,70786,83592,930103,098105,080
Totals, all vehicles1,464,3371,550,1771,652,9581,765,6081,857,377

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. A feature of recent years has been the steep increase in the number of motor cycles, which more than doubled between 1971 and 1975.

The following table shows the changes in relationship between the number of licensed vehicles and population as at 31 March in the latest 12 years.

As at 31 MarchNumber of Persons in Population per CarNumber of Persons in Population per Motor Vehicle (Excluding Trailers)
19644.12.8
19653.82.7
19663.72.6
19673.52.5
19683.42.5
19693.32.4
19703.32.4
19713.12.3
19723.02.2
19732.92.1
19742.82.0
19752.72.0

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.

Motor spirit usage in New Zealand during the latest March years is shown in the following table by grade. The grades shown are 83 octane (regular or standard), 96 octane (super, supreme, or premium) and other, which may include some non-petroleum based racing fuels. The figures are based on returns made by oil companies to the Customs Department in connection with the assessment of motor spirit duty. However, they include motor spirit used for farming purposes and in industrial engines for which the purchaser can claim a rebate of duty.

Year Ended MarchMotor Spirit Usage
96 Octane83 OctaneOthersTotal
  litres (000)  
19711,467,374449,3872711,917,033
19721,586,031393,1902791,979,500
19731,805,427311,2693032,116,999
19741,966,044283,1202962,249,459
19752,061,566206,9903142,268,870

Diesel fuel is widely used by heavy trucks and buses, but actual figures of consumption are not available.

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. Diesel-fuel consumption which has grown substantially in recent years, is not available. This influence should be recognised when analysing petrol consumption values.

Estimates based on survey data collected during the New Zealand Transport Study indicated that the average travel in 1972 for passenger cars and light vehicles was 13,673 kilometres; for heavy goods-service vehicles the average was 20,534 kilometres; and for passenger-service vehicles the average was 27,859 kilometres.

Registrations of new vehicles and those vehicles previously registered only in another country are as follows for the six latest years.

 New Cars and Station Wagons—C.C. RatingCars Previously Registered Overseas*New Motor Cycles
 Up to 13001301 to 22002201 to 40004001 and OverTotal

*Included in previous columns.

197022,91925,52017,9204,06770,4263,7385,529
197125,00023,82816,0929,72674,6464,23012,881
197227,30927,64820,56414,78190,3024,75814,763
197325,08335,36324,40817,782102,6365,29025,760
197428,65036,84019,29914,42499,2135,41624,156
197531,62734,99710,3276,66183,6124,86320,804
 New Commercial Vehicles by Gross Weight in PoundsOmnibuses and Service CoachesTotal Commercial Vehicles
 5,000 or less5,001 to 10,00010,000 to 20,00020,000 to 27,00027,001 and Over
197012,0832,0178801,1281,15613817,402
197114,4772,0747941,0271,01014119,523
197212,5141,8358171,0381,10617117,481
197312,6321,8537481,1591,47718118,050
197410,9692,0107579961,47220416,408
197511,5222,4709769691,46319817,598

Not included in the previous tables are new tractors, of which 6,171 were registered in 1973, 4,894 in 1974 and 3,392 in 1975, and new power cycles, of which 3,603 were registered in 1975.

ROAD TRANSPORT—The Transport Act 1962 is the main legislation governing road transport and the road transport 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, rental 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.

In addition, there is a Regional Transport Licensing Authority for the purpose of hearing applications relating to passenger-service licences (other than taxicab-service licences) or harbour ferry service licences that are operated or intended to be operated within the Auckland Regional Authority's district.

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 20,000.

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. With the exception of the number of licences, all the figures are estimated, and the latest year is provisional.

Road Goods Services1969-701970-711971-721972-731973-74

*At 31 December.

Revenue$(000)177,900192,400211,000252,000343,000
Capital invested$(000)127,400136,000138,000172,000257,000
Vehicle-miles(000)353,000338,000345,000365,000444,000
Goods-service licences*No.6,6196,6976,7366,7456,916
Average revenue per vehicle-mile¢50.4656.8861.2069.0077.00
Average miles per vehicleNo.17,19017,09317,48218,00021,000

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. Again, the figures are estimated, except for the vehicle numbers, and the latest year is provisional.

Road Passenger Services 1969-701970-711971-721972-731973-74

†Not included are mixed passenger or school bus operators.

Traffic statistics—      
  Passengers carried(000)153,346149,934146,000160,277152,286
  Vehicle-miles(000)81,36785,33381,60085,18785,407
Revenue$(000)28,37130,82934,28038,24340,804
Revenue per mile¢34.8636.1342.046.0047.8
VehiclesNo.3,8043,9713,5233,7502,780

As at 31 December 1974 there were 2,999 taxicabs licensed throughout the country. These included 710 in the Auckland transport district, 326 in Wellington city, 307 in the Christchurch transport district, and 130 in the Dunedin transport district.

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.

Item1969-701970-711971-721972-73*1973-74*

*Provisional.

†Number of taxicabs licensed as at 31 December during that March year.

Estimated total capital invested in cabs $(000)5,3405,8006,1006,0008,000
Mileage run (000)102,300105,600107,400103,000105,000
Revenue $(000)14, 90016,70018,40019,60023,000
Revenue per mile ¢14.5415.8017.2019.0022.00
Vehicles No.2,8782,9212,9462,9352,953

Statistics of the rental vehicle industry are set out in the following table for March years.

Item1969-701970-711971-721972-731973-74

*This is the number of vehicle authorities issued by transport licensing authorities, not necessarily the actual number of vehicles as at 31 December.

†Provisional.

Cars authorised*3,8104,2344,5194,8106,585
Other vehicles authorised*9901,0911,2641,301
Mileage run (000)57,05671,71077,90079,00092,000
Estimated total revenue $(000)6,6009,5009,80013,00015,000
Revenue per mile ¢11.5613.2412.6016.0017.00

Transport to Work—The dependence of the labour force on road transport for getting to work was indicated at the 1971 Census of Population, when those in active employment were asked to state their usual method of travel to work. In the labour force as a whole, 44.2 percent drove to work in cars, vans, or trucks; 9.6 percent were passengers in cars, vans, or trucks; 11.8 percent travelled by bus; 2.3 percent travelled by train; and 5.8 percent rode cycles or motor cycles. The balance was made up of those who walked and of farmers and others who lived at their place of work.

Household Motorcars—Availability of motorcars to households at the Census of 1971 is shown in the following table.

AreaTotal HouseholdsMotor Cars Owned or Business Car Available for Use
OnTwo or More
Urban Area—   
  Whangarei9,3445,2522,179
  Northern Auckland32,99018,0068,152
  Western Auckland24,00813,3787,079
  Central Auckland89,96342,21920,831
  Southern Auckland42,23822,69311,706
  Hamilton21,83911,9776,066
  Tauranga11,7377,0083,033
  Rotorua9,7495,2342,577
  Gisborne8,3164,5751,842
  Napier12,6046,9942,974
  Hastings12,9987,1393,450
  New Plymouth11,5196,4632,656
  Wanganui11,1926,2192,477
  Palmerston North16,4279,0404,261
  Upper Hutt Valley8,0834,7761,905
  Lower Hutt Valley26,06113,9616,441
  Porirua Basin11,3396,0722,268
  Wellington42,79121,1988,225
  Masterton5,4583,0731,331
  Nelson10,9056,3532,759
  Christchurch81,70542,90221,468
  Timaru8,5894,9821,798
  Dunedin32,84317,1686,196
  Invercargill14,1407,7673,486
Totals of 24 urban areas556,838294,449135,160
  Percentage of total100.052.924.3
  New Zealand total801,686441,459192,776
  Percentages of total100.055.124.0

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 1974, 14,109 such accidents, resulting in 676 fatalities and in injuries to 20,829 other people were reported. Comparative figures for 1973 and 1972 were (1972 figures being given in parentheses): number of accidents 15,571 (14,654); fatalities 843 (713); persons injured 22,385 (22,315).

The decreases in 1974 are attributed mainly to the reduction of the open road speed limit to 80 km/h. A marginal decrease in fuel consumption, the compulsory wearing of safety helmets by motor cyclists at all speeds, and the increased use of safety belts following the extension of fitting requirements to vehicles first registered after 1 January 1955 have all been contributing factors.

Details of the nature of road accidents for the calendar year 1974, which have been compiled by the Ministry of Transport, are set out in the following table.

Classification of AccidentsFatalInjuryTotal
Overtaking23450473
Head on (not overtaking)1049591,063
Lost control or ran off road on straight661,3901,456
Lost control or ran off road while cornering1502,1742,324
Collision with obstruction25788813
Rear end9696705
At intersections—   
Vehicles moving in same direction, one turning131,1091,122
Vehicles crossing paths, not turning241,2541,278
Vehicles crossing paths, turning15822837
Vehicles merging6273279
Vehicles moving in opposite directions, one turning right26931957
Vehicles manoeuvring10555565
Pedestrian crossing road1011,7021,803
Pedestrian—other17212229
Miscellaneous23182205
    Totals61213,49714,109

The age groups of drivers involved in accidents causing death or injury in 1974 are shown in the following table in relation to the estimated numbers holding driving licences.

Age Groups (Years)Drivers Licensed*Drivers Involved in AccidentsPercentage Involved in Accidents

*Revised estimate.

Under 15-59-
159,2005736.3
1621,7001,0785.0
1730,3001,4164.7
1836,7001,5434.2
1940,5001,3853.4
2044,4001,1672.6
21 to 24196,4003,8131.9
25 to 29257,6001,9450.8
30 to 34197,1001,6830.9
35 to 39157,4001,3540.9
40 to 44137,8001,1530.8
45 to 49138,4001,0560.8
50 to 54126,3009120.7
55 to 59101,8006880.7
60 to 6490,9005730.6
65 to 6966,7003380.5
70 and over70,0004090.6
Unknown-1,242-
Totals1,723,20022,3871.3

There were 19,256 persons on the register of disqualified drivers at 31 December 1974.

The ages of persons killed and injured in motor accidents is shown in the following table.

Age Groups (Years)KilledInjured
197219731974197219731974
Under 5323441707786720
5-92533371,0081,082964
10-143234271,4081,5311,327
15-191732111657,3507,7747,049
20-241151291133,9404,1823,680
25-294958431,5841,7301,631
30-342741311,0991,109954
35-39294631827815807
40-44333129780774674
45-49223217760740599
50-54303322693705608
55-59343630566558503
60-64324127547519420
65-69352413376364317
70 and over455850581631507
Unknown age-2-898569
Totals71384367622,31523,38520,829

A classification of road users killed and injured during the calendar year 1974 is given in the following table.

Type of CasualtyKilledSeriously InjuredWith Minor InjuriesTotal
Driver of—    
Car1932,0593,8906,142
Rental car1284372
Taxi-162743
Van18181328527
Truck1061140211
Articulated truck281121
Bus-3710
Other112518
Motor cyclist871,2931,7523,132
Power cyclist1128233362
Passenger1902,2014,6957,086
Pillion rider (motor cycle)19198462679
Pillion rider (power cycle)-52126
Cyclist26288681995
Pedestrian1258041,2202,149
Other342532
Totals6767,28913,54021,505

Of particular concern is the number of school children and pre-school children killed or injured on the roads while cycling or on foot. These are shown in the following table, which applies to 1974.

Age of Child, in yearsPedestriansCyclists
197219731974197219731974
Under 52422842582-2
5-9418453435164188200
10-1.5250286292539549491
Totals9101,023985705737693

Total casualties and rates for the latest 6 years are shown in the following table.

Calendar YearPersons KilledKilled per 10,000 Vehicles on RoadPersons InjuredInjured per 10,000 Vehicles on RoadCasualties (Killed and Injured) per 10,000 Vehicles

*Provisional.

19706555.5620,691176.4181.9
19716775.4521,607173.9179.3
19727135.4322,315165.4175.2
19738435.8623.385160.0168.4
19746764.5020,829137.5141.9
19756284.1019,824*128.1*132.2*

The following table shows motor accident death and injury rates in 1974 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

*1973 Figures.

New Zealand67620,8294.521.8137.5673.0
Australia*3,67595,0776.527.9168.8721.0
Great Britain*7,407346,3254.613.2214.9619.2
United States*55,6005,190,0004.326.5403.42,473.6

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. 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 after having consumed alcohol may be required to give a blood sample for analysis. An initial test with a breath-test device is used as a screening process. If a person is found to have a blood-alcohol concentration of 100 mg or more per 100 ml of blood he has committed an offence and is liable for prosecution.

Wearing of seat belts is now compulsory for drivers and front-seat passengers in most classes of vehicles registered after January 1955. Children under 15 years of age are exempt, and there are other exemptions for certain occupational groups and on medical grounds.

From 1 December 1973 it has been compulsory for all motor cyclists and pillion riders to wear safety helmets at all speeds.

Offences—Penalties are awarded by Courts for driving and other offences under the Transport Act 1962 and attendant regulations. There is also a system in operation whereby points are automatically registered according to a fixed scale against 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 motorist is able to pay an infringement fee within a certain time and thus avoid court proceedings if he so desires. In 1974 provision was made for the infringement system to be extended to certain other offences, which are not punishable by imprisonment.

Speed Limits—The maximum speed for highways generally is 80 kilometres an hour. However. lower limits are prescribed for certain vehicles, e.g., 70 kilometres for heavy goods vehicles.

A general speed limit of 50 km/h is fixed in cities, boroughs, town districts, or other localities declared to be closely populated districts. Areas with a speed limit of 70 km/h may also be specified by the Minister of Transport; and limited speed zones may be established for which the maximum permitted speed may be either 80 km/h or 50 km/h 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, with minor exceptions, undergo a more exacting examination for a certificate of fitness, which, in respect of passenger service buses, has special regard for the safety and comfort of passengers. Taxicabs and rental vehicles also require a certificate of fitness.

The design and standard of construction of vehicles manufactured, assembled, or modified in New Zealand are also regulated to ensure safety.

Insurance—Under the Accident Compensation Act 1972 a motor vehicle scheme provides cover for everyone in respect of personal injury caused by motor accidents. There is a Motor Vehicle Fund financed by premiums paid with the annual licence fee. The legislation came into effect on 1 April 1974, replacing the compulsory third-party scheme previously operating.

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.

The New Zealand Defensive Driving Council provides a safety course for all licensed drivers.

Traffic safety advice is given to the Government by a permanent parliamentary select committee, by the Road Traffic Safety Research Council, and by a number of other bodies, including the 46 local road safety committees.

TRAFFIC OFFENCES—The following table shows the nature of the offences resulting in convictions during the latest three calendar years. The table covers only offences reported by officers of the Ministry of Transport; in addition traffic prosecutions are taken by the police, particularly for serious offences, following accidents or other police investigations. 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 1974 were, for instance, 230,643.

Type of Offence197219731974

*Probationary requirement abolished December 1973.

(a) Accident promoting offences—   
  Driving or attempting to drive, while under the influence of drink or drugs295373300
  In charge of motor vehicle white under the influence of drink or drugs903692
  Breath test blood-alcohol offences3,2003,5023,895
  Warrant of fitness offences9,75812,63715,071
  Certificate of fitness offences635740879
  Certificate of loading offences319475539
  Exceeding certificate of loading10517197
  Reckless driving126164114
  Driving in a dangerous manner618661679
  Driving at a dangerous speed701814649
  Driving without reasonable consideration418577455
  Careless use of a motor vehicle3,9894,5515,353
  Overtaking offences1,4811,5231,596
  Failure to keep to the left2,6862,8202,805
  Failure to yield right of way1,0741,070997
  Failure to stop in half clear road688776816
  Exceeding 30 mph11,65212,92212,343
  Exceeding 40 mph593930807
  Exceeding 55 mph1,4301,7461,146
  Exceeding 60 mph31243975
  Breaches of limited speed zone122110
  Exceeding temporary speed limits1,273823551
  Exceeding bylaw, etc.149325224
  Failure to stop at traffic lights1,8582,0912,358
  Failure to stop at compulsory stop sign3,8343,7134,679
  Failure to give way at a give way sign612660794
  Failure to yield right of way at pedestrian crossing331428357
  Failure to stop or give way for siren273729
  Failure to comply with road signs8458581,135
  Cycling offences501374263
  Pedestrian offences97113126
  Passenger offences99109126
  Horse traffic offences9220
  Motor cyclist exceeding 30 mph without safety helmet (rider or pillion)1,5762,0811,855
  Provisional motor cyclist exceeding 30 mph202147224
  Exceeding 40 mph with trailer793946764
  Exceeding 40 mph with heavy motor vehicle148183149
  Exceeding 45 mph with pillion passenger50449828
  Exceeding 50 mph (omnibus)10115
  Exceeding 50 mph by probationary driver*24966,320
  Exceeding other limits86135116
  Defective brakes598580854
  Lighting offences3,5453,6964,157
  Failure to dip lights167142183
  Mechanically defective or unsafe vehicle6,3358,2859,122
  Trailer offences375392552
Totals64,40573,58383,709
(b) Non-accident promoting offences—   
  Failure to obey officer7798681,273
  Failure to fulfil duties after accident226253271
  Owner failing to supply information1,5771,9892,378
Type of Offence197219731974
  Failure to pay parking infringement fee813309310
  Failure to pay overloading infringement fee1606758
  Failure to pay speeding infringement fee8851,0831,050
  Heavy traffic licence not carried or no heavy traffic licence1,3021,2081.498
  Heavy traffic licence defaced or obscured788187
  Exceeding heavy traffic licence1,1121,3841,289
  Mileage tax offences1765883
  Driver's licence offences9,95612,33714,740
  Driving whilst disqualified742891913
  Probationary drivers offences879454531
  Vehicle licences and registration offences3,1033,6484,201
  Breaches of drivers' hours regulations863198
  Over 100 demerit points324424
  Other miscellaneous offences175245283
  Safety belt offences991,1442,907
  Noisy motor vehicles1,5632,0192,173
  Emitting excessive smoke130130115
  Loading offences8181,0711,069
  Other nuisances71115181
  Conversion1168
  Aiding and abetting7795109
  Stock offences162211
  Other bylaw offences204136
  Unlicensed goods service949093
  Breach of goods service licence449703567
  Exceeding rail restriction mileage91124184
  Unlicensed passenger service154
  Breach of passenger service licence9419
  Rental vehicle offences454062
  Taxicab offences151962
  No vehicle authority or not carried172258253
  Other transport licensing offences179265188
Totals25,93131,09637,188
(c) Parking offences20,49924,25723,050
Totals—all offences110,835128,936143,947
(d) Notices issued for infringements   
  Parking199,749248,719293,730
  Speeding37,71238,32455,261
  Overloading2,4476,0326,248

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 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. From 1 September 1972 a grant equivalent to heavy traffic fees paid on urban passenger buses was paid to all operators, municipal and private. In March 1974 the grant was increased to 200 percent of heavy traffic fees paid.

An Urban Public Passenger Transport Council has been established under the Transport Act with the function of administering Government assistance by way of loans and grants for capital expenditure to urban public passenger transport operators, both public and private; and to encourage and conduct research into urban passenger transport and associated matters.

For the 1973-74 financial year the Council was granted $1 million by Central Government to provide capital assistance to the transport operators. The Council allocated $824,000 to local authorities (including New Zealand Railways) and $149,000 to private operators from this amount.

Recent years have been difficult for urban passenger transport operators, with mounting losses and falling numbers of passengers. During the year ended 31 March 1975 the Local Authority urban passenger services had an aggregate loss of $8.2 million compared with $5.7 million the previous year. Over the same period, the number of passengers carried fell from 102.7 million to 101.0 million, so that there was a loss per passenger of 8.1 cents compared with 5.6 cents the previous year.

Details of revenue and expenditure incurred by Local Authority passenger services only are given in the following table.

Year Ended 31 MarchRevenueAverage Fare per PassengerRevenue per Km RunExpenditureExpenditure per Km Run
Passenger FaresTotalOperating ExpensesCapital ChargesTotal (incl. "Other")
 $(000)$(000)¢¢$(000)$(000)$(000)¢
Auckland        
  19736,3816,93913.0230.867,5846008,18436.41
  19746,3497,09113.0931.478,4408499,28941.23
  19757,4038,37115.4434.7011,1761,03512,21150.61
Gisborne        
  1973677013.1326.6167117829.48
  1974758114.8330.8478189536.20
  1975909318.3635.86871810540.36
New Plymouth        
  19731541607.2920.69229-24731.79
  19741651677.9621.992442026434.71
  19751861909.0826.402911830943.06
Palmerston North        
  197311411711.1316.741834723032.91
  197410811011.2814.572125827035.93
  197516416521.0922.722733931343.06
Eastbourne        
  197319220718.0329.721643520229.04
  197420922319.8031.761803922131.49
  197522423822.0635.622074125137.56
Wellington        
  19732,4512,5749.6241.663,8823524,23568.54
  19742,6712,71211.1647.814,1573494,50679.43
  19752,9783,04812.8054.324,7783425,12091.26
Christchurch        
  19731,7891,85711.4724.982.4952302,72436.66
  19741,8982,12211.7929.142,7962193,01541.41
  19752,0132,28512.5331.133,3312403,57148.66
Timaru        
  197385957.7721.861273416036.80
  197410411310.7025.291333116436.82
  197512413212.6730.831643420246.96
Dunedin        
  19731,0371,07314.0142.321,2172141,43156.45
  19741,0541,09114.7044.041,2871191,40656.74
  19751,1061,15215.7348.601,4701021,57166.31
Invercargill        
  19731261319.2420.222232925238.88
  19741341389.6320.762472927641.57
  197514314610.1922.482973232950.47
Totals: All Services        
  197312,39613,22211.8531.3716,1711,55117,74342.10
  197412,76613,84812.4333.3317,7731,73119,50846.95
  197514,43115,81914.2836.8822,0731,90123,98255.90

Details of vehicles, kilometres run, and passengers carried are given in the following table.

Year Ended 31 MarchVehiclesKilometres RunPassengers CarriedPassengers per km Run
Trolley BusesMotor BusesTrolley BusesMotor Buses

*Includes 3 cable cars.

†Includes cable car running (kilometres) 1970-71, 59,000; 1971-72, 61,000; 1972-73 50,000; 1973-74, 48,000; 1974-75, 47,000.

Auckland  (000)(000)(000) 
  19731264304,54117,93949,0002.18
  19741264784,23818,29448,5002.15
  19751255213,89520,23047,9491.99
Gisborne      
  1973-10-2645111.93
  1974-10-2645081.93
  1975-10-2614911.88
New Plymouth      
  1973-22-7752,1092.72
  1974-22-7612,0702.72
  1975-22-7192,0462.85
Palmerston North      
  1973-18-7001,0231.46
  1974-18-7529571.27
  1975-20-7267761.07
Eastbourne      
  1973-19-6961,0621.53
  1974-19-7021,0541.50
  1975-19-6681,0171.52
Wellington      
  1973117*1352,6523,52625,4664.12
  1974115*1352,0043,66923,9414.22
  1975111*1321,9623,64923,2754.15
Christchurch      
  1973-167-7,43215,6032.10
  1974-167-7,28216,0992.21
  1975-169-7,33916,0672.19
Timaru      
  1973-13-4351,0922.51
  1974-13-4469722.18
  1975-13-4309802.28
Dunedin      
  197334577711,7637,4062.92
  197417675041,9737,1672.89
  197517674311,9387,0292.97
Invercargill      
  1973-19-6481,3632.10
  1974-19-6641,3922.10
  1975-19-6511,4012.15
Totals: All Services      
  1973277*8907,96434,179104,6362.48
  1974258*9486,74634,807102,6612.47
  1975253*9926,28836,610101,0322.36

The length of routes covered by the services are given in the following table.

Area and ServiceAt 31 March
19711972197319741975
 kilometres
Auckland—     
  Trolley bus93.0893.0893.0865.3461.48
  Motor bus249.45249.45652.04600.61604.71
Gisborne—     
  Motor bus28.9727.3628.9728.9728.97
New Plymouth—     
  Motor bus38.6238.6249.8949.8949.89
Palmerston North—     
  Motor bus134.38135.18144.84144.84144.84
Eastbourne—     
  Motor bus25.7425.7525.7525.7525.75
Wellington—     
  Trolley bus51.5851.5851.5851.5851.58
  Motor bus95.8295.8284.5684.56106.76
  Tram, cable0.620.620.620.620.62
Christchurch—     
  Motor bus266.02266.73266.73267.48279.54
Timaru—     
  Motor bus37.2337.2337.2337.2339.27
Dunedin—     
  Trolley bus36.3628.0432.4122.7522.75
  Motor bus51.9275.1880.8590.5090.50
Invercargill—     
  Motor bus45.0645.0645.0645.0645.06

11 E—CIVIL AVIATION

GENERAL—In terms of the use of air transport per head of population, New Zealand ranks among the leading nations of the world.

Modern aircraft provide regular flights on a network of internal air services operated mainly by the National Airways Corporation ("Wings of the Nation"), while New Zealand's international airline, Air New Zealand, in competition with other international airlines, provides links with various nations in the Pacific and South-east Asian regions.

DEVELOPMENT OF AVIATION—During the early 1920s an appreciable amount of air taxi and charter flying was carried out and the aero club movement began in 1927. The first registered company commenced services 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.

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, Singapore, and Fiji, in addition to 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 replaced by DC8 jet aircraft in June 1972. Services to Los Angeles are operated via Fiji, Honolulu, and Tahiti with DC10 aircraft.

The operations of Air New Zealand earn or save an estimated $62 million in overseas funds and make an important contribution to the country's external balance of payments. Air New Zealand made a profit of $4.4 million in 1974-75; the company's twenty-first year of profitability. The company has six DC10 aircraft (with one more on order) and five DC8s. The revenue ($124.1 million) of Air New Zealand was derived in the following proportions: passenger services 73.8 percent, freight and baggage 11.3 percent, charters 5.0 percent, mail 2.6 percent and other sources 7.4 percent.

AIR SERVICES—The major domestic air transport services are provided by National Airways Corporation, the national air carrier, which also wholly owns Safe Air Ltd., the air freight carrier. Mt. Cook Airlines provides essentially tourist services. Safe Air Ltd. provides a Cook Strait service and a Chatham Island service. Other regular secondary air services are provided by Air North Ltd. and Capital Air Services and at most aerodromes there are light aircraft operators licensed for air charter and air taxi services. Aero clubs and flying schools provide facilities for training and private flying. The agricultural aviation industry has continued to flourish and an increasingly significant role is being played by helicopters.

International air services are operated by Air New Zealand Ltd., and other regular international air services are provided by QANTAS, Pan American World Airways, UTA French Airlines, British Airways, and Air Pacific.

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 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 an 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. There is a right of appeal against the decisions of the Air Services Licensing Authority to the Air Services Appeal Authority. International air services are governed by intergovernmental air transport agreements and the International Air Services Licensing Act 1947.

Air New Zealand is a signatory to the Montreal Agreement and the Guatemala Protocol which define the financial liabilities of international air carriers towards their passengers. Liabilities of domestic air carriers are governed by the Carriage by Air Act 1967.

The Airport Authorities Act 1966 empowers local authorities, with the consent of the Governor-General in Council, to establish, improve, operate, or manage airports. In pursuit of these objectives local authorities may enter into joint-venture agreements with the Crown.

Effect is given to the Tokyo Convention 1963 relating to offences committed on board aircraft, the Hague Convention 1970 relating to hijacking, and the Montreal Convention 1971 relating to aerial sabotage by the Aviation Crimes Act 1972 which came into full force by Order in Council on 12 March 1974.

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 and certain associated Pacific nations, 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 towers and 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—The following summary statement shows operating and capital costs and recoveries of the Civil Aviation Division for years ended 31 March.

ItemCostsRecoveries
1972-731973-741974-751972-731973-741974-75
Operating$(000)$(000)$(000)$(000)$(000)$(000)
Civil Aviation, New Zealand—      
  Regulatory and general1,6101,9272,083166224102
  Airports2288087585661
  Airways8,9719,96111,2064,5324,8525,622
Civil Aviation, South Pacific territories256424815514205
Totals11,06512,39214,1914,7615,1465,990
Capital      
Civil Aviation, New Zealand—      
  Regulatory and general14142-59-
  Airports4,1664,1972,921853518
  Airways2,4148621,544-14876
Civil Aviation, South Pacific territories2,3321,216670--2
Totals8,9266,4175,1359019296
Grand totals19,99118,80919,3264,8515,3386,086

NATIONAL AIRWAYS CORPORATION—The New Zealand National Airways Corporation provides regular services to 23 centres throughout the North and South Islands with a fleet consisting of 7 Boeing 737s, 1 Vickers Viscount 807, and 16 Fokker Friendships.

Statistics of operation of the National Airways Corporation for the 4 latest years are shown in the following table.

Item1971-721972-731973-741974-75
Revenue kilometres flown (000)16,86216,03219,56521,908
Revenue passengers carried—    
  Scheduled1,489,8601,638,2731,991,5822,155,332
  Charter12,84117,46426,24611,709
Passenger kilometres created (000) —    
  Scheduled980,3781,020,8321,159,6411,388,007
  Charter11,04813,45621,9858,961
Revenue passenger kilometres (000)—    
  Scheduled655,782724,382883,613962,233
  Charter7,1948,77614,0485,714
Revenue passenger load factor66.8970.9676.669.3
Average passenger journey (kilometres)440.95442.16446.18446.44
Revenue tonne-kilometres created (000)97,434116,191134,592163,378
Overall tonne-kilometres used (000)—    
  (a) Passenger and baggage51,43863,50078,26883,943
  (b) Freight9,64613,11915,64018,871
  (c) Mail1,0241,1291,2321,470
Total62,10877,74895,140104,284
Overall revenue load factor63.7466.9170.763.8
Operating Expenditure ($)32,442,05434,120,81940,643,26956,649,714
Operating Profit ($)704,7773,167,7285,054,3841,566,959

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 the lowest possible level.

FLYING OPERATIONS—The following table gives the summarised results of the operations of scheduled commercial air services. This includes NAC, Mount Cook Airlines, and Safe Air Ltd.

Year EndedKilometres FlownPassengers CarriedPassenger-kilometresFreight Carried(*) (Tonnes)Freight (Tonne-kilometres)Mail (Tonne-kilometres)

*Includes excess baggage.

March(000)
  196517,532984422,23857.911,513705
  196619,2621,113477,37767.913,344741
  196719,7321,171500,56362.512,605769
  196819,6281,173499,91147.112,0611,056
  196918,6781,305554,32448.712,0351,118
  197018,9851,479629,88868.215,7221,233
December      
  197019,0981,544666,15273.517,2981,349
  197119,6791,545672,29970.417,7781,177
  197220,7401,652726,27667.319,5091,128
  197322,9892,005891,87763.621,9311,218
  197425,6152,2551,004,23264.023,7311,447
  197525,1712,3121,033,67861.224,5391,617

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 Safe Air Ltd. In 1972 this firm was taken over by National Airways Corporation. 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 recent years are as follows. The peak year for the service was 1961-62. The later drop 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, and then G.m.v. Arahanga in December 1972 and G.m.v. Aratika in September 1974.

Year EndedTrips FlownHours Flownkm Flown (000)Freight kg (000)Freight tonne-kmPassengers
March—      
  196410,5884,26590139,7603,380809
  196511,3154,55895243,4383,661899
  196613,1825,8941,25353,0124,8941,500
  196710,9225,1391,09042,4274,168902
  19688,5374,16789831,4593,548531
  19698,1913,95285733,1053,504480
  197015,8986,3371,36749,2995,615413
  197113,3837,1521,55752,1406,0723,445
December—      
  197013,50610,3692,33650,3366,4173,625
  197113,2299,3772,11049,2746,5843,113
  197212,0168,2671,82143,2876,7253,253
  19739,7937,4131,69534,3495,9383,625
  19749,4897,1981,89131,7105,5053,876

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 10 million gallons a year. A technical qualification is 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 December
1971197219731974
Hours flown108,246134,657159,140164,490
Number of operators79798383
Material distributed—    
  Fertiliser and lime (tonnes)830,3651,122,9001,335,5851,068,003
  Seed (tonnes)1,4181,6442,6982,174
  Spray (litres)32,616,83236,612,55945,712,25344,029,897
  Animal poison (tonnes)3,6924,6155,3277,152
  Supplies (tonnes)3,8361,5515,0795,398
  Fencing (tonnes)1,2371,6711,242630
  Dusts (tonnes)28196817
  Prills (tonnes)18693119194
  Miscellaneous (tonnes)2,5463,0252,5281,934

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. Air New Zealand's fleet comprises five Douglas DC8s and six Douglas DC10s.

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 Airways—twice weekly from the United Kingdom to Sydney and Auckland; Union de Transport Aeriens—weekly from Los Angeles via Tahiti to Auckland and beyond to Noumea; and QANTAS—a full range of trans-Tasman services with connections available to a variety of destinations beyond Australia.

A minority financial interest is retained in the regional South Pacific operators: Polynesian Airlines Ltd. (PAL)—operating between Western Samoa, American Samoa, Tonga, Niue, and Nandi; and Air Pacific Ltd.—operating from Fiji to the British Solomons, the Gilbert and Ellice Islands, the New Hebrides, Western Samoa, Tonga, Nauru, and Auckland.

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 calendar years. During 1975, international scheduled services carried 1,179,000 passengers, 30,877 tonnes of freight, and 2,270 tonnes of mail.

INTERNATIONAL REVENUE AIR PASSENGER MOVEMENTS

RoutesEntering New ZealandLeaving New ZealandTotals
197319741973197419731974
Trans-Tasman—      
  Auckland-Sydney126,980150,126114,624136,022241,604286,148
  Auckland-Melbourne37,64246,54534,12444,69771,76691,242
  Auckland-Brisbane22,18331,97321,98129,52444,16461,497
  Wellington-Sydney42,80550,82838,78047,85481,58598,682
  Wellington-Melbourne11,95615,46211,88115,17923,83730,641
  Wellington-Brisbane6,9388,8357,0479,09813,98517,933
  Christchurch-Sydney57,73370,41658,25074,300115,983144,716
  Christchurch-Melbourne28,91732,77129,13533,80658,05266,577
Totals335,154406,956315,822390,480650,976797,436
Pacific—      
  Long haul50,34774,57152,21570,153102,562144,724
  Short haul83,34490,74377,99083,344161,334174,087
Totals133,691165,314130,205153,497263,896318,811

INTERNATIONAL REVENUE AIR FREIGHT

RoutesEntering New ZealandLeaving New ZealandTotals
197319741973197419731974
Trans-Tasman—kilograms(000)
  Auckland-Sydney4,1675,6803,4794,1487,6469,828
  Auckland-Melbourne1,0591,5188771,2991,9362,817
  Auckland-Brisbane177275348530525805
  Wellington-Sydney9001,0124225071,3231,519
  Wellington-Melbourne201272258244459516
  Wellington-Brisbane37308488120117
  Christchurch-Sydney1,0081,0447881,2491,7962,292
  Christchurch-Melbourne307441375522682964
Totals7,85610,2726,6318,58614,48718,858
Pacific—      
  Long haul1,2242,4712,4162,8903,6385,360
  Short haul6789982,1052,1542,7843,153
Totals1,9023,4694,5215,0446,4228,513

INTERNATIONAL AIR MAIL

RoutesEntering New ZealandLeaving New ZealandTotals
197319741973197419731974
Trans-Tasman—kilograms(000)
  Auckland-Sydney453535170188623723
  Auckland-Melbourne8867231111177
  Auckland-Brisbane1650952656
  Wellington-Sydney1331607579208239
  Wellington-Melbourne1213661819
  Wellington-Brisbane-1212
  Christchurch-Sydney69834342111124
  Christchurch-Melbourne141113152727
Totals7859183413481,1261,266
Pacific—      
  Long haul265280164295428575
  Short haul13094183150313244
Totals395375347445741820

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, fish, and live animals, notably racehorses. Imports air-freighted are mainly machinery, scientific instruments, pharmaceutical products, and textiles.

The following table is a summary of the value of exports and imports transported by air during the two 12-month periods ended June 1974 and June 1975. Fuller details are available from the Department of Statistics.

CommodityExportsImports
New Zealand ProduceImported Merchandise
1973-741974-751973-741974-751973-741974-75

*Includes manufactured goods classified chiefly by material and miscellaneous manufactured articles.

 $(thousand)
Meat and meat preparations2,4672,9845232
Dairy products and eggs801051127188
Fish and fish preparations7381,5132114294447
Fruit and vegetables1,1001,6991510178479
Other foodstuffs742612428218120
Live animals6,8907,0031036593,0082,846
Beverages and tobacco2742571,5201,40176112
Hides, skins, and undressed fur skins1,0641,0641-2322
Animal and vegetable crude materials n.e.s.1,8931,9397251,9801,493
Petroleum and petroleum products15125,6048,1821624
Medicinal and pharmaceutical products1,9162,7564295299,75612,007
Other chemicals3644948416679,4825,550
Textiles, fabric, made-up articles, etc.2,6932,6145413611,23713,988
Other manufactured goods*7,81510,9277,0479,32334,56248,013
Machinery and transport equipment5,6308,9297,34510,73868,21599,886
Other goods9249511201,9402,829
Total33,10543,05223,02731,737141,115188,006

AIRPORT STATISTICS—The following table shows airport activities for the 2 latest years ended 3.1 March.

AirportMovements of Passenger PlanesFreighter Plane MovementsPassenger Arrivals and Departures
InternationalDomestic
19731974197319741973197419731974

*Those airports serviced by N.A.C., Safe Air, Air North, and Mount Cook Airlines not separately listed.

Auckland6,6167,20720,49022,5821,3301,6261,235,7141,516,239
Blenheim--2,6034,1419,1648,43063,11272,248
Christchurch1,6701,87818,44121,0533,6654,650838,2151,019,996
Dunedin--8,3198,666316582182,962217,501
Gisborne--6,0085,933-262,09170,938
Hamilton--5,8575,2329635585,592109,369
Invercargill--5,3395,347417693,191109,079
Napier--7,0297,33914-98,319123,733
Nelson--8,2319,662920723142,251171,924
New Plymouth--3,7734,53410-71,30689,591
Palmerston North--5,7896,199229691,528113,674
Rotorua--7,3737,7261,158-86,40795,912
Wellington1,2901,33132,09936,54512,49811,2201,024,8601,206,807
Other*--28,26831,225100116237,932287,825

AERO CLUBS AND COMMERCIAL FLIGHT TRAINING ORGANISATIONS—The next table gives a summary of the training activities of aero clubs and other flying organisations.

Calendar YearClubs* OperatingMembershipAircraft in useHours FlownAb Initio Pupils Under Training
AssociateFlyingDualSolo

*Other organisations included are given in parentheses.

197040 (18)1,9346,38125947,49476,9291,893
197141 (19)1,7915,81023848,05576,1691,905
197238 (20)1,5636,16527348,48977,0222,012
197337 (21)1,5956,99028257,29995,9952,387
197438 (22) 6,990 59,28494,225 

LICENCES—At 31 March 1975 holders of current licences included 517 airline transport pilots, 1,154 commercial pilots, 4,184 private pilots, and 4,018 student pilots. Fifty-four aerodromes held public licences, and there were 67 licensed private aerodromes, in addition to 197 authorised landing places and 22 Government civil aerodromes.

CIVIL AIRCRAFT ACCIDENTS—Civil aircraft accidents are investigated by the Office of Air Accidents Investigation headed by the Chief Inspector of Air Accidents who has statutory powers of his own in respect of his investigative duties and responsibilities.

The following table shows accident rates per 10,000 hours flown in the various categories of flying activity. Private flying and gliding are not included.

Operational CategoryAverage Rate for 5-year PeriodsAccident Rate 1974
1966-701967-711968-721969-73
Airlines0.02---0.09
Non-scheduled, charter, and air taxi2.011.871.932.303.82
Aerial work—     
  All sectors4.334.203.763.614.81
  Agricultural3.763.523.522.852.90
Aero clubs and flying training schools2.832.822.712.562.08
All above categories combined2.542.502.352.122.46

The following table gives the total number of air accidents in 1974 with details of deaths and injuries. Of the 147 accidents reported, 67 were to aircraft engaged in aerial work. Eight persons were killed and 4 seriously injured. The 35 accidents in aero clubs and flying training schools involved 1 fatality and 5 persons were seriously injured. The 23 accidents in private-owner flying resulted in 3 fatalities, and there were 11 accidents in non-scheduled, charter and air-taxi operations. One accident was reported to a scheduled domestic or international airline service within New Zealand.

CategoryNumber of AccidentsInjuryAccidents Per 10,000 Hours Flown
TotalFatalFatalSerious
CrewPass.CrewPass.

* Provisional

Airlines (all operations)1-----0.09
Non-scheduled, charter, air-taxi11---123.82
Aerial work—       
  Agricultural—       
  Fixed wing374412-2.88
  Rotary wing6-----3.60
Other—       
  Fixed wing3-----..
  Rotary wing213-32-14.95
Aero clubs and flying training schools35112232.08
Private-owner flying—       
  Fixed wing212211-..
  Rotary wing2111--..
Gliding10*---2-..
Totals14711881052.46

Chapter 13. 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.

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 1975 there were 1,435 post offices in New Zealand. The following table shows the numbers of articles posted in the latest 6 years.

Year Ended 31 MarchLetters and PostcardsPrinted Papers, Commercial Papers, Newspapers, and MagazinesParcelsTotal
  million 
1970288.8291.115.7595.4
1971311.4286.117.3614.8
1972303.7302.216.2622.1
1973314.6314.216.0644.8
1974334.9316.916.8668.6
1975351.1329.618.3699.0

The average numbers of items posted in New Zealand per head of population during the year ended 31 March 1975 were: letters and postcards, 113.1; printed matter (printed papers, commercial papers, newspapers, and magazines), 106.1; parcels, 5.9.

Chartered air services are used to convey the bulk of surface mail between the North and South Islands.

Private boxholders in 1975 totalled 101,085.

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. At 31 March 1974 the total was 82,104 and at 31 March 1975 it was 83,834. The cost of the rural delivery service is $3.49 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 numbers of letters and parcels carried by air in New Zealand during the latest 6 years are shown below.

Year Ended 31 MarchLettersParcels
197022,887,000304,791
197125,360,000328,185
197226,031,000279,803
197325,812,000277,742
197428,138,000311,938
197532,053,000388,908

Overseas Airmails—The weight of airmail dispatched from New Zealand is about 28.3 percent of the total amount of mail forwarded overseas each year. In 1974-75, 298,513 kg of letters, 230,720 kg of newspapers and packets, and 232,835 kg 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 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 are twice-weekly direct services from Auckland to Hong Kong and from Auckland to Singapore. Airmail to countries in the Far East is dispatched to Sydney or Singapore 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 the United States.

Pacific Island Services—Airmails are forwarded by New Zealand operated air services to the Cook Islands, Fiji, French Polynesia, Hawaii, New Caledonia, Norfolk Island, and American Samoa (Pago Pago). Local air services provide connections from Pago Pago or Nandi to the British Solomon Islands, the Gilbert and Ellice Islands, New Hebrides, Niue, Tonga, and Western Samoa.

Overseas Parcel Post—Particulars of overseas parcels received and dispatched in each of the latest 6 years are contained in the following table.

Year Ended 31 MarchOverseas Parcels ReceivedOverseas Parcels Dispatched
NumberWeightCustoms DutyNumberWeight
  kg$(000) kg
1970554,7222,178,6241,626418,392977,122
1971658,2092,468,8831,815458,5431,076,514
1972672,0093,242,0461,863476,9421,173,020
1973655,6012,492,8861,846450,1481,151,541
1974686,8882,554,857x2,212444,9311,179,840
1975733,6432,720,7112,736460,8681,252,781

Postal Mechanisation—The Wellington Postal Centre is extensively mechanised, a similar modern centre is being built at Christchurch, and another is also planned for Auckland.

MONEY ORDER AND POSTAL NOTE SERVICES—Details of these services are now given.

Money Orders—Inland postal money orders for amounts in excess of $7 (for lesser amounts postal notes are used) and telegraph money orders for any amount may be purchased to send money within New Zealand, the Cook Islands, and Niue Island. Postal money orders may also be issued in New Zealand for payment in 111 overseas countries and places, and an overseas telegraph money order service is available to Australia, Fiji, Great Britain and Northern Ireland, Norfolk Island, and Western Samoa. For overseas remittances in excess of $4 a permit is required.

For money orders issued for payment overseas there are two special rates of commission, one applying to Australia (and countries advised through Australia), Fiji, Norfolk Island, and Tonga, and the other rate to all other countries, except the Cook Islands, Niue, and Western Samoa, for which the inland rate of commission applies. In addition to commission, telegraph fees are also payable for money order telegrams.

During the year ended 31 March 1975, 1,591,613 money orders were issued in New Zealand for a total of $55,783,770 and of these, 165,704 orders of a value of $4,127,635 were issued for payment overseas. Money orders issued overseas for payment in New Zealand numbered 52,652 with a value of $1,364,685.

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 1975, 3,644,798 postal notes valued at $8,205,000 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 1975 the Post Office sold 1,343,044 British postal orders valued at $3,597,092, and paid 160,206 orders valued at $825,871.

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).

Item1972197319741975
Main telephones—    
  Automatic746,487794,655846,923896,928
  Manual109,88290,74986,96083,379
Extension telephones441,800466,217503,511544,236
Public telephones4,9184,9905,1325,227
Private line telephones293266272254
Toll offices1,2891,2571,2341,210
Total telephones1,304,6691,358,1341,444,0321,531,234
Telephones (all types per 1,000 population)448456475493
Applicants awaiting installations13,38215,31920,90422,429
Number of toll calls64,803,47367,072,08773,905,37077,692,420

About one-sixth of the main telephones are business telephones (in 1975 there were 160,851 business telephones). At 31 March 1975 there were 980,307 subscribers and 22,429 waiting applicants, of whom about 46 percent were in the Auckland City and environs.

Twenty-two new automatic exchanges were brought into service during the year ended 31 March 1975; 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; 12 more exchanges were provided with this service.

According to the latest comparative data available (January 1974), 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 (65.47), Sweden (61.20), Switzerland (55.44), Canada (52.31), and New Zealand (46.35).

A broadband toll link, comprising microwave, radio and co-axial cable systems, connects main centres from Whangarei to Invercargill.

A 5-year supply agreement has been entered into with Nippon Electric Co. Ltd. of Japan for the supply of crossbar automatic telephone switching equipment.

Subscriber Toll Dialling (STD) which will enable subscribers to dial direct to other automatic subscribers without the need to go through a toll operator is to be introduced into New Zealand telephone system progressively from April 1976.

Free local telephone calling is provided in New Zealand, as distinct from charging for each local call as followed by many overseas administrations.

TELEGRAPH SERVICES:Telegrams—The downtrend in inland telegrams has continued. In the year to 31 March 1975 4.6 million telegrams were lodged compared with 4.9 million in the preceding year. Of these, 65 percent were lodged by telephone, 11 percent by telex, and 24 percent handed in over Post Office counters. On the other hand, 47 percent were delivered by messenger, 42 percent telephoned to the addressee, and 11 percent telexed.

The public telegraph network comprises 120 teleprinter offices. These offices interwork through gentex (automatic circuit switching) augmented by point-to-point circuits between the major cities.

Telex Service:Telex—the international abbreviation for Teleprinter Exchange Service—is a customer-to-customer service using page teleprinters. An international manual telex service for communicating with overseas subscribers commenced in New Zealand on 1 September 1960 with 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 enabled all New Zealand telex subscribers to communicate with each other as well as with overseas telex subscribers. International service is now available with 171 countries. 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 most countries, without the aid of the international operator. At 31 March 1975 there were 2,150 subscribers, an increase of 326 over the previous year.

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 1975 rentals totalled $1,692,048 and call revenue was $2,994,555.

Ancillary telex services include: Public telex booths at Auckland, Palmerston North, Wellington, Christchurch, and Dunedin and a restricted public telex service (operator assistance mandatory) at 19 other large centres—approximately 800 calls are handled each month, mostly international; teltex, which provides for the delivery, by telephone or messenger, of telex messages sent to any public telegraph delivery office, current volume over 33,000 per month; telexograms, the delivery of telegrams by telex from any teleprinter office in the public network to any telex subscriber.

Data Service—The use of computers in the commercial sector has created a need for facilities for transferring data from one point to another. The Post Office leases circuits for data transmission, leases data modems (200 and 600/1200 bauds) for use on leased lines, and provides a datel service for the exchange of data using the switched telephone networks, both local and toll. The datel service is restricted to speeds of 200, 600, or 1200 bauds.

Leased data circuits (speech grade) capable of speeds up to 4800 bauds are charged at $34.30 a mile per year and higher speed circuits range from $51.45 a mile for 7 kHz to $147 a mile for 48 kHz.

Data modems are charged between $100 and $175 depending on speed and type.

For datel service, a telephone must be leased especially for the purpose, and the use of a post office modem is mandatory. The rental for these is as for a business telephone connection, varying between $85.75 to $134.75 per year according to the class of the telephone exchange plus the rental for the modem. Where the toll service is used for data calls the ruling toll rates apply.

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.

An additional high capacity trans-Tasman submarine cable, a joint New Zealand - Australia multi-million dollar project was brought into service in early 1975. Known as "Tasman" the new cable has a total capacity of 640 telephone circuits.

International Telephone Service—Telephone communication by cable, satellite 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.

An international Gateway telephone exchange in Auckland handles all New Zealand's outgoing and incoming international telephone calls. The international operators dial direct to subscribers in other countries, and overseas operators dial direct to subscribers on automatic telephone exchanges in New Zealand. Data transmission service is also available to some other countries through the telephone network.

International Telex Service—Telex service is available to many countries including, in most cases, the facility for subscribers to establish calls automatically.

International Telegraph Service—Telegrams are an important part of international communications and a world-wide service is available. Phototelegraph service is also available to a number of countries.

Satellite Communications—Because of the rapid increase in international telecommunication traffic, an earth station was opened in 1971 at Warkworth, near Auckland, for communicating with other countries via satellites in space.

In addition to providing additional international telecommunications facilities, the earth station makes live television relays practicable. The earth station works through a satellite over the Pacific Ocean.

International Radio Services—Telegraph and telephone services between New Zealand and places in the Pacific area not served by cable are provided by radio through a high-power transmitting station at Himatangi and a receiving station at Makara.

Direct radio circuits are operated from New Zealand to Apia, Rarotonga, Niue, Noumea, Ross Dependency (Scott Base), and Chatham Islands. Communication is effected with other islands in the Cook group by Rarotonga Radio through feeder stations. Stations in the Tokelau Islands communicate with Apia Radio.

Radio Services to Shipping—The first wireless-telegraph station in New Zealand for communicating with ships at sea was opened at Wellington on 26 July 1911. Other stations are located at Auckland, Awarua, and Chatham Islands. These stations provide a service for the exchange of radio telegrams with ships at sea, and special rates operate for vessels registered in New Zealand and Australia. A free radio-medical service also operates for ships at sea and lighthouses on the New Zealand coast. The number of ships licensed to operate radio equipment is 8273.

INLAND RADIO SERVICES—The use of mobile radiotelephone services continues to grow. The Post Office provides a very-high-frequency service from 76 base stations to 4,313 subscribers operating 33,823 mobile units. Service to a further 9,494 mobile units is provided by 2,930 Government and private owner-operated base stations. The number of licensed amateur stations in New Zealand is now 4,718. These stations are intended to provide facilities for experimental communications between persons interested in radio service as a hobby, and are issued only to holders of amateur operator's certificates. In the Citizen radio service 1,333 new walkie-talkie sets were licensed making a total of 9,842 sets in use throughout the country. There are now 76,360 radio transmitting stations of all types licensed compared with 69,223 in 1974.

REVENUE—The revenue of the Post Office for the latest financial years is now shown.

Item1971-721972-731973-741974-75
 $(000)$(000)$(000)$(000)
Postal revenue—    
  Postages31,67132,11034,45736,387
  Private box and bag rentals and rural mail delivery fees623660705750
  Miscellaneous105981301,545
 32,39932,86835,29238,682
Telecommunications revenue—    
  Telex2,3863,1613,7874,740
  Telegraph4,6595,2295,2925,547
  Tolls45,21948,50456,54764,565
  Telephones71,56982,29287,62992,862
  Overseas telecommunications7,4348,58211,35615,346
  Radio352364446441
 131,619148,132165,057183,501
Miscellaneous revenue—    
  Fees from Government departments, etc.4,3064,5084,5328,243
  Money order and postal note commission519532557585
  Rents received286325325511
  Other revenue714509493699
 5,8255,8745,90710,038
Total revenue169,843186,874206,256232,221

Revenue and expenditure for the latest 11 years are shown in the following table.

Year Ended 31 MarchRevenueExpenditure
 $(000)$(000)
196577,84176,586
196686,96284,890
196791,52693,582
1968106,607100,781
1969112,793106,575
1970119,499117,087
1971129,858143,548
1972169,843169,495
1973186,874188,885
1974206,256212,495
1975232,221252,995

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 $17.9 million in 1974-75.

In 1974-75, $44.8 million was spent on the development of telecommunications systems and $10.9 million on buildings. In addition, $6.4 million was invested in other assets such as motor vehicles, tools and plant, and office equipment. This expenditure was financed from Post Office resources, National Development Loans Account, and capital equipment credit arrangements. The capital liability of the Post Office is now $397.6 million and liability under capital equipment credit arrangement is $2.3 million.

WORK PERFORMED FOR OTHER DEPARTMENTS—Because it has numerous 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, Housing 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, National Provident Fund receipts, and motor vehicle registration and licence fees).

Payments—Departments of Social Welfare (social security benefits and war pensions, etc.), Health (refunds of medical expenses), Defence, Labour (subsidised wage payments), Public Trust Office, Police (witness warrants), Treasury (Government superannuation payments and miscellaneous payments for other departments), Ministry of Works and Development, 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 and Civil Aviation Divisions of Ministry of Transport on radio matters. In some of the smaller centres postmasters act as registrars of births, deaths, and marriages. In each of the 87 electorates, a postmaster or senior officer is appointed electorate officer, as an agent of the Department of Justice, with responsibility for the compilation and maintenance of the electoral roll in his electorate.

Other activities include the receipt of levies under the Motor Vehicle Accident Scheme as provided for under the Accident Compensation Act 1972, the issue of fishing and game licences on behalf of acclimatisation societies, organising and selling health stamps, and collecting television licence fees.

STAFF—Staff numbers at 31 March are shown in the following table.

Classification197019711972197319741975
Permanent staff26,91227,66527,88828,51829,16930,848
Temporary and non-classified staff4,2444,6944,5854,6475,4836,055
Total staff31,15632,35932,47333,16534,65236,903

VEHICLES—The Post Office fleet as at 31 March 1975 consisted of 5,177 vehicles; 1,188 trucks, 2,459 vans, 1,524 cars, and 6 motor scooters. Of this fleet, 520 vehicles are used for hire to other departments, 3,350 for engineering construction work and 1,307 on postal, telegram delivery, and other general work. The fleet travelled 41.2 million miles in the year ended 31 March 1975.

12 B—RADIO AND TELEVISION BROADCASTING

GENERAL—A restructuring of the radio and television broadcasting services took effect from 1 April 1975. It comprised the establishment of two television channels and a radio service as three independent public corporations and the creation of a new central body to provide common services for all three. The guiding principles in the proposed restructuring were those of decentralisation, independence, and the introduction of competitive enterprise within publicly-owned broadcasting services.

For its implementation the then Minister appointed a committee in 1973 whose report became the basis for new legislation.

The Broadcasting Act 1973 established the Broadcasting Council of New Zealand and abolished the New Zealand Broadcasting Authority. To replace the New Zealand Broadcasting Corporation from 1 April 1975, it also established three publicly-owned corporations—Radio New Zealand (to operate the radio broadcasting services), Television One (to operate a television service from Wellington and Dunedin for the whole of New Zealand), and Television Two (to establish and operate from Auckland and Christchurch a second television service for the whole of New Zealand). From their independent bases in policy, studios, staff, and revenues TV-1 and TV-2 provide competing services to the public.

All the corporations and the council are responsible to the public through Parliament and, to effect this, each annually makes a report and presents its accounts to the Postmaster-General for presentation to Parliament, providing an opportunity to debate both policy and performance. Not only are the corporations and the council creations of Parliament and servants of the public, they are also employing public resources which Parliament makes available. It is easy to recognise this character in licence fees which Parliament sets. But the same is just as true ultimately of advertising revenues which are earned by selling broadcasting time over scarce frequencies obtained by licence from the Postmaster-General, Indeed, the frequencies are themselves the subject of international negotiation. The corporations and the council have a plain duty to exercise responsibility in making the optimum use of these public revenues in serving the public interest.

BROADCASTING COUNCIL OF NEW ZEALAND—The creation of the Broadcasting Council makes explicit two general principles which have guided the thinking on reorganisation, responsibility and economy. New Zealand is too small a country, broadcasting revenues are too slim for all the needed developments, and the public interest in the efficient use of those revenues for extending the networks is too great, to permit any unnecessary duplication or waste of assets. Therefore all the services which can be rendered efficiently in common, and which do not in themselves affect the independent policy-setting and operations of the programme-producing corporations, are rendered by a joint body, the Broadcasting Council.

Because the common services are vital to all the corporations and connect with their policies and operations at many points, each of the corporations needs to be a part of the body which decides on the design, costing, and running of the common services. So the chairmen of all the corporations are ex-officio full members of the council. They also have with them their directors-general to put the operating viewpoints. The chairman and deputy chairman come from the three appointed members of the council of six persons.

The main functions of the Broadcasting Council are to encourage and promote the efficient carrying on and development by the operating corporations of broadcasting services; to transmit programmes received from corporation studios; to ensure that as far as possible there is no simultaneous scheduling of like programmes, New Zealand programmes, news bulletins, and current affairs programmes broadcast by TV-1 and TV-2; to publish the New Zealand Listener; to be the owner of all land used by the corporations and make use of it available to them; to advise the Government as to the rates of licence fees, to receive the proceeds of the fees, and to distribute those proceeds among the council and the corporations; and to represent New Zealand's broadcasting interests at international broadcasting conferences.

The New Zealand Symphony Orchestra is under the control of the council, which may delegate the management of it to Radio New Zealand as agent of the council.

The general powers of the council include the establishment, operation, and maintenance of transmitters and micro-wave links; the erection of buildings and structures for use in connection with broadcasting, the acquisition and disposal of land and buildings and personal property; the holding of shares in companies carrying on or intending to carry on broadcasting or the provision of programmes; the purchase of overseas programmes, and of rights to broadcast sporting events, on behalf of TV-1 and TV-2; and the promotion of policies and standards of training for broadcasting. It also conducts technical and audience surveys and makes the results available to the corporations.

The council may also make rules regarding programme and technical matters which are applicable to both public and private stations.

RADIO—Radio New Zealand provides programmes for 52 medium wave broadcasting stations, and 2 short-wave transmitters of the External Services Division, the latter having 20 assigned frequencies. Of the 52 medium-wave stations, 33 broadcast advertising material. No advertising is broadcast on Sundays, Christmas Day, or Good Friday. Twenty-one stations maintain a daily 24-hour service, apart from shutdowns once a month, between the hours of 11.15 p.m. and 5.30 a.m. The shutdowns are staggered to give the minimum loss of coverage to listeners.

Coverage of Short-wave Service—The External Services Division of Radio New Zealand broadcasts the home-service programme daily to the Pacific on two frequencies from 6 a.m. to 7 p.m. and a special evening programme from 7 p.m. to 10 p.m. on one frequency. Included in these evening transmissions are programmes on life and opinion in New Zealand presented in both English and Island vernaculars. A special evening programme is broadcast to Australia from 7.30 p.m. to 10 p.m. on one frequency. The broadcast services to the Pacific are supplemented by a weekly delivery to the Pacific Islands of taped news, current affairs talks, and comment.

In addition to its radio audience throughout the Pacific, the short-wave service has listeners as far away as Europe, the United States, Canada, South America, and Japan.

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 national 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. Decentralisation of administration enables local radio stations to be highly responsive to the communities they serve.

Broadcasts to Schools—Programmes are designed to aid teachers in meeting syllabus requirements particularly in the fields of science, social studies, music, and language. Nineteen programmes a week are broadcast to children ranging from 4 to 13 years. The most popular programmes, music, current events, and dramatised stories for infants, are heard by audiences of between 100,000 and 150,000 children. New developments to assist teachers in primary schools include language for new immigrants and Maori culture. Programmes are also broadcast by the Correspondence Schools.

Private Broadcasting Stations (Non-commercial)—One private non-commercial station operated by the Otago Radio Association Incorporated has been issued with a warrant and has been broadcasting since 1922. This station, located in Dunedin, operates from 1800 to 2230 hours on Wednesdays, Thursdays, and Saturdays and, on Sundays, from 0900 to 1200 and from 1800 to 2230 hours.

Private Broadcasting Stations (Commercial)—The first warrants for private commercial broadcasting stations were issued on 30 June 1970 to Radio Hauraki and Radio i, both located in Auckland, and transmissions commenced on 26 September 1970 and 31 October 1970 respectively. Radio Waikato was issued with a warrant on 31 July 1970 and commenced transmission on 2 November 1970, followed by Radio Whakatane with a warrant dated 24 November 1970, commencing transmission on 30 June 1971 and Radio Otago with a warrant dated 8 June 1971, coming into operation on 20 November 1971. Later warrants enabled Radio Avon in Christchurch and Radio Windy in Wellington to commence operations late in 1973. Advertisements are not permitted to be broadcast on Sundays, Christmas Day, or Good Friday. If Anzac Day falls on other than a Sunday, advertisements are not permitted before 1300 hours. The Broadcasting Act 1973 prohibits the issue of any further warrants.

Federation of Independent Commercial Broadcasters—In 1970, holders of warrants for private commercial radio stations formed a federation which was subsequently approved by the Broadcasting Authority in August 1971. The general objects of the federation are to conserve the rights and interests of the members in broadcasting.

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 in Dunedin in 1962.

In October 1969 the Minister of Broadcasting directed the Broadcasting Authority to carry out an inquiry into the extension of television services. Following extensive hearings in 1970, the authority recommended that the existing TV services be converted to colour transmission (using the PAL system). Colour telecasts began in a limited way in October 1973, and conversion of the remaining transmission equipment was completed by March 1975. At the end of 1975, less than 20 percent of households had colour TV sets.

Extension to Coverage—Television coverage has been steadily extended to all areas of New Zealand.

By October 1975, the first television programme (TV-1), was being disseminated by six 100 kW transmitters, one 50 kW, 12 of from 1 to 10 kW, and 130 installations of less than 1 kW. These transmitters cover some 96 percent of the population.

Some 210 small units are operated by private individuals or societies, the latter receiving financial assistance from the Broadcasting Council of New Zealand. These small transmitters cover approximately 4 percent of the population.

Transmission of the second television programme (TV-2) began from 33 kW transmitters at Auckland and Christchurch on 30 June 1975. The 100 kW transmitter for Waikato and Bay of Plenty was commissioned on 1 September. TV-2 transmitters serving Wellington, came into service in late November 1975 and transmitters from Manawatu, Coastal Otago and Southland during the first half of 1976.

Second programme transmitters for other areas will be provided progressively until identical coverage is achieved for both programmes.

Over 85 percent of homes in New Zealand are equipped with television sets.

Television Programmes—Television One, with headquarters at the Avalon Centre, Lower Hutt, operates a national network in colour for 86 hours per week. Five days are commercial and Mondays and Sundays are non-commercial.

The corporation has production studios in Dunedin and also produces a weekly entertainment programme out of Auckland. TV-1 has two colour outside broadcast units, stationed at Wellington and Dunedin, and two monochrome units. These are deployed for live coverage of sport, and programme production from towns and cities in both islands.

Television Two opened in Auckland and Christchurch on 30 June 1975. Unlike TV-1, which took over the existing NZBC network on 1 April|| 1975, it is still in the early stages of its transmission development. On 1 September 1975 it increased its coverage when it opened in the Waikato and Bay of Plenty, and it has since extended its service to the Wellington, Manawatu, coastal Otago, and Southland districts, reaching approximately 70 percent of the population. By 1980 TV-2 should operate a full network.

The channel transmits in colour for approximately 74 hours each week, and the two non-commercial days are Friday and Sunday.

Production is centred in the corporation studios in Auckland and Christchurch. Auckland has three studios and Christchurch two. In addition, Christchurch has the use of the converted Civic Theatre (now known as the Teletheatre) for a variety of productions. Auckland and Christchurch are each served by colour outside-broadcast vans.

Under the rules of the Broadcasting Council of New Zealand, both corporations are required to have a local content of not less than 30 percent, but each has the objective of increasing this proportion substantially as circumstances permit.

Local content includes drama, news and current affairs, light entertainment, religion, service programmes, and sport. The balance is made up of programmes purchased from overseas, mainly the United Kingdom, the United States, and Australia.

The use of satellite links permits same day presentation of world news items and live telecast of significant overseas events.

NEW ZEALAND SYMPHONY ORCHESTRA—The New Zealand Symphony Orchestra was formed in 1946 as the National Orchestra and adopted its present title in 1975. It 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 resident soloists and New Zealand choirs appear regularly with the orchestra. As a national orchestra, its tour programme is one of the most extensive in the world, involving some 15,000 miles of internal travel annually. The playing strength is approximately 85 players, which enables the orchestra to undertake the complete symphonic repertoire.

In 1974 the orchestra undertook its first overseas tour to three Australian cities, and further tours are planned. During 1975 a total of 89 orchestral concerts was presented, as well as several studio recordings for broadcast. The orchestra has so far made only three commercial recordings, but others are in prospect. Since its inception, the orchestra has paid significant attention to the work of New Zealand composers.

NEW ZEALAND LISTENER—Programmes and advance information for national 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 is now about 220,000. 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 discussions on important issues.

FINANCES—There have been two principal sources of revenue: licence fees and radio and television advertising. While licence fee revenue was credited to the accounts of the non-commercial stations and sales revenue to those of the commercial stations, a common fund was 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.

Item1970-711971-721972-731973-741974-75
 $(thousand)
Radio-licence fees2,1401,161---
TV-licence fees8,62510,81214,19614,90217,927
Radio advertising6,4787,1077,7169,28710,196
TV advertising9,2989,90410,22811,24114,120
Totals26,54128,98432,14235,43042,243

LICENCES—As from 1 October 1971 the radio licence, which stood at $3 a year, was abolished and the monochrome television licence raised from $13 a year to $20. A colour television licence fee of $35 was introduced on 1 November 1973. On 1 January 1975 licence fees were increased to $27.50 (monochrome) and $45 (colour).

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 MarchAucklandWellingtonChristchurchDunedinTotalNumber of Sets Covered by Hirers' Licences*

*Included in preceding figures.

†Includes 15,331 colour sets in 1974 and 66,696 in 1975.

1970256,962209,00197,40264,160627,61791,697
1971272,474217,879105,62068,445664,44091,679
1972294,361224,785107,01069,996696,192100,442
1973311,747234,325113,25972,878732,250118,235
1974263,271203,267101,87662,757631,171123,452
1975272,730209,150108,82864,494790,599135,397

12 C—NEWSPAPERS, LIBRARIES AND CINEMAS

NEWSPAPERS—There are eight daily newspapers in the four main metropolitan areas with a total circulation of approximately 718,000. In the smaller cities and provincial towns there are 27 daily newspapers with a total circulation of 254,000. Five Sunday papers have a combined circulation of over 370,000.

When circulation figures for daily newspapers are related to population figures, it is found that New Zealand has 376 copies per 1,000 inhabitants. The latest comparative figures for other countries include United Kingdom, 528; Australia, 408; Canada, 230; United States, 297; U.S.S.R., 347; Sweden, 534; Norway, 390; Denmark, 361; and France, 237. (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.

However, New Zealand still has a relatively large number of small local papers published daily, weekly, or two, three, or four times a week which, by offering a detailed coverage of local news, are complementary to the newspapers published in the main centres rather than in competition with them.

The total number of magazines, reviews, journals, and periodicals printed (but not necessarily all sold) in 1972-73 was 97,317,000 compared with 103,497,000 in 1971-72.

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
1970-711971-721972-731970-711971-721972-73
 $(000)
Newspapers, daily33,74035,32739,1509,74711,69212,925
Newspapers, other than daily3,6574,4594,8684,2124,3065,015
Magazines, journals, and periodicals2,0882,3882,5932,6182,6753,507

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.

The National Library is responsible for maintaining and developing a central reference and lending collection, and for making its resources available to other libraries. On 31 March 1975 this collection comprised nearly 380,000 volumes together with 56,000 volumes of 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 1,000,000 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 receives regularly copies of all New Zealand newspapers and about 1,700 New Zealand periodicals. Back files of both are very extensive. It also has one of the largest collections in the country of 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 380,000 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 160,309 books, together with many thousands of manuscripts, totalling 688 metres; 21,822 paintings, of which 9,520 are originals; 15,000 maps; an extensive photograph collection; and over 7,000 reels of microfilm. 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 special concern to Turnbull himself, is of particular importance. There are about 10,000 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 250,000 pieces during the past 20 years.

The Alexander Turnbull Library is responsible for the compilation of the current and retrospective New Zealand National Bibliography.

Extension Division—This division has two parts:

(a) Country Library Service—The Country Library Service, founded in 1938, has been extended through regional centres 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 centres 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 1974 included the following: free libraries, 155; county libraries and groups, 772; Ministry of Works, Electricity Department, and New Zealand Forest Service camps, and lighthouses, 195; psychiatric and general hospitals and prisons and borstal institutions, 68. The number of books lent to these libraries totalled 439,147 and 124,934 books were lent on request and in loan collections during the year. An additional 26,864 books were lent on request from other divisions of the National Library.

(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 1975 totalled 2,517,868.

General exchanges of books for recreational reading are made by 13 district centres 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 1975, books in exchanges and repository loans totalled 931,919 and 1,151,027 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 689 students had successfully completed the course by the end of 1974 and in 1975 there were 39 New Zealand students. 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, 1974—The 5-yearly census of libraries for the year ended 31 March 1974 covered a total of 1,703 libraries, including 268 public libraries (of which 77 were suburban branches), 34 tertiary education libraries, 1,067 school libraries, the National Library, 98 libraries of learned societies and major commercial interests, and 76 libraries of government departments and associated organisations.

Tertiary education libraries comprised the libraries of the 6 universities and 3 libraries closely associated with them; libraries of 9 teachers' training colleges; 1 agricultural college library; 6 libraries of theological colleges; and 9 libraries of technical institutes. Book stocks increased by 50 percent in tertiary establishments between 1969 and 1974.

In the period 1969 to 1974, public library membership increased by 21 percent and circulation by almost 17 percent—a sign of renewed interest in the library services despite a marked increase in the sale of television sets in the same period. In the public libraries there were 4.48 books to each member and, on average, these books circulated 4.79 times annually. The numbers of public library staff remained almost constant between censuses but the numbers holding library qualifications rose by 39 percent.

School libraries were last surveyed in 1938 when a total of 114 district high and secondary schools were included. The average number of books per user was 7. In 1974, 360 district high and secondary schools were surveyed and the average number of books was 10 per user. The book stocks available increased by 51 percent. Primary (581) and intermediate (126) schools were also surveyed and library stocks surveyed for all schools included tapes, cassettes, gramophone records, films, and film strips as well as books.

A new survey held in 1974 was a census of bookshop or commercial libraries which numbered 159. Book stock numbered 487,365 and membership was 43,833—an average of 11 books a member. Of these libraries, 109 were in the North Island and only 50 in the South Island.

The following tables summarise the results of the 1974 Census. Full details containing the data have been published in a separate report prepared by the Department of Statistics.

SPECIALIST LIBRARIES

Class of LibraryBook Stock at 31 March 1974Circulation During Year ended 31 March 1974
Number of LibrariesBooksPeriodicalsTotalItems lent outside LibraryItems lent to other LibrariesItems borrowed from other Libraries

*Excludes armed forces and penal institutions which are included under public libraries.

 (thousand)
National Library14,0262194,2452,761183
Libraries in Universities, etc.342,1396042,7431,5382633
Other Libraries—       
  Learned Societies and commercial interests987224431,165171813
  Government departments and associated organisations76*4759121,3871772929
Totals2097,3622,1789,5404,6478178

PUBLIC LIBRARIES—BOOK STOCK AT 31 MARCH 1974

Class of LibraryNumber of Library SystemsOwn StockTotalFor Reference Only (Included in own Stock)Country Library Service Stock
AdultJunior
RentalFree FictionFree non-FictionFiction and non-fictionAdultJunior

*Incorporates 15 Christchurch suburban libraries.

†191 library systems covering 268 libraries.

In centres with an estimated population served of—(thousand)
50,000 and over9*3223471,2245052,39974132
20,000-49,9991824311335421692736358
10,000-19,000331098917916254065916
5,000-9,999359972969636252911
3,000-4,99925622328321451207
Under 3,00045924620221791277
  Sub-Total1659286891,9021,0334,55312318350
Armed forces and penal institutions261861253107181
Grand totals1919467501,9271,0374,66012419152

PUBLIC LIBRARIES—BOOKS: CIRCULATION AND USE

Public LibraryNumber of LibrariesIssues from Own StockIssues from Country Library Service StockInter-library Loans
Adult    Lent to Other LibrariesBorrowed from Other Libraries
RentalFree FictionFree Non-fictionPeriodicalsJuniorTotalAdultJunior

*Incorporates 15 Christchurch suburban libraries.

†191 library systems covering 268 libraries.

In centres with an estimated population served of—(thousand)
50,000 and over9*5,0022,0671,0381581,98710,25211-310
20,000-49,999182,1827439461601,4755,5061083913
10,000-19,000331,0086566531021,0693,4882066024
5,000-9,99935607333354655611,9201194618
3,000-4,999252511091017159627842416
Under 3,00045213703029340855237
  Sub-total1659,2633,9793,1224935,34422,201583192478
Armed forces and institutions26415622112132937
Grand totals1919,3034,0353,1444945,35622,333593195486

NOTE: Because of rounding, totals in the previous two 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, SPECIAL AND SCHOOL LIBRARIES

CountryPopulation in year of Library Census (million)YearType of dataLibrary Category
NationalUniversitySpecialSchool

*In 1961.

†Federal Government only, in 1965.

New Zealand3.01974Libraries1341741,067
   Volumes (000)4,2452,7432,5524,829
Australia11.61966Libraries115....
   Volumes (000)1,0004,241....
Canada21.81971Libraries1269580*3,271
   Volumes (000)20128,4185,61312,513
South Africa22.91968Libraries347244..
   Volumes (000)........
United Kingdom53.71963Libraries34781,177..
   Volumes (000)11,00027,68814,850..
United States208.81971Libraries32,535354..
   Volumes (000)23,603371,38926,794..

PUBLIC LIBRARIES

CountryPopulation in year of Library Census (million)YearNumber of LibrariesBook Stock Number of VolumesBorrowersCirculation Number of Volumes

*191 systems covering 268 libraries.

†519 systems covering 660 libraries.

‡Public library systems with over 400,000 service points including school libraries (18,199), hospital and prison libraries, but not including 327 book mobiles or 131 gramophone record libraries.

    (000)(000)(000)
New Zealand3.01974191*4,6601,03221,839
Australia11.619665229,5471,888 
Canada21.8197173226,160 62,162
South Africa22.91968519 1,2756,450
United Kingdom53.7196356277,200  
United States208.8196850,479191,079 421,236

CINEMAS—Statistics relating to cinemas are normally collected every alternate year. The survey of cinemas for the year ended 31 March 1973 covered 208 theatres, compared with 210 in 1971.

The extensive development of television since 1961 has influenced cinema patronage. Cinema attendances during the year 1972-73 were 1.2 million fewer than when the previous survey was made in 1970-71. The average annual number of admissions per head of mean population fell from 4.6 in 1970-71 to 4.0 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)¢No.
1939-4057431,1714,02012.919.1
1944-4555135,4205,17614.621.3
1949-5060036,3535,58015.319.3
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
1970-7121013,0877,82859.84.6
1972-7320811,8709,85583.04.0

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 1970-71 were 12.3, 2.8, and 2.0 respectively.

Item1968-691970-711972-73
Cinemas—   
  Screenings 6 days per week130120134
  Screening odd days per week938974
  Circuit41..
Totals227210208
Cinemas according to seating accommodation—   
  Other than circuits—   
  Under 200171016
  200 and under 500677668
  500 and under 1,000115103105
  1,000 and over242019
  Circuit cinemas41..
Totals227210208
Seating accommodation (all cinemas) No.143,428129,434126,185
Average seating capacity per cinema No.632616607
Persons engaged—   
  Full time—   
  Males No.360261227
  Females No.333190226
  Part time—   
  Males No.422425405
  Females No.697664784
Performances per year No.94,08689,69094,948
Average attendance per performance No.152146125

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.

Item1968-691970-711972-73

*Includes drawings of working proprietors.

†In 1972-73 other receipts included a large increase in revenue from sales of confectionery and beverages not recorded in the two previous surveys.

Revenue—$(000)
  Admission receipts (including amusement tax)6,6147,8289,855
  Screen advertising137337362
  Other receipts5645021,294
Totals7,3158,66711,511
Expenditure—   
  Salaries and wages*1,7321,8882,452
  Film hire2,1882,6403,212
  Advertising5562,8283,681
  Amusement tax 
  Rent339
  Repairs and maintenance343
  Depreciation91
  Other expenses1,402
Totals6,6507,3569,345

Classification by Statistical Areas—In the following table, cinemas have been classified by statistical areas; further information has been withheld in order to avoid disclosure of confidential information. The average attendance per performance in 1972-73 fell in all areas.

Statistical AreaPopulation Estimate at 1 April 1973CinemasSeating AccommodationAverage Admission ChargeAdmissions Per Head of PopulationPerformances For YearAverage Attendance per PerformanceAverage Seating Capacity per Hall
 (000)No.No. of seats¢No.No.No.No.
Northland97.494,38367.33.12,922102487
Central Auckland747.34228,20588.14.726,066135678
South Auckland-Bay of Plenty442.44120,42371.23.613,832115498
East Coast47.843,02583.24.22,33587756
Hawke's Bay138.364,12584.03.13,604120688
Taranaki101.995,20577.23.63,553103578
Wellington570.03626,64085.14.419,251129740
Marlborough32.731,41975.33.01,08690473
Nelson70.063,86876.43.22,208102645
Westland22.552,36076.43.292778472
Canterbury412.42714.68685.93.710,530146544
Otago183.0137,15184.03.85,587125550
Southland108.974,69580.43.13,047112671
Totals2,974.7208126,18583.04.094,948125607

Classification by Urban Areas—Statistics for the principal urban areas are as follows. Further information has been withheld in order to avoid disclosure of confidential information.

Urban AreaPopulation Estimate at 1 Apr 1973CinemasSeating AccommodationAdmissions per SeatAverage Admission ChargeAdmissions per Head of PopulationPerformances per YearAverage Attendance per PerformanceAverage Number of Seats Available per PerformanceEstimated Proportion of Hall Capacity Filled per Performance
 (000)No.No. of seatsNo.¢No.No.No.No.percent
Northern Auckland6983626,65512988.84.924,85213983916.6
Western Auckland
Central Auckland
Southern Auckland
Upper Hutt Valley3191815,52511287.15.411,52515093116.1
Lower Hutt Valley
Porirua Basin Wellington
Christchurch286138,99514288.54.57,98516180819.9
Dunedin11274,85912486.45.34,73512768618.5
Totals1,4167456,03412688.15.049,09714484117.1

Classification of Cinemas—The following table shows further statistics of cinemas classified by the number of screening days weekly. Data on the one circuit operator have had to be amalgamated to avoid disclosure of confidential information.

ScreeningCinemasSeating AccommodationPaid AdmissionsAverage Admission ChargeAdmission TakingsFilm HireFilm Hire as a Proportion of Admission Takings
 No.No. of seats(000)¢$(000)$(000)percent
Six and 7 days per week13499,55711,00285.09,3523,07832.9
Fewer than 6 days per week7426,62886857.950213426.6
Totals208126,18511,87083.09,8553,21232.6
ScreeningPersons EngagedPerformances for the YearAverage Number of paid Admissions per PerformanceAverage Number of Seats Available per PerformanceEstimated Proportion of Hall Capacity Filled per Performance
Full TimePart Time
MaleFemaleMaleFemale
 No.No.No.No.No.No.No.percent
Six and 7 days per week24322734772283,35513280716.4
Fewer than 6 days per week4481238711,5937544217.0
Totals28723547080994,94812576316.4

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
Australia196638.03.0
Canada197092.34.3
Denmark197220.74.1
France1972184.73.6
Germany, West1972149.82.4
Israel197232.110.1
Italy1972555.410.1
Japan1972187.01.7
New Zealand197211.94.0
Norway197118.94.8
Russia (U.S.S.R.)19724,569.018.5
Spain1972293.18.5
Sweden197222.92.8
Switzerland197229.04.5
United Kingdom1972156.62.8
United States1970920.65.0
Yugoslavia197283.54.0

Chapter 14. Section 13 PATTERN OF DEVELOPMENT AND LAND USE

13 A—PHYSICAL ENVIRONMENT AND ECONOMIC GROWTH

GENERAL—Planning for economic development and growth is the concern of a wide range of sectors, including agriculture, manufacturing, transport, forestry, building, mineral development, and energy production. Economic development in New Zealand is at present undergoing complex structural change with the rapidly growing manufacturing sector of increasing importance. This has led to an increased demand for land, both for industry and the associated urban development, a demand increasingly in conflict with agricultural use. Within the urban areas themselves, competing demands for industrial, commercial, residential and recreational land have arisen as proponents of each particular use have sought their most suitable available location. Left unchecked, these conflicts of interest could lead to unsatisfactory and uneconomic patterns of development. This has necessitated a planning framework within which competing demands can be resolved.

In recent years, world opinion has had forced upon it an appreciation of the damage to the environment, in the form of pollution and the destruction of natural resources, that can result from uncontrolled economic development. New Zealand, during the early years of the last century, suffered what is now recognised to have been irreparable damage from the destruction of native forests and wildlife. However, during the last decade New Zealand has taken warning from the unfortunate experiences of some more highly developed countries. Concern for possible future effects of economic growth on the environment led to the holding of the Physical Environment Conference in May 1970 and has resulted in the enacting of what is, by world standards, advanced environmental legislation.

LAND USE—With almost 27 million hectares of land and a population of just over 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. Maori settlement brought significant ecological changes, largely through fires and hunting. The impact of European settlement was much greater, measured by the large areas of indigenous forest cover destroyed, the extensive native grasslands burnt for sheep grazing and ploughed for crops and sown pasture, the wetlands drained and reclaimed, the unsightly tailings left after gold mining, the increase in soil erosion and the general loss of wildlife habitats.

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 when the towns within them grew, and it was at the expense of the most productive soils. Later, manufacturing and tertiary industries tended to be located in these towns because of the labour, markets, and services they offered.

Between 1949 and 1964 urbanisation claimed about 15,800 hectares of good farming land, and expansion up to 1984 will require another 30,000 hectares of 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 considered 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 now over 800,000, increasing at 2.5 percent a year, and likely to double in under 30 years. It is not possible to reverse the historical factors that have determined the present population distribution, but a national policy for the protection of the soils potentially most productive may be necessary. In the past, economic growth has been pursued with scant regard for its impact on the environment. Single and immediate use rather than balanced long-term use of resources has been the common practice, and has tended to place the advocates of exploitation and protection in opposing camps.

The problem now is how to combine the economic and social pressures on soil, water, plant, and fauna resources with the maintenance of ecological and aesthetic qualities.

In New Zealand a traditional, and still largely current, attitude 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 provision of extensive national parks and smaller reserves.

Development schemes causing modification of natural features can, in the planning stage, make provision for restraint, restoration, and even the addition of compensating amenities. The rate of development in New Zealand must make this an essential ingredient of planning. But it must be stressed that there will be no more completely unmodified or true wilderness country. Once it is destroyed, wilderness is gone forever. Wilderness is extremely fragile, and soil erosion, degradation of vegetation, and destruction of animal species can come about through any alteration of the environment, even the most innocent access road.

Scientific investigations and research have 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 land-forms, 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. It is essential to retain reference areas from which the changes in soils, plants, and animals resulting from man's activities can be assessed. A whole catchment will usually be the desirable minimum effective area.

Conservation, however, means much more than the preservation of scenic and scientific values. It implies the maintenance without diminution of the basic land resources on which New Zealand's economy and way of life are so largely based. Of these resources the most important are soil, water, and vegetation, the last both natural and induced, and both forests and grasslands. The concept of conserving soil, water, forest, and grassland resources is dynamic rather than static, and embodies the principle of preservation through wise use.

The problems are capable of solution provided there is a sufficient understanding by administrators and by the public of the importance and often the interdependence of the different values involved and of the ecological implications of any decision affecting land use. Conflicts between different demands on the countryside are inevitable, but with adequate planning and management they are mostly capable of resolution. For example, an agriculturally productive landscape can provide such rich and satisfying contacts with the diversity of nature that in many ways the man-made landscape based on agriculture or forestry need be little less interesting and satisfying than the wild one. Likewise, soil conservation practices not only restore vitality and health to the soil but also create pleasing patterns in the landscape.

Conservation thus viewed becomes more than a matter of mere aesthetic preference, and demands a more complex approach than the isolation of a few areas. If this basis is accepted the principles and practice of conservation as management of the total environment must have high priority in any plans for national development.

The total area of New Zealand, excluding the island territories in the Pacific, but including the minor islands, is estimated to be 26,870,000 hectares.

The broad grouping of land use in 1973 is shown in the following table.

Land UseHectares (million)

*Including some areas of State Forest land.

Occupied farm land— 
  Improved grassland8.54
  Tussock and other native grassland used for grazing5.30
Total grassland13.84
  Land in field crops, gardens, and orchards0.39
  Plantations of exotic trees0.59*
  Land in fern, scrub, and second growth5.85*
  Standing bush
  Barren and unproductive land
Total occupied farm land20.67
Land in cities and boroughs0.31
National parks, reserves, and domains2.62
Other land, including waste land such as mountains, bare rock, water surfaces, roads, etc.3.27
Total land26.87

Land can now no longer be considered an abundant resource in New Zealand. Because this is so, there is increasing acceptance that where other compatible uses are feasible, it is not necessarily sound policy to devote land to a single or restricted use. However, the need is also becoming recognised to identify the dominant purpose for which land is most suited, so that the pressure for comprehensive land use does not negate the principle that land should be used basically for its most suitable purpose with other uses being encouraged only to the extent that they are compatible.

Land Use Advisory Council—The Land Use Advisory Council was established in 1972 with the task of developing criteria on which sound land use decisions can be made; and its order of reference requires it to have regard to physical, ecological, economic, social, environmental, and other relevant factors, and to determine means by which these factors may be more precisely defined.

The council includes departmental, farming, economic, scientific, and geographic interests, and although its decisions are primarily intended to guide the use of lands of the Crown, it is hoped that the criteria it lays down will be of assistance to all who are required to make land use decisions.

The Council has concerned itself with urban sprawl and its effect on rural land, the problems of the 10-acre subdivision, the protection of prime agricultural and horticultural land, the availability of basic land resource data for planning purposes, and the measures adopted by the Government for determining the use of its land. The experiences of a number of overseas countries in the land planning development, use and management fields have been studied and research activities in New Zealand have been noted. Consideration has been given to the various legitimate uses of the nation's land, including such non-producing use (in terms of food or goods) as recreation, soil conservation and water management, the preservation of wildlife, and historic and ecological management; and some thought has gone into the means for determining which use shall take priority in the event of there being two strong competing claims.

Too often land use has been determined on the basis of expediency, tradition, short-term economic considerations and other factors often unrelated to the real concerns of a sound national land use policy. Too often also, sufficient recognition has not been given to the need for preserving and enhancing the environment and for maintaining the conditions capable of supporting a quality of life, while providing the material means necessary to improve the national standard of living. New Zealand's economy and way of life are so largely based on the use of land that the maintenance of this resource must be a matter of national concern.

Land Inventory—The Department of Lands and Survey is building up a land inventory. The object of the inventory is to identify land tenure, land use, and land cover; and for other contributing agencies to produce more detailed data relating to other basic issues such as soils and geology as will enable a more realistic appraisal of the resources of an area to be achieved. The existence of this data should enable both local and national Government to plan with greater confidence.

The regular coverage of aerial photography by the Department of Lands and Survey provides a useful monitoring tool for changes in land use. New Zealand is hoping to participate in the Earth Resources satellite programme both as a monitor and a means of upgrading mapping data on small scales. The 5-yearly 1:100,000 urban flying programme will also assist local authorities to keep abreast of developments.

FRAMEWORK FOR PLANNING—Legislation for maintaining a balance between economic growth and the pattern of land use is contained in a number of enactments administered by various agencies.

Planning Legislation—The Physical Environment Conference in May 1970 concluded that the town and country planning legislation affords greater opportunities of control over the pattern of land use and development. 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 and Development who may delegate his authority to the Commissioner of Works.

Regional Planning—Regional planning authorities may be established under the Act and consist of representatives of the several councils whose districts are wholly or partly within the region. These authorities are now operating in the four main centres and in Northland and Hamilton.

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.

Considerable work has been undertaken on natural and regional planning policies by the Ministry of Works and Development in association with the Department of Trade and Industry and the Treasury.

During 1974-75 the Government endorsed as the objectives of its regional development strategy:

  1. To achieve a more even distribution of development having regard for regional aspirations;

  2. To foster an appropriate level of development in regional areas with a rate of growth substantially below the national average, especially where this results in adverse social and economic effects.

  3. To consider alternatives to the growth of the Auckland and Wellington metropolitan areas in order to reduce the adverse social and economic effects of large-scale migration to those areas and to enable growth to be spread to other regions;

  4. To enhance the quality of life in both urban and rural areas by increasing opportunities for employment, and improving housing, educational, social, cultural, and recreational amenities; and

  5. To improve the quality of urban development, particularly in areas of major population growth.

The Government has established a small committee to examine the regional development implications of major investment programmes and to work out in more detail measures to achieve these objectives.

Examples of areas or projects in which a substantial increase in Government investment and activity has demanded more co-ordinated planning on a regional scale are the Maui project in Taranaki and the Clutha Valley power scheme.

District Planning—Every district scheme under the Act 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. More than 90 percent of the population are living in areas where councils have brought down recommended, proposed, or operative district schemes.

National Planning—The Town and Country Planning Act Review Committee, in its report of September 1973, noted that the legislation made no reference to planning at the national level, and recommended that the revised legislation should ensure that national policies are taken into account at all levels of planning.

In November 1973, the Town and Country Planning Act was amended as follows, to give effect to this:

"2B. The following matters are declared to be of national importance and shall be recognised and provided for in the preparation, implementation and administration of regional and district schemes:

  1. The preservation of the natural character of the coastal environment and of the margins of lakes and rivers and the protection of them from unnecessary subdivision and development;

  2. The avoidance of encroachment of urban development on, and the protection of land having a high actual or potential value for the production of food: and

  3. The prevention of sporadic urban subdivision and development in rural areas."

National planning for the preservation of the natural character of the coastal environment and of the margins of lakes and rivers and the protection of them from unnecessary subdivision and development involves the Department of Lands and Survey and the Ministry of Works and Development. Since 1966 the Department of Lands and Survey has been involved in coastal reserves acquisition which has increased with development of the coastal reserves surveys. These are carried out on a county basis and classify areas on the basis of their importance into areas of national, regional, or local significance. The Coastal Review Committee, which includes both departments, makes the final decision as to the selection and financial responsibility for particular reserves. In April 1973 the Government approved the terms of a national policy on coastal land as follows:

  1. Recognition that coastal land is a resource of national importance but of fixed quantity justifying firstly, central as well as local government interest in how it is used; secondly, Central Government intervention when it is being misused; and thirdly, provision by Central Government of professional planning advice and funds for reserves;

  2. Provision of as wide a variety of active and passive recreational opportunity and experience as the coast is able to offer now and in the future including a wide range of types of recreational reserves and holiday accommodation;

  3. Retention in sufficient quantity of the native coastal flora and fauna in its natural state as well as the unique and the typical in coastal scenery;

  4. Establishment of a pattern of future land use which clearly defines the land needed for urban development in the next two decades and the land that should never be used for urban purposes;

  5. Ensuring that any development of coastal land for urban and holiday purposes is in sympathy with the landscape and makes the most of each site's natural characteristics;

  6. Recognition that the stability of a large proportion of coastal land depends on the efficiency o sand dune fixation and that unstable dune areas should not be subjected to a high level of recreational use.

The second matter of national importance in town planning is the avoidance of encroachment of urban development on, and the protection of, land having a high actual or potential value for the production of food. It has been estimated that about 9 percent of New Zealand's total land area, 2.4 million hectares, is suitable for arable farming and of this, 800,000 hectares comprise soils capable of sustaining a high production of a wide range of crops. In 1972 cities, boroughs, town districts, and county towns covered an area of approximately 288,000 hectares, of which 165,000 hectares were in actual urban use. As has been noted above, most of New Zealand's towns are in areas of productive soils.

District Planning—Every district scheme under the Act 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. More than 90 percent of the population are living in areas where councils have brought down recommended, proposed, or operative district schemes.

National Planning—The Town and Country Planning Act Review Committee, in its report of September 1973, noted that the legislation made no reference to planning at the national level, and recommended that the revised legislation should ensure that national policies are taken into account at all levels of planning.

In November 1973, the Town and Country Planning Act was amended as follows, to give effect to this:

"2B. The following matters are declared to be of national importance and shall be recognised and provided for in the preparation, implementation and administration of regional and district schemes:

  1. The preservation of the natural character of the coastal environment and of the margins of lakes and rivers and the protection of them from unnecessary subdivision and development;

  2. The avoidance of encroachment of urban development on, and the protection of land having a high actual or potential value for the production of food; and

  3. The prevention of sporadic urban subdivision and development in rural areas."

National planning for the preservation of the natural character of the coastal environment and of the margins of lakes and rivers and the protection of them from unnecessary subdivision and development involves the Department of Lands and Survey and the Ministry of Works and Development. Since 1966 the Department of Lands and Survey has been involved in coastal reserves acquisition which has increased with development of the coastal reserves surveys. These are carried out on a county basis and classify areas on the basis of their importance into areas of national, regional, or local significance. The Coastal Review Committee, which includes both departments, makes the final decision as to the selection and financial responsibility for particular reserves. In April 1973 the Government approved the terms of a national policy on coastal land as follows:

  1. Recognition that coastal land is a resource of national importance but of fixed quantity justifying firstly, central as well as local government interest in how it is used; secondly, Central Government intervention when it is being misused; and thirdly, provision by Central Government of professional planning advice and funds for reserves;

  2. Provision of as wide a variety of active and passive recreational opportunity and experience as the coast is able to offer now and in the future including a wide range of types of recreational reserves and holiday accommodation;

  3. Retention in sufficient quantity of the native coastal flora and fauna in its natural state as well as the unique and the typical in coastal scenery;

  4. Establishment of a pattern of future land use which clearly defines the land needed for urban development in the next two decades and the land that should never be used for urban purposes;

  5. Ensuring that any development of coastal land for urban and holiday purposes is in sympathy with the landscape and makes the most of each site's natural characteristics;

  6. Recognition that the stability of a large proportion of coastal land depends on the efficiency of sand dune fixation and that unstable dune areas should not be subjected to a high level of recreational use.

The second matter of national importance in town planning is the avoidance of encroachment of urban development on, and the protection of, land having a high actual or potential value for the production of food. It has been estimated that about 9 percent of New Zealand's total land area, 2.4 million hectares, is suitable for arable farming and of this, 800,000 hectares comprise soils capable of sustaining a high production of a wide range of crops. In 1972 cities, boroughs, town districts, and county towns covered an area of approximately 288,000 hectares, of which 165,000 hectares were in actual urban use. As has been noted above, most of New Zealand's towns are in areas of productive soils.

In order to avoid the mistakes inherent in haphazard development, the National Parks Authority has for some years been encouraging national park boards to prepare management plans for their respective parks. These plans establish concepts and guidelines for the preservation and use of national parks, and afford the means by which park use and management can be reconciled with the preservation in perpetuity of the park's scenic beauty, and natural and historic features.

The concept of management planning is not confined to national parks. The Department of Lands and Survey is also applying the concept to reserves, domains, and recreation areas of all types. Major management plans and planning reports have been completed for the Waitangi National Trust and for Mount Maunganui, while work of this type continues for the country's two maritime parks, the Far North Coastal Park at Te Paki, and major areas of public recreation such as Lake Taupo, the Wanganui River, the Waitaki Lakes, and Rotorua, etc.

ENVIRONMENTAL AGENCIES—In addition to the Government departments with responsibilities for administering the diversity of legislation for the protection of the physical environment, there are several authorities with responsibilities for the physical and social environment. Some of the more prominent of these are discussed below.

The Commission for the Environment—The ministerial portfolio for the environment and the Commission for the Environment were established in 1972. The Minister's role is to ensure that in all areas of Government activity at least equal attention is given to environmental as to economic or other considerations. To achieve this it is the Minister's responsibility to ensure that the Government has before it the best information available on the environmental aspects of projects and policies under consideration.

The Commission, which is attached to the Prime Minister's Department for administrative purposes, functions as a small investigatory and advisory agency without executive or management responsibility. It undertakes studies for the Minister and makes recommendations. It co-ordinates the activities undertaken by other Government departments with responsibility for environmental issues, and in this capacity aims to assist in the development of policies designed to lead to sound physical and social environmental management.

A major responsibility of the Commission is to audit environmental impact reports. These are written appraisals of the environmental consequences expected from new developments or policies. The Environmental Protection and Enhancement Procedures which have been in force since 1 March 1974 require environmental impact reports for all major projects of the Central Government and for all other projects that need Government approvals or funds. Power stations, harbour reclamations, and forestry developments have been among the projects so far reported on.

The procedures which the Commission administers provide for the critical examination of environmental effects expected from these projects or alternatives to them and include provision for public submissions to the Commission, which produces a written audit of the environmental impact report and the project. The audit is sent to the authority promoting the project and is published before a decision is taken on the proposal.

Aside from its role under the impact reporting procedures, the Commission is also able to draw attention to the need for research and action, in areas where environmental implications might otherwise be overlooked. This brings it closely into contact not only with other Government departments but with statutory bodies and citizen environmental groups. Subjects on which the Commission has worked include noxious animal control, population policy guidelines for New Zealand, and beverage containers. In some of this work the Commission has been closely associated with the Environmental Council.

The Commission for the Environment also services the independent guardian groups established to advise the Government on the ways in which areas of important environmental interest should be safeguarded. Three such groups have been appointed—the Guardians of Lakes Manapouri and Te Anau, the Guardians of the Rotorua Lakes, and the Guardians of Lake Wanaka (for the latter there is statutory authority in the Lake Wanaka Preservation Act). The objective of the guardian policy is to provide greater opportunities for local people to influence developments which could adversely affect significant natural assets. The membership of the groups also includes technical people who are able to make an expert contribution to the guardians' work.

The Environmental Council—The Environmental Council was established in 1970 following the Physical Environment Conference held in May of that year. The Council was originally set up as a sector council of the National Development Council; as a result of the reorganisation of the planning machinery, the council now reports to the Cabinet Committee on Policies and Priorities through the Minister for the Environment.

The constitution of the Council provides for 15 members, including the chairman who is not a serving Government official. Five Government departments are represented—Treasury, Health, New Zealand Forest Service, Works and Development, and Lands and Survey. Three positions are drawn from those with experience in municipal and county local government, and regional planning; the remaining six positions are filled by private citizens with knowledge and experience in environmental matters or appropriate qualifications.

The Council has no executive powers. Its terms of reference are:

  1. To advise the Minister for the Environment on such matters as he may refer to it and on such matters as the Council may raise itself on the state and trend of the environment and on measures to be taken to manage it.

  2. To publish from time to time such information upon environmental problems as the Council considers necessary to serve the public interest.

The main role of the Council is to advise on general matters of policy and principal rather than to examine the environmental consequences of specific projects. It has, however, alluded to specific developments to illustrate its concerns. Examples of the policy issues in which the Council has been involved are the need for national policies on the subdivision of coastal land, the use and management of coastal waters and the seabed, and the use and preservation of wetlands. Currently, the Council is involved in questions relating to the formulation of a population policy and the environmental effects of energy production. It has produced an Urban Objectives Programme which is designed to provide guidelines for use by Central and local government in the planning and development of urban areas.

Nature Conservation Council—The Nature Conservation Council was set up by statute in 1962. It can enquire into the effects of any proposed public or private works in areas of scenic, scientific, or recreational interest, and it makes recommendations to the Government through the Minister of Lands. The Council's concerns include electric power schemes, location of power and telephone lines, roading, harbour reclamations, native forests, mining applications, air and water pollution. recommendations for reserves, and aspects of town and country planning. Although it has access to Government information, it speaks with an independent voice, and is able to make public any of its reports or recommendations.

The Council frequently advises non-Government conservation groups and co-ordinates their views. It also keeps the general public informed through its environmental publications, and through its sponsorship of the National Conservation Week each year.

CONTROL OF MINERAL EXPLOITATION—Mining has in the past left small portions of the landscape so scarred that their visual impact today suggests that mining in general produces only perpetual devastation. In fact most areas where mining has ceased need show no sign that they were ever mined.

To ensure that the land is maintained in a suitable condition, the Minister of Mines is empowered under the Mining Act 1971 to impose whatever conditions he thinks fit on a mining licence, and he may impose or vary these conditions at any time, even after the grant of the licence. Over public reserves and foreshore a condition may be attached in exchanging a prospecting licence for a mining licence that the licensee should provide a contribution towards a community asset.

Problems can occur where mineral exploitation takes place on freehold land. Local authorities have the necessary power to make regulations to control these activities, and they may use this power to maintain the long-term quality of the environment.

RE-AFFORESTATION MEASURES—In recent years the encouragement of afforestation on private land by loans and grants has begun to restore the balance of forests on induced grasslands. In addition the Forest Service has embarked on a large programme of revegetating eroded upland areas in important river catchments and also establishing dual-purpose forests where production of wood may be complementary to the protective nature of forests, for example, in East Cape -Poverty Bay where over 100,000 hectares will be planted over the next 40 years.

The New Zealand Forest Service prepares regional development plans for major timber supply regions throughout New Zealand, covering all forestry sectors. These plans set out the potential of the regions. For those forests under State control the Forest Service prepares regional management plans which describe and prescribe State forest activities in both indigenous and exotic production forests as well as protection forests in the mountains.

From the work of the national forest survey, the ecological survey now being carried out by the Forest Research Institute in the North Island, and the catchment condition and trend surveys carried out by the Protection Forestry Branch of the Forest Research Institute throughout New Zealand, the Forest Service has a good knowledge of the composition of State forests and of most major river catchments in all tenures.

BIOLOGICAL SURVEY—A significant recent development is the arrangement made for a botanist from DSIR to carry out a planned and systematic field biological survey of scenic and allied reserves throughout the country over the next few years. From data sheets and assessments for each reserve a register of protected species and community types can be compiled, with knowledge of their rarity and relative importance. The main requirement will be to document the kinds and quality of habitat in terms of plant cover.

SCIENTIFIC STUDY—About one-fifth of the staff of the Department of Scientific and Industrial Research is engaged on research on physical environment matters including ecological studies of national ks, investigations into beech forest ecosystems, and identification of marine animals and plankton. The department has undertaken bathymetric studies of lakes and the ocean floor around New Zealand. Basic geological, soil, and botanic surveys provide information for the land use surveys which guide urban development.

ENVIRONMENTAL PROTECTION BY INDUSTRY—Statistics of expenditure on environmental protection have been obtained in the annual census of manufacturing industries and are shown in the following table for 1973-74. The expenditure shown below is that incurred directly on processes or operations which are for the benefit or protection of the general public, such as the disposal, eradication, or cleansing of effluents, wastes, poisons, vapours, or similar obnoxious matter; protection from radiation; land stabilisation or beautification; the replacement of overburden; and similar work designed to protect or restore the environment.

Industry GroupExpenditure on Environmental ProtectionPercentage Environmental Expenditure of Net Output
 $(000)percent
Food1,3250.41
Beverages
Tobacco  
Textiles890.05
Footwear, other wearing apparel, and made-up textile goods
Wood and cork products1520.11
Furniture and fixtures
Paper and paper products2,0621.24
Printing, publishing, etc.
Leather and leather products (except footwear and apparel)800.19
Rubber products
Chemicals and chemical products930.13
Petroleum and coal products1250.14
Non-metallic mineral products, n.e.i
Basic metal manufactures6810.37
Metal products
Machinery1880.11
Electrical machinery and appliances
Transport equipment120.01
Miscellaneous products370.05
Totals4,8440.32

PROTECTION OF WATER RESOURCES—New Zealand uses about 400,000,000 gallons of water a day but requires even more to cope with the increasing demands of population and industrial growth.

Industrial use far exceeds domestic use: about 1,400 gallons of water are required to make steel worth $1, and 200 gallons are needed to produce paper worth $1. In order to get the large quantities of water demanded by our present way of life water supplies may need to be reused. Wastes must be so treated and purified before discharge into a river that the diluted effluent conforms to the standard required by water users closer to the river mouth.

The deterioration of the natural quality and the disturbance of the natural pattern of flow of water could limit utilisation for some purposes. To ensure that the quality of natural waters is maintained as a source of supply for human and animal consumption and as wildlife habitats and recreational areas, it is necessary that sedimentation, pollution and eutrophication be minimised. These problems have been particularly noticeable in the Taupo area. Preservation of the quality of water is crucial to the Taupo fishery, and to recreational and scenic values of the lake surroundings. In recent years, large-scale land development and increased population in the Taupo basin have sharply accelerated the rate of eutrophication of the lake. In an effort to reduce the 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.

The National Water and Soil Conservation Authority is a 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 council 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 responsible for putting the authority's policies into action. The allocation of water is the responsibility of the authority and the water boards. Broadly, the authority's functions involve developing and co-ordinating a national policy to ensure that the greatest local and national benefits are obtained from the use of the water.

The Water Resources Council, established in April 1972, is responsible for maintaining the quality of water at a satisfactory level. The council is classifying all rivers and coastal waters throughout New Zealand. These classifications are declarations of the minimum standards of quality at which the water is to be maintained in order to promote the conservation and best use of the water in the public interest.

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 overdrainage.

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 river systems natural lake storage in headwaters helps to control flooding.

Since 1941 with 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. Many schemes have been advanced or are being prepared for more comprehensive soil conservation and water management measures over whole catchments.

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 and Development, counties, and drainage boards. The Soil Conservation and Rivers Control Council seeks to develop complete catchment control schemes where possible, to integrate river control work with water and soil conservation practice on the land area on individual river catchments.

The effective use and control of water depends on the availability of accurate long-term data on water movement. A regional system for collecting comprehensive data was initiated in 1959. The country is divided into 91 regions, based on similarity of slope, rock type, and precipitation. The data is collected and published by the representative catchment and the information is then used when applications for water rights are being considered.

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.

CONTROL OF SOIL EROSION—The changes in vegetation consequent on land development have 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 landowners' 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.

POLLUTION—Public concern for the preservation of the environment and for the recycling and conservation of resources has grown noticeably during recent years. Along with this the awareness of pollutants which affect the enjoyment of both the urban and rural areas has also increased. The problems of water pollution are being tackled by the Water Resources Council and the regional water boards; those of air pollution are being met by the provisions of the Clean Air Act 1972, while many local authorities have introduced bylaws to control noise problems in their areas. Within the territorial sea and harbours the Marine Pollution Act 1974 controls the discharge or dumping of oil or any other substance declared a pollutant.

Pollution of our rivers and lakes can be caused by soil erosion, farm run-off, industrial waste, or municipal sewage. The Water and Soil Conservation Act 1967 provides for the control of waste discharges but other forms of pollution require different approaches such as through changing land use practice. Sewage and farm run-off add nutrients to the water which, in some lakes, slow rivers or sheltered estuaries, has caused the excessive growth of microscopic and larger plants to the detriment of the water quality.

Waste disposal from cities, forestry, and the meat industry are the major contributors to pollution of the land. Urban waste disposal is largely by the sanitary land fill technique and most major cities are establishing tip sites planned to last up to 50 or 100 years several miles from the closest housing areas. Until recently large amounts of wood were left in the forest during logging or dumped near sawmills. Now much of this waste wood is chipped for use in pulp mills either within the country or overseas. Some effort is made to transform the waste from the 35 million livestock slaughtered each year into fertiliser but considerable quantities of it are still buried.

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 DDT on pastures has been banned and in 1973 the restrictions on the use of 2, 4, 5-T tightened in areas where there could be a danger of exposing the public to it.

Several divisions of the Department of Scientific and Industrial Research are concerned with monitoring pollution. The Chemistry Division conducts surveys of mercury contamination of fish and water, arising from geothermal outflows. Nitrate concentration in ground waters, and insecticides in water are measured, and checks are kept on heavy metals in foods. The Oceanographic Institute traced the biological effects of heated water discharges from thermal power stations. The Physics and Engineering laboratory participates in the Earth's Resources Technology Satellite programme. The department also assists such organisations as the Dairy Research Institute, the Meat Industry Research Institute, the Wool Research Organisation, and the Leather and Shoe Research Association, which are industrial research groups all supporting projects to reduce pollution and increase the use of by-products from their industrial processes which have in the past been wasted.

New Zealand's geographical shape and location is favourable to the dispersal of air pollutants. Some areas, such as Christchurch, do suffer from air pollution problems. The Clean Air Act 1972, the first part of which came into effect on 1 April 1973, establishes the principle of air pollution control on industry by the best practicable means. Provision is also made for the establishment of smokeless zones.

The Clean Air Council was established under the Clean Air Act 1972 to advise the Minister of Health on all aspects of air pollution. It advises local authorities on their work under the Act and co-ordinates the work of control authorities and voluntary organisations. It can publish reports from time to time, and is undertaking research work through four committees studying respectively clean air zones and domestic heating, motor vehicles and air pollution, rural pollution, and planning co-ordination.

13 B—CROWN LAND

GENERAL—There are 6 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 2.6 million hectares. The Department of Lands and Survey is also developing 0.69 million hectares of land of which 0.49 million hectares is intended for subdivision and settlement as individual farms.

NATIONAL PARKS AND RESERVES: History—From the founding of the colony, land has been the raw material used in the creation of a basic economic and social structure which forms part of our way of life. Royal Instructions issued to New Zealand's first governor—Captain William Hobson —who reached this country in 1840, included the concept of reserving land for public use and enjoyment. Under various pieces of general and special legislation a progressive policy of preserving and maintaining open natural and recreational areas for the people has been a facet in the land use policy and administration of the Central Government. Natural areas retained at a time when much of the country was relatively unmodified are still available today in the form of National Parks, and scenic and allied types of reserves.

The national park system in New Zealand had its origin in 1887 when Te Heuheu Tukino and other Maori chiefs gifted to the Crown the summits of their sacred mountains of Ruapehu, Ngauruhoe, and Tongariro. The gifted area provided the nucleus of our first national park— Tongariro—which was formally constituted by Act of Parliament in 1894. Special legislation in 1900 established Egmont as our second national park while Fiordland had its beginning in 1905 with the reservation of over 800,000 hectares as a public reserve for "a national park".

General legislation for national parks was incorporated in the Public Reserves, Domains, and National Parks Act 1928, but following World War II, increased interest by a growing population in national parks and outdoor recreation generally, paved the way for one general law governing the administration of all national parks—the National Parks Act 1952.

The 1952 Act established the National Parks Authority as an independent statutory body comprising 11 people representative of both Government and private organisations. Six of them are ex-officio members—the Director-General of Lands (who is Chairman), the Assistant Director-General of Lands (who is deputy Chairman), the Secretary for Internal Affairs, the Director-General of Forests, the General Manager of the Department of Tourist and Publicity, and the General Manager of the Tourist Hotel Corporation. The other five members are appointed by the Minister of Lands for terms of 3 years on the recommendations of the Royal Society of New Zealand, the Royal Forest and Bird Protection Society, and the Federated Mountain Clubs, plus two to represent the 10 National Park Boards. The Authority is serviced by the Department of Lands and Survey.

Each national park is under the control of a National Park Board, chaired by the Commissioner of Crown Lands for the land district most concerned. Boards comprise up to eight other members appointed by the Minister of Lands on the recommendation of the Authority, one of whom is a nominee of the Federated Mountain Clubs and the New Zealand Ski Association where the nature of the park is such that the Authority considers it desirable for mountain climbers and skiers to have representation. Egmont and Tongariro retain historical variations in Board membership. Where the Tourist Hotel Corporation administers land, or controls any tourist facility on land, in or adjacent to a park, an additional member is appointed to the Board by the Minister of Lands on the recommendation of the Minister of Tourism. Salaried rangers in the Public Service are responsible for development, protection, interpretation, and management in each park and their work (chiefly in the area of park protection) is supplemented by the voluntary help of suitable persons appointed by boards as honorary rangers. A voluntary body, "Friends of the Urewera National Park" supports the work of the Urewera National Park Board.

The status of National Park land cannot be changed except by Act of Parliament.

The main pieces of current legislation providing for the setting aside of land for public use, e.g., for the preservation of flora and fauna, scenery preservation, or recreation, are the Land Act 1948, the Municipal Corporations Act 1954, and the Counties Act 1956. The Land Act enables land owned by the Crown, including foreshore areas, to be reserved for any purpose desirable in the public interest, while under the latter two Acts local authorities are charged with ensuring that adequate provision is made for public reserves on subdivision of land.

The current legislation governing the administration, management, and control of scenic, historic and allied reserves, bird sanctuaries, and all other public reserves is the Reserves and Domains Act 1953, which is administered by the Department of Lands and Survey. Once land has been reserved for a specific purpose, the reservation can be changed or revoked only by the Minister of Lands. Scenic, historic and other reserves, domains, and maritime parks are controlled and managed either by boards, by local authorities, or by the Commissioner of Crown Lands for the land district in which the area is located. In some instances, the Department of Lands and Survey also provides the necessary staffing and back-up servicing of some of the boards. A large number of honorary rangers help in the supervision of these reserves

Description—New Zealand's 10 national parks, covering 2,153,654 hectares (or one-thirteenth of the country's land area) of beautiful or unique natural features and scenery, steeped in Maori legend, offer many alternative opportunities for enjoying open air recreation and the contemplation of nature and wildlife. Mountains, glaciers, forests, lakes, rivers, fiords, and beaches offer opportunities for people to tramp, climb, ski, fish, hunt, camp, and picnic. There are pleasant drives for motorists, short nature walks, alpine gardens, visitor centres and, during holiday periods, nature programmes. Accommodation, transport, and other services in or near the parks are provided by park boards, Government agencies, private enterprise, and voluntary organisations. Although the National Parks Act provides for freedom of entry and access by the public, this is subject to conditions and restrictions "necessary for the preservation of the native flora and fauna or for the welfare in general of the Parks". Access to "special areas" constituted under the Act is by permit only, if the circumstances warrant. The Act also requires parks to 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; and that as far as possible, native flora and fauna is preserved and introduced flora and fauna exterminated.

Development permitted by the National Parks Act includes the erection of houses for rangers and park staff, the provision of camping grounds, huts, hostels, accommodation houses and other buildings, ski tours and similar facilities, parking areas, roading and tracks. In "wilderness areas", established in terms of the Act, development is restricted to foot-track access. Authority policy and park management plans provide guidelines and criteria for the extent of acceptable development in national parks.

Virtually all the finance for national parks is provided by the Government but cash donations by private individuals and organisations are encouraged: these earn a $2 for $1 subsidy from the Government.

Of the 10 national parks, the first three listed below are in the North Island and the remainder are in the South Island.

Urewera National Park (199,994 hectares, established in 1954), surrounds the beautiful Lakes Waikaremoana and Waikareiti. As the traditional home of the Tuhoe, "the Children of the Mist", it is rich in Maori history. The park protects the largest remaining area of native forest in the North Island and provides a home for many species of native birds.

Tongariro National Park (70,087 hectares, established in 1894), includes the three active volcanic cones of Ruapehu, Ngauruhoe, and Tongariro. Ruapehu's snowfields are the winter playground of the North Island. Lake Rotopounamu, still free from exotic fish, and Mount Pihanga are two other focal points of the park.

Egmont National Park (33,527 hectares, established in 1900), contains one of the world's most symmetrical mountains, known to the Maoris as "Taranaki", and preserves magnificent scenery and vegetation within a 9 kilometre radius of the summit. Dominating Taranaki province in the west of the North Island, the near perfect cone varies from heavily-forested lower slopes to the bare scoria, rock, snow, and ice at the upper levels.

Abel Tasman National Park (20,085 hectares, established in 1942), with a broken coastline and rich in historical significance, has numerous tidal inlets and beaches of golden sand fronting Tasman Bay. Botanically, the park is unique as its bush-clad slopes show a blending of the natural cover of both the North and South Islands, a phenomenon of nature not found elsewhere in the country.

Nelson Lakes National Park (57,442 hectares, established in 1956), is named after the chief focal points for visitors, the beautiful lakes Rotoiti and Rotoroa. These nestle in rugged mountainous country with extensive beech-forest clad lower slopes. The Mount Robert area, with its magnificent views, provides visitors with winter recreational opportunities on its ski fields.

Arthur's Pass National Park (98,399 hectares, established in 1929), is a rugged and mountainous area straddling the main divide of the Southern Alps. It is an area of high peaks (at least 30 over 1800 metres), snowfields, deep-cut valleys, snow-grass clad ridges, forest-clad hillsides, high waterfalls, wide shingle riverbeds, and rushing torrents, all providing endless scope for physical endeavour or quiet appreciation.

Mount Cook National Park (69,958 hectares, established in 1953) and Westland National Park (88,608 hectares, established in 1960), share a common boundary along the main divide of the Southern Alps. Their magnificent alpine scenery containing almost all of the 27 peaks over 3,050 metres includes New Zealand's highest, the 3,764 metre Mount Cook, known to the Maoris as "Aorangi"—freely translated as "Cloud Piercer". Their attractions are as varied as their altitude, ranging from well known glaciers such as Tasman (at 29 km long one of the longest outside polar regions), Franz Josef, and Fox, to hot springs, placid lakes, and the sub-tropical luxuriance of the rain forests.

Mount Aspiring National Park (287,206 hectares, established in 1964), is a complex of impressive glaciated mountain scenery which includes the headwaters of seven major rivers. The park's distinctive character is enhanced by bush-covered mountainside and pleasant river flats and valleys. Its focal point, often referred to as the Matterhorn of New Zealand, is the 3,036 metre Mount Aspiring, a four ridged peak rising from the Bonar Therma-Volta ice shelf, and the country's highest peak outside Mount Cook National Park.

Fiordland National Park (1,288,348 hectares, established in 1952), is one of the larger national parks in the world, and is renowned for the rugged grandeur of its scenery which includes fiords, mountains, forests, waterfalls, and lakes. The better known lakes are Manapouri, backed by snow-capped peaks, and Te Anau. The park is the only known habitat of two flightless birds, the takahe (notornis) and the kakapo.

Scenic Reserves—Scenic reserves, of which there are 981 with an overall area of 280,876 hectares, are set aside to preserve qualities of scenic interest such as native forest, limestone and glow-worm caves, thermal areas, sea coasts, lakes, rivers, waterfalls, scenic vantage points, and forested areas with considerable conservation value. Some of these reserves are mainly of local or regional significance while many of the larger ones, which are in the nature of junior or mini national parks, are of national importance. Public use of scenic reserves varies greatly, ranging from off-road parking and picnicking to camping, tramping, and hunting (subject to written permit).

Scenic reserves in excess of 2000 hectares include Lewis Pass, Wanganui River, Buller Gorge, Rakeahua, and South Cape (Stewart Island), Lake Kaniere, Gouland Downs, Glenhope, Lake Brunner, Rahu (Reefton), Mangamuku Gorge, Tangarakau, Te Tapui (Cambridge) and Waioeka Gorge.

Improved maintenance, management, and control of scenic reserves has been accomplished through the classification of their principal values and most appropriate usage. The appointment of salaried reserves rangers in the Public Service to ensure that they are preserved as far as possible in their natural state "in the national interest" and for the "benefit and enjoyment of the public" has also been of considerable assistance. In addition, native trees and shrubs are being propagated at the Department of Lands and Survey's Taupo Nursery to promote scenic restoration activities in reserves throughout the North Island but with particular emphasis in the Taupo basin in the wake of power scheme works.

Land with acceptable scenic interest, while remaining in private ownership, may receive the benefits of preservation and protection of the Reserves and Domains Act 1953 through being declared private scenic reserve. Areas with private scenic reserve status include White Island in the Bay of Plenty, where petrels and gannets nest in large numbers annually, and a large area of the Pukeiti Rhododendron Trust property, near New Plymouth, and adjoining Egmont National Park, which is in native bush.

Historic Reserves—Eighty areas of historic interest totalling 1,551 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.

Reserves for the Preservation of Flora and Fauna—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 65 reserves in this category with a total area of 189,103 hectares. Some of them are maintained areas, but most are offshore and outlying 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.

Generally, access to these reserves is by permit only, a policy followed solely in the interests of preservation of the plant and animal life to ensure an absolute minimum of human interference to anything living and growing naturally there. The reserves are administered by the Department of Lands and Survey.

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.

Marlborough Sounds Maritime Park—This park was established under the provisions of the Reserves and Domains Act 1953 and is administered by a 13-member board. The park provides for co-ordinated management of existing scenic, historic, recreation, and other public reserves located within the coastal region stretching from Cape Soucis in the west to Rarangi in the south-east. Appropriate island reserves are also included.

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, which serve the very important function of providing protection to native wildlife, 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 866 covering 22,036 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 1975.

Type of ReservationNo.Hectares

*Includes 19 scenic and historic reserves totalling 306 hectares and 2 historic and recreation reserves of 5 hectares.

†Excludes bed of Lake Waikaremoana (5,210 ha) leased from Maori owners.

National parks102,153,654
Scenic reserves (public)981280,876
Historic reserves (public)80*1,551
Reserves for the preservation of flora and fauna (public)65189,103
Public domains86622,036

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 and Fisheries, the Valuer-General, a representative of the Rural Banking and Finance Corporation, the Assistant Director-General of Lands, the Fields Director of the Department of Lands and Survey, and not more than four 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, is considerable.

DISPOSAL OF CROWN LAND—Crown land is normally offered to the public at valuation and the successful applicant decided by ballot, 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. Annual rent is reviewed at 11-yearly intervals.

  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 exceeding 21 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 1974-75.

TenureNumber of SelectionsTotal Area SelectedPurchase Price or Annual Charges

*Licences on royalty basis only.

Note—In previous years this table included Conversions of Tenure.

  hectares$(000)
Freehold4667,9821,251
Renewable leases392,64114
Pastoral leases and licences27,642..
Deferred-payment licences41618,021211
Special leases (s. 67, Land Act)461,38520
Licences for removal of minerals*8--
Licences to occupy1,15817,414268
Leases of endowment and other lands1111,09919
Totals 1974-752,24656,1841,783
Totals 1973-742,14346,3691,287

Leases and Licences—The following table shows the total number of leases and licences current as at 31 March 1975.

TenureLeases and LicencesAreaAnnual RentAnnual Instalment*

*Including improvement roading.

  hectares (000)$(000)$(000)
Renewable leases8,5849721,03616
Leases in perpetuity6,184500308..
Pastoral leases and licences5393,1072064
Special leases (s. 67, Land Act)592892887
Deferred-payment licences13,104880..4,849
Misc. leases and licences1,12012..
Licences to occupy4,963156437..
Leases of endowment and other lands2,9391622034
Totals 1974-7538,0255,8702,4824,882
Totals 1973-7439,0205,9222,5783,986

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.hectares$(000) 
Cash374116,283940
Deferred payments937..186,17713,606
Totals 1974-751,3111202,46014,546
Totals 1973-741,366..233,96113,203

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 1948 to administer land policy and land development through the Department of Lands and Survey.

Development of land for settlement of farms includes clearing, cultivation, grassing, fencing, erection of buildings, installation of water supplies and completion of essential soil conservation measures. 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 140,271 hectares under development, Rotorua 75,815 hectares, North Auckland 71,868 hectares, and Te Kuiti 51,654 hectares.

An estimated 1,218 farms could eventually be made available from the 493,771 hectares on hand for development at 31 March 1975.

A programme of development is undertaken annually aimed at preparation of individual farm units for settlement by landless farmers. A total of 51 farms is planned for settlement in 1976, and 45 in 1977.

The department has a policy of heavy culling of stock to improve stock quality. Breeding programmes aimed at stocking farm settlement blocks with first-class herds and flocks have been set up. The main concentration on breeding is at Waihora Farm Settlement near Rotorua and results achieved to date justify the department's involvement in this field. The Waihora programme has proved to be of considerable interest to the farming industry generally both in this country and abroad.

During the past 2 years the department, in association with the New Zealand Forest Service, has carried out investigations into the possibility of forestry/grazing propositions. Finality has been reached on a number of areas where such operations will be carried out, the first of which is on Woodstock Farm Settlement in Hawke's Bay. This is a new concept in New Zealand, involving grazing of stock among widely spaced trees, and indications are that it could be a profitable one.

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.

For the year ended 31 March 1975, the board granted 36 new loans and 119 additional advances totalling $2,348,518. In all, from the inception of the marginal lands scheme, 1,795 new loans have been approved, amounting to $37,227,300.

The Act is administered by the Marginal Lands Board comprising the Minister of Lands (Chairman), the Director-General of Lands (Deputy Chairman), the Secretary to the Treasury, the Director-General of Agriculture and Fisheries, and four other persons appointed by the Minister.

To assist the board at local level, committees have been established in each land district consisting of a representative of the Department of Lands and Survey and of the Ministry of Agriculture and Fisheries, and a private farmer selected from a panel of such members appointed for each district by the board.

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 proportions. All sales and some leases of such land still require ratification by the Maori Land Court.

In 1975 it was established that the area of land in New Zealand still designated Maori land comprised some 1,323,404 hectares.

Many Maori people own their own homes in urban areas and others own farm land purchased from non-Maoris that is designated, for record purposes, as "European" land.

The Maori Land Board has been constituted under the Maori Affairs Amendment Act 1974 to promote greater involvement in, and identification of the Maori owners with, land development activities. The board is assisted by district Maori land advisory committees.

MAORI LAND DEVELOPMENT—Although owners of Maori land have access to the usual lending institutions, it is not easy to borrow money for land development unless mortgage security can be given, and multiplicity of ownership often prevents this. Under the Maori Affairs Act 1953 the Maori Land Board, through the Department of Maori Affairs, may lend money for the development and settlement of Maori land. This procedure does not affect the legal ownership, but the rights of the owners are suspended and the board has the right to exclusive occupation of the Land.

The Act was amended in November 1974 to allow loans to be made on the security of livestock alone.

Policy is directed towards the settlement of Maori farmers on farms which will provide an adequate standard of living. Twenty-two farmers were settled in the year ended 30 June 1974 and, all told, 2,422 Maori farmers have been settled with assistance from the Maori Land Board.

At 30 June 1974 there were 110,113 hectares under development, of which 67,293 hectares were in grass. In addition, the Department of Lands and Survey was developing 38,673 hectares as agent of the Maori Land Board. The total annual grassing programme is approximately 1,600 hectares.

There is a trend towards incorporation control of developed land; instead of the land being subdivided and settled, management is placed in the hands of an owners' committee and the land is farmed as one large station. The owners then receive an annual dividend payment according to the profitability of the undertaking.

Schemes for afforestation of Maori land unsuitable for development are also being implemented.

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 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 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 three years.

ItemAs at 31 March
197319741975
Assets—$(000)
Cash452461910
Investments—   
  Government securities6,5796,8845,126
  Local authority debentures6546561,929
  Mortgages, charges, and advances on overdraft4,5054,8035,572
Land, buildings, and miscellaneous398339336
Totals12,58813,14313,873
Liabilities—   
  Amounts held for beneficiaries and sundry depositors7,9718,1068,572
  Reserves and Appropriation Account4,2614,7454,995
  Sundry creditors, etc.356292306
Totals12,58813,14313,873

13 D—SURVEYS

GENERAL—The Department of Lands and Survey as the national survey and mapping organisation is responsible for the land survey control system, examines all land title surveys, provides extensive survey and planning services to Government, requisitions aerial photography, and publishes all topographic, cadastral, and special maps of New Zealand.

Surveys associated with freehold land or development are carried out by private survey firms located throughout the country.

SURVEYING—The New Zealand survey control system, in the form of triangulations and other geographically located stations, provides for the effective integration of surveys executed by all sectors for the purposes of land title definition, land development and utilisation, engineering project and communication constructions, mapping production, and navigational aids fixation.

Examination by the Department of all land title surveys ensures the security of tenure essential to development, and the maintenance of all survey records on a microfilm system provides for ready access and utilisation of data. The control of survey standards, maintenance of discipline and training of professional surveyors is effected through the statutorily constituted Survey Board under the chairmanship of the Surveyor-General.

Other departmental services provided to Government include surveys for land title, land development, navigational purposes, earth deformation studies, administration of justice, and land and environmental planning.

The practising surveyors in the private sector play a major role in surveys of private lands under the Land Transfer Act 1952, the planning and development of housing projects and the execution, under contract, of some government surveys.

AERIAL PHOTOGRAPHY—Extensive use is made of aerial photography in the production of photogrammetric mapping and in the annual provision of basic physical resource and planning data. Photography is undertaken by private aerial survey firms under contract to Department of Lands and Survey which maintains a complete library of air photos for all national purposes and general public usage.

Under agreement with the authorities in the USA the Department now receives and holds multispectral imagery collected by earth resources satellites, for use in studies associated with land use and management, regional planning, and scientific research in New Zealand.

MAPPING—Both the recently completed mile to an inch maps and the new basic metric topographical and cadastral maps now under production provide a reliable inventory of physical resources and an up-to-date identification of land parcels and legal situations. They are in heavy demand for housing, constructional and farm planning and development, extension of public and social services, protection of the environment, and the administrations of Central and local Government.

Regularly updated street maps cover all towns.

Project and special mapping executed at larger scales provides an essential base for investigation and design of energy, irrigation, forestry and communications projects.

The Department also produces all New Zealand aeronautical charts and graphic aids and is active in mapping Pacific and Antarctic territories.

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 529 private selling agents have been appointed throughout New Zealand and overseas. All maps for sale are listed in the Catalogue Of Maps published by the department.

Chapter 15. Section 14 FARMING

14 A—GENERAL

SOILS—Soil is a product of its environment—its composition depends on the parent ingredient, the climate, the length of time it has weathered, the topography, and the vegetation under which it has formed. The complex soil pattern of New Zealand is a result of the many different kinds of rock, and the various conditions under which the soils have formed.

New Zealand includes such extremes as the subtropical climate of North Auckland, the cold uplands of the alpine regions, and the semi-arid basins of Central Otago.

The country's topography is also varied—50 percent of the land is classifiable as steep, 20 percent is moderately hilly, and only 30 percent is rolling or flat.

The natural vegetation ranges from kauri forest to subalpine scrub, and from tussock grassland to broadleaf forest. From time to time, occurrences such as river floods on alluvial plains, sand drifts, or a volcanic ash eruption interrupt and alter the pattern of soil development.

Regional differences in New Zealand's soils result mainly from the effects of climate on topography. soils develop more rapidly under high temperatures and a heavy rainfall. In New Zealand, distinct soil gradations are found, both from north to south and from west to east. These closely follow the isohyets (lines connecting places that receive the same amount of rain) on a climatic map.

Increased 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.

New Zealand soils may be classified on a regional basis as follow

RegionSoilsVegetation and Land Use
North Auckland Peninsula and Auckland regionNorthern yellow-brown earths and podzols left by kauri forest. Loams and clays from volcanic rocks. Soft-rock uplands with volcanic outcrops.Heavily forested (high rainfall and humidity). Patches of rich dairy land on formerly swampy organic soils. Some wool and store sheep. Dairying, fat lambs near Auckland. Patchy land use.
Bay of Plenty - Waikato -Thames - Hauraki PlainsVolcanic ash covers much of area. Most soils intrazonal or azonal. Yellow-brown pumice soils in Bay of Plenty. Peaty soils with high ground water on Hauraki Plains.Intensively farmed dairying region. Land use almost entirely based on grass and clover, with great reliance on topdressing. Some fat lambs. Extensive exotic forests in Bay of Plenty region.
Volcanic PlateauPumice soils, lacking in essential trace elements. Yellow-brown pumice soils from volcanic material.Largely undeveloped scrub and native forest. Extensive exotic forests. Topdressing of former manuka and scrub area for farming.
East CoastSouthern and central yellow-brown earths. Patches of recent alluvial soils along rivers. Yellow-grey earths on rolling land south of Hawke BaySemi-extensive sheep farming (wool and store sheep). Intensive fat-lamb production on flat to rolling plains. Market gardens and orchards near Napier and Hastings. Some pip fruit. Pockets of dairying close to main ranges from Norsewood south.
TaranakiRing plain consists of yellow-brown loams, with granular clay from volcanic ash. Overlay of fertile ash and sediment from Mount Egmont. Soft-rock uplands away from coast.Distinct contrast between rich, closely farmed dairying ring plain and inland country with its steep ridges mainly covered in second-growth forest or dense gorse, and severely eroded.
Manawatu - Horowhenua Coast PlainSand dunes and swampy hollows common along coast. Steepland yellow-brown earths inland. Extensive young soils from dune sands along coast.Many hollows contain native flax (Phormium tenax). Pockets of dairying and fat-lamb production.
NelsonPockets of fertile, recent alluvial soils in yellow-grey and yellow-brown earths.Orchards and market gardens. Hops and tobacco also grown on flat, rolling land.
Marlborough - Kaikoura CoastYellow-brown earths with pockets of alluvial soils.Where land is developed, mainly sheep or cash cropping.
West CoastExtensive grey podzols, with recent swamp soils on alluvial flats.Mostly undeveloped scrub and native bush. Some dairying.
Canterbury PlainsDeep layer of fine sediment provides fertile soil for cereals and fodder crops, and makes good sheep pasture. Cash cropping on former swamp near Christchurch.Very thick layer of gravel deposited by rivers—thickest and coarsest near mountains from which rivers flow. Soils range from stony gravel to fine silts.
OtagoHigh-country yellow-brown earths on ranges; yellow-grey earths, often stony, in basins.Sheep farming for wool and fat lambs plus some cattle and some orchards. Irrigation necessary in low-rainfall area.
Southland and FiordlandSouthland Plain has extensive deposits of gravel and silt. Fiordland mostly subalpine gley soils and gley podzols.Fat-lamb production in Southland. Fiordland agriculturally undeveloped and unproductive. Scenic attractions.

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 2.5 cows per hectare, and annual production as high as 400-450 kg of milkfat per hectare. 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 7 to 15 ewes wintered to the hectare. 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 12-16 kg 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 130-155 kg per hectare.

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 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.

OCCUPIED LAND: Tenure—The tenure of occupied land at 30 June 1973 by size of holding is given in the following table.

Size of HoldingNumber of HoldingsFreeholdCrown Land, Leases and LicencesLeasehold*OtherTotal Land Occupied

*Includes land leased from private individuals (508,500 ha), land leased from companies (175.400 ha), land leased from trustees (419,100 ha), and land leased from local authorities (168,100 ha).

HectaresHectares (000)
Under 53,91010.90.30.812.0
5– 93,01218.90.92.2-22.0
10– 141,95019.21.33.30.123.9
15– 191,47021.21.33.20.125.7
20– 293,01560.94.68.50.374.3
30– 393,23695.86.411.30.2113.7
40– 494,195158.59.916.90.6185.9
50– 593,326151.714.016.90.5183.1
60– 795,642320.130.738.00.9389.8
80– 994,620336.331.641.31.2410.4
100– 1497,019689.089.283.92.4864.4
150– 1995,025670.7124.275.62.2872.7
200– 2996,1241,115.4251.9117.23.51,488.1
300– 3993,022755.4188.594.54.01,042.5
400– 5992,9401,031.9250.5132.89.31,424.4
600– 7991,334626.1191.892.98.1919.0
800– 999803473.2164.872.33.0713.1
1,000–1,199453330.8121.841.02.9496.5
1,200–1,999921821.8475.193.619.71,410.2
2,000–3,999571669.0782.781.138.61,571.4
4,000 and over608919.57,195.5244.165.38,424.3
Total63,1969,296.49,937.11,271.2162.720,667.4

Land Usage—Land usage and occupation at 30 June 1973 by statistical area is given in the following table.

Statistical AreaNo. of HoldingsGrassland and LucerneCrops, Fruit, or NurseryPlantations of Exotic TreesTussock or Danthonia Used for GrazingTotal Area of Holdings*
Established Before 30/6/72Established During Year Ended 30/6/73Area Prior to 31/3/72Planted in 1973 Season

*Including "other".

  ha (000)ha (000)ha (000)ha (000)ha (000)ha (000)ha (000)
Northland5,322597.011.12.920.41.061.71,028.6
Central Auckland4,827284.72.97.216.01.314.3403.5
South Auckland - Bay of Plenty14,3961,621.125.023.2312.910.0108.93,163.9
East Coast1,431545.95.77.311.51.032.0722.4
Hawke's Bay4,028858.115.416.923.33.279.21,222.2
Taranaki4,420403.82.92.02.50.126.7611.5
Wellington7,2701,330.023.627.926.81.2176.12.002.0
  North Island41,6945,640.686.687.4413.417.8498.99,154.3
Marlborough1,211180.67.87.16.81.2562.81,078.8
Nelson2,098128.04.87.950.83.095.11.419.4
Westland64469.03.00.77.70.148.3895.5
Canterbury8,298884.3125.4179.440.12.11,646.03,367.9
Otago4,509703.536.658.426.42.52,014.63,221.5
Southland4,742638.129.445.913.11.6436.91,529.9
  South Island21,5022,603.5207.0299.4144.910.44,803.811,513.1
  New Zealand63,1968,244.1293.6386.8558.328.35,302.720,667.4

Farm Type—Land usage and occupation at 30 June 1973 by farm type is shown in the following table.

Farm TypeNumber of HoldingsGrassland and LucerneLand In or Prepared For Fruit, Grain, Crops, Vegetables, etc.Plantations of Exotic TreesTussock or Danthonia Used for GrazingOther Land On HoldingTotal Area of Holdings

*75 percent or more of gross income is derived from stated activity.

†From 51 to 74 percent of gross income is derived from first named activity and between 20 and 40 percent from second activity.

‡Two or more activities of roughly equal proportions.

§Two or more activities of roughly equal proportions, one of which is cropping.

||More than 50 percent of gross income is derived from stated activity.

 Hectares (000)
Dairy*15,9321,007.910.93.144.9111.41,178.2
Sheep*13,7312,622.0116.015.33,079.2610.76,443.3
Beef*5,852468.03.95.1372.8235.91,085.6
Pig*53111.11.20.11.01.715.2
Cropping*98722.728.20.10.72.253.9
Dairy with Sheep47353.81.10.37.810.873.8
Dairy with Beef1,305126.31.40.89.528.5166.4
Dairy with Other43224.31.80.84.331.3
Sheep with Dairy15220.61.10.12.72.927.5
Sheep with Beef6,3312,098.038.012.41,271.1563.83,983.3
Sheep with Cropping1,280173.345.61.113.95.9239.8
Sheep with Other32839.12.70.215.26.263.4
Beef with Dairy21222.90.21.45.930.3
Beef with Sheep1,307290.03.52.9124.4126.7547.5
Beef with Other23112.51.60.33.05.122.5
Cropping with Sheep46134.422.50.20.91.959.7
Cropping with Other1834.93.70.10.70.610.1
Pig with Other1244.90.40.20.45.9
Mixed Livestock5,2151,230.014.48.8280.3277.21,810.6
General Mixed Farming§1,623180.955.51.530.213.3281.5
Poultry Farming||6355.20.40.32.07.9
Market Gardening||1,62311.513.64.02.531.6
Orchards||2,0545.213.60.61.72.923.9
Tobacco Growing||2684.81.90.42.23.612.8
Plantations||4115.80.1529.424.91,150.61,710.8
Other Farming1,51557.63.63.89.02,676.62,750.6
Total63,1968,537.7386.8586.65,302.75,853.820,667.4

FARM EMPLOYMENT SURVEY—At 15 June 1973 persons working on farms totalled 129,733, or 321 more than at 15 June 1972; there were 64,664 working owners, leaseholders and sharemilkers; 35,088 permanent paid employees; 11,379 paid casual employees: and 18,602 unpaid family members.

During the year the number of females working on farms had risen by 3.1 percent, mostly in the paid category. Male employers and self-employed had decreased but male employees had increased, partly a result of amalgamation of farms.

There were 63,196 productive farm holdings included in the survey, On 48,952 there were working owners, leaseholders or sharemilkers, on 22,688 there were permanent paid employees, and on 18,751 there was casual labour during the year.

Of the 64,664 working owners, leaseholders and sharemilkers 36.1 percent were engaged in dairy farming, 31.3 percent in sheep farming, 9.8 percent in beef farming, and a further 8.6 percent in mixed livestock farming.

At 15 June 1973 sheep farms accounted for 37.2 percent of all paid permanent employees, dairy farms 26.4 percent, mixed livestock, 11.2 percent, and beef farms 5.8 percent, while the same farm types accounted for 32.5; 11.2; 8.1; and 5.4 percent respectively of all paid casual employees at the same date.

Paid casual employees at 15 June 1973 numbered 11,379 or 24.5 percent of the paid labour force; of these, 64.7 percent were employed on farms of under 200 hectares. Under half (48.2 percent) of the permanent paid employees were employed on farms of under 200 hectares.

CAPITAL EXPENDITURE ON FARMS—An annual survey of capital formation in the farming industry is made by the Department of Statistics. For the year ended 31 March 1974 capital expenditure was reported by 67.4 percent (42,780) out of the 63,455 farms and plantations surveyed.

The following table shows capital expenditure by type during the latest available 8 years. For each type of expenditure the figure given is net, i.e., receipts from "trade-ins" or sales have been deducted from the gross expenditure.

YearBuilding and ConstructionTransport VehiclesTractors and Farm MachineryOther Improvements and DevelopmentTotal Capital Expenditure

NOTE—The surveys taken prior to 1970–71 covered productive holdings of 4 hectares or more situated outside borough boundaries; the later surveys covered holdings of 1 hectare or more.

The coverage of the surveys has varied from 94 to 96 percent of holdings for the years 1966–67 to 1970–71, to 100 percent of holdings for the latest surveys.

This table excludes holdings given over wholly to plantations of timber trees, whereas these are included in the next table.

 $(million)
1966–6742.912.721.746.6123.9
1967–6836.710.218.240.4105.5
1968–6931.810.218.639.299.8
1969–7029.312.819.840.5102.4
1970–7133.918.022.639.8114.3
1971–7232.231.532.635.0131.3
1972–7342.151.739.951.8185.6
1973–7459.145.841.465.0211.3

The following table shows capital expenditure, net of sales, by farm type for both Islands and for New Zealand as a whole. This table includes timber plantations, which were excluded from the previous table. This table refers to 1972–73.

Farm TypeNorth IslandSouth IslandNew Zealand

*75 percent or more of gross income is derived from stated activity.

†From 51–74 percent of gross income is derived from first named activity and between 20 and 40 percent from second activity.

‡51 percent or more of gross income is derived from stated activity and no other single activity is more than 40 percent of gross income.

§Two or more activities of roughly equal proportions.

||Two or more activities of roughly equal proportions, one of which is cropping.

¶Includes farms of a specific nature (e.g. Hops, Tobacco Growing, Beekeeping, Deer Farming, etc.) which meet the criteria in notes * or † preceding but which are too small in number to be shown separately.

 $(million)
Dairy*39.03.742.7
Sheep*13.829.343.2
Beef*8.61.610.2
Pigs*1.00.31.3
Dairy with sheep1.00.51.6
Dairy with beef4.30.54.8
Dairy with other1.00.21.3
Sheep with beef19.08.927.9
Sheep with other0.85.36.2
Beef with sheep3.50.84.2
Beef with other0.90.31.1
Stud1.20.41.6
Mixed livestock§15.33.318.6
General mixed farming||2.13.96.0
Poultry1.00.51.5
Market gardening2.80.93.6
Orchardist2.71.64.3
Plantations5.31.36.6
Other farming1.63.95.5
Total124.967.3192.2

FENCING—Approximately 805,000 kilometres of fencing, with a replacement value of over $400 million, controls New Zealand's sheep and cattle population. The annual expenditure on fencing is upwards of $20 million.

AGRICULTURE PRODUCTION ACCOUNT AND VALUE AND VOLUME OF FARMING PRODUCTION—At the beginning of 1976 the Department of Statistics released details of a new series of accounts relating to the farming industry. The new series was fully described in a supplement to the January—February 1976 Monthly Abstract of Statistics, which should be consulted for details of the statistical methodology and sources used. The new series replaces the Gross Farming Income and Volume of Farm Production series.

The new series is centred around the structure of the Agriculture Production Account, of which the other accounts are more detailed elaborations. The Agriculture Production Account, which is shown below, is the forerunner of some twenty other industry accounts of the proposed system of New Zealand national accounts, for which the theoretical and methodological prescription can be found in the United Nations System of National Accounts.

AGRICULTURE PRODUCTION ACCOUNT

ItemYear Ended March
197219731974*1975*

*Provisional.

 $9(million)
Input    
  Intermediate consumption444512590644
  Compensation of employees136155180200
  Operating surplus541765707372
  Consumption of fixed capital110120130134
  Indirect taxes24263034
      Less Subsidies-25-13-5-8
      Gross Input1,2301,5651,6321,376
Output    
  Characteristic products of industrial activity1,2261,5611,6291,372
  Other products4434
      Gross Output1,2301,5651,6321,376

It will be noted that figures for 1973–74 and 1974–75 are provisional. The figures for 1974–75 are based on very tentative (and, in some cases, fragmentary) information.

The following table shows details of the Agriculture Production Account item, Intermediate consumption.

ItemYear Ended March
197219731974*1975*

* Provisional.

 $(million)
Animal health, weed and pest control32425147
Shearing expenses27303237
Fertilisers, lime and seeds748510986
Vehicle expenses61667188
Electricity10111111
Feed and grazing577591104
Agricultural services20242831
Repairs and maintenance718598126
Packing and containers67810
Railage and cartage24283139
Administration and general expenses40343640
Insurance6788
Rent16171718
Total444512590644

GROSS AGRICULTURE PRODUCTION (GROSS OUTPUT)—The following table of Gross Agriculture Production shows the value of farming production for March and June years. The June year Gross Agriculture Production replaces the Gross Farming Income series which has periodically been calculated for a June year to correspond with the farming production season.

The main differences between Gross Agriculture Production and the earlier Gross Farming Income lies in the coverage of the new series. While the Gross Farming Income account portrayed the value of output of seven main groups of farming, the Gross Agriculture Production account goes further and includes, in addition to the value of farm produce, the value of agricultural services and non-characteristic products. For the main groups of farming output, the Gross Agriculture Production account differs little from the Gross Farming Income account except for some methodological improvements and the advantage taken of better sources of raw data. One significant change is that stockchange of livestock, now shown separately, was previously included in the relevant product group and calculated as the physical difference in livestock at the start and end of the year with the difference only valued at current market prices at the end of the year.

GROSS AGRICULTURAL PRODUCTION (GROSS OUTPUT)

ItemYears Ended
31 Mar 197230 Jun 197231 Mar 197330 Jun 197331 Mar 1974*30 Jun 1974*31 Mar 1975*30 Jun 1975*

*Provisional.

 $(million)
Income        
Sheep and lambs182175263349313305208197
Wool164167356364325315218216
Cattle198208272296336298196202
Pigs2525272734353637
Dairy products301315328317344347358369
Crops and seeds898787899092114115
Fruit3536393939403939
Vegetables3938424247484846
Poultry and eggs4850515460616060
Agricultural services6363737374746969
Other—farm products1313141417171818
  —non-farm products44443344
Changes of stock (livestock)        
Physical change at average market prices—sheep+3+7-14-29-30-8+–-9
  —cattle+67+60+25+31-19+50+12-33
  —pigs-1-2-1+–—-+–
  Gross Agricultural Production (Gross Output)1,2301,2471,5651,6681,6321,6761,3761,329

The value of Gross Agricultural Production for June years prior to 1971–72 has been re-estimated as follows (in $ million): 1965–66, $884; 1966–67. $869; 1967–68, $862; 1968–69, $936; 1969–70, $949; 1970–71, $1,064.

VOLUME OF GROSS AGRICULTURE PRODUCTION—The index of the Volume of Gross Agriculture Production, which is a year-to-year quantum measure of commodities coming off all New Zealand farms and hence available for export or domestic consumption, is shown in the following table with two expression bases, 1965–66 (=1000) and 1971–72 (=1000). From 1971–72 on, the series is a revision of a previous statistical series based on the 1938–39 year, and is a chain-linked index with annually changing weights.

Year Ended JuneIndex NumberChange from previous Year.
Base: 1965–66 (=1000)Base: 1971–72 (=1000)

*Provisional.

†Minus sign signifies a decrease.

   Percent
19661000883-
19671032911+3.2
19681065940+3.2
19691093965+2.6
19701080953-1.2
19711102973+2.0
197211331000+2.8
19731088959-4.0
1974*1034912-5.0
1975*993875-4.0

The index of the Volume of Gross Agriculture Production for each of the latest 3 years is shown in the following table for the component product groups, as well as for the production of the whole agricultural industry. The expression base for each product group separately, and for the agriculture industry as a whole, is the year 1971–72 (=1000).

ProductsYears Ended 30 June
197219731974*1975*

*Provisional.

 Volume Index Numbers
Sheep and lambs1000907829803
Wool1000961896938
Cattle1000982941726
Pigs1000925836888
Dairy products1000972924960
Crops and seeds1000917888919
Fruit1000105511811178
Vegetables1000894859859
Poultry and eggs100010391112976
Other farm products100095810731073
Agriculture services........
Non-farm products of the agriculture industry........
All agriculture industry production1000959912875

VOLUME OF NET AGRICULTURAL PRODUCTION—A completely new statistical series, commencing with the 1971–72 year, is that of the Volume of Net Agriculture Production. The net volume index is arrived at by deducting intermediate consumption expressed in constant dollar terms from outputs in constant dollar terms and expressing the difference in index form.

The importance of the net volume series lies in the fact that it measures the volume of the contribution of the agriculture industry alone, after elimination of the contribution of all other industries to gross agriculture output. The net index is preferable to the gross index in analysing the contribution of agriculture to the country's real gross domestic product and the changing importance of agriculture in the economy and its productivity

In the following table the new series is shown in index form and in annual percentage movements. The base is 1971–72 (=1000).

Year Ended MarchIndex NumberChange from previous year

*Provisional

  Percent
19721000-
1973886-11.4
1974*814-8.1
1975*784-3.7

Problems which are specific to farm accounting are related to the production process of the industry itself—its seasonal nature, and its dependence on biological factors and climatic conditions. All these intervene in various ways between real resource use and output. Also, operations are not necessarily restricted to an annual cycle (e.g. the application of fertiliser in one year can affect output for a number of years) but the accounts are always made up for one year. As a result, year-to-year comparisons between resource use and output and, in the final analysis, the net profit (net income, surplus) of the farming industry, can be affected by fortuitous factors.

This is the principal reason why year-to-year changes in real gross production and real net production can differ to a marked degree.

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.)

Utilisation of Milkfat1970–711971–721972–731973–741974–75

*Includes small quantities of creamery fat used in whey buttermaking.

†Includes residual fat in skim milk from home separation.

‡Provisional.

 tonnes(000)
Creamery buttermaking*190.1203.0193.1176.7197.3
Cheesemaking43.041.439.835.133.9
Whole milk products10.613.613.716.112.7
Total243.7258.0246.6227.8244.0
Residual fat in skim-milk products2.52.82.32.12.3
Total processed by dairy factories246.3260.8248.9229.9246.3
Consumed as milk, cream, or ice cream21.121.622.122.431.7
Fed to stock8.99.09.08.6
Wastage2.82.92.82.1
Total production "at pail"279.1294.3282.8263.0278.0

Production by dairy factories during the last five seasons is set out in the following table.

Product1970–711971–721972–731973–741974–75t

*Includes caseinates (1,084 tonnes in 1974–75).

†Provisional

 tonnes (000)
Creamery butter209.2210.8201.8185.9205.1
Whey butter3.33.53.02.72.7
Anhydrous milkfat15.129.932.722.731.6
Frozen cream6.85.25.15.15.9
Cheese107.9104.3101.189.088.6
Skim-milk powder124.9197.0189.2194.1243.7
Casein, acid48.135.639.930.429.5
Casein, rennet*7.64.76.45.15.0
Buttermilk powder19.022.522.419.024.2
Condensed and powdered whole milk25.538.435.050.333.9
Lactose9.210.09.18.07.5
Totals576.5661.9645.7612.3677.8

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 or from separated milk and buttermilk, by-products of butter making. 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".

YearDairy Cows in MilkAverage Production per Cow*

*Including an allowance for cows milked on small holdings not covered by the annual farm census.

 (000)kg
1963–642,011131
1964–652,032136
1965–662,088140
1966–672,131138
1967–682,232129
1968–692,304130
1969–702,321120
1970–712,239125
1971–722,200133
1972–732,190129
1973–742,140121
1974–752,080120

Herd sizes have increased as suppliers with small herds have ceased production and as dairy farms have been amalgamated. The number of suppliers to dairy factories and milkfat production per supplier is shown in the following table. (Source: N.Z. Dairy Board.)

SeasonSuppliers* at 31 DecemberAverage size of HerdMilk fat per Supplier

*Does not include town milk suppliers (about 1,800).

† Average area of dairy farms estimated at 63 hectares.

   kg
1964–6529,700709,700
1965–6627,9007610,575
1966–6726,3008010,850
1967–6825,7008610,700
1968–6925,0009211,475
1969–7023,7009710,950
1970–7121,875x10011,700
1971–7220,760x10212,975
1972–7319,879x10612,926
1973–7418,557x10912,875
1974–7517,69511214,350

Tanker collection of milk by the dairy factories began in 1951. By 1960 55 percent of the milkfat supplied to dairy factories was received as milk (instead of cream as previously); this increased to 79 percent by 1966 and in 1973–74 was 97 percent. In 1971–72 there were 922 tankers and trailers; they travelled 26.4 million kilometres, collecting daily from 16,501 suppliers.

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 the 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. Since the board is the sole purchaser of produce for export, this purchasing power helps to link manufacturing plans with commercial reality.

MILK PRODUCTION—The administration and organisation of the town milk supply is the responsibility of the New Zealand Milk Board (see Section 21A).

During the year ended August 1975, town milk suppliers provided 671.7 million litres of milk. Of this, 510.3 million litres went to the treatment stations and eventually reached the consumer in the form of 422.5 million litres of pasteurised milk and 8.8 million litres of sweet cream. The balance of the total production went to dairy factories (153.8 million litres), to the manufacture of ice cream, yoghurt, and cottage-cheese (7.4 million litres), and for sale as raw milk (167,718 litres).

MEAT PRODUCTION—The following table shows in summary form production of meat. Figures are shown at bone-in weights for years ended September.

Product1969–701970–711971–721972–731973–74
 tonnes(000)
Beef366.7372.1389.6423.8377.9
Veal26.121.120.321.726.8
Mutton199.9204.9195.8215.1192.9
Lamb362.6358.9378.9341.0304.6
Pig meat39.242.340.635.334.4
Edible offal56.955.357.160.253.4
Totals1,051.41,054.51,082.41,097.0990.0

PRODUCTION FOR EXPORT—Export meat production for years ended September is shown in the following table.

Type of MeatTwelve Months Ended September
197319741975

Source: N.Z. Meat Producers Board.

 tonnes(000) shipping weight
Lamb—carcasses272.6235.0258.2
  —cuts32.435.041.3
Mutton—carcasses110.6106.078.9
  —cuts11.48.27.4
Beef—manufacturing161.2130.1155.2
  —other37.030.950.1
Veal7.810.011.7
Pig meat0.10.20.2
Other meats1.00.50.7
Fancy meats43.938.342.5
Inedible meat and offal20.315.716.9
Total698.3610.0663.1

There is considerable potential for expansion in lamb and mutton processing given adequate labour and plant and, in the case of lamb, some change in market requirements. Cutting and boning add significantly to the value of meat otherwise exported in carcass form and, in addition, there is a substantial freight saving.

Lamb export slaughterings during the 1974–75 season, at 23.8 million, were up 13.1 percent on the previous season's figure, which was the lowest for several years.

More significant was the sharp rise in the cattle kill. Slaughterings of steers and heifers were up some 50 percent on the previous season's figures, and this surge of slaughterings has undoubtedly checked the rapid expansion of the country's beef cattle herd which began in the mid-1960's.

The following table gives livestock slaughter statistics at meat export works and abattoirs, omitting killings on farms and in rural slaughterhouses, for years ended September.

Animals1970–711971–721972–731973–741974–75

*Excludes lambs.

†Excludes calves

 (000)
Lambs27,11827,84226,68322,997x25,428
Ewes7,0336,7368,6357,1165,436
Other sheep2,2371,8761,6871,6451,659
Totals, sheep*9,2708,61210,3228,7617,094
Calves (under 27kg)9859799721,1521,332
Vealers (28–160 kg)89788892109
Heifers216201216248355
Steers663719737649857
Cows766619820675699
Bulls170234258217226
Totals, cattle1,9031,8492,1191,8812,246
Pigs901878751747719

About two-thirds of lambs tailed are killed during the season, and some 90 percent of the lamb meat is exported.

Meat consumed in New Zealand represents approximately one-third of total production; quantities per head are shown in section 24, Consumption of Food.

Producer Control—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 activities of the Meat Producers Board were the subject of a special article in the 1973 issue of the Yearbook.

The Meat Producers Board, the Wool Board, and the Wool Marketing Corporation 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. Production is mainly of cross-bred wool.

A major feature of the 1973–74 season was a sharp decline in market prices for wool from a peak early in the season only exceeded during the Korean war boom of the early 1950s, to levels at the end of the season which were the lowest in almost 2 years.

The 1974–75 season was marked by low prices, weak demand, and extensive support to the market by the Wool Marketing Corporation. However, the market showed signs of improvement during the second half of the season, and the Corporation was able to dispose of a substantial quantity of the wool it had bought in at earlier sales. The 1975–76 season showed a marked improvement.

The following table shows for the last 12 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 Kilogram (Greasy Basis)Estimated Value of Total Wool Production
 tonnes(000)cents$(m)
196528377.40218.8
196631576.46241.0
196732264.77208.4
196833050.42166.5
196933261.86205.3
197032856.48185.3
197133453.42178.4
197232266.46214.2
1973309143.96444.5
1974285139.19396.4
197529491.75269.8
1976312157.12489.9

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.

New Zealand Wool Board—The New Zealand Wool Board was set up under the Wool Industry Act 1944. There are 6 representatives of woolgrowers, elected by an Electoral Committee of 26. (The members of the committee are in turn elected by sheepfarmers. The same committee elects the Meat Producers Board.) Representatives on both Boards have a 3-year term and are eligible for re-election. There are 2 Government appointed members and the Director General of Agriculture is an associate member.

The Board's main functions are to promote the use of New Zealand wool through research and through advertising and related activities. It advises the Government on industry matters and may exercise other functions in production and marketing by regulation.

The Board's main sources of income are a 3 percent levy on all wool whether processed in New Zealand or exported; a Government grant to assist in financing overseas research and product development (currently $2 million); an annual grant of $6000,000 from the Wool Marketing Corporation, being interest on grower funds held by the Corporation: and interest on the Board's own investments. In 1974—75 the gross income was $10,800,000.

With the Meat Producers Board, the Wool Board maintains the Economic Service, which surveys a representative 500 pastoral farms. The Board's own staff, numbering about 30, are engaged in economic studies on production and marketing, advisory services on breeding and wool preparation, a shearer training scheme, technical assistance to wool processors and garment manufacturers, arid the full range of promotion activities on the New Zealand market. The Board also offers technical assistance to users of New Zealand wool overseas and engages in some promotion in Australia and other export markets.

More than four-fifths of the Board's income is contributed to the work of the International Wool Secretariat. In 1975–76 this amounted to $10.2 million—including the $2 million Government grant. The IWS is a partnership with Australia, South Africa, and Uruguay. It has headquarters in London and operates in almost all countries with a substantial consumer market. It offers technical and fashion assistance in menswear, womenswear, and furnishings to manufacturers; administers the Woolmark and Woolblendmark, maintaining quality control in more than 13,000 plants; and promotes wool through campaigns with manufacturers and retailers. The Wool Board represents New Zealand on the board of the IWS.

The Board provides approximately half the annual revenue of the Wool Research Organisation of New Zealand (WRONZ). In 1975–76, this was $400,000. Established in 1960 at Lincoln, Christchurch, WRONZ has a professional staff of about 35. It conducts fundamental research on the wool fibre and applied research on scouring, processing and performance of New Zealand wools and fibre measurement as an aid in marketing.

New Zealand Wool Marketing Corporation—The New Zealand Wool Marketing Corporation, successor to the Wool Commission, was established in 1972 under its own Act. It has wide powers to obtain, in the interest of growers, the best long term returns for New Zealand wool. It can do this by developing a marketing system suited to the requirements of the textile industry, by marketing wool to best advantage, and by bringing about efficiencies in handling and distribution.

The Wool Marketing Corporation has 10 directors: a chairman nominated by the Wool Board and approved by the Minister of Agriculture, 3 grower representatives from the Wool Board, one man nominated by the Board for his commercial experience, 2 nominated by the Minister, and the Director General. The chief executive and a tenth man nominated by the Corporation board are non-voting directors.

The Corporation has power to acquire all wool, but it has indicated it will not do this unless a majority of growers support the move. It values all wool offered at auction and intervenes in the market to support prices according to its commercial judgment. In doing this it may buy wool—and at the end of the 1974–75 season it held approximately 200,000 bales. It sells from this stockpile, normally through the established wool trade. For these operations it has reserve funds of approximately $55 million, deriving principally from the sale of wools accumulated during World War II.

The Corporation also values wool for the purpose of ensuring a minimum return to growers (the "minimum floor price"). In 1975–76, this valuation averaged 124c per kilogram greasy weight. When the market price for a lot offered at auction falls below the appropriate minimum, the Corporation pays the difference to the grower. (It is known as the "supplementary payment".) A fund of $15 million was established for this purpose by the Government in January 1975. Beyond this, the Corporation has authority to borrow at a concessionary rate of interest of one per cent.

Supplement is paid on privately sold wool provided the buyer displays it for appraisal by the Corporation.

There are 14 appraisers and a total executive staff of 60.

The Corporation's other functions include the following: market intelligence and a statistical service covering production, disposal and price; it collects the Wool Board levy; it administers a number of wool stores for its own purposes; its Act provides for a Wool Auction Sales Committee to draw up a roster of sales; it is involved financially and otherwise in the development of sale by sample and other marketing innovations; it is concerned in wool transport and packaging; and it is the negotiator of wool freight rates.

The Corporation's main source of income is interest on its reserves ($1.7 million in 1974–75) and profit on wool trading ($1 million in 1974–75). Operating costs in that year were approximately $700,000.

The amalgamation of the Board and Corporation is being discussed.

AGRICULTURAL PRODUCTION COUNCIL—This council was set up following a recommendation of the Agricultural Development Conference in 1964. It comprises the Minister of Agriculture and Fisheries (chairman), the Director-General of Agriculture and Fisheries (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. As a result of a review in 1973–74 the chairman of the Horticulture Committee was added to the membership of the council.

The Agricultural Production Council is responsible to the Cabinet Committee on Policy and Priorities through the Minister of Agriculture and Fisheries. The council's role remains unchanged from that obtaining as a sector council of the former National Development Council.

In addition to one standing committee on horticulture, the Council has 22 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 advisors 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.

MINISTRY OF AGRICULTURE AND FISHERIES—The Ministry of Agriculture and Fisheries was formed in 1972 by grafting the fisheries management and research divisions of the former Marine Department on to the Department of Agriculture. The principal functions of the ministry are: to promote and to encourage the development of all phases of the agricultural, pastoral, horticultural and fishing 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.

The Ministry of Agriculture and Fisheries provides a service of which the main object is the advancement of the interests of agriculture and fisheries. Under a Director-General of Agriculture and Fisheries there are Divisions of Animal Health, Meat, Dairy, Advisory Services, Agricultural Research, Fisheries Research, Fisheries Management, Economics, and Administration. Though the service is primarily advisory, the ministry administers a number of Acts and regulations.

Animal Health—The major objective of the Animal Health Division is to safeguard the health of livestock in New Zealand by preventing the introduction of serious exotic diseases and to work towards the eradication of existing endemic diseases. The division's veterinarians examine animals and certify them as suitable for export; they maintain surveillance and quarantine procedures which reduce the risk of introducing foreign diseases with import of animals and animal products. The division operates quarantine stations for imported livestock. Five regional animal health laboratories are operated by the division and provide diagnostic support to practitioners and veterinarians of other divisions of the ministry. It also operates a national reference laboratory for infectious diseases and for diagnostic tests of imported and exported animals. A central brucellosis laboratory services the national brucellosis testing scheme.

The division is associated 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 inspection of stock intended for slaughter at abattoirs and export meatworks and for the later inspection of the carcasses. It is also responsible for the standard of hygiene at these establishments as well as in export and domestic meat packing houses, rural slaughterhouses, game packing houses, and export fish packing houses. Veterinary certificates for meat, game, and fish exported are given by veterinary staff of the division, and meat-inspection staff are responsible for grading meat for local consumption produced at abattoirs and they supervise the grading of meat for local consumption at export meatworks.

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 Hamilton 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 ministry'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, and farm economics. Extension work operates through individual farm visits, groups techniques, and the mass media. There are commercial demonstration farms at Kaikohe, and co-operative demonstration projects are undertaken on selected farms.

Outside its extension work, this division is responsible for certification and testing of herbage and cereal seeds, and the Flock House and Telford Farm Training Institutes at Bulls and Balclutha.

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, 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 and a honey-grading service for the Honey Marketing Authority. All honey for export is inspected before certificates are issued.

Information is supplied for marketing organisations in the form of seasonal forecasts of production. Periodic surveys are made of orchards, market gardens, and nurseries.

Agricultural Research—All research stations of the ministry are under the control of the Director of Agricultural Research, with headquarters at Ruakura. Directors of Animal Research, and Soil and Field Research are also 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. 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 all aspects of agricultural policy including international trade and trade negotiations in relation to agriculture, international quality standards, liaison with international agencies, the analysis of national 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, the economics of the fishing industry, and the economic evaluation of research proposals.

Port Agriculture Service—The Port Agriculture Service is a uniformed branch of the ministry 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 from overseas.

Pasture Grasses—Researches and experiments in regard to pasture grasses are regular features of the activities of both the Ministry of Agriculture and Fisheries and the Department of Scientific and Industrial Research. These experiments, which extend 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.

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 fertiliers in 1974–75 totalled 1,819,000 tonnes compared with 2,533,000 tonnes in 1973–74, a drop of 28 percent. 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 tonnes in 1945. Since then the usage has dropped to less than 1 million tonnes 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 available 6 years. From 1972 this information is being collected triennially.

Year*Area TopdressedQuantity of Fertiliser and Lime Spread
Fertiliser OnlyLime OnlyFertiliser and Lime TogetherTotal Area TopdressedBy Ordinary MeansBy Aeroplanes

*Year ended 31 January to 1970 and 30 June thereafter.

 ha (000)ha (000)ha (000)ha (000)tonnes(000)tonnes(000)
19674,800.8140.7568.75,510.21,864.81,038.7
19684,345.1131.7472.34,949.11,682.6854.1
19694,508.0137.5477.35,122.81,755.3833.0
19704,853.8165.4632.95,652.12,003.8951.3
19714,758.3171.8695.75,625.82,218.9930.4
19724,758.7187.5741.75,688.02,189.61,020.2

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 11E.

IRRIGATION—Most of New Zealand soils have a seasonal moisture deficiency and require irrigation to reach their maximum productivity. Many soils presently farmed under dry land conditions are capable of substantially increased production under irrigation.

In Central Otago the Ida Valley scheme serving an area of 5,000 hectares was completed in 1917. The Upper Waitaki serving an area of 2,000 hectares was completed in 1970 and construction of the Lower Waitaki scheme to serve 14,000 hectares is proceeding.

In Canterbury work is in progress on the Morven-Glenavy scheme north of the Waitaki River to serve an area of 9,700 hectares.

Major irrigation schemes are financed, constructed, and operated by the Government.

Charges for water supplied to farms are fixed so that over a period of 40 years the revenue should meet the costs of operation and maintenance or periodic renewal of items of capital works, and of interest on one-quarter of the capital cost of the scheme.

In addition to these large, Government-controlled 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.

The Ministry of Works and Development is extending its activities for the investigation, design, and construction of new irrigation schemes, including the co-ordination of other Government and local agencies. To qualify as an approved scheme an irrigation proposal must, in general, include a minimum of four farm businesses and an area to be irrigated of not less than 400 hectares and also meet agreed engineering and benefit/cost standards.

Approved irrigation schemes are financed on a basis of the Government's providing the full capital cost of all off-farm works and approved fixed on-farm works, and half of the cost of off-farm distribution works within the irrigable area to be recovered. The Rural Banking and Finance Corporation takes security for the full capital cost of approved fixed on-farm works. Two-thirds of the cost is recovered by way of mortgage and one-third is treated as a suspensory loan. The loan will be written off at the expiration of 7 years.

Approved irrigation development not qualifying as a scheme will qualify for Rural Banking and Finance Corporation loans of 100 percent with interest and capital repayments deferred, if necessary, during the initial 4 years of development.

Local irrigation committees have been set up to reappraise all existing schemes and, through the National Water and Soil Conservation Authority, to advise the Minister of Works and Development on upgrading, operation, and maintenance. There are also official irrigation committees for each of the 7 Ministry of Works districts. These district committees are convened and chaired by the district commissioner of works and include representatives of Ministry of Agriculture and Fisheries, Rural Banking and Finance Corporation and regional water boards. Other numbers may be co-opted if and when required.

The area and type of land irrigated during the year ended 30 June 1972 are analysed by statistical area in the following table.

Statistical AreaNo. of HoldingsGrasslandCommercialOther CropsOther LandTotal
FruitVegetables
  hahahahahaha
Northland1711,26633711220661,801
Central Auckland2301,031988883442,055
South Auckland-Bay of Plenty1821,597834858271,813
East Coast5319178149256449
Hawke's Bay4161,3761,314763100473,600
Taranaki689452912-968
Wellington2522,458946449823,296
North Island1,3728,8642,0062,61334715213,982
Marlborough1611,326243273792542,688
Nelson5121,2605765141,647154,012
Westland112----12
Canterbury1,51344,1594521,67412,30248359,070
Otago97050,9081,4462201,20665854,438
Southland19571-4260-673
South Island3,17698,2362,7172,72316,0071,210120,893
New Zealand4,548107,1004,7235,33616,3541,362134,875

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, Gram, etc.1970–711971–721972–731973–741974–75x1975-76*

*Estimates.

 $(000)
Lime transport assistance128241456572492575
Fertiliser transport subsidy7,0508,94512,48011,6498,1827,100
Flood and drought relief3,541313192951145400
Weedicide and pesticide subsidy4,0224,7015,4162,479--
Eradication of bovine tuberculosis and brucellosis—      
Compensation for condemned animals, loss of production payments, hardship payments, and incidental costs1,3962,1323,6042,9852,9792,900
Agricultural pests control2,1042,2692,5352,7283,0254,075
Subsidies to nassella tussock boards1902247405887612,564
Subsidies to county councils under the Noxious Weeds Act304161
Agricultural Engineering Institute142190223276327365
Herd Improvement Council97111120132147160
National Hydatids Council106120152201192-
Veterinary Services Council484344576061
Fertiliser price subsidy5,36613,13419,0928,81435,50250,000
Special Assistance Fund9,786185-3--
Dairy diversion scheme (beef)1,1342,049281---
Stock drench subsidy-3,5915,1523,097--
Aerial application of fertiliser and lime subsidy-4971,104432--
Grant to New Zealand Wool Board-3,8124,1634,4002,8792,000
Stock retention incentive--11,87136--
Grants to Dairy Products Development Centre--75340175190-
Pipfruit pesticides rebate-----378
Fertiliser and lime bounty-----12,670
Contribution to Meat Income Stabilisation Account-----35,000
Contribution to Wool Income Stabilisation Account-----15,000
Feed storage construction subsidy----2191,000
Lucerne establishment grant----417500
Sharemilkers' Suspensory Loan Scheme-----360
Cartage grants to dairy companies-----670

Lime Transport Assistance—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. The rates of subsidy are 3.7c per tonne-kilometre for the first 100 km and 1.2c per tonne-kilometre 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 tonne in June 1971. From June 1973 it applied to the first 30 tonnes only. From 1 July 1974 a subsidy has been paid on all fertiliser bought by farmers, without restriction on quantity, to keep the price of fertiliser to that applying at 30 June 1974. The rate of subsidy applying from 10 August 1975 was $35.79 per tonne.

Fertiliser Transport Subsidy—From 1965 there has been a subsidy on the transport of fertiliser (excluding lime). The subsidy is 4.4c per tonne-kilometre for distances up to 30 km, 3.7c per tonne-kilometre between 30 and 160 km, and 2c per tonne-kilometre over 160 km.

Fertiliser and Lime Bounty—This bounty was introduced from 24 January 1975 to encourage the application of fertiliser and lime. A bounty of $7.50 per tonne for fertiliser and $2 per tonne for lime spread by contractors, and $5 per tonne for fertiliser and $1 per tonne for lime spread by farmers was paid for fertiliser and lime applied between 24 January and 30 June 1975. The scheme was extended to 31 December 1975, with the rates for fertiliser spread after 30 June 1975 being $4.50 per tonne for fertiliser ground-spread by a contractor $7.50 per tonne for fertiliser air-spread by a contractor and $3 per tonne for fertiliser spread by a farmer. There were no changes to the rates for lime spreading.

Noxious Weeds Eradication—The estimates for 1975–76 include $1.5 million for the Noxious Plants Control Scheme introduced from 23 May 1975.

National Hydatids Council—The National Hydatids Council was absorbed into the Ministry of Agriculture and Fisheries from 1 April 1975.

Contribution to the Meat and Wool Stabilisation Accounts—In January 1975 the Government announced a scheme of special assistance to farmers. Up to $15 million was made available for wool income stabilisation and up to $35 million for meat income stabilisation. The wool support was to enable a minimum price of 93c a kilogram to apply to wool sold in the 1974–75 season; the meat support involved an extra $1 a lamb on lambs sold to export houses in the 1974–75 season and also a supplement of 60c a lamb on lambs sold by store-stock producers.

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 1974 figures relate to holdings of 1 hectare and over (previous years 4 hectares and over). Machinery owned by farm contractors is not included.

Type of Machine19601965197019711974

NOTE: Other farm machinery at 30 June 1974 included 21,483 cultivators, 14,391 grain drills, 4,944 spray irrigation plants, 31,640 weed and crop sprayers, 19,946 lime and fertiliser spreaders, 1,174 potato planters, 1,507 potato harvesters, and 16,193 grain silos or bins. Farm trucks totalled 32,967.

Agricultural tractors78,41589,43195,50296,66695,289
Milking machines36,72132,88727,93025,79321,408
Shearing stands61,63765,91871,05572,66968,271
Pick-up balers7,93210,24712,61812,92612,994
Side delivery rakes21,95324,17825,37825,06422,223
Harvesters—     
  Forage1,2004,2805,4035,4515,225
  Header4,7465,2895,7245,5914,828
Electric fence units54,70763,97070,14074,58371,336
Field mowers  52,00551,00842,720
Ploughs  42,10141,39233,646
Disc harrows  32,97932,49930,288

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 June 1974 there were 21,408 milking machine plants in use, with a total of 181,445 sets of cups, compared with 27,930 machines and 205,268 sets of cups at 31 January 1970.

Agricultural Tractors—The classes of tractors on farm holdings outside borough boundaries at 30 June 1974 are given in the following table.

Type19701974
Diesel oil—  
  Crawler7,5977,939
  Wheel43,26052,209
Totals50,85760,148
Petrol or kerosene—  
  Crawler5,9463,713
  Wheel38,69931,428
Totals44.64535,141

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 (although in addition substantial quantities of oranges are imported), and grapes are cultivated in certain localities. There is a substantial export trade in apples and pears.

Potato and onion production is normally adequate.

Wheat production fluctuates in relation to price incentives and imports are sometimes necessary.

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. 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 cities, on the rich soils near Christchurch, south of Oamaru, and on the Taieri Plains just south of Dunedin. 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 1972–73 season and the percentage distributions for each crop for the North and South Islands are given in the following table.

CropTotal AreaCentral and South Auckland*East Coast - Hawke's BayTaranaki-WellingtonNorth IslandMarlborough-NelsonCanterburyOtago-SouthlandSouth Island

*Including Bay of Plenty.

†Including other areas (Northland in North Island, Westland in South Island).

 hectaresPercentage of total crop area
For threshing—         
  Wheat107,700-1.05.56.60.969.722.793.4
  Oats15,1001.81.03.46.21.050.542.293.7
  Barley73,8002.75.019.126.93.958.910.373.0
  Maize12,90053.339.94.798.50.80.30.11.5
  Peas (not canning)21,400-7.76.414.13.079.23.685.9
Oats—         
  Fed off, cut green, abandoned23,0130.40.20.21.08.758.232.199.0
Root crops—         
  Potatoes9,20821.37.427.756.72.933.47.043.3
  Swedes52,43314.32.39.025.71.512.559.474.3
  Turnips71,5006.83.48.019.03.253.324.281.0
Green fodder—         
  Rape19,8971.34.93.19.55.067.817.890.5
  Kale (including chou moellier)27,2016.612.123.342.61.112.044.357.4
Other fodder crops28,41016.48.814.342.23.339.115.257.8
Grasses, clover and lucerne for seed42,3520.42.63.26.43.674.016.193.6
Grasses and clovers for hay or silage501,98542.04.119.172.23.08.215.727.8
Lucerne for hay or silage99,74211.14.23.919.76.847.925.580.3
Commercial orchards13,30728.128.71.963.420.05.011.636.6
Market gardens12,93028.425.417.374.03.714.77.526.0

Detailed statistics of crops are contained in the report Agricultural Statistics issued annually by the Department of Statistics. Unless otherwise stated, the statistics quoted in this subsection relate to holdings of 2 acres (approx. 1 hectare) from 1970–71 and to holdings of 10 acres (4.05 hectares) and over for earlier years situated outside borough boundaries or in rural areas of municipalities.

GRAIN AND SEED CROPS—Details of areas for threshing, total yields, and yields per hectare of the principal grain and seed crops during recent years are set out in the following table.

YearWheatOatsBarleyMaizePeas
Areas for threshing (hectares)
1964–6574,46115,69035,2223,91911,024
1969–70108,39421,00856,0808,08924,500
1970–7197,52822,14181,37811,98222,533
1971–72106,59616,37496,26314,80622,454
1972–73107,69015,07973,75012,85821,390
1973–7467,41421,45187,14312,51620,357
Total yields (tonnes)
1964–65250,33345,244105,91223,53823,898
1969–70287,21257,712174,44558,62349,601
1970–71325,64659,752259,320101,17751.856
1971–72389,15649,457335,490116,22557,519
1972–73376,11144,965285,261117,50759,733
1973–74214,59063,237241,58088,30452,891
Yields per hectare (tonnes)
1964–653.362.873.016.012.17
1969–702.652.753.117.252.02
1970–713.342.703.198.442.30
1971–723.653.023.497.852.56
1972–733.492.983.509.132.79
1973–743.182.942.777.062.59

The following table which gives the number of holdings and total area sown during the 1972–73 season shows cereal cropping being carried on by various farm types. The areas include threshed, fed off, and crop abandoned during the 1972–73 season.

Farm TypeWheatOatsBarleyMaize
Number of HoldingsArea sown (ha)Number of HoldingsArea sown (ha)Number of HoldingsArea sown (ha)Number of HoldingsArea sown (ha)

*75 percent or more of gross income is derived from stated activity.

†From 51 to 74 percent of gross income is derived from first named activity and between 20 and 40 percent from second activity.

‡Two or more activities of roughly equal proportions.

§Two or more activities of roughly equal proportions, one of which is cropping.

||More than 50 percent of gross income is derived from stated activity.

Dairy*391651356812831,59788693
Sheep*1,95628,3291,88017,4551,59416,12418190
Beef*203523521710291633384
Pig*431612768399103
Cropping*38010,5491041,4504878,1351753,237
Dairy with sheep7842610933275212
Dairy with beef458181093637816119
Dairy with other20294151425081121259
Sheep with dairy20181178019123329
Sheep with beef4095,5764264,0906596,91255895
Sheep with cropping1,06125,3054515,01183411,25217272
Sheep with other47546403466052114
Beef with dairy--2252418
Beef with sheep24239191967063419282
Beef with other2024610914054620276
Cropping with sheep37411,6081351,4263395,73818227
Cropping with other44841191317498641823
Pig with other54087624204452
Mixed livestock1271,2951721,2613523,16068775
General mixed farming§93423,8304114,3991,05015,5432454,236
Poultry farming||5196918117627
Market gardening||96312694267626158
Orchards||2621117681384
Other farming831,0101238071421,15124216
Total all types5,594110,6674,07238,1806,40676,73092313,361

WHEAT—The 1974 wheat harvest fell to 72,650 hectares, which was the smallest for the 14 previous seasons and, as a result, the Wheat Board found it necessary to import 148,575 tonnes. A 50-year series is given in the Statistical Summary towards the end of the Yearbook.

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 distribution of both imported and locally produced wheat rests with the Wheat Board, which is also responsible for the distribution of flour and associated offal. The operations of this Board, which consists of representatives of flourmillers, wheat growers, bread bakers, the poultry industry, the grain seed and produce business, the Department of Trade and Industry with the Minister of Trade and Industry as chairman, and one person with no direct association with any of the above industries 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 grain merchants acting as brokers for the board. The board is responsible for the distribution of all imported wheat and its functions also include arrangements for the processing of wheat by flour-millers and the sale of the resultant flour and offal to merchants, brokers, pastry cooks, grocers, and others.

The annual consumption of wheat in New Zealand for flour and cereal foods approximates 313,000 tonnes. Wheat is also required for poultry foods and seed. Research is assisted by a levy on wheat and flour on recommendation of the Wheat Research Committee.

MAIZE—Maize is principally grown on the East of the North Island, Hawke's Bay, and South Auckland - Bay of Plenty. For many years, the area that was sown in maize remained steady at between 5,000 and 6,000 hectares. (About half the crop was grown for grain, and the other half for green feed.) In recent seasons, the area sown has greatly increased, partly as a result of the introduction of improved hybrid maize varieties. The yield of grain threshed has doubled. Maize is used principally as poultry feed, but smaller amounts are used to feed pigs and other stock.

BARLEY—Barley is used mainly in the manufacture of stock feeds, and for malting. The production of barley is increasing steadily, mainly because of the growing demand for stock feeds.

OATS—Most of the oats are grown for threshing and green feed and not for chaff. From the grain milled, rolled oats, oatmeal, and proprietary oaten foods are produced, along with feed for animals and fowls.

VEGETABLES—The production of the main vegetables for the fresh market is shown in the following table for the latest 5 years; production for processing is also shown for 1974.

Vegetable197019711972197319741974 (Processed)

*Production for fresh market is outdoor plus glasshouse; production for processing is outdoor only.

 tonnes
Asparagus2902924004372761,082
Beans, green1,14783493195582910,617
Beetroot2,0411,0231,6741,5241,4703,675
Brussel sprouts1,2511,8641,7231,8291,904330
Cabbages30,89428,10728,17728,44926,148850
Carrots30,75622,95824,05727,43327,95012,404
Cauliflower26,29023,36623,09923,36918,243529
Kumaras8,2256,8667,5828,3329,235-
Lettuce14,12813,01214,61915,74916,429-
Onions31,46231,46434,45436,98437,7781,956
Parsnips6,7113,8803,9564,3694,60914
Peas58139043837624134,783
Sweet corn6021,0131,5231,7272,26230,573
Tomatoes*22,28222,09421,77622,78023,48827,040
Celery3,7643,9194,0444,6743,561393

There has been a marked increase in recent years in the quantity and variety of crops grown for processing. The quick-freezing industry has expanded rapidly and so have other forms of processing, such as canning, freeze-drying, and the manufacture of prepared foods. The major areas producing vegetables for processing are the Heretaunga Plains around Hastings, Gisborne, Christchurch, and Timaru.

Peas are the main crop, followed by sweet corn, tomatoes, carrots and green beans.

The Ministry of Agriculture and Fisheries estimates that 3,000 vegetable producers were cultivating a total area of 21,777 hectares during the year ended 31 October 1974. Included in this figure were some 13,900 hectares of vegetables for processing.

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 7 members, 3 of whom are representative of the growers on an elective basis, 3 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. From the 1972–73 season to the 1975–76 season the rate was $20 per tonne in the South Island and $24 per tonne in the North Island.

Potato yields have risen to such an extent that a population of 3 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 available 6 years are as follows.

YearAreaTotal YieldYield per Hectare
 hectarestonnestonnes
1968–6910,132256,35025.30
1969–709,928253,20425.50
1970–718,287209,92725.23
1971–727,905219,97027.83
1972–738,995244,42127.15
1973–748,606206,19223.96

ONIONS—Areas in, and yields of, onions for the latest available 6 years are as follows.

YearAreaTotal YieldYield per Hectare
 hectarestonnestonnes
1968–691,02130,89730.26
1969–7087925,95829.53
1970–711,04129,61428.45
1971–7296825,60326.45
1972–731,09232,20929.50
1973–741,09924,66222.44

HOME VEGETABLE PRODUCTION—At the 1971 Census of Population and Dwellings a question was asked on home vegetable production.

It was found that approximately one-third of all households grew potatoes and approximately one-half grew other vegetables in addition to (or instead of) potatoes.

LINSEED—Most of the linseed is grown under contract for the production of linseed oil and about 3,500 hectares are sown each year. The oil is extracted mainly for use in paints, and the residue provides a valuable concentrate for stock food.

SEED CERTIFICATION—The Ministry of Agriculture and Fisheries 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 Ministry of Agriculture and Fisheries 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—The areas of grass, clover, and lucerne crops harvested for seed, distinguishing the principal varieties, are given in the following table.

Crop1968–691969–701970–711971–721972–73
 hectares

*Ariki from 1968–69.

Ryegrass—     
  Perennial18,15324,85148,43321,96219,676
  Italian2,868*
  Short Rotation (H.1.)5,483
Red clover (including cowgrass)5,78715,31626,44915,52914,473
White clover13,082
Lucerne4,8073,6795,4272,3551,569
Cocksfoot3,9958,86612,4849,3456,634
Chewings fescue565
Crested dogstail3,802
Other glasses and clovers4,948
Totals63,49052,71292,79349,19142,352

Quantities (in dressed weights) of grass and clover seeds treated by machine dressing plants for the latest 2 years are given below.

Type of SeedYear Ended 31 October
19731974

*Included with other grasses.

 kilograms
Ryegrass—  
  Perennial8,427,09614,178,995
  Short Rotation (H1)1,446,1741,865,821
  Italian (and Western Wolths)828,8461,471,183
  Ariki1,723,0232,115,961
  Tama2,613,3752,814,613
Chewings fescue73,71468,334
Brown top62,67476,978
Crested dogstail1,279,941796,662
Cocksfoot939,758389,630
Timothy251,858138,002
Phalaris tuberosa*10,374
Prairie grass34,55120,692
Yarrow*2,361
Yorkshire fog4,42810,078
White clover3,623,5323,156,411
Suckling clover53,64034,366
Suckling white mixture135,34655,778
Cowgrass (including broad red)356,283382,863
Montgomery red clover122,867154,472
Lucerne345,093331,755
Mixtures and other grasses, clovers and herbs108,62217,408
Rape247,825118,412
Kale (including chou moellier)431,771323,095

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.

HORTICULTURAL LAND USE—An indication of the size of the horticultural industry is given by the following figures of occupied land and the number of trees, as published by the Ministry of Agriculture and Fisheries in 1975.

 hectares
Vineyards2,351
Citrus orchards1,550
Chinese gooseberry (kiwifruit) orchards820
Hop gardens251
Registered nurseries (728)1,348
Apples2.2 million trees
Pears162,000 trees

In 1974 commercial orchards contained an estimated 2,352,000 pip fruit trees, 888,000 stone fruit trees, 901,000 citrus fruit trees, and 658,000 trees or vines bearing sub-tropical fruit such as tamarillos, kiwifruit, passion fruit, and avocados.

ORCHARDS AND THE FRUIT INDUSTRY—Whereas pip and stone fruits are grown commercially throughout New Zealand, citrus and subtropical fruits are largely confined to the coastal strip from North Auckland through the Bay of Plenty to Gisborne, where the climate is suitably mild. During 1973, the Ministry of Agriculture and Fisheries made its fifth comprehensive survey of commercial orchards throughout New Zealand. The following table compares the areas of the various recorded in the 1968 and 1973 surveys. Because the 1973 survey did not take into account 1973 tree plantings and removals, it in effect gave the situation as at the end of 1972. Similarly the 1968 survey gave the situation as at the end of 1967. The main producing areas for the various fruits are also given. The 1974 figures are estimates based on the previous survey.

Fruit196819731974Main Districts
Pip Fruithectares
  Apples4,0754,9305,135Nelson, Hawke's Bay.
  Pears623542518Hawke's Bay, Nelson.
Stone Fruits—    
  Apricots452595534Otago.
  Cherries6610597Otago, Marlborough.
  Nectarines121262319Otago, Hawke's Bay.
  Peaches1,3851,3141,297Hawke's Bay, Auckland, Otago.
  Plums335362376Hawke's Bay, Auckland.
Citrus—    
  Grapefruit139435483Bay of Plenty.
  Lemons126164166Bay of Plenty.
  Mandarins101201228Bay of Plenty, Northland.
  Oranges (sweet)270362405Northland, Poverty Bay.
  Tangelos80223292Bay of Plenty, Nthland., Poverty Bay.
Subtropicals—    
  Kiwifruit (Chinese Gooseberries)133720850Bay of Plenty.
  Passionfruit262830Bay of Plenty, Poverty Bay.
  Tamarillos147208214Northland, Bay of Plenty.

Fruit and Crop Disposal—Estimated production and methods of disposal of the various fruit crops in 1974 follow. For comparison, 1968 figures are shown in parentheses.

FruitDisposalProcessingTotal Production
Export (fresh)Local Market (fresh)
Pip Fruittonnes
  Apples61,16462,27328,679152,116
 (42,100)(55,000)(16,100)(113,200)
  Pears2,6359,2234,07415,932
Stone Fruit(3,400)(11,500)(4,700)(19,600)
  Apricots4,8902,3317,221
 (3,290)(1,620)(4,910)
  Cherries50329532
 (400)(30)(430)
  Nectarines2,234272,261
 (1,250)(10)(1,260)
  Peaches13,96010,48024,440
 (12,790)(9,310)(22,100)
  Plums4,1275884,715
 (2,570)(300)(2,870)
Citrus Fruit   
  Grapefruit1,7873,4765,263
 (1,700)(1,650)(3,350)
  Lemons1,0221,5142,536
 (1,830)(1,290)(3,120)
  Sweet oranges—-2,6521602,812
 -(1,060)(—)(1,060)
  Mandarins1,3481,348
 -(530)(—)(530)
  Tangelos1,8312552,086
 (250)(—)(250)
Subtropicals    
  Kiwi fruit (Chinese gooseberries)1,8933,634815,608
 (270)(1,490)(70)(1,830)
  Tamarillos27.62,213512,292
 (10)0,620)(—)(1,630)
  Passionfruit73116189
 (—)(100)(60)(160)

BERRYFRUIT GROWING—Berryfruits are grown commercially throughout New Zealand.

The following table gives the estimated areas of the various berryfruits. The main producing areas are also shown. Figures are for years ended June of year shown.

Fruit197019731974Main Districts
 hectares 
Strawberries226188217Auckland.
Raspberries329268248Nelson, Canterbury.
Boysenberries106135183Nelson, Hawke's Bay, Bay of Plenty
Loganberries976Wairarapa, South Canterbury.
Blackcurrants6289136Canterbury, Dunedin.
Gooseberries201817Wairarapa, Horowhenua.

Estimated production and disposal of the various berryfruits is given in the following table.

FruitMarket (Fresh)ProcessingTotal Production
1969–701973–741969–701973–741969–701973–74

*Including 151 tonnes exported.

 tonnes
Strawberries3,0502,6651,5307034,5803,368*
Raspberries6706147901,1921,4601,806
Boysenberries1903812607754501,156
Loganberries403610155051
Blackcurrants90101120204210305
Gooseberries170116-4170120

Commercial production in 1974 of blackberries (15 tonnes), blueberries (8 tonnes), and red currants (2 tonnes) was on a very small scale.

The raspberry is the only berryfruit for which there is a statutory marketing scheme.

District marketing committees were established in Nelson in 1940, and in Canterbury and Otago in 1950. A Central Council of Raspberry Growers was created by the Raspberry Marketing Regulations 1950 to co-ordinate marketing by the 3 district committees.

GRAPE GROWING AND WINE PRODUCTION—In 1975 the Ministry of Agriculture and Fisheries estimated the national area in vineyards at 2,351 hectares, mainly in the regions Auckland, Northland, Waikato, Poverty Bay, Hawke's Bay, and Marlborough.

There were 355 commercial vineyards, with almost 4 million vines. Grape wine production in 1975 had increased to 34,600 kilolitre (1 kilolitre = 1000 litres). For the same period fruit wine production increased 30 percent. Wine exports to date have not been significant.

The 1975 total vineyard production of grapes was approximately 24,013 tons, of which 23,119 tons were used for winemaking, 600 tons used in the production of unfermented grape juice, and 294 tons sold for dessert.

The 1974 estimated area in commercial glasshouse vineries was 54,000 square metres producing some 229 tonnes of select dessert grapes. There is a small but expanding trade in select glasshouse grapes to the northern hemisphere.

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.

The following table shows the quantities of the main varieties of fresh apples and pears received by districts by the Apple and Pear Marketing Board during the 1973–74 season.

VarietyHawke's BayNelsonOther DistrictsTotal
Apples—bushel cases (000)
  Granny Smith1,0526534052,110
  Sturmer Pippin1587221961,076
  Golden Delicious213482129824
  Delicious98298203599
  Red Delicious31912489532
  Jonathan727355335
  Dougherty1219924244
  Cox's Orange6637597538
  Richared632925117
  Gravenstein129510117
  Others15284165401
Total apples2,2613,2341,3986,893
Pears—    
  Williams Bon Chretien-242347
  Winter Cole915323167
  Winter Nelis571836111
  Packham's Triumph2862999
  Others36321179
Total pears212189102503

Exports of apples and pears in the 1973–74 season totalled 4,034,800 bushels (excluding processed goods).

HOPS—Practically the whole of the hop gardens are located in Waimea county. Production per hectare (approximately 2.47 acres) usually ranges between 1,300 kilograms and 1,700 kilograms.

The total crop produced in the 1974 season was 466 tonnes (65 tonnes for export) compared with 249 tonnes (52 tonnes for export) in 1973. About 98 percent of the crop is now picked by machines. Hop gardens covered 251 hectares in 1974 compared with 249 hectares the previous season, and the yield averaged 1.9 tonnes per hectare.

A Hop Marketing Committee of 6 members (one Government and 5 producers) 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 3,460 tonnes of raw tobacco leaf was imported during 1972–73 and 4,087 tonnes during 1973–74.

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 Planted*ProductionEstimated Value of Crop

*Contract area amended after planting operations completed.

  hectareskg(000)$(000)
1968–695232,0513,4494,917
1969–705062,0333,2484,641
1970–714641,9973,8886,071
1971–724111,8763,3275,619
1972–733531,7393,0455,819
1973–743401,7513,2387,200

The production figures represent the weight of the leaf purchased from growers before redrying. Flue-cured leaf accounted for 97 percent and air-dried leaf for 3 percent of the 1973–74 crop.

Approximately half the tobacco used by New Zealand manufacturers in the production of cigarettes and cut tobacco is New Zealand grown. The actual average percentages used during recent years ended 30 June has been as follows: 1970, 49.4 percent; 1971, 49.3 percent; 1972, 49.1 percent; 1973, 49.2 percent; 1974, 48.3 percent.

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.

In the spring of 1974, 212.67 hectares of flax were sown, as compared with 90.65 hectares in 1973. In recent years the industry has been faced with a problem of insufficient acreage on which to base a modern processing plant, due to inadequate returns to flaxgrowers.

However, during 1975 important decisions were made by growers and the Linen Flax Corporation in the interests of the industry. Directors agreed that the corporation would become fully responsible for handling the harvest as from the 1975 harvest. A formula was also agreed upon under which payment to growers would be increased so as to be in line with payments obtained from other crops grown in the district. On their part, growers agreed to increase the acreage for growing linen flax. Contracts totalling almost 213 hectares in 1974 as compared with under 91 hectares in 1973 supplied conclusive evidence of growers' contribution to the industry.

Production from the Linen Flax Corporation factory at Geraldine in recent years has been as follows.

Product197219731974
 tonnes
Straw processed1,093816944
Scutched fibre10997103
Seed1148881
Tow454231
Linmeal795547

Sales during 1974 totalled $138,082, of which sales of flax fibre totalled $121,015.

14 C — LIVESTOCK

GENERAL—Agriculture is a major industry upon which much of New Zealand's prosperity depends. It has the capacity to expand provided the circumstances are favourable for development. The lines of development are influenced by overseas prices received for farm products in the form of meat, wool, butter, cheese, milk powder, casein, etc. Although there is a time-lag associated with livestock breeding, the livestock numbers are an indication of the response of farmers to financial incentives, although weather factors, such as drought, are also involved.

Livestock numbers over a 50-year period are shown in the historical tables near the back of the book.

A feature of recent years has been the continued upward trend in beef cattle numbers, in contrast to fluctuations in numbers of other livestock.

New Zealand has more than 20 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 two and one half cows to the hectare, and the best sheep farms can support up to 25 sheep to the hectare 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 (75 percent), with Herefords (17 percent) and Shorthorns (6 percent) 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. Estimates of breeds in 1971–72 were: Jersey, 58 percent; Friesian, 34 percent; Ayrshire, 3 percent; Shorthorn, 1 percent.

In the following table, livestock numbers are shown by farm-type category as at 30 June 1973.

Farm TypeBeef CattleDairy CattleSheepPigs

*75 percent or more of gross income is derived from stated activity.

†From 5.1 to 74 percent of gross income is derived from first named activity and between 20 and 40 percent from second activity.

‡Two or more activities of roughly equal proportions.

§Two or more activities of roughly equal proportions, one of which is cropping.

||More than 50 percent of gross income is derived from stated activity.

 (000)
Dairy*1722,45124561
Sheep*1,1301925,9309
Beef*806344843
Pig*71312197
Cropping*911471
Dairy with sheep17632313
Dairy with beef91211697
Dairy with other454528
Sheep with dairy6111621
Sheep with beef1,6581615,8695
Sheep with cropping3521,8673
Sheep with other1713714
Beef with dairy312013-
Beef with sheep37761,3401
Beef and other282214
Cropping with sheep913471
Cropping with other71132
Pig with other57748
Mixed livestock1,1642186,99075
General mixed farming§123161,62315
Poultry farming||51243
Market gardening||16159-
Orchards||41351
Tobacco growing||3-31-
Other farming4185463
Totals5,7653,15956,442476

Figures as at 30 June 1974 gave a total of 6,237,368 for beef cattle (of which, breeding cows and heifers totalled 2,063,781 compared with 1,981,589 the previous year), and a total of 3,073,996 for dairy cattle, of which 2,040,685 (compared with 2,087,608 the previous year) were dairy cows in milk.

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.

The 1974 figures showed a 4.3 percent increase in beef cattle, but the total of dairy cattle decreased by 2.7 percent. The beef cattle herd has been increasingly supplemented in recent years by dairy-bred cattle reared for beef production, as indicated by the declining calf kill.

Totals of livestock are included in the Statistical Summary towards the back of this Yearbook.

The dairying and beef-production industries are both largely concentrated in the North Island which has 83 percent of the total cattle and 92 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 Northland and East Coast in that order. These 5 districts together depasture 68 percent of breeding cows.

Northland, Central Auckland, and South Auckland - Bay of Plenty statistical areas account for 42 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 19 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 developments 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 85 percent of the total sheep population in 1974.

The following table shows the distribution of livestock at 30 June 1973.

Statistical Area Dairy 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 and lambs shorn during 1972–73 and lambs tailed during year ended 31 January 1974.

Northland(000)2592039793201,457699937
 Percent12.4210.2610.974.924.232.663.932.51
Central Auckland(000)17461527765930343528
 Percent8.333.095.9011.6613.551.701.931.42
South Auckland - Bay of Plenty(000)9334042,684131147,7393,8524,928
 Percent44.7020.4030.0823.4023.8914.1221.6813.21
East Coast(000)6187442-42,2981,1181,415
 Percent0.299.424.950.890.904.196.303.79
Hawke's Bay(000)392437392146,4332,6854,275
 Percent1.8412.278.283.122.9811.7415.1111.46
Taranaki(000)334507327581,404627869
 Percent16.012.538.2111.4112.202.563.532.33
Wellington(000)16.012.538.2111.4112.202.563.532.33
 Percent9.2015.8614.1314.2912.4015.5020.6014.50
  North Island(000)1,9371,4637,3644033428,75712,98518,360
 Percent92.7973.8382.5269.6970.1552.4773.0849.22
Marlborough(000)15441282171,319227755
 Percent0.692.201.443.563.622.411.292.02
Nelson(000)3435146218654210372
 Percent1.631.771.643.953.691.191.181.00
Westland(000)172697-116346116
 Percent0.831.331.080.160.180.300.260.31
Canterbury(000)43165500*9739,2641,4566,580
 Percent2.088.325.6015.9415.3916.908.1917.64
Otago(000)211433732187,0459235,033
 Percent0.997.234.183.773.8312.855.1913.49
Southland(000)211063162157,6061,9216,089
 Percent0.995.323.542.933.1513.8810.8116.32
South Island(000)1515191,5601714226,0514,78318,945
 Percent7.2126.1717.4830.3129.8547.5326.9250.78

Detailed statistics of livestock are contained in the annual report Agricultural Statistics. This publication also contains the summary tables from parliamentary paper C. 5A (formerly 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
19709921,76742,9114323292,59111,25360,276
19719851,73243,0174903092,03710,34258,912
19721,0291,58444,1524263432,40010,94960,883
19739371,22341,0173613132,24810,58556,684
19749101,27540,3663162982,00910,71055,883
19759091,30041.1083362891,5769,80255,320
 Stud Sheep (Entered in Flock Book)
196225-5087183-196918
196719-5296215-215985
197219-5575210-2251,016
 Sheep of a Distinctive Breed but Not Entered in Flock Book
19628342,01229,035450752,2897,28041,975
19679192,47937,184337922,53310,25453,798
19729121,44137,6223761051,9888,81851,262
 Crossbred Sheep
1962412694,4029394368466,096
1967422253,69536112879525,248
1972971435,97445284121,9058,604

The 1972 classification of breeds shows that of the 60,882,719 sheep in New Zealand, 40,019,022 (65.73 percent) were Romneys and 8,604,020 (14.13 percent) were crossbreeds. The remainder were composed principally of Corriedale 4,405,591, half-bred 2,537,007, Merino 1,132,905, and Southdown 1,061,539.

Following several years of steady increase, the size of the average flock fell in 1973 and again in 1974. A classification of numbers of flocks by size of flock is now given for the latest 5 years.

Size of Flocks19701971197219731974
1- 995,0675,0274,6295,1315,332
100- 1992,1682,1451,9201,9732,062
200- 4994,3474,2023,6173,8863,807
500- 9995,4735,2455,2544,8954,773
1,000- 1,4995,7455,4615,2745,0544,898
1,500- 1,9995,3635,1505,0594,8024,700
2,000- 2,4993,5953,5413,7343,3153,328
2,500- 4,9995,3355,2735,7755,3315,239
5.000- 9,9991,1881,1951,3011,1961,190
10,000 and over280276263257250
Total flocks38,56137,51536,82635,84035,579
Average flock size1,5631,5701,6531,5821,571

CATTLE—Numbers of cattle at 30 June of the three latest available years are now given by categories.

Category197219731974

*Heifers not yet in milk, and cows not in milk during season but intended to be used again for dairying.

†One and two year old heifers in calf included in cows in milk during season.

‡Includes bobby calves (40,000 in 1972; 13,542 in 1973; 16,155 in 1974.

§Includes cows culled from dairy herds (71,225 in 1973; 66,762 in 1974).

Dairy stock—   
  Cows and heifers, 2 years old and over—   
  Cows in milk during season2,147,9912,087,6082,040,685
  Others*57,68045,69251,521
Heifers—   
  One and two years old487,765476,027470,123
  Under one year old469,090463,203423,483
  Bulls and calves intended for dairy breeding86,49172,83372,029
Totals, dairy stock3,289,0173,158,9053,073,996
Beef stock—   
  Breeding cows and heifers, two years old and over1,907,2081,981,5892,063,781
  Cows, two years old and over, not used for breeding205,855113,231160,295
Heifers—   
  One and under two years old560,931617,355684,380
  Under one year old690,825767,185798,562
  Steers and bulls of all ages1,978,9772,214,6812,463,588
Totals, beef stock5,343,7965,765,266§6,237,368§
Totals, cattle8,632,8138,924,1719,311,364

A feature of dairy farming in recent years has been the move to the amalgamation of farms to provide more economic units. The Rural Banking Corporation provided the following annual amounts of capital for farm amalgamations: 1968–69, %6.1 million: 1969–70, $16.3 million, 1970–71, $20.4 million; 1971–72, $22.8 million; 1972–73, $28.2 million; and 1973–74, $11.9 million. The 1974–75 figure decreased to $4.8 million.

The following table shows the number of holdings with dairy cows in milk, grouped according to size of herd in milk. The trend towards amalgamation has resulted in larger herds on individual holdings.

As at 31 Jan.HoldingsTotal Holdings with 10 or more Cows in Milk
With 10–39 CowsWith 40–49 CowsWith 50–59 CowsWith 60–69 CowsWith 70–79 CowsWith 80–89 CowsWith 90–99 CowsWith 100–149 CowsWith 150–199 CowsWith 200 and Over

*Entries for 1972 and 1973 are number of holdings for herd group sizes according to total dairy cattle on holding as at 30 June.

19609,0464,2154,1993,9862,9152,1481,2893,35331,151
19702,3891,2151,5261,9162,1862,3982,2279,96023,817
1972*2,3506066448088771,0211,2486,8134,6764,30623,349
1973*2,0516035776578128861,0606,3894,6274,25821,920

PIGS—Pig numbers fell in the late sixties as farmers began increasingly to supply whole milk to dairy factories instead of separating off the skim milk, which was frequently used to feed pigs.

At 30 JuneBreeding Sows One Year Old and OverOther Pigs of All Ages (Including Boars)Total Pigs

*At 31 January.

1970*73,204504,721577,925
197178,839473,440552,279
197260,319416,670476,989
197357,633418,209475,842
197456,576405,150461,726

Particulars as to pig breeds collected in 1950 showed that the principal distinctive breeds were Berkshire (6.6 percent) and Tamworth (5.5 percent), out over 80 percent of the pigs in New Zealand were classified as crossbreeds.

DEER—A new type of livestock farming which is of growing importance is deer-farming. Venison finds a ready overseas market and almost all the meat produced is exported. (In 1973–74 venison exports were valued at $6.9 million.) Deer farming is strictly controlled by the Ministry of Agriculture and Fisheries because of the status of the deer in the wild as a noxious animal. Deer farms have to be licensed and registered, and permits are issued for specified numbers of animals.

The first deer-farm licence was issued in March 1970. By June 1976 there were 28 registered deer farms and a further 76 applications to start deer farming were being processed. Permits had been issued for a total of 10,700 deer to be carried on farms.

DOGS—The count of dogs registered during the year ended 31 March 1973 showed that there were 230,730 dogs registered in counties, 97,439 in cities and boroughs, and 1,015 in town districts. Unregistered dogs and those up to 6 months old are not included in these figures.

POULTRY—For many years the traditional backyard flock of fowls has been declining in popularity, and the trend has been towards large flocks kept on poultry farms and other commercial establishments. At the 1971 Census, 91,869 households were recorded as owning fowls. This total, which represented 11.5 percent of all households, was little more than half the total 20 years earlier, at the 1951 Census.

In 1974–75 there were 1,544 registered poultry runs forming the basic commercial units of the industry. Of these, 774 flocks had fewer than 201 fowls, 73 ranged from 201 to 500 fowls, 139 from 501 to 1,000 fowls, 252 from 1,001 to 5,000 fowls and 308 flocks exceeded 5,000 fowls. There were 4,699,414 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.

Commercial poultry farms are distributed over both Islands, but there are concentrations around Auckland, Tauranga, 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

The following table shows eggs handled by licensed distributors for years ended 30 June.

YearEggs
 doz (m)
1963–6433.0
1964–6532.7
1965–6636.0
1966–6738.3
1967–6839.4
1968–6939.9
1969–7045.4
1970–7151.0
1971–7251.1
1972–7350.9
1973–7453.5
1974–7556.7

The establishment of "take-away" chicken shops throughout New Zealand and high beef prices has led to increased chicken-meat consumption. Production increased from 13 million to 18 million birds during the 1973–74 year and to 20 million in 1975. Limited grain supplies in New Zealand in mid-1974 reduced this rate of expansion, though imports of sorghum from Australia enabled the broiler industry to continue at this high level of production in 1973–74.

Poultry meat production for June years is shown in the following table.

YearBirds
 million
19643.0
19654.0
19665.0
19675.5
19685.5
19696.5
19708.0
197110.0
197211.0
197312.5
197418.7
197520.0

NOTE: All figures are estimates. These have been obtained by a survey of the largest producers, and allowance has been made for other smaller producers.

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 May 1975 was estimated at 7,380 tonnes of honey and 112 tonnes of commercial beeswax. Most of the honey is consumed in New Zealand. Exports in 1974 amounted to 578 tonnes.

Following is a summary of registrations under the Apiaries Act 1969 at 31 May 1973.

GroupHives
1–56–5051–250251–600601–10001000+Total
Beekeepers2,3088591957277483,559
Apiaries2,7391,7831,8181,4473,5614,03615,384
Hives established6,00014,49825,13024,00256,04982,265207,944

Only 197 beekeepers were completely dependent on honey production and beekeeping for their livelihood.

Chapter 16. Section 15 FORESTRY

Table of Contents

GENERAL—Until the early nineteenth century extensive evergreen forests covered some two-thirds of the country, 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 1,100–1,400 metres. 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 forest were felled and burnt in the interests of land development. There was little regard for conservation, and clearing extended well beyond the limits now considered desirable. Not until towards the end of the nineteenth century was the need to conserve forests of the high mountain watersheds recognised.

Today, apart from national parks, about 4 million hectares of land valuable either for timber production or for forest growth vital to soil and water conservation has been constituted State forest, and there is also a large private forest estate. Resources have been built up by afforestation with introduced species, mainly conifers, which produce usable wood in 25–30 years, a much shorter time than the slow-growing indigenous species.

The following table shows the present area of forested land in relation to other categories of land

Type of LandAreaPercentage of Total Area

*1 hectare = 2.47 acres.

 (million hectares)* 
Total forested land6.925.6
Pasture and arable land13.550.2
Other non-forested land6.122.7
Minor islands0.10.4
Lakes, rivers, etc.0.31.1
Total area26.9100.0

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 6.2 million hectares of indigenous forests that remain, only some 0.8 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 5,000 hectares a year, primarily for sawn timber. This rate of cutting is however diminishing.

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 692,000 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 1936. The distribution of the planted forests was influenced mainly by availability of cheap undeveloped land at that time. The output of timber from the exotic forests greatly surpasses that from the indigenous forests.

The exotic conifers, particularly radiata pine, have high growth rates, ease of establishment and ease 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 forest land is shown in the table below.

Forested LandIndigenous ForestsExotic ForestsAll Forests
 hectares (thousand)
State forest2,9933623,354
National parks and reserves1,550-1,550
Unoccupied Crown land361-361
Other tenures1,3423301,672
Totals6,2466926,937

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 Ureweras, 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, some of which may 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 bidwillii). 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. cclensoi, and D. intermedium) are dominant in bog forests occupying limited areas in the central North Island and scattered widely over the South Island although concentrated largely on the West Coast, where they are 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 tawa (Beilschmiedia tawa) in the North Island and western Nelson.

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 stands now 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 160 km 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 replacement 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 saw-log size in 25–30 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).

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.

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.

Spreading awareness among the general public of the human and physical environment has brought the management of remaining indigenous forests under critical examination. To manage forest land on the basis of optimum use, dominant forest values (whether they are of protection, amenity, production, or otherwise) must be identified and defined. Recognising forest zones is a sound basis for reconciling numerous objectives. Important non-production values are identified first in forest zoning, namely soil and water conservation, biological significance, scenic appeal, and potential for recreation. Wood production values are considered subsequently.

In relation to the approximately 4 million hectares of State forest administered by the New Zealand Forest Service, conservation embraces: 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; the management in selected areas of less silviculturally difficult forests, such as terrace rimu in Westland, beech in Southland and north Westland, and kauri in North Auckland, on a sustained yield basis; the creation and management of exotic forests on a sustained yield basis for the production of wood for a wide range of uses; the establishment or maintenance in a healthy state of protective vegetation on hill and mountain land to preserve soil and to control stream channel aggradation; 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 wildlife, and scenic and other amenity values in perpetuity; the legal reservation of selected forest types as forest sanctuaries and scenic reserves; 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.

Increasing interdependence between forests and a wider recognition of the social and economic benefits derived from indigenous and exotic forests in regional development emphasise the necessity for planning all forest operations on a regional basis.

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. Substantial long-term reserves have also been set aside to ensure the continued supply of high-quality indigenous timber and to safeguard resources against the unlikely event that a major catastrophe should befall the exotic forest estate.

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. Carefully conducted selection logging of terrace rimu forests in south Westland provides a favourable forest environment for the regeneration and growth of rimu.

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. Management of them has the objective of perpetuating kauri as a species in the interests of science and public enjoyment, in natural stands and as managed forests. Large representative areas of mature and immature kauri have been set aside as sanctuaries, programmes of research and artificial establishment intensified, and the annual cut reduced to the lowest level consistent with economic, social, and legal constraints.

The prospects of improving and perpetuating the beech forests on a sustained-yield basis are good. Both 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 has been undertaken 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 hardwood pulp. Care is being 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. Details of the proposed management and use of these beech forests are given in the publication Utilisation of South Island Beech Forests (parliamentary paper C.4, 1971). Permanent production is envisaged from some 300,000 hectares of lower altitude beech forest in Nelson, Westland, and Southland conservancies. (There are 3.5 million hectares of beech forest in the South Island.) The Forest Service is conscious of the need to preserve major environmental values in perpetuity.

In early 1974 the Government invited proposals to use beech forests for major pulp industries. It was announced in late 1975, however, that consideration of schemes to use the West Coast beech will be deferred until the completion of a study by consultants, to discover the economic feasibility of major processing industries using combined wood resources from West Coast, Nelson, and Marlborough, and of a panel-board industry or other local small-scale processing, using wood residues from West Coast sawmills and forests: and in relation to the Southland beech, further study will concentrate on two proposals—one for kraft pulp and the other for medium-density fibreboard.

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 increased to more than five times the rate achieved then (4,000 hectares in 1961, over 20,000 hectares in 1975). The figure of 23,000 hectares for 1975 private plantings is about 10 times that for 1961.

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.

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 85 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 exotic production forests. The Forest Service plants marram grass, sows lupin, and later establishes trees on certain protective zones. Eight schemes are in operation—at Aupouri, Mangawhai, Woodhill, Waiuku, Tainui-Kawhia, Waitarere, Santoft, and Pouto—embracing around 60,000 hectares. About 25,000 hectares of trees have been planted.

A most successful co-operative venture is under way in two Northland localities, where the Crown has leased large areas of Maori-owned coastal sand dunes (adjacent to Aupouri and Woodhill forests) for stabilisation and afforestation.

Protection Forests—The vegetation of the mountainous areas—forest, scrub, and subalpine grassland—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.

Excluding forest parks, 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 Division of the Forest Service works in close association with the Forest Research Institute's Protection Forestry Division which investigates 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 is set aside as forest parks which, although primarily protection forests, will also provide recreation facilities. In addition, a further 100,000 hectares of State forest-land is being developed as recreation areas.

Many indigenous State forests offer scope for leisure pursuits in surroundings of great natural beauty—for study of wildlife (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. The New Zealand Forest Service is developing State forest parks in which management planning incorporates provision for recreation. Such provision includes: improvement of access from main roads to 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.

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.

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, national parks, and all other State areas. 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. When weather or other conditions are such as to present in the Forest Service's opinion a severe hazard which, by the spreading of forest or rural fires, may endanger life and property, the Forest Service may issue a warning of fire hazard conditions, impose a total ban on lighting fires in the open air, and take charge of an area so endangered by the declaration of a regional fire emergency.

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.

Control of Insects and Disease—In conjunction with private enterprise the Forest Service has organised joint spraying operations for the control of the pine needle blight Dothistroma pini. Aerial spraying of a copper fungicide is an inexpensive and effective means of dealing with the disease. Increasing research is being directed towards the debilitating effect of Swiss needle cast (Phaeocryptopus gaeumannii) on the growth of Douglas fir.

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.

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.

Source1970–711971–721972–731973–741974–75
Consolidated Revenue Account expenditure$(000)
 9,7724,1224,9465,7466,785
  Less receipts1701431286875
  Required from Consolidated Revenue Account9,6023,9794,8185,6786,710
Works and Trading Account expenditure25,91837,27843,82952,01661,524
  Less receipts23,67826,71730,00740,79539,908
  Loan moneys required2,24010,56113,82211,22121,616
Net finance required from Government funds11,84214,54018,64016,89928,326

PRIVATE FORESTRY: Private Forest Estate—Exotic forest holdings other than State forests (New Zealand Forest Service) or those on Crown lands amount to 330,000 hectares. Twenty-two thousand hectares of this was planted in winter 1974.

Forestry Incentive—Eight thousand hectares of new private planting, done in 1974, was carried out under the Government's Forestry Encouragement Loans Scheme (for local authorities) or Forestry Encouragement Grants Scheme (for individuals, including trusts and partnerships, and small companies). There is added incentive in the fact that the value of standing trees does not increase any assessment for land tax, death duties, or local body rates; as well, there are concessions with regard to income tax.

Extension Services—Advice and help in all plantation matters are available from the Forest Service, which administers the forestry encouragement schemes. Because of the high degree of interest in private forestry, increasing emphasis is being given to information and training services. Printed booklets are available; a correspondence course is offered through the Technical Correspondence Institute; and short residential courses are held periodically.

Farm forestry associations also are involved in promoting the advantages and advising on the management of woodlots.

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 1,700,000 cubic metres per annum of roundwood for industrial use, some 280,000 cubic metres came from the exotic forests. By 1948 the total annual removals of roundwood had gone up to 2,300,000 cubic metres with 820,000 cubic metres from the exotic forests. The exotic forests are now by far the more important source of wood and in 1975 they supplied 7,700,000 cubic metres, or 90 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 420 sawmills, 9 plywood and veneer plants, 2 particle board mills, six pulp and paper mills, and a pulp and fibreboard mill. This roundwood production does not include firewood.

Year Ended 31 MarchIndigenous WoodExotic WoodTotal
 thousand cubic metres 
19511,665.01,161.02,826.0
19561,577.31,925.53,502.8
19611,557.43,214.04,771.4
19661,234.64,627.05,861.6
19701,033.66,781.97,815.5
19711,013.77,181.28,194.9
1972948.67,016.97,965.5
1973889.17,353.88,242.9
1974x917.27,659.98,577.1
19751,002.77,734.58,737.2

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 quarter of the country's timber requirement comes 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
 thousand cubic metres
19216842470817219727
19267911780824226834
19314913152221 21543
19365888066824 24692
194165412778126 26807
194653322976245752814
19517104511,161769851,246
19566497201,36910171081,477
19616779251,602769851,687
19665171,1921,709735781,787
19704131,3361,749525571,806
19713991,4041,803455501,853
19723661,3291,695477541,749
19733401,4021,742405451,787
19743411,6682,009405452,054
19753281,7162,044393422,086

The following table gives details of timber production by species for the past 5 years.

SpeciesYear Ended 31 March
19711972197319741975
 thousand cubic metres
Rimu and miro325303281288272
Matai2718181717
Totara1210978
Kahikatea3030282629
Tawa172315118
Beech2723242727
Other indigenous56455
Totals, indigenous443413380381366
Exotic pines1,2651,1671,2341,4701,542
Douglas fir124144157177147
Eucalypts33453
Other exotic1520102128
Totals, exotic1,4071,3341,4051,6731,720
Totals (all species)1,8501,7471,7852,0542,086

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.

In 1972 export of wood chips from Mt. Maunganui began. At Christchurch a chip mill started production in 1974, and exports of chips through Lyttelton, which has specially installed loading machinery, began in 1975. Export of wood chips from Port Chalmers is still under consideration.

Pulp and Paper Industry—The total value of output of the pulp and paper industry reached $149 million in 1973–74. Over the last 10 years total production of pulp (the basic commodity) has risen at an average annual rate of almost 11 percent. Production rose from 239,000 tonnes in 1958–59 to 893,000 tonnes in 1974–75. During the same period total wood consumption in the pulp and paper industry (which includes sawmills of integrated plants) increased from 1,100,000 cubic metres to 3,500,000 cubic metres. The industry is mainly concentrated near the big exotic forests on the volcanic plateau of the North Island. There are 6 pulp and paper plants in New Zealand, 5 of which are in the North Island. Of these 5, 4 are integrated with sawmills to utilise fully the total input of wood.

The 6 companies are:

  • Tasman Pulp and Paper Co.—This company was formed in 1952 to utilise wood 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 200,000 cubic metres of sawn timber on the basis of one shift a day, while the capacity of the pulp and paper plant is 330,000 tonnes of newsprint and wallpaper base, 250,000 tonnes of chemical pulp, and 280,000 tonnes of mechanical pulp. A third newsprint machine came into operation in 1975.

  • N.Z. Forest Products Ltd.—This public company utilises about 3,200,000 cubic metres of timber a year from its own pine forests and also small quantities of hardwood (tawa) from State forests. Annual plant capacity is 246,000 tonnes of kraft, packaging, printing, and writing paper, 386,000 tonnes of kraft pulp, 50,000 tonnes of refiner groundwood pulp for fibreboard production, and 115,000 cubic metres of sawn timber a year—on a one-shift basis. The company uses 52,600 cubic metres of timber to make wooden cases and produces 8,000 cubic metres of veneer, 12 million square metres of fibreboard, and 90 million multi-wall paper bags annually. The integrated pulp mill, paper-mill, sawmill and veneer lathe 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 and U.E.B. Industries Ltd., of Fibre Products N.Z. Ltd., a firm which makes a range of moulded pulp products, including 28 million moulded fruit trays a year.

  • Whakatane Board Mills Ltd., a subsidiary of N.Z. Forest Products Ltd., has an annual production capacity of 70,000 tonnes, which is to be increased by a further 60,000 tonnes with the introduction of a third paperboard machine in mid 1976. The company manufactures its mechanical and semi-chemical pulp; it also uses considerable quantities of waste paper. The company owns its own radiata pine forest Matahina and hauls the logs 42 kilometres to the mill by road. It also operates a sawmill 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.

  • New Zealand Paper Mills Ltd., at Mataura, has been in operation for more than 99 years. It has 2 machines producing a range of papers from kraft wrapping grades to specialty printing and writing papers. The company uses New Zealand - made sulphate-pulp and supplements this with wastepaper and small quantities of imported specialty pulp. Annual production capacity is 17,000 tonnes of paper. Adjacent to the paper mill is a small bagmaking factory, producing a range of single-ply bags.

  • Carter Oji Kokusaku Pan Pacific Ltd.—In 1969 the Government invited tenders for the processing of 9 million cubic metres 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 the company, which has built an integrated sawmill and refiner groundwood mill at Whirinaki in the Napier district. This project, which is geared to the Japanese market began producing wood pulp in March 1973. Present productive capacity is about 140,000 tonnes of refiner groundwood pulp and 70,000 cubic metres of sawn timber annually. Expansion announced will increase pulp production to about 245,000 tonnes a year. Production of newsprint is also planned from about 1980.

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.

 tonnes 
1940 220
1945 15,682
1950 21,782
195543,89730,043
1960142,304104,364
1965196,127206,636
1970316,888244,980
1971317,074258,948
1972317,998262,627
1973339,502260,543
1974465,300351,057
1975494,453371,618

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
 tonnes
1940-..13,07913,079
1945-..20,94920,949
1950-..22,13622,136
1955-..40,91740,917
196077,301..86,954164,255
1965187,26612,059116,779316,104
1970207,40321,022217,551445,976
1971213,90729,685218,267461,859
1972218,01023,078227,675468,763
1973213,22123,629216,585453,435
1974217,83131,175285,129534,135
1975208,52333,852307,459549,834

The rise of production of pulp and pulp products is clearly shown in the following graphs.

Wood-based Panel Products Industries:Plywood—Eight factories manufacture plywood, and the total output for the year ended 31 March 1975 was 27,000 cubic metres. Total production of veneer in the industry in 1974–75 was 36,300 cubic metres.

Radiata pine has become increasingly important as a species for peeler log supply because of the demand for industrial plywood 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. A new Canterbury mill should be producing medium-density fibreboard by a dry process from early 1976.

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 as well as furniture manufacture. In 1973 the Fletcher Timber Co. obtained long-term cutting rights in Tairua and Maramarua State Forests to supply a proposed particleboard plant at Kopu, near Thames. Construction of the plant is well advanced and production is to start in 1976.

Production of plywood, veneer, fibreboard, and particle board is shown in the following table.

Year Ended 31 MarchVeneerPlywoodParticle BoardFibreboard
 cubic metrestonnes
196025,00019,10090025,200
197030,10024,40024,60040,200
197136,10025,70034,70044,400
197239,30029,10036,80045,500
197331,80027,10044,30044,700
197437,80030,10085,80045,500
197536,30027,000117,90043,900

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: 41/2 million of these were wooden, almost all being thinnings or small-diameter logs from exotic plantations.

Wood Preservation—In the year ended 31 March 1974, 45.7 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.

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.

The following table shows the quantities of sawn timber treated.

YearOpen TankDiffusion Impregnation*Pressure ImpregnationTotal

*Mainly boron.

   cubic metres 
1954–5512516,479145,083161,687
1959–6071167,277249,743417,091
1964–65330313,819335,958650,107
1969–70446307,360404,694712,500
1970–7119329,001387,824716,844
1971–72119281,912380,913662,944
1972–738291,649476,793768,450
1973–745403,488536,036939,529
1974–7537396,370561,971958,378

In addition, 280,066 cubic metres of other timber, such as sleepers, poles and fence posts, was treated by one of the preservation methods in 1974–75.

OVERSEAS TRADE—Forest products are growing in importance as earners of overseas funds. For the year ended June 1974 exports of forest products were valued at about $108 million; Japan was the largest customer, taking 46 percent, mainly in the form of pulp and paper, and Australia was the next largest, taking 39 percent, mainly pulp and paper. For the same period, imports of forest products into New Zealand were valued at $43 million.

Timber Exports—There is an established market in Australia for radiata pine and Douglas fir sawn timber. Japan is taking mainly logs, but the market there for our sawn radiata pine is 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 large poles, cross-arms, wharf, bridge, and constructional timbers, etc. 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 85 percent of all paper exports.

Pulp and Paper Imports—Short-fibred pulp and special papers are imported and constitute about half 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.)
19684,2191,3417,59113,151
19695,0061,1789,85116,035
19707,2941,61011,34620,250
19716,2282,37612,51421,118
19725,6581,68411,41818,760
197313,3371,85212,09827,287
197422,1951,78419,43443,413
 Exports ($000, f.o.b.)
196816,8956,19518,20141,291
196929,1457,48420,77157,400
197036,8347,28622,21466,334
197142,7959,39420,49472,683
197246,09711,26824,62181,986
197354,57014,09921,06089,729
197457,10925,57325,495108,177

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.

 cubic metres (thousands)
19691019 11.040 8
197010310.512.053 11
197110150.213.039 14
1972913 9.032 8
19731919 1.940 8
197431300.33.265 11

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.

 cubic metres (thousands)
196911.01658570.92312421,515
19709.01855621.72552641,801
197113.019735813.02702831,824
19727.0181 6613.02592661,872
19737.0163 6712.02422481,954
19745.2174 5314.92422471,449

The following table gives New Zealand's external trade in pulp and paper for the last 6 years.

Year Ended 30 JuneWood PulpFibreboard*Paper and Paperboard
NewsprintOther Paper and PaperboardTotal

*In 1,000 square metres.

†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 (tonnes)
196911,39215.298221,56222,555
197013,3433.055123,62824,179
197117,53111.550224,69925,201
197212,9203.936027,36327,723
197313,5802.956732,77033,337
197411,52025.57,54638,55746,103
 Exports (tonnes)
196989,1381,962.8123,29718,455141,751
197082,1181,423.6121,52631,302152,828
197196,1451,619.2111,44119,744131,185
1972114,2622,239.5130,93623,616154,552
1973141,5212,495.7122,97235,752158,723
1974231,9941,663.6103,09441,363144,457

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 has three research divisions. They are:

Production Forestry Division—This division is responsible for research into all aspects of growing forest trees and diseases and insect pests affecting them. It is subdivided into two branches—Forest Management Branch, which includes: economics of silviculture; forest establishment; forest mensuration; genetics and tree improvement; and indigenous silviculture, and Forest Sciences Branch, which includes: forest entomology; forest pathology; soils and site productivity; tree physiology; and forest biology survey.

Forest Products Division—This division is responsible for research into the properties of timber and the various uses of wood. It has a close relationship with the timber and building industry and is represented on committees associated with building standards, timber preservation, etc. Its fields of research are: adhesives and composite wood products; pulp and paper; timber drying; timber engineering; wood chemistry; wood preservation; wood quality; and wood structure and formation.

Protection Forestry Division—This division is based at Rangiora, near Christchurch. It is responsible for research into the functioning of trees and other vegetation as a protective cover for the high country and the problems of maintaining and restoring that cover in spite of climatic conditions and the depredations of noxious animals. It is also responsible for research into the biology and control of introduced animals which are declared noxious in terms of the Wildlife Act 1953. Its research fields are: animal research; hydrology and climatology; plant ecology; watershed (conditions and trends) survey; and watershed rehabilitation.

All research work is reviewed regularly by three research advisory committees, one for each division. They advise on research needs and help maintain sound and balanced research programmes.

The institute employs 118 scientists, 207 technicians, and a substantial administrative and servicing staff. It has a large research nursery and a tree improvement trial area within its grounds, and has established research trials of both exotic and indigenous forest trees in the North Island and in the South Island. It maintains a continuous exchange of scientific information with other research organisations in New Zealand and throughout the world and provides opportunities for senior research fellowships and the exchange of scientists under reciprocal exchange schemes.

TRAINING IN FORESTRY—The Forest Service recruits school leavers up to the age of 20 years as forestry trainees. They work and train for a year on a forest and then go on either to ranger training, with a further 3 years part-time study and practical forestry training, to obtain the New Zealand Certificate in Forestry, or else they may go on as forester trainees and attend university on a full-time study bursary to complete a 4-year degree course in forestry, doing practical forestry work during the vacations. 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 for training as research technicians.

To build up a permanent skilled-labour force, the Forest Service recruits each year about 80 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, Berwick, or Aupouri, 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, seasoning and treatment of timber, and other forestry operations. The Timber Industry Training Centre at Rotorua provides courses for the industry in saw doctoring, sawmilling, and timber machining. Short grading courses for industry are also held in other centres.

The University of Canterbury offers the Bachelor of Forestry science degree, for which study involves 2 intermediate years of pure science followed by 2 years of professional classes.

EMPLOYMENT—In 1975 the people employed in the forestry sector comprised 3.5 percent of the total 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. In 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 N.Z. Forest Products Ltd., Tasman Pulp and Paper Co. Ltd., and Caxton Paper Mills Ltd. 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 1975.

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.

19753,3822,9347,9903,7834,89219,85342,834

THE OUTLOOK—The State owns 75 percent of the remaining indigenous timber and about half of the 0.7 million hectares of exotic forest. It makes sales, usually of standing timber but sometimes logs, from both types of forest. 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. During 1973–75 new planting in this category averaged over 40,000 hectares a year. Recommendations by the Forestry Development Council for a still greater rate are being considered by the Government. 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.

Chapter 17. Section 16 FISHERIES

Table of Contents

General—Food from the sea figured prominently in the diet of the Polynesian inhabitants of New Zealand for over a thousand years. And although fish was also important to white settlers, it is only within the last decade that fishing has attained status as a significant industry.

Whalers and sealers were the first Europeans to tap the potential of New Zealand waters and in 1844 whale oil and other products were fetching more than £50,000 on London markets.

Fishing existed as a way of life for more than a century until 1945, when the Government of the day introduced a system of restrictive licensing of fishing vessels which provided for the vessels to land catches only at the port of registration. Surplus was exported, but never steadily, and in 1962 a Parliamentary Select Committee was appointed to examine the prevailing restrictive licensing system and review practices. It recommended the abolition of the system, which had restricted the expansion and diversification of the industry.

At this time there was a mounting world-wide demand for protein foods. Russian and Japanese fishing boats were penetrating into the hitherto unexploited south-west Pacific, including New Zealand waters, where of the 42 food fishes known to be caught locally, only 7 were being marketed regularly.

Restrictive licensing was abolished in 1964 and the Fishing Industry Board was established to help promote the industry. Since then fisheries have expanded at an accelerating rate.

The continental shelf, which extends out to a depth of approximately 160 metres, is fairly narrow. Though in some areas, such as the Taranaki Bight, it extends for a considerable distance offshore and in others, such as the south-west of the South Island, it is almost contiguous with the coast line, its average width is approximately 19 kilometres.

In 1966, following the increasing encroachment of overseas shipping vessels into the waters of the continental shelf, a 14 kilometre fishing zone beyond the 5 kilometre territorial limit was introduced, and a later agreement with Japan resulted in Japanese fishing boats being phased out completely from the fishing zone by the end of 1970. The effect was to conserve more fish stocks for New Zealand fishermen.

The establishment of new industrial plant principally for export of quality wetfish, regular supplies, development of attractive packaging, and the introduction of Government quality standards and control are now resulting in expanding export markets.

Advantage has been taken of free access to the Australian market, which is New Zealand's principal outlet for wetfish. Increasing use has been made of air transport and regular sailings of roll-on, roll-off vessels.

Stimulated by the impetus of the 1962 Select Committee, which had recommended freeing the industry from restriction, and with Government assistance, the industry has not only expanded, but begun diversifying into rock oyster and mussel production and begun to employ different catching methods to land tuna and other pelagic species, which represent a large untapped resource in New Zealand waters.

Resources and Fishing Methods—Trawling and Danish seining are the principal methods of taking demersal or bottom-dwelling fish, which form the basis of New Zealand's fishing industry. These two methods accounted for 69 percent and just under 7 percent respectively of the total wet fish catch in 1974. Lines and set nets accounted for another 18 percent. Other methods used are purse seining and trolling, employed in fishing for pelagic or surface-dwelling fish, which form an increasing proportion of the total wet fish catch.

Between 1964 and 1974 production of fin fish increased from 29,924 tonnes to 48,606 tonnes and the value of all fish exports increased from $4.1 million to over $20 million.

The biggest stimulus to the export industry has been the development of the rock lobster fishery, exports of which have flourished after a demand for frozen tails arose in the United States from 1948 onwards. In 1962 rock lobster landings totalled 4,501 tonnes. Five years later landings had risen to 8,078 tonnes and in 1968 jumped to 10,909 tonnes valued at $7,433,006. This was the peak year of a fishery in the Chatham Islands, where prolific rock lobster grounds had been discovered. Total landings began to taper off in 1971, and declined to 3,572 tonnes in 1974.

Fishing Grounds—There are 36 trawl fishing ports, including 16 of major importance. These are located fairly evenly around the coastline, with trawlers having access to the whole continental shelf. The boundary of the shelf occurs at about the 200 metres isobath, which is the maximum depth normally fished by trawlers.

Boats work throughout the year, with no marked seasonal fluctuations. A full-time trawler averages between 100 and 160 days at sea a year, but there are regional variations due to climatic differences.

Trawling is more intensive along eastern coasts, but the fishery on western coasts is increasing, especially in the South Island.

Vessels—Since 1945 the average size of trawlers has increased from 12 to 16 metres and from 16 to 26 gross tonnes. Engine power has risen from an average of 40 bhp to 150 bhp.

North Island boats are generally larger than those of the South Island. At Auckland and Gisborne average size approaches 20 metres and 200 bhp, and at Lyttelton and Timaru boats average 14 metres.

Crews number between one and three, with the national average about 2.5.

The National Development Conference of 1968 set a target for the fishing industry of $25 million by 1978, including an export target of $7 million for pelagic or surface schooling fish.

At the time of the conference pelagic fish amounted to only 15 percent of the total fishing catch here, whereas they comprise 60 percent of the was catch. By 1971 the percentage of pelagic species in the total New Zealand catch was 21 percent. However, most of these were still trawl caught.

Species landed have been barracouta, trevally, tuna, kingfish, kahawai, mackerel, and pilchard. Of these, barracouta, trevally, and tuna have been exported. Tuna landings in 1968 were 18 tonnes; these rose to 1,549 tonnes in 1974. Tuna fishing has been pursued in recent seasons by commercial fishermen in the Bay of Plenty and off the Taranaki Bight in the North Island.

New Zealand landing figures offer no real indication of the total potential harvest of the seas in the south-west Pacific, but the presence of Japanese and Russian fleets suggests that there are substantial resources which are, as yet, not overfished. The extent to which the New Zealand industry will participate in fishing this area depends upon the economic outlets for the fish and the availability of capital for investment in large all-weather vessels capable of fishing down to 500 fathoms (914 metres). Practical research into pelagic fishing has been undertaken by a United States fishing company under a special arrangement with the New Zealand Government. American super seiner are being used to investigate the catching of tuna.

Fisheries Management—Responsibility for the optimum development of fisheries rests with two divisions of the Ministry of Agriculture and Fisheries, the Fisheries Research and Fisheries Management Divisions.

The research programme is headquartered in Wellington, with freshwater centres also in Christ-church and Rotorua. The 42-metre, deep sea research vessel James Cook is used extensively all around New Zealand, and the 19-metre Ikatere mainly for inshore studies in north eastern waters. Virtually all the major New Zealand demersal and pelagic fish species are being studied by the Research Division. A typical end-product is the mathematical model established for the East Cape tarakihi fishery. Shellfish teams also study rock lobsters (life history investigations), dredge and rock oyster (tagging and breeding cycle studies), and mussels (growth rates and other aspects, in various locations).

The 27-metre technological vessel, W. J. Scott, based at Nelson, undertakes various gear tests and explanatory fishing. Among long-standing programmes are management of the Foveaux Strait dredge oyster fishery, rock lobster investigations in Otago, Southland, and Fiordland, elephant fish studies in the Canterbury Bight, toheroa surveys and a study of the shellfish industry in Golden and Tasman Bays.

Development until recent years has in the main been influenced by a traditionally small and highly selective domestic market which has not encouraged diversification in processing methods for fish which did not meet the normal domestic demand for a white fleshed, bland, non-oily, relatively bone-free type of fish.

Generally, fisheries development involves two important factors. First, where a demand develops for a particular type of fish and this stimulates a search for this fish. The demand may be in export fields (e.g., squid) or it may be for local supply (e.g., prawns). The second factor is new treatment and packaging of a resource which has not previously found favour in the traditional fresh fish market in New Zealand (e.g., mackerel).

There are changes in the world-wide demand for fish as the more popular species reach the point of over-exploitation. Thus fish species which in the past had little or no value on either the domestic or the export market are now acquiring a new value internationally. The time is very appropriate for the expansion and development of certain types of fisheries but a great deal will depend upon the economics of these operations.

The governing legislation for the fishing industry is the Fisheries Act 1908, which is administered by the Ministry of Agriculture and Fisheries. The Territorial Sea and Fishing Zone Act 1965 redefined the 5 kilometre territorial seas and introduced a 15 kilometre fishing zone beyond the territorial limit.

Fishing Industry Board—This board was established in 1964 under the Fishing Industry Board Act. Since then there have been great improvements in the quality of fish products and their presentation and in the wider use of less popular fish species. There have been new developments in fishing vessel design and construction; fishing gear and catching methods; in the catching of under-utilised species; in fish farming; in processing, packaging, and marketing; in food technological research; in technical education; in co-operation within the industry.

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.

Fishing Industry Finance Committee—In 1965 the Government arranged to guarantee mortgages and make loans to the fishing industry through the Rural Banking and Finance Corporation. The scheme assists purchases or refinancing of loans for fishing vessels, equipment, changing the method of fishing, re-engining, improvements in storage facilities, flake-ice plants and cool stores in outport areas, and the initial development of rock-oyster farms.

Extensions to the scheme during 1974 enabled seasonal fishermen, i.e., rock lobster and oyster fishermen, to obtain loans to diversify. Loan limits for the purchase of fishing vessels were extended from $75,000 to $100,000 and to $150,000 subject to joint ministerial approval. The term of loans to purchase equipment was increased from 3 to 5 years.

During 1974–75 the committee recommended loans as follows:

 $
New fishing vessels53,300
16 used fishing vessels340,300
1 re-engining4,600
Total398,200

The State loan lending limit was raised by $1.5 million to $5 million in May 1974. The standing of the scheme at 31 March 1975 was:

 $
Total State lending limit3,500,000
Less State loans approved at 31 March 1975 for 113 new and used fishing vessels, 1 re-engining, 2 flake-ice plants, and 6 rock-oyster farms3,361,600
 138,400
Plus loans not taken up358,200
  Balance$496,600

Loans totalling $122,000 were under action on 31 March 1975. An allocation of $500,000 was made for the 1975–76 financial year.

Fisheries Development Council—The Fisheries Development Council, set up in June 1970, was discontinued in June 1974, and most of its functions taken over by the Fishing Industry Board and Government departments. Reviews of the fishing industry's progress are undertaken by the Ministry with the continued advice and assistance of the former council's target advisory group.

SPECIES OF FISH—Of the many kinds of excellent edible fish, the most important is 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 are 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 drag nets are used for flounders, snapper, and mullet.

Pelagic Fisheries—Blue mackerel, Scomber japonicus (Cuvier and Valenciennes), and jack or horse mackerel, Trachurur declivis, are taken by purse seining. The smaller pelagic species include the pilchard, Sardinops neopilchardus (Steindachner), sprat, Sprattus antipodum Hector, and the anchovy, Engraulis australis (White).

Arripis trutta, the New Zealand kahawai, which forms the basis of a commercial fishery in Australia, schools at the surface in substantial numbers in our waters and is being caught in increasing quantities.

Of the larger, oceanic-pelagic species, the southern bluefin tuna, Thunnus maccovii, is found from the far north of New Zealand to the south of the South Island in summer. Though hardly exploited commercially by local fishermen, it is fished off-shore by Japanese long-line vessels, particularly to the east and west of the North Island.

Albacore, Thunnus adalunga, skipjack, Katsuwonus pelanis, and yellowfin, Neothunnus macropterus are species under investigation.

CATCH—The amount of fish landed annually by the trawler fleet has increased continuously from 6,488 tonnes in 1936 to 48,606 tonnes in 1974.

Composition of the catches is extremely varied and most species are landed whole. About 40 species are landed, but many only in small quantities. In 1974, 4 strongly dominant species contributed 54 percent of the total trawl landings. These were snapper (29 percent), tarakihi (8 percent) trevally (11 percent), and red gurnard (6 percent).

In some individual fishing areas one or two species predominate. The trawl fishery in Hauraki Gulf is largely a snapper fishery, tarakihi is the chief species in the East Cape and eastern Cook Strait areas, and sole, red cod, and elephant fish predominate on the east coast of the South Island.

The catch in landed weight and value is shown in the following table.

Class1971197219731974
tonnes (000)$(000)tonnes (000)$(000)tonnes (000)$(000)tonnes (000)$(000)

*Includes estimated value of whitebait catch ($297,600 in 1974) and other minor items.

Snapper14.12,15713.22,17414.12,66113.93,429
Trevally5.94686.04774.94285.1595
Tarakihi5.27924.36993.86833.8719
Gurnard3.33212.22303.74303.0380
Barracouta1.1461.4762.81823.4260
Hapuku1.35081.14571.35881.3441
Elephant fish1.44581.13441.03730.9320
Flounder0.94060.84370.74770.9601
Mackerel0.6250.6240.7361.563
Sole1.03520.52290.94741.1563
Shark1.74851.54361.65182.6854
Red cod0.4560.3460.7961.9194
Albacore0.2590.2470.51690.9339
Skipjack  0.2430.1200.7148
Other6.81,0206.81,1007.81,4117.81,363
Totals, wet fish44.07,15340.16,81944.88,54648.610,269
Rock lobster5.79,4324.68,1454.89,4883.67,053
Oysters (dredge and rock)9.41,7768.61,62810.62,10110.12,450
Mussels1.2792.41482.42102.1215
Paua1.53700.71970.82410.4146
Scallops1.82941.83332.55423.4804
Southern spider crab     410.3502
Squid0.1210.1200.4890.126
Other0.1170.2190.4440.474
Totals, all fish63.819,317*58.717,737*66.721,544*69.121,837*

The value of fisheries products is shown in the following diagram.

The decline in the volume of fisheries exports, which began in 1973, intensified during 1974. Exports (in 000 tonnes) fell from 14.1 in 1973 to 12.7 in 1974, a 1,400 tonne decrease caused mainly by the intensifying international recession. However, the substantial export trade in rock lobster tails to the United States was well sustained.

The long-term economics and profitability of the industry continue to cause concern. Fishing effort has increased but there is a trend toward a decline in yield per unit of effort. The cost of running vessels has increased enormously, largely because of price rises on petroleum products. The capital cost of plant and equipment, much of it imported, for new or modernised fishing vessels, has skyrocketed. An 18-metre steel vessel costing $90,000 in 1968 cost over $200,000 in 1974. New and more expensive gear is also required. Relatively little is known about the fishing resources that are available for utilisation and it is becoming increasingly important, on account of the high cost of capital investment in the fishing industry, to know more positively the extent and nature of New Zealand's resources for future planning and development to be rational and economic.

MAIN FISHING PORTS—Auckland and neighbouring Manukau continue their leadership of New Zealand fishing ports. These two centres registered 13,003 tonnes of wetfish in 1974 out of a record total wetfish catch for New Zealand of 48,606 tonnes. Nelson, in third place, is the fastest growing fishing centre, with a 1974 catch of 5,290 tonnes. Twenty ports reported catches of over 500 tonnes, an indication of the wide dispersion of the industry.

FOREIGN FISHING ACTIVITY—The types of fishing being practised by foreigners are, as far as the Fishing Industry Board is aware:

  1. Long lining for tuna, mainly by Japanese vessels, but quite possibly by other nations such as Korea.

  2. Trawling by large vessels, mainly Japanese and Russian.

  3. Squid fishing by Japanese vessels.

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
197219731974197219731974
 tonnes (000)$ millions (f.o.b.)
Fish (fresh, chilled, and frozen)11.311.310.26.87.37.3
Rock lobsters (whole tails and processed)1.91.91.7+11.611.311.4
Shellfish (fresh and processed)1.30.90.82.01.51.6
Totals14.514.112.720.420.120.3

The 1975 export figure exceeded $30 million.

CONSUMPTION—The following table shows the annual per head consumption of fish products and the permissible mercury levels in selected countries. A study on mercury levels in snapper in New Zealand waters was recently made by the Ministry of Agriculture and Fisheries. Results showed that, despite some variation in mercury levels with size of fish and location, the average level was well within acceptable limits.

Country and PeriodPer Head Consumption (Edible Weight)Permissible Mercury Level

*This is one-tenth of the lowest level likely to cause ill-effects.

 lbppm
Japan (1969)67.61.0
Denmark (1966–68)45.91.0
Sweden (1969–70)45.91.0
Norway (1968–69)45.11.2
United Kingdom (1968–69)20.91.0
New Zealand (1969)15.30.5*
Australia (1968–69)14.50.5
Italy (1968–69)12.90.7
Netherlands (1968–69)12.11.0
United States (1971)11.20.5

DREDGE OYSTERS—The principal oyster beds around the coasts of New Zealand are those situated in Foveaux Strait, between South Island and Stewart Island. During 1974 a total of 119,473 sacks of oysters, valued at $2,100,953, were dredged from these beds. Tasman Bay, in Nelson, yielded a further 1,780 sacks, valued at $24,030. The total 1974 dredge-oyster catch of 121,253 sacks, valued at $2,124,983, represented a fall of 7 percent in landings and a rise of 12 percent in value on the previous years figures.

Dredge oyster catches during the latest available five seasons are shown in the table below.

SeasonFoveaux StraitTasman BayTotal
Sacks (000)Value $(000)Sacks (000)Value $(000)Sacks (000)Value $(000)
1970113.61,2501.418115.01,267
1971115.11,5541.418116.41,572
1972100.01,4012.128102.11,428
1973125.91,8264.763130.61,889
1974119.52,1011.824121.32,125

In 1974, catch rates during the season (March to August) were relatively high, averaging 11.50 sacks per hour's fishing.

ROCK OYSTERS—In addition to the 2 Government experimental rock-oyster farms, some 125 private farms are in production in Northland and the Hauraki Gulf. The industry is in the process of changing from tray to stick cultivation assisted by a large-scale Government spat-stick catching programme.

During 1974 farms produced 11,421 bags valued at $255,908. Of these, 5,116 bags were exported and 6,305 bags sold locally.

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.

YearProduction (Whole)Exports
QuantityValueQuantityValue
 tonnes$(000)tonnes$(000)
19666,5533,8441,7994,619
19678,0784,3202,4976,363
196810,9107,4333,18812,729
19698,8968,8612,95314,235
19706,4658,0522,71612,432
19715,6779,4322,32313,468
19724,5738,1441,73511,200
19734,7719,4881,74610,669
19743,5727,0531,74410,677

FISH MEAL AND FISH OIL—In 1974 three companies produced commercial quantities of fish meal and fish oil from whole fish offals and frames. Fish meal production totalled 1,938 tonnes, valued at $580,747. Fish oil production totalled 70 tonnes, valued at $19,656.

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 4 fish per boat per day has been imposed.

In the 1974 season (from November to June), big-game fish caught included 9 black marlin, 220 striped marlin, 9 blue marlin, 480 mako sharks, and 95 hammerhead sharks.

PAUA—Relatively few years ago paua was, strictly speaking, a non-commercial shellfish. Maoris have traditionally taken paua as a regular item of diet, but it was largely neglected as food by the pakeha until very recent years. Even now it is only a small item in the retail sales of fish in New Zealand. The recent change in the demand for paua has come about in the context of the ban on the export of unprocessed meat, which would have been processed overseas, since some New Zealand canners have solved the problems of bleaching and canning the meat to produce an article acceptable at substantial prices in, primarily, South-east Asian markets.

A close season for paua from 1 February to 31 May each year was introduced in 1972. Stocks are believed to have declined slightly during 1974, but a management plan, designed to produce a steady yield, has now been prepared.

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 1974 season for the West Coast of the South Island showed a total of about 95 tonnes. It is becoming harder to collect catch data because of the large number of itinerant buyers, and the 1974 catch figure should be regarded as conservative.

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 Ministry of Agriculture and Fisheries 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—Eels are the only indigenous species of which a significant commercial harvest is taken from New Zealand's freshwaters. The catch of "wild" eels dropped in 1974 to 830 tonnes compared with 1,286 tonnes in 1973 and 2,069 tonnes in 1972. However, several companies are now engaged in farming eels.

Research—The research programme includes provision for continued limnological studies of the Rotorua lakes. Sources of nutrients, the principal causes of eutrophication, are still under study as is the bottom fauna. Studies of the correlation between trophic status of lakes and the population density and condition of sport fish is being undertaken. Work on whitebait fisheries and stream faunas is continuing in order to determine productivity levels and fish behaviour.

Studies on adult quinnat salmon are to be published and work on fry and smolts is being initiated. In addition work on trout and their inter-relationship to salmon in South Island rivers is being commenced.

Additional work is to be done on the occurrence of trace elements, particularly mercury, lead, zinc, cadmium, and copper, in shellfish from a variety of sea areas, in order to determine the naturally-occurring levels of these elements. New work is planned on parasites and diseases of freshwater fish.

Chapter 18. Section 17 MINERALS

Table of Contents

GENERAL—The mineral industry in New Zealand began with the discoveries of the gold prospectors of the 1850s and 1860s. Gold production reached a peak in 1873 when it earned 75 percent of all export earnings. Coal mining also began about 1850, and early this century the value of coal produced exceeded that of gold for the first time. In 1961 coal in turn was replaced by building aggregate, sand, and gravel as the most valuable mineral product. From 1969–72 the world-wide mining boom resulted in a great upsurge in mineral exploration in New Zealand. At its peak in 1971 estimated annual expenditure reached $1.7 million. No major metalliferous mineral deposits were discovered, but the impetus given to the mining industry has continued.

The existence of extensive ironsand deposits on the west coast of the North Island has been known for more than a century. Numerous attempts had been made to smelt the ironsand but, as none had been successful, the State-owned New Zealand Steel Investigating Co. was set up to investigate the feasibility of steel-making from the ironsands. In 1963 the company reported that an industry was economically and technically feasible, using ironsand from near Waikato Heads and Waikato coal. Construction of the steel mill at Glenbrook was completed in 1970 and the mill now provides a significant proportion of the country's steel requirements.

In addition ironsand is mined for export at two localities (Waverley and Taharoa) on the west coast of the North Island. The value of ironsand concentrates exported in 1974 exceeded $10 million.

Ilmenite, which is a source of titanium oxide for the paint and other industries, occurs extensively in the beaches of the west coast of the South Island in association with monazite, gold, and zircon. A reconnaissance survey by the Department of Scientific and Industrial Research indicated reserves of over 50 million tonnes of ilmenite-bearing sands, and subsequent work by New Zealand and Australian companies has indicated considerable reserves in the Westport and Barrytown areas. The Department of Scientific and Industrial Research has carried out extensive laboratory work aimed at producing a synthetic rutile from these rather low-grade (46 percent TiO2) ilmenites. The companies concerned have also carried out both concentration and beneficiation studies with encouraging results. The main obstacle to the development of this mineral is now in marketing rather than in treatment.

Coal production over the last 40 years has varied between 2 and 3 million tonnes per annum. However recent steep rises in the cost of imported fuels, and increasing demand for electricity has led to renewed interest in the country's coal resources, mainly for electricity generation. A large thermal power station at Huntly should begin operating in 1978, and three new mines now being developed at Huntly will produce over 2 million tons per annum when fully operating. Most of this coal will be consumed by the Huntly power station.

A coking coal export project at Mt. Davy near Greymouth on the West Coast of the South Island is awaiting Government approval. This scheme would involve the export of 7.5 million tons of coal to Japan over a period of 15 years.

After a long period with little activity, serious exploration for oil and gas resumed about 20 years ago, resulting in the discovery of two natural gas fields. The Kapuni Field was discovered in 1959 and started production in 1970 with gas being supplied to nine North Island centres and to a number of industrial consumers. The much larger Maui offshore gas field was discovered in 1969 and is at present being developed. The gas produced will be used for electricity generation, and as a premium fuel. The possibility of Maui gas being used as the basis for a petrochemical industry is being investigated.

The existence of high-melting-point waxes in peat deposits on the Chatham Islands has been known for more than 30 years. Comparable waxes have also been discovered in the lignites of Otago and Southland.

The Department of Scientific and Industrial Research is carrying out research in processing methods that might produce saleable products from these minerals. Laboratory-scale work has investigated a range of solvent systems, and different extraction techniques. Larger-scale work is also being done on the production of bulk samples of wax for further analysis and evaluation. Thus successful commercial development will involve co-operation between industry and the Department of Scientific and Industrial Research.

The Mineral Resources Council, established as the Sector Council on minerals for the National Development Council, keeps under review all aspects of mineral development.

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. Until recently over 90 percent of the value of all mineral production was represented by coal and limestone, together with sand, rock, and gravel for roads, ballast, building, and construction. This figure fell to about 70 percent in 1974 as a result of the increased production of ironsand for export and the increasing output of gas and condensate from the Kapuni field. The value of aggregate and sand production still exceeds that of coal, and remains the highest of any mineral in New Zealand. The quarrying industry, which produces about 27 million tons of aggregate and sand and 3 million tons of limestone annually, is of prime importance.

The following table shows the production of metals and minerals from mines and quarries. The values are assessed at pit mouth or quarry.

Mineral19731974
QuantityValue*QuantityValue*

* Based on selling price ex mine (or equivalent).

† Based on overall price at State coal mines (73 percent of total production).

‡ Includes a high percentage of CO2 the value after CO2 extracted.

§ Includes stockpile increase at Waipipi of 208,400 tonnes and 104,647 tonnes at Taharoa.

|| Estimated value.

¶ Includes 1,094 tonnes processed; value $36,312.

**Tonnes unless otherwise stated.

Fuelstonnes**($000)tonnes**($000)
Coal2,468,42716,5882,564,31717,106
Petroleum condensate—Kapuni205, 146m33,438220, 233m210,749
Natural gas—Kapuni419.78 X 10 6m31,872484.11 X 10 6m222,150
LPG—Kapuni1,383m3243,993m3115
  Metals    
Gold343.5 kg791146.50 kg504
Silver1,529.7 kg7556.41 kg3
Cadmium4,327 kg9--
Copper4343--
Iron ore46642192
Ironsand export2,030,3887,2682,181,966§10,284
Ironsand local150,776549170,687789
Tungsten ore1,700 kg46,700 kg32||
Zinc605184--
Lead31995--
  Non-metallics    
Bentonite1,031285,06948
Clay for bricks210,021348257,380473
Clay for pottery9,21817616,711342
Diatomite4,5011704,558192
Dimension stone36,54726635,085317
Dolomite15,71330120,935409
Greenstone4,294 kg95,700 kg15
Limestone, agriculture1,696,1223,5441,539,5834,340
Limestone for roads--134,217299
Limestone industrial238,315921113,985648
Limestone and marl for cement1,783,0331,6171,884,3162,670
Magnesite1,1552882620
Perlite1,59934651
Pumice56,9096670,32872
Rock for harbour work803,0105382,131,9531,922
Salt103,12444754,864454
Sand for building aggregate6,660,23212,2947,525,42415,376
Sands for roads and ballast22,591,85923,19720,054,24625,909
Sands for Industry39,3246644,45179
Serpentine73,72626289,069371
Silica sand124,405389148,633557
Sulphur--2248
Totals-75,614-96,257

The following summary figures are the mineral industry export targets in constant 1969–70 prices unprocessed, as set by the Mineral Resources Council.

Item1969–701972–731975–761978–791981–82
All minerals and metal ores—  $(million)  
  Assured0.45.612.612.612.6
  Probable  3.36.513.0

The 1972–73 exports figure comprises ironsands, lead-zinc ores, scheelite, and pumice. The 1978–79 figure is based on confirmed ironsand contracts, and the prospects of coal, clay, and ilmenite.

The corresponding additional figures for import savings (i.e., for selected minerals which would otherwise need to be imported) and for total production (i.e., Mines Statement totals plus geo-thermal steam including exports and domestic production of aggregate, limestone, coal, etc.) are as follows.

Item1969–701972–731975–761978–791981–82
Import saving—  $(million)  
  Assured1.75.07.010.511.9
  Probable    15.0
Round total11/2571027
Total mineral production52.6647988115

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 1971, 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).

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 7.5 cents a ton made by coal wholesalers, including State coal mines, and a Government grant.

Fuel Technology Service—The Mines Department and the Coal Research Association have established a fuel technology service in Auckland, Palmerston North, Christchurch, and Dunedin to advise industrial and domestic consumers on the efficient use of coal.

Survey of Coal Resources—Investigation of coal resources is now being carried out 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, Australasian Institute of Mining and Metallurgy Monograph Series No. 4, procurable from the Government Printer, Wellington.

A fresh estimate of the coal resources of New Zealand prepared in 1974 was 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 Liason 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 or 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.

  4. "Speculative coal" is considered a useful term for coal that exists well beyond the limits of certain geological knowledge out to areas where its existence is undoubtedly possible and has not been disproved.

The following table sets out the estimated recoverable reserves, which total 940 million tons.

LocalityMeasured RecoverableIndicated RecoverableInferred Recoverable

*Additional coal is likely to exist in the Mataura area, but further tonnage would be speculative.

 Bituminoustonnes (000) 
Buller32,7994,70311,400
Murchison-101,600
Garvey Creek3652,0804,000
Reefton6441,40011,500
Greymouth1,83615,50028,000
Pike River--15,000
Shag Point-850
 35,64423,70171,550
Sub-bituminous
Waikato (includes Maramarua, Huntly, Rotowaro, Glen Massey, Whatawhata)184,305115,73079,300
Kawhia3015507,000
Mangapehi--10,000
Taranaki (includes Tatu, Ohura, Waitawhera, Mokau)19530062,700
Retaruke--6,000
Collingwood100100100
Heaphy River--1,000
Charleston1,1253,9005,000
Punakaiki90702,000
Reefton (includes Inangahua, Fletcher Creek)701,0006,000
Kaitangata800250250
Ohai3,4005,70050,000
Orepuki--1,000
 190,386127,600230,350
Lignites
Canterbury112-2,000
North Otago240-2,000
Central Otago240-15,000
South Otago (includes Green Island, Kaitangata)4,94512,80042,700
Pomahaka--60,000
Southland (including Mataura Valley*)4,9004,300111,600
 10,43717,100233,300
Totals236,467168,401535,200

One of the biggest potential uses for coal is for electricity generation.

There is likely to be a smaller number of larger, mechanised underground mines. Coal mining will become less labour-intensive.

There are three coal areas of major future significance—Waikato, Buller and Southland.

Waikato has measured and indicated resources of low/moderate-ash low-sulphur sub-bituminous coal of 300 million tons—one-eighth of it opencast. Inferred resources are an additional 79 million tons. Production costs range from $5 to $8.50 per ton. Sufficient reserves are known to supply a 1,000 MW power station, plus the steel industry's projected requirements. Further work to increase measured and indicated reserves is currently being undertaken for proposed additional thermal station capacity. The Waikato coalfield is well placed to serve Auckland industrial development, and coal is railed to the Bay of Plenty for the pulp and paper industry. New Zealand Steel's development programme anticipated an increased demand of 500,000 tons a year by 1983.

Main markets for Waikato coal are electric power generation, dairy factories, paper mills, freezing works, carbonisation, central heating, brick and tile manufacturing, cement and lime works, general industries, and domestic heating.

Buller has measured and indicated resources of low/moderate-ash, low/high-sulphur bituminous coal amounting to about 40 million tons, three-quarters of it opencast, but only 7 million tons of it low-ash and low-sulphur. Inferred reserves amount to 12 million tons. The significant fact is the high proportion (about 30 million tons) of opencast, and therefore low-cost ($6 per ton) coal.

Southland essentially comprises the Ohai and Mataura Valley coalfields. Ohai contains over 100 million tons of Waikato-type coal, mostly inferred, but has little significance because the principally domestic market is likely to decrease. Mataura is important because of its proximity or ready access to the Bluff industrial area, and because the reserves of moderate-ash, low-sulphur coal are large, potentially cheap and open-castable. Because the flat-lying seams seldom outcrop, and there are relatively few drillholes, there is potential for a very large speculative tonnage of coal to be present in addition to the inferred recoverable reserves. Future potential uses include power generation.

Coal Consumption—Coal has always been important in New Zealand's mineral industry, and had a higher production value than any other mineral between the First and Second World Wars, but usage has slumped in recent years.

The approximate distribution of coal consumption during recent years is shown in the following table. The total quantity is based on actual production in each year plus imports and minus exports.

The major users over a period and forward estimates are shown.

User1946–50 (Average)19601971–731978Estimated
1985 Low1985 High

NOTE—In 1973 itself, coal sales amounted to 2,422,000 tons, principally because sales for electricity generation were 200,000 tons above the 3-year average.

 Tons(000)
Household600540280220140180
Railways565219---80
Gas works31527710080--
Dairy factories200288265300200300
Meat works155155105150100150
Cement and lime110168250300300350
Shipping759----
Electricity generation706016001,2002,2002,500
Pulp and paper5012180150100200
Steel--70200300500
Other factories2802671501006090
Other consumers (hospitals, schools, central heating)380273310350400500
 2,8002,9182,2103,0503,8004,850

Summary of Operations—The following table summarises coal-mining operations.

YearOutputPersons Ordinarily Employed
UndergroundOpencastTotalUnderground MinesOpencast MinesTotal
SurfaceUnderground
   tonnes (000)   Number
Before 1970  175,556    
19701,1781,2082,3866191,3533252,297
19719461,1782,1245091,0933341,936
19727881,3932,1814708833111,664
19737991,6702,4694277923361,555
19748061,7592,5644307633881,581
Total....187,280........

In 1974 the State operated 13 of the 40 underground mines in operation, and these produced 707,996 tonnes of coal; 11 of the 31 opencast mines were operated by the State and they produced 1,058,767 tonnes of coal. The loss on operations of State coal mines for the 9 months to 30 September 1974 was $1,504,684 without charging interest on loan capital.

Derived Products—Low temperature carbonisation works at Rotowaro (100 km south of Auckland) use the Lurgi process to produce a range of products derived from coal which forms part of the output of local State mines. During the first 9 months of 1974 the works produced 3,218 tonnes of carbonettes, 549,711 litres of tar and oil, and 34,913 tonnes of char from 56,826 tonnes of slack coal. The production of carbonettes, tar, and oil was much reduced in 1974 because the distillation plant ceased production for 8 months following a fire.

Mercer Power Station—This station, of 180,000 kW capacity, if working at full capacity, can burn up to 700,000 tonnes of coal a year. Two-thirds of the coal is provided from the Kopuku opencast coalfield about 11 km distant from the station, and the remainder from the Huntly coalfield.

Huntly Power Station—Following delays in coming to an agreement on the price of natural gas, it has been decided to build a 1,000 MW coal-fired station at Huntly, the first unit (250 MW) of which is scheduled to be commissioned in April 1978. Investigations have confirmed the existence of a large underground coalfield sufficient to provide fuel for the station.

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 were 117 current prospecting licences covering 50,781 square kilometres and for the latter 16 licences covering 643,896 square kilometres at 31 December 1974.

Activity in the search for petroleum is being maintained. A particularily busy period of off-shore exploration commenced in 1975, with two drilling rigs engaged.

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 and by industry, although some will be used for the generation of electricity. 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 of 85/8 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 20C.)

In 1969 the Maui gas field was discovered off the Taranaki coast 33 miles from Opunake. It was subsequently found to extend over an area of 765 square kilometres (295 square miles) placing it among the 20 largest gas fields in the world. The recoverable economic reserves of the field are estimated to amount to about 5 million million cubic feet of high quality methane gas. In addition, oil condensate from the field is likely to supply from 10 to 15 percent of the feedstock requirements for refining in New Zealand.

In April 1973 the Government and the Shell-BP-Todd consortium reached an agreement for the joint development of the main gas field. A gas contract, for 30 years, has been signed providing for the sale to the Crown of the gas which will be used for electric power generation. The first commercial deliveries of the gas are scheduled for October 1978 and it will be used to fuel the New Plymouth power station and stations in Huntly and Auckland. The Ministry of Works and Development will design and build the pipe lines to carry the natural gas to New Plymouth and Auckland.

DEVELOPMENT OF THE MAUI FIELD—The Maui field is being developed in two stages: Stage One consists of the installation of Maui Platform A, drilling of production wells, the installation of separate submarine pipelines for gas and condensate, and the onshore processing facilities at the Oaonui production station. Treated gas will be distributed by transmission pipelines to the New Plymouth, Huntly, and Auckland No. 1 power stations.

Platform installation is scheduled for 1976 and it is planned that commissioning will be completed and all facilities on-stream by 1 October 1978.

Stage Two of the development provides for a second platform, Maui Platform B, additional submarine pipelines, and an expansion of the onshore processing facilities. Work is scheduled for completion by 1983.

Stage One Development—The first drilling and production platform, Maui Platform A, will be installed some 37 km from the Taranaki coast, close to the Maui 3 exploration well, in a water depth of some 110 metres. Twelve production wells will be drilled from the platform.

Platform processing facilities will lower the water content of the gas stream and will also make an initial separation of the condensate (petroleum liquid contained in the gas). A 254 mm condensate pipeline and a 610 mm gas pipeline will transport the condensate and the gas to the onshore processing facilities at the Oaonui production station. At Oaonui two gas refrigeration trains, each with a capacity of approximately 7 million cu metres a day, will process the incoming capacity of 1,500 tonnes per day, will stabilise the condensate to enable subsequent sea shipment to the Whangarei refinery.

Stage Two Development—Maui Platform B will be located some 16 km further from the coast than the first platform, close to the Maui 1 exploration well, in similar water depth to Maui platform A. At least nine production wells will be drilled from the platform and similar processing equipment will be installed as on the first platform. A 254 mm condensate pipeline will be linked to the condensate pipeline installed from platform A during Stage One but a separate 508 mm diameter gas pipeline will be laid to the onshore processing facilities. A third gas refrigeration train, also with approximately 7 million cu metres a day capacity, will be constructed at the onshore plant.

The estimated cost in money terms, i.e., the actual cost of the Stage One development, excluding the on-shore gas and condensate transmission pipelines, is $222,800,000 in 1976 values. The estimated cost of Stage Two (also excluding on-shore transmission pipelines) in terms of 1976 money value, is $179,100,000. The actual cost will, of course, depend on the future rate of inflation.

The total length of the on-shore gas pipeline will be approximately 386 km (240 miles). The diameter of the pipeline will be 864 mm (34 in.) as far as New Plymouth, where it will reduce to 762 mm (30 in.). The diameter will be further reduced at the first Auckland power station lateral take-off point. The condensate pipeline from Oaonui to New Plymouth will be 203 mm (8 in.) diameter and approximately 47 km (29 miles) long.

The estimated cost of the on-shore gas transmission system and the condensate pipeline is $170,000,000 in 1976 values. This investment will be spread over the period 1974 to 1988. The costs to be incurred in the 1980s largely consist of expenditure on the construction of gas pipeline compressor stations.

Construction of the Oaonui to Huntly section of the gas pipeline has commenced. Pipe for this section has been purchased in Japan and is in storage at New Plymouth, where a protective asphaltic coating is being applied before it is transported out to the pipeline right-of-way.

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, 58 km south of Auckland, by New Zealand Steel Ltd., and the plant began production late in 1969 using ironsand deposits from the North Head of the Waikato River, 19 km away. Production of steel billets from ironsand commenced in November 1969.

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, 32 km north of Wanganui, an ironsands mining unit produces titanomagnetite concentrates for direct export to Japan through off-shore bulk-loading facilities and in 1974 some 971,504 tonnes were exported. N.Z. Steel Ltd. has developed a similar undertaking at Taharoa, near Kawhia, and 1,210,462 tonnes were exported in 1974.

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. Interest is being maintained in the investigation of these areas.

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 which suspended operations in 1974. However, the increase in the price of gold has stimulated prospecting in Coromandel, Nelson, Westland and Central Otago.

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 was contained in the lead sulphide 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.

COPPER—Production of copper has ceased since the Tui mine, near Te Aroha, closed in 1973. Small mines have been worked in Northland in the past, at Parakao (where the carbonite and oxite ore was used as a fertilizer additive) and Pupuke. Prospecting has been carried out at a number of localities, but no significant deposits have been discovered. Further work is being carried out, chiefly on the Coromandel Peninsula.

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 was mined near Te Aroha, producing lead-copper sulphide and zinc sulphide concentrates for export to Japan, but the mine closed in 1973.

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 90,000 tons from here and 20,000 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—Production of bentonite continued at Coalgate in Canterbury and at Porangahau in Hawke's Bay for applications such as foundries and pelletising stock food. A new drilling grade meeting A.P.I. specifications is being used on oil rigs in the Taranaki area. Export shipments were sent for iron ore pelletising in Tasmania, as well as to Japan and Taiwan.

HALLOYSITE—Halloysite is a clay used as a filler in the paper industry, and for ceramics. It has been mined in Northland since the Second World War. Though nearly all production is for local consumption, possible expansion of the existing small existing export market is being investigated.

SULPHUR—Prospecting proved a 6 million ton deposit of sulphur at Rotokaua in the Taupo area in 1968. The deposit is mixed with pumice and work on the development of a separation process is continuing. A pilot plant operation recently started producing some sulphur for commercial use.

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, and others are being prospected on Great Barrier Island.

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. Deposits found in north-west Otago (Pyke River) have not yet been found to be commercial, and access is difficult.

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. Prospecting is continuing on promising sea-floor deposits in the Chatham rise area.

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 1974, 2,928,092 tonnes had been mined, including 89,069 in 1974.

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 aggregations 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.

The best-known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland, but are not systematically or commercially exploited.

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. Prospecting north of Kaitaia has given encouraging results, however.

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. Similar investigations are taking place with deposits in Central Otago.

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
 tonnes$(000)
196949,294464
197052,790364
197143,261393
197259,436385
1973101,500447
197454,864454

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—An understanding of the country's geology is imperative for long-term assessments of New Zealand's mineral resources. 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, MOWD, and other Government departments consult the Geological Survey on geological problems, and do not themselves maintain a geological staff. Only that part of the work of the Geological Survey that concerns the discovery and development of mineral resources is discussed here. Other aspects of applied geology include engineering geology, the study of earthquakes and volcanoes, and effects of engineering works and other developments on the physical environment.

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. Geological mapping has also been carried out in New Zealand's island territories and in the Ross Dependency. In 1972 a new 1:1,000,000 geological map was published of each of the North and South Islands; and in 1973 maps on the same scale of the quarternary geology (pleistocene and recent deposits, active faults, and changes in shear lines, etc.)

Prospectors and mining companies may seek advice and assistance from any of the dozen or so district offices of the Geological Survey as well as from the head office in Lower Hutt, which houses the administrative and specialist research sections.

Mineral Resources Surveys—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. 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. 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.

Coal—Coal is still New Zealand's most important mineral, apart from constructional materials, and mapping the coal fields 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, Ohai, and Waikato coalfields have been published. 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 under-take constant revision. A major revision of coal estimates is currently being made. Geological work is being undertaken for the Mines Department in the present extensive drilling in the Huntly area.

Oil and Gas—Oil companies 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. The Geological Survey is the national repository of collections of rocks, fossils, and drill cores collected by the oil companies, and has recently expanded its Petroleum Section, partly in response to increased Government participation in exploration.

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 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 it is possible with the staff available, the survey advises Ministry of Works and Development and local authority engineers, contractors, and other users on where rock materials for road metal, aggregate, building stone, sand, etc., can be obtained. Marl, limestone, and pozzolana for cement manufacture, perlite, bentonite, clays, talc, mica, and magnesite are other non-metallic minerals in the utilisation of which 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; and North Auckland sands and halloysite clays have been the subject of New Zealand Geological Survey publications.

CENSUS OF MINING, QUARRYING, AND PROSPECTING—The third 5-yearly census of mining, quarrying, and prospecting was taken for the production year 1973–74. At earlier censuses, only operators of mines and quarries registered with the Mines Department were surveyed, but the 1973–74 census included for the first time holders of licences issued by other Government departments.

Production—The value of all output from mines and quarries registered with the Mines Department was $73.1 million, and, in addition, there was a value of output of $2.6 million from firms holding licences issued by other Government departments. This gave a total output value of $75.7 million for the production year 1973–74.

The main products were shingle, sand, and gravel with a total value of production of $18.2 million, quarried rock, sand, etc., $19.9 million, coal $14.5 million, limestone $6.2 million, and clay for manufacturing $1.1 million. The remaining $15.8 million consisted mainly of ironsand concentrate, gold, silica sand, bentonite, serpentine, salt, marble, and scoria.

The statistics in the following table refer only to operators of mines and quarries registered with the Mines Department. An analysis of returns received from firms operating under licences issued by other departments is given separately later in the section.

ItemOperating Full TimeAll Types Operating Part TimeGrand Total
Predominant Type of Mining or Quarrying
Shingle, Sand, Gravel, Quarried Rock, etc.Lime-stoneClayCoalOther Incl. GoldTotal

*Valuation of production was at the point at which the minerals were washed, graded, crushed, screened, powdered, or otherwise crudely treated and were ready for sale or transfer for further use.

†Included in salaries and wages, other expenses, and capital expenditure.

Type of organisation—        
  Registered private company1744412112126256318
  Registered public company181783349857
  Co-operative-4-7-11-11
  Individual ownership153-32235477
  Partnership62-92191938
  Government10--1112921
  Local authority622---643498
Totals28572203429440180620
Nature of business—        
  Underground mines operated---34236642
  Surface mines or quarries operated794904123369843031,287
  Productive bores----33-3
Totals794904157411,0233091,332
Average number of persons employed during the year (excludes working proprietors)1,976344731,3244154,132674,199
Salaries and wages paid for year (including bonuses, overtime, etc.) to above persons $(000)9,2241,7632676,0712,42319,74713519,882
Number of working proprietors275-5859579174
Production during the year(*)—        
  Shingle, sand, and gravel cu yds (000)11,800282-611,83558712,422
$(000)15,582541-1615,65239416,046
  Quarried rock, sand, etc. cu yds (000)10,31015014310,46829110,760
$(000)19,21013839319,36315119,514
  Limestone tons (000)1083,304--243,436263,463
$(000)3265,6742-786,081466,128
  Clay for bricks, tiles, tons pottery, and other manufacturing (000)5381565-20434238
$(000)12331,02214-1,081421,123
  Coal tons(000)---2,402-2,40232,405
$(000)---14,461-14,4611914,480
  Other $(000)1467611115,48615,71910515,824
Total value of production $(000)35,2765,9741,03914,48515,58372,35875873,116
Less salaries and wages $(000)9,2241,7632676,0712,42319,74713519,882
Less other expenses $(000)22,7583,5636779,6418,33044,96942545,395
  Surplus $(000)3,29564895—1,2274,8317,6411987,839
Net output (net value added) $(000)12,9122,4823764,8707,63128,27034128,611
Expenditure on capital assets—        
  Land—excluding purchases for resale $(000)26617--21303-304
  Buildings—        
  Residential $(000)2218-21812231224
  Non-residential $(000)89110-4214538710397
  Other construction $(000)2739361,0782,5403,98933,992
  Motor cars and station wagons $(000)22335934613623365
  Other transport vehicles (road, air, or sea) $(000)730184-982241,237301,267
  Plant, machinery, and equipment $(000)4,506837492682415,901605,961
Totals $(000)6,1091,294651,5233,41212,40310712,510
Sales of assets at realised value $(000)8493407442711,709221,731
Expenditure on exploration surveying, and prospecting $(000)583122744688164820
Environmental protection expenditure $(000)30818192712049215507

The statistics in the following table were compiled from returns received from firms operating under licences issued by the following:

  1. Marine Division of the Ministry of Transport who issue licences under the Harbour Act 1950.

  2. Lands and Survey Department who issue licences under section 165 of the Land Act 1948.

  3. Ministry of Works and Development who hold licences which are sub-issued to Catchment Boards.

No. of units—213 QuantityValue
Production during year— (000)$(000)
  Shingle, sand and gravelcu yds1,5512,114
  Quarried rock, sand, etc.cu yds308380
  Limestonetons2759
  Clay for bricks, tiles, pottery, and other manufacturingtons66
  Coaltons 2
  Other..-26
Total value of production....2,587
Exploration—   
  Expenditure on exploration, surveying, and prospecting (including purchase during the year of vehicles and other fixed assets)—  $(000)
  Salaries and wages  116
  Other expenses  236
Total  351

Prospecting—Returns received from holders of licences issued by the Mines Department showed 53 units engaged full time in mineral exploration and prospecting. The following table shows details. Expenditure by these units is in addition to that by mining and quarrying units in production and by units holding licences from other than the Mines Department, as shown in the previous tables.

Units Engaged in Prospecting During 1973–74
Type of organisation—  
  Registered private company..31
  Registered public company..11
  Individual ownership..4
  Partnership..7
Total..53
Nature of business—  
  Exploring for oil or gas..11
  Exploring for mineral ores..41
  Other exploring..3
Total..55
Average number of persons employed during year on mineral exploration..82
Salaries and wages paid for year (including bonuses, overtime, etc.) to above persons$(000)462
Number of working proprietors$(000)19
Operating costs other than salaries and wages during the year$(000)2,318
Sales of services during the year—  
  Fees or other receipts derived from mineral exploration services rendered$(000)85
Expenditure on capital assets$(000)228
Sale of assets at realised value$(000)20

Chapter 19. 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 fanner 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.

Postwar 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.

Successive annual increases in the volume of production took place in the following years: 1961-62, 5.3 percent; 1962-63, 4.5 percent; 1963-64, 10.8 percent; 1964-65, 12.8 percent; 1965-66, 7.0 percent; 1966-67, 5.5 percent. However in 1967-68 there was a decrease of 1.3 percent. Later annual increases have been: 1968-69, 3.1 percent; 1969-70, 12.3 percent; 1970-71, 5.1 percent; 1971-72, 4.3 percent; 1972-73, 6.2 percent; and 1973-74, 13.2 percent.

The greater use of machinery in manufacturing during recent decades is illustrated also by the continuing rise in the average horsepower employed for each person engaged in manufacturing. In 1950-51 the average was 3.48 horsepower; in 1960-61, 4.42 horsepower; and in 1970-71, 6.84 horsepower. This expansion has been facilitated by developments in electric power generation and industrial techniques.

The value of factory production in recent years has been: 1969-70, $2,995 million; 1970-71, $3,407 million; 1971-72, $3,874 million; 1972-73, $4,611 million; and 1973-74, $5,251 million. Net value added in manufacture has been 1969-70, $867 million; 1970-71, $996 million; 1971-72, $1,131 million; 1972-73, $1,302 million; and in 1973-74, $1,502 million.

About 25 percent of males and 23 percent of females in the labour force are directly engaged in manufacturing.

Small factories continue to be typical of manufacturing in New Zealand. Some 51 percent of the factories employ 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, only 2.2 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. The trend is towards larger manufacturing units.

Some of the major industries are mentioned later in this section. Others include wire drawing and galvanising; the production of copper tube, 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, bicycles, pneumatic and steel-tyred road rollers, self-propelled hydraulically operated excavators, post-hole diggers, hydraulic equipment and attachments, and cargo containers. 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, transfer-printed, 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. opened a new kraft pulp mill at Kinleith early in February 1973. This mill, operating 24 hours a day, 7 days a week, has doubled pulp output from 213,360 tonnes to 426,720 tonnes. The company's No. 6 paper machine began operating about the end of the first quarter of 1973. The company's No. 3 paperboard machine at Whakatane is due to be in production in mid-1976. This will double the capacity of the Whakatane paperboard mill and enable the company to produce fully-coated paperboard. The major increases in pulp and paper production are part of a 5-year expansion project which is the largest undertaken by an individual company in New Zealand's industrial history.

The expansion programme undertaken by Tasman Pulp and Paper Co. Ltd., Kawerau, is also well advanced. The kraft pulp mill expansion has raised output from 106,700 tonnes a year to 233,700 tonnes, of which 100,000 tonnes will be exported. The company's third newsprint machine, which commenced production early in 1975, has increased newsprint production to 350,000 tonnes a year.

The mill constructed by Carter Oji Kokusaku Pan Pacific Ltd., at Whirinaki, near Napier, commenced production in March 1973. The mill's entire output, consisting of sawn timber and refiner groundwood pulp, is being exported. The refiner groundwood pulp mill has an initial annual capacity of 140,000 tonnes, but this should be expanded to 245,000 tonnes in 1976.

Particle Board—New Zealand Particle Board Ltd. commenced production in October 1972. With an annual output of 56,000 cubic metres at the Kumeu plant, the company is in the process of installing plant which will more than double its capacity.

The Fletcher Timber Company Ltd's Taupo particle-board plant has also recently more than doubled capacity. In addition the company has introduced a new product to the market—Bison-board—which is a type of thin particle board. At present, the company is constructing a second Bison-board plant at. Kopu, near Thames.

Canterbury Timber Products Ltd. are expected to commence production of a new product—a medium density fibreboard—in Rangiora in late 1975.

Plywood—New Zealand Forest Products Limited is establishing a new plywood plant at Kinleith. This plant, which will be the largest of its kind in Australia or New Zealand, will use 2,000,000 cubic feet a year of radiata pine from the Kaingaroa forest.

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 is meeting the full domestic demand for these galvanised products and production is increasing annually.

Commercial operation of the iron-making plant commenced in March 1970, using indigenous ironsands. Considerable problems of equipment and operation have been met and full production has not yet been achieved. The designed capacity of the plant is 152,000 tonnes annually.

Production of black and galvanised steel pipe and tube from the $4 million mill has been increasing since the plant was commissioned in 1971. Production capacity of the mill is over 40,000 tonnes a year. The plant is currently producing steel ingots, billets, flat and corrugated galvanised sheet, black pipe and rectangular hollow sections, and galvanised pipe.

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 the primary aluminium smelter at Tiwai Point, near Bluff, was completed early in 1971. The first furnace was commissioned in April 1971. The smelter is now producing at the rate of 112,000 tonnes a year, and at this level represents an investment of approximately $110 million. Adjacent to the Bluff smelter is a special mill which early in 1972 commenced production of aluminium electrical conductor redraw rod.

An aluminium semi-fabricating industry is well established, making a wide range of extrusions, rolling mill products and fabricated items.

Aircraft Manufacture—In March 1973 rationalisation of the aviation manufacturing industry took effect with the amalgamation of separate industry units into a single company; Aerospace Industries Ltd. The National Airways Corporation and Air New Zealand provide substantial financial and technical assistance.

Major orders have been placed by the Australian and Thai Governments for Fletcher agricultural aircraft and the CT4 airtrainer.

Electronics Manufacture—The New Zealand electronics industry now numbers some 60 individual companies with a total estimated output for 1972 of more than $17 million. There is a marked tendency to move away from the production of consumer goods to that of more sophisticated industrial medical and testing instruments, often of New Zealand origin and design.

Colour Television—Colour transmission from existing television stations commenced on 31 October 1973. By May 1976 there were 175,000 private licensed colour TV sets in New Zealand compared with under 80,000 a year earlier.

Motor Vehicles—During 1973, two new vehicle assembly plants were commissioned in the Auckland area by the Ford Motor Co. (NZ.) Ltd. and Nissan Motor Distributors Ltd. Todd Motors Ltd's new plant at Porirua, currently the largest single vehicle assembly plant in New Zealand, was officially opened in October 1975.

The new transmission and chassis component plant of the Ford Motor Co. (N.Z.) Ltd. at Wiri was officially opened in November 1973. Assisted by provisions of the New Zealand-Australia Free Trade Agreement, this facility is intended to supply total New Zealand and Australian needs for several components used in Ford's production of light and medium passenger cars.

Specialist production of sports cars and racing cars has commenced on a limited scale for export.

Carpets and Carpet Yarns—From being a local industry supplying the local market (with some minor exports), considerable recent expansion has enabled yarn and finished carpet exporting to increase considerably.

Growth of carpet yarn spinning has been brought about by expansion of existing mills in Auckland, Wellington, Christchurch, and Invercargill, and new mills have been established in regional development areas such as Wanganui, Dannevirke, Invercargill, and Foxton. Much of the yarn is exported.

An increasing proportion of the carpet industry's production is being exported. Woven and tufted carpets have found a ready market in a variety of overseas countries. In 1972-73 over 1,700,000 square metres of carpet were exported to Australia. Increased carpet making capacity has been installed in Auckland, Foxton and Wellington. Total carpet production is now in excess of 10,000,000 square metres per year.

TRENDS IN INDUSTRIAL DEVELOPMENT: Rationalisation of Production—This trend 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—The major objectives in supervising overseas investment are to ensure that New Zealand's natural and human resources are developed to the benefit of New Zealand and also that overseas investment contributes to the maintenance of a satisfactory rate of economic growth in New Zealand. Investment of overseas capital is usually accompanied by specialised skills and technical advances and these are strongly associated with New Zealand's industrial expansion and rationalisation.

Indigenous Resources—The continuing trend towards the development and expansion of resource-based industries 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 main, 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. Research into possible industries based on South Island beech forests is currently being carried out.

The fishing industry has grown in recent years from a small scale operation serving the local market to an industry with some processing of fish products and a basis for further expansion as export markets are found and catching methods diversified.

Industries based on New Zealand's mineral resources are developing. Indigenous ironsands are being smelted in an iron and steel manufacturing plant.

The Kapuni natural gas field is in commercial production and the development of the larger offshore Maui gas field is proceeding. Apart from electric power generation, other uses of this natural gas resource are being studied. Possible uses include the manufacture of petrochemicals, liquid petroleum gas and more extensive reticulation for domestic and industrial purposes.

Resource Conservation—In early 1974 a resource conservation officer was established in the Department of Trade and Industry. The intention was to promote the existing conservation industries and o aid the establishment of new operations. A major effort has been directed toward the establishment of a scheme to recover old car hulks from throughout the country and process them into high grade scrap in Auckland. Other activities have included the promotion of increased glass cullet, waste oil, and solvent recovery capacity.

Future prospects include the establishment of industries based on ilmenite beachsands occurring on the west coast of the South Island, the exploitation of Southland silica deposits, a mineral wax industry based on Chatham Islands peat and Otago lignite deposits, and the manufacture of activated carbon from West Coast coal. Developments based on farm produce continue to take place, one example being the manufacture of dried lucerne pellets for export.

FXPORT EARNINGS—Goods manufactured in New Zealand are finding more outlets in overseas markets. Export receipts for all manufactured goods (excluding forestry and dairy products) during the year ended June 1975 totalled $208.1 million compared with $171.0 million the previous year and $105.7 million in 1972. Part of the increase can be attributed to the growth in sales of aluminium ingot.

REGIONAL DEVELOPMENT—Increasing attention has been paid in recent years to the regional aspects of the development of New Zealand and especially to the differing rates of growth of population; employment, and industry between regions.

Recognising this, the Government has given regional development an important place in its planning. Initially, emphasis is being given to the development of industry in a number of priority regions in order to provide employment opportunities and restrain the outflow of population from these regions. Regional development councils are being established in such areas to recommend to the Government on the types of regional assistance required in particular cases. Such assistance to industry may include small business grants, suspensory loans, bank guarantees, freight subsidies, relocation grants, and assistance with housing and labour training. (See Section 25E.)

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 corporation is a wholly Government-owned development bank.

Industrial Research and Development Grants Scheme—This scheme was established in 1969 to encourage increased industrial research and development. Grant payments for the 1970-71 year were $202,117, for 1971-72 $749,175; for 1972-73 $1,156,506; for 1973-74, $1,246,799; and for 1974-75, $1,357,669.

Productivity Centre—A Productivity Centre was established within the Department of Trade and Industry in January 1973 to promote improved productivity in New Zealand's manufacturing and servicing industry. It is pursuing an active nationwide programme in close co-operation with interested organisations to help firms make better use of their resources by using specific productivity techniques.

The programme of the centre is guided broadly by a 10-member Productivity Advisory Council. Members represent both Government and private sectors, providing the council with a wide range of practical experience and close links with other bodies concerned with productivity improvement.

The centre offers a variety of services to industry:

  1. Interfirm comparisons, which highlight areas within individual firms requiring remedial attention, are sponsored and costs subsidised in selected cases. Seventeen major industry groups, involving more than 800 firms, participated in the centre's interfirm comparison programme during 1975.

  2. The establishment of self-sustaining productivity groups is promoted by the centre. Some 23 groups, which enable representatives of diversified local industries to examine and exchange productivity ideas and experience that will benefit their individual enterprises, were operating at the end of 1975.

  3. Companies and organisations are assisted with setting up productivity improvement teams. These teams harness the ideas, knowledge, and ability already existing in an organisation to improve productivity.

  4. The centre organises workshop sessions and seminars on specific management topics, particularly in centres where few formal management education facilities exist.

  5. Extension services to industry are provided by industry liaison officers based at the Auckland, Wellington, Christchurch, and Dunedin offices of the Department of Trade and Industry. These officers are available to help diagnose the existence and extent of practical problems in individual companies at the invitation of management, and to channel to them advice and assistance from the wide range of financial, technological, managerial, and other facilities available in the public and private sectors.

  6. Literature is distributed by the centre including general information material, a newsletter, a technical series, and a directory of advisory services.

In addition the centre's programme includes general publicity to ensure widespread understanding of the benefits of productivity, research, and investigation into productivity measurement and incentives, and liaison with productivity organisations overseas.

New Zealand Export/Import Corporation—Established early in 1974, the corporation has a responsibility for co-ordinating and expanding overseas trading opportunities. By providing assistance to small companies which lack the resources or skills to go into the export field, the corporation enables New Zealand to compete in many lines of goods which formerly could not be marketed economically.

Other Bodies—Also providing assistance to industry are the Industrial Design Council and Inventions Development Authority. A number of liaison committees have been established to promote development in particular fields of industry: these include the Advisory Committee on the Heavy Engineering Industry, the Foundry Industry Advisory Committee, and the Electronics Advisory Committee. Several bodies exist principally to promote exports: the Engineering Export Association of New Zealand Inc. continues to be prominent in this field, while the Export Guarantee Office facilitates the export of manufactured goods by removing some of the financial uncertainties involved in export trade.

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.

RESEARCH AND DEVELOPMENT—Engagement in research and development by industry groups is shown in the following table for 1973-74.

The statistics include milk processing, bread bakeries, ready-mix concrete; these 3 industries are usually left out of published "Industry Group Totals" in order to maintain comparability with statistics of previous years.

Industry GroupPersons Engaged on Research and DevelopmentPersons on Research and Development to Total Persons EngagedExpenditure on Research and DevelopmentPercentage Research and Development Expenditure of Net Output
 No.percent$(000)percent
Food (includes milk processing and bread bakeries)1330.271,3680.50
Beverages80.253420.7
Tobacco manufactures252.01
Textiles290.192890.33
Footwear, other wearing apparel, and made-up textile goods600.224100.41
Wood and cork products (except furniture)340.222210.22
Furniture and fixtures150.232030.56
Paper and paper products350.364540.63
Printing, publishing, etc.90.062430.26
Leather and leather products (except footwear and apparel)150.58950.68
Rubber products300.782600.95
Chemicals and chemical products3464.592,2823.25
Petroleum and coal products81.22390.29
Non-metallic mineral products, n.e.i (includes ready-mix concrete)450.473050.41
Basic metal manufactures80.1711,0640.58
Metal products (except machinery and transport equipment)820.40
Machinery (except electrical)2401.401,5171.42
Electrical machinery and appliances1861.631,2572.12
Transport equipment920.635460.57
Miscellaneous products800.706670.94
  All groups1,4800.6011,5630.76

SCOPE OF STATISTICS—The statistics of industrial production collected annually by the Department of Statistics cover 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. Milk processing plants have been surveyed as a separate industry since 1968-69 and have also been excluded from group and national totals for the same reason.

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.

In addition, commencing with the 1971-72 census, the motor vehicle repair industry has been excluded from manufacturing activities and is now being covered in the Census of Distribution. Consequently, all manufacturing "time-series" statistics back to 1956-57 have been adjusted to exclude the statistics of that industry.

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 6.4 percent in volume in 1972-73 there was an increase of 13.2 percent in 1973-74. The total value of production was $5,251 million in 1973-74 or 13.9 percent more than the 1972-73 total of $4,611 million. Net output increased by 15.4 percent from $1,302 million in 1972-73 to $1,502 million in the latest year and manufacturers surplus increased by 6.5 percent (from $387 million to $412 million). The number of persons engaged, including working proprietors, was 244,522, an increase of 8,864 or 3.8 percent on the total of 235,648 in 1972-73. Total salaries and wages paid (including drawings of working proprietors) during 1973-74 amounted to $1,042.2 million compared with $875.4 million in the previous year. This was an increase of 19.1 percent.

Factory statistics by local authority administrative areas showing the number of establishments and accompanying main statistics are published in Statistics of Industrial Production available in Government bookshops.

The following table gives the main statistics by statistical areas for the year 1973-74.

Statistical AreaEstablishmentsPersons EngagedSalaries and Wages PaidCost of MaterialsValue of ProductionNet Output (Net Value Added)
 No.No. $(000)  
Northland1994,48820,431141,692194,25732,463
Central Auckland2,53286,023364,057941,7781,690,009545,957
South Auckland-Bay of Plenty86224,976112,701401,496676,538159,908
East Coast772,47310,17137,17556,61013,616
Hawke's Bay26910,60746,053171,169255,62962,050
Taranaki2177,01931,474154,056208,87338,058
Wellington1,40244,662189,123554,489932,567271,125
Marlborough791,4505,87812,86320,8996,354
Nelson1763,49914,33642,57573,66220,234
Westland601,1014,28010,09119,2575,978
Canterbury1,19037,736152,192367,518652,181210,457
Otago39213,23951,914130,280239,91480,307
Southland2357,24939,605147,624230,48155,880
Totals7,690244,5221,042,2143,112,8065,250,8781,502,387

Information as to the character of organisation of the establishments engaged in factory production during 1973-74 is given in the following table. Co-operative associations are characteristic of certain industries engaged in the processing of farm, mainly butter and cheese manufacturing.

Character of OrganisationEstablishmentsPersons EngagedSalaries and Wages PaidCost of Materials Used or Operated UponValue of Manufactures or ProductsNet Output
TotalPer Establishment
 NoNo.$(m)$(m)$(m)$(m)($)
Private registered company5,894148,2216111,6422,867894151,690
Public registered company91883,9313771,0331,886540588,614
Individual3651,5885717821,411
Partnership2882,097818341344,628
Co-operative association1715,7582735341631183,193
Local authority and State542,92714103016296,037
Totals7,690244,5221,0423,1132511,502195,369

In the next table the statistics for the year 1973-74 are reclassified by employment districts.

Employment DistrictFactoriesPersons EngagedSalaries and WagesCost of MaterialsValue of ProductionNet Output (Net Value Added) TotalNet Output (Net Value Added)
MalesFemalesMalesFemales

*These areas are no longer official factory districts but have been retained in these statistics at the request of users.

 No.No.No.$(000)$(000)$(000)$(000)$(000)percent
Whangarei1993,79169718,4471,984141,692194,25732,4632.2
Auckland2,53258,42227,601290,60973,449941,7781,690,009545,95736.3
Hamilton49410,0802,81945,8656,807244,738351,49971,4664.8
Tauranga1592,1008029,5901,97649,05473,32816,6941.1
Rotorua2097,9651,21245,1843,294107,692251,73971,7774.8
Gisborne751,8705898,2741,83537,09656,44113,5400.9
Napier1182,70189913,6622,46058,35196,49924,9881.7
Hastings1315,3561,37925,7993,175107,322151,96835,9072.4
New Plymouth2125,0241,16725,1342,786144,237195,04235,0222.3
Wanganui3572,9881,13114,4382,41747,94577,55620,5691.4
Palmerston North3426,6362,72431,0046,540131,519201,14950,4103.3
Masterton1002,0021,0339,5012,66941,33560,07512,3890.8
Lower Hutt34012,7265,09163,75215,240268,059442,531123,5668.2
Wellington4907,3474,09636,93211,19081,038172,39168,4294.6
Totals, North Island5,558129,00851,240638,189135,8212,401,8544,014,484123,17774.8
Blenheim791,0613894,91696212,86320,8996,3540.4
Nelson1542,46656110,9721,42340,20866,24417,2891.1
Greymouth821,2143595,29292812,45826,6758,9230.6
Christchurch1,01022,8879,562106,81323,743291,324538,065183,50812.2
Ashburton*481,2423925,47495114,63726,3258,3220.6
Timaru1293,04858913,6581,46261,24887,33518,5071.2
Oamaru*401,1052895,20268515,74826,1637,3440.5
Dunedin3558,3903,47137,871*8,247114,842214,20873,0834.9
Invercargill2356,62762237,7011,904147,624230,48155,8803.7
Totals, South Island2,13248,04016,234227,90040,304710,9511,236,394379,21025.2
Totals, New Zealand7,690177,04867,474866,089176,1253,112,8065,250,8781,502,387100.0

A further summary of the operations of factories is given below for the three latest years.

Statistics for the motor vehicle repairs industry are now excluded from the figures in this and subsequent time series tables.

Item 1971-721972-731973-74
Number of establishments 7,7837,669x7,690
Persons engaged 232,424235,648x244,522
Production costs—    
  Salaries, wages$(000)780,308875,420x1,042,214
  Materials$(000)2,288,5782,787,201x3,112,806
  Other expenses$(000)489,841561,536x683,746
Total costs$(000)3,558,7284,224,157x4,838,766
Value of production$(000)3,874,287x4,611,256x5,250,878
Manufacturers' surplus$(000)315,559387,099x412,112
Net output (net value added)$(000)1,130,677x1,301,701x1,502,387
Overtime worked by wage earnersh(000)38,365x41,177x45,503
Volume index for industry: Base 1956-57(=1000)2477x2631x2,977
Premises and plant—    
Value at end of year—    
  Land and buildings$(000)871,594974,484..
  Plant, machinery, and equipment$(000)565,353659,588..
  Transport equipment$(000)40,17443,797..
Capital expenditure during year—    
  Land and buildings$(000)65,20365,874x84,354
  Plant, machinery, and equipment$(000)167,297184,879x202,911
  Transport equipment$(000)19,73421,391x25,153
Coal consumption as fueltonnes(000)882908..

The following table gives a summary of some of the principal production statistics for the year 1973-74 classified by individual industries. Totals for the industrial groups to which these industries belong are also shown.

IndustryEstablishmentsPersons EngagedSalaries and Wages PaidValue of ProductionNet Output (Net Value Added)
Food Manufacturing Industries No.No. $(000)
Meat freezing and preserving4927,413143,441703,959144,235
Ham and bacon curing411,4175,71942,04310,018
Sausage casings82531,1153,4951,213
Ice cream195462,11115,7024,155
Butter, cheese, and milk powder1454,69422,342377,37524,744
Milk products other than butter and cheese
Fruit and vegetable preserving283,58713,85062,31819,844
Fish preserving628293,04822,2135,868
Grain milling338313,24237,9425,877
Biscuits81,3904,91022,1687,975
Cocoa, chocolate, and sugar confectionery402,2037,26933,97211,147
Feeds for animals and fowls486142,81444,2906,105
Food preparations, n.e.i.562,2338,58976,00414,383
Totals53746,010218,4501,441,483255,565
Beverage Industries     
Winemaking685312,17817,2922,915
Distilling, rectifying, and blending of spirits41164983,1771,059
Brewing of ale and stout, and malting151,5698,48663,08024,105
Aerated waters and cordials471,0433,85017,1155,781
Totals1343,25915,012100,66433,860
Tobacco Manufactures     
Tobacco, cigars, and cigarettes51,2424,96334,09410,686
Manufacture of Textiles     
Woolscouring288994,323168,0665,397
Woollen milling214,41716,18157,3421,352
Other spinning and weaving mills263,00113,33156,59720,865
Phormium flax
Hosiery and other knitting mills845,41517,82471,62825,460
Linen flax1278710755
Textiles, n.e.i.361,7077,85155,13215,532
Totals19615,46659,598408,87488,661
IndustryEstablishmentsPersons EngagedSalaries and Wages PaidValue of ProductionNet Output (Net Value Added)
Manufacture of Footwear, Other Wearing Apparel, and Made-up TextilesNo.No. $(000) 
Leather gloves and apparel172336502,129832
Men's and boys' outerwear1023,4579,39626,43911,581
Women's and girls' outerwear2545,40914,15347,51918,273
Underclothing431,7134,26114,7715,745
Hats, caps, and millinery232416591,868758
Neckties41604972,117793
Corsetry241,4794,05411,7665,864
Shirts and pyjamas502,2345,65017,2527,713
Wearing apparel, n.e.i.1465,85415,02051,12219,011
Fur coats and necklets201534581,410601
Footwear (other than rubber)1025,04516,48748,20320,129
Canvas goods454941,6036,4912,362
Made-up textiles (other than wearing apparel)891,4284,11218,9676,381
Totals91927,90076,999250,055100,045
Manufacture of Wood and Cork Except Manufacture of Furniture)     
Sawmills2835,87725,897100,60540,163
Planing mills and timber preservation1452,1879,15357,98915,454
Joinery3844,65220,31978,06328,491
Wooden containers243811,5266,3992,018
Plywood and veneer141,7435,66827,53110,480
Wood products, n.e.i.941,0124,36916,5856,027
Totals94415,35266,932287,172102,634
Manufacture of Furniture and Fixtures     
Furniture3565,62523,39574,60730,794
Mattresses186712,39910,9154,015
Venetian blinds202729925,0901,348
Totals3946,56826,78690,61236,156
Manufacture of Paper and Paper Products     
Pulp, paper, and paperboard74,46928,102149,03737,139
Cardboard boxes, cartons, and containers392,2479,61855,34415,236
Paper bags and paper sacks169604,17823,7316,001
Paper products, n.e.i.452,1838,47147,96213,472
Totals1079,85950,369276,07471,848
Printing, Publishing, and Allied Industries     
Printing and publishing947,61735,19289,98052,796
Job and general printing3587,13829,10281,06437,338
Service industries for printing trade617533,4677,7024,345
Totals51315,50867,761178,74694,479
Manufacture of Leather and Leather Products (Except Footwear)     
Tanning191,1574,49326,5317,197
Fellmongery91044434,120859
Leather goods961,3204,14714,4335,987
Totals1242,5819,08345,08414,043
Manufacture of Rubber Products     
Motor vehicle tyres and tubes     
Rubber goods (other than motor vehicle tyres and tubes)393,31417,10452,49122,186
Vulcanising and tyre retreading555472,35511,0805,057
Totals943,86119,45963,57127,243
Manufacture of Chemicals and Chemical Products     
Chemical fertilisers161,2067,07484,72616,817
Vegetable and animal oils and fats204282,07412,6723,630
Ink103381,4306,0262,835
Soap115412,06514,2674,965
Paint and varnish329864,20630,1887,260
Pharmaceuticals, toilet goods, and cosmetics381,6575,60537,45511,710
Chemical products, n.e.i.872,3909,57667,68622,914 
Totals2147,54632,031253,01970,131
Manufacture of Products of Petroleum and Coal     
Petroleum and coal products173922,21499,62010,916
Bituminous paving and roofing materials262651,15610,6122,523
Totals436573,370110,23213,439
Manufacture of Non-metallic Mineral Products (Except Products of Petroleum and Coal)     
Structural clay products319073,95610,6745,105
Pottery, china, and earthenware121,0103,5657,8364,598
Cement47754,48922,9359,428
Glass and glass products512,33911,04432,72216,561
Concrete products2052,59311,36645,91118,696
Lime913541,5538,6602,883
Fibrous plaster332148702,3681,056
Non-metallic mineral products, n.e.i.208154,14727,5469,283
Totals4479,00740,990158,65367,609
Basic Metal Industries     
Basic metal industries1024,58423,698192,30544,429
Manufacture of Metal Products (Except Machinery and Transport Equipment)     
Sheet-metal working2226,96230,050125,69945,005
Wire working551,0574,48723,6316,976
Nail making61527365,7281,166
Electroplating and metal polishing759224,30711,1895,981
Metal products, n.e.i.57511,41051,955201,74279,069
Totals93320,50391,534367,989138,197
Manufacture, Assembly, and Repair of Machinery (Except Electrical Machinery)     
Agricultural and pastoral machinery1851,7176,98937,37210,732
Machinery, n.e.i.61715,42771,625234,81796,087
Totals80217,14478,614272,189106,819
Manufacture of Electrical Machinery, Apparatus, Appliances, and Supplies     
Range making81,2124,55916,8536,150
Radio and television assembly and manufacture252,5558,70939,19111,124
Electrical machinery, appliances, n.e.i. and repairs3157,62330,238119,23941,943
Totals34811,39043,507175,28359,217
Manufacture of Transport Equipment     
Boat building and ship repairing1171,7628,23825,66510,190
Motor vehicle assembly186,40627,873249,32349,704
Motor body building801,8247,52026,34910,048
Aircraft manufacture, maintenance and repair472,78515,11631,35115,990
Perambulators81615151,679618
Transport equipment, n.e.i.481,6546,98624,2289,794
Totals31814,59266,247358,59796,345
Miscellaneous Manufacturing Industries     
Optical, surgical, and dental, etc., equipment394021,6665,7612,512
Jewellery958193,33311,1254,790
Brushes and brooms84631,5465,4612,042
Toys and sports goods351,0323,37710,0804,194
Plastics2186,76429,710125,90245,931
Manufacturing industries, n.e.i.1212,0137,18127,85511,511
Totals51611,49346,813186,18470,980
Grand Totals7,690244,5221,042,2145,250,8781,502,307

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 following table shows the number of factories in each statistical area.

Statistical AreaNumber of Factories
1969-701970-711971-721972-731973-74
Northland176179185186199
Central Auckland2,4172,4352,4962,4992,532
South Auckland - Bay of Plenty849840874852862
East Coast7574197577
Hawke's Bay280263274264269
Taranaki244240233228217
Wellington1,4951,4641,4621,4281,402
Marlborough7375827879
Nelson193183180177176
Westland5956595860
Canterbury1,1701,1601,2101,194x1,190
Otago407396404400392
Southland248235245230235
Totals7,6867,6007,7837,669x7,690

An analysis of the 1973-74 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 1973-74
Food16997610183982
Beverages45414314413
Tobacco manufactures-1--1-1
Textiles176626147
Footwear, other wearing apparel, and made-up textile goods134027552115194
Wood and cork products (except furniture)40169190164340126
Furniture and fixtures6149382151069
Paper and paper products-39633129
Printing, publishing, etc.8160464188148
Leather and leather products (except footwear and apparel)148517214
Rubber products1241324420
Chemicals and chemical products29114I5649
Petroleum and coal products1113--116
Non-metallic mineral products, n.e.i.3778515251365
Basic metal manufactures-42812120
Metal products (except machinery and transport equipment)163958652719154
Machinery (except electrical)3119912862731149
Electrical machinery and appliances912344512958
Transport equipment811732410550
Miscellaneous products525527211898
Totals1992,532862772692171,402
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal, N.Z.
 Number of Factories 1973-74
Food16156853936537
Beverages272971134
Tobacco manufactures-2--- 5
Textiles-2-35164196
Footwear, other wearing apparel, and made-up textile goods483136367919
Wood and cork products (except furniture)1744281504833944
Furniture and fixtures26173176394
Paper and paper products-441744107
Printing, publishing, etc.58468279513
Leather and leather products (except footwear and apparel)21-27610124
Rubber products-11203194
Chemicals and chemical products12-26134214
Petroleum and coal products---74-43
Non-metallic mineral products, n.e.i.5264712839447
Basic metal manufactures-1-2124102
Metal products (except machinery and transport equipment)41631454221933
Machinery (except electrical)101331254436802
Electrical machinery and appliances-7-53235348
Transport equipment812-461511358
Miscellaneous products34576184516
Totals79176601,1903922357,690

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
1971-721972-731973-741971-721972-731973-74
Food541533x53744,35345,347x46,010
Beverages1371361343,1523,3063,259
Tobacco manufactures5551,2008.1911,242
Textiles19719519615,52815,08715,466
Footwear, other wearing apparel, and made-up textile goods92590091928,57027,56927,900
Wood and cork products (except furniture)98296794414,28914,54915,352
Furniture and fixtures4073993945,6396,0836,568
Paper and paper products1141101079,1749,4979,859
Printing, publishing, etc.51251651315,60315,77915,508
Leather and leather products (except footwear and apparel)1251221242,4742,5852,581
Rubber products10998943,8673,8263,861
Chemicals and chemical products2242172147,3437,3487,546
Petroleum and coal products524643679656657
Non-metallic mineral products, n.e.i.4574404478,6418,3239,007
Basic metal manufactures11011081423,8784,2264,584
Metal products (except machinery and transport equipment)92392893313,35519,30520,503
Machinery (except electrical)83581180215,89516,75317,144
Electrical machinery and appliances3433403489,99710,34211,390
Transport equipment30533331813,24813,47314,592
Miscellaneous products49048551610,53910,47511,493
Totals7,7837,669x7,690232,424235,648x244,522

Further information is given in the following table on persons engaged in 1973-74. Totals in each industrial group axe shown by statistical areas.

Industry GroupNorthlandCentral AucklandSouth Auckland - Bay of PlentyEast CoastHawke's BayTaranakiWellington
Food1,7538,5244,6341,6625,0722,8686,378
Beverages301,4193144227735442
Tobacco manufactures-85--688-396
Textiles95,31074152590143,125
Footwear, other wearing apparel, and made-up textile goods35711,2312,7398084958825,150
Wood and cork products (except furniture)3953,2085,220984533571,343
Furniture and fixtures273,618318719870669
Paper arid paper products-3,5893,5963027221,356
Printing, publishing, etc.2095,4139511505723254,200
Leather and leather products (except footwear and apparel)41,01048107743391
Rubber products108156,14142721979
Chemicals and chemical products903,142377101972882,149
Petroleum and coal products17955454--3220
Non-metallic mineral products, n.e.i.7763,49154536899821,019
Basic metal manufactures-2,4116536474393
Metal products (except machinery and transport equipment)15110,763996245703303,832
Machinery (except electrical)2556,3652,104754877603,307
Electrical machinery and appliances524,314763182553802,187
Transport equipment1534,5021,3772958535,170
Miscellaneous products386,6536875114322,156
Totals4,48386,02324,9762,47310,6077,01944,662
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal N.Z.
Food436808766,7343,5133,75246,010
Beverages84145371209263,259
Tobacco manufactures-73----1,242
Textiles-32-3,6732,31816355,466
Footwear, other wearing apparel, and made-up textile goods2742591495,2609558127,900
Wood and cork products (except furniture)935085492,02754755615,352
Furniture and fixtures68331,246277466,568
Paper and paper products-18-566763549,859
Printing, publishing, etc.87162562,0791,02228215,508
Leather and leather products (except footwear and apparel)75-607298812,581
Rubber products-481,8491643,861
Chemicals and chemical products2882-6324231287,546
Petroleum and coal products---3710-657
Non-metal lit mineral products, n.e.i.59498331,5234862609,007
Basic metal manufactures-3-370807794,584
Metal products (except machinery and transport equipment)21174132,56884521620,503
Machinery (except electrical)12797772,34379335417,144
Electrical machinery and appliances-26-2,5188364111,390
Transport equipment222579-1,95638610714,592
Miscellaneous products8487921,3771491911,493
Totals1,4503,4991,10837,73613,2397,249244,522

The sex distribution among the persons engaged shows a considerable preponderance of males—in 1973–74 for every female engaged, there were 3 males. In the smaller districts there are few industries employing female labour to any great extent. The male preponderance is considerably smaller in the 4 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 mates—viz., the tobacco group where there were 113 females to every 100 males, and the footwear, other wearing apparel, and made-up textiles group where there were 433 females per 100 males. Individual industries in the other groups with more females than males were—ice cream; biscuits; cocoa, chocolate, and sugar confectionery; hosiery and other knitting mills; Venetian blinds; leather goods; pharmaceuticals, toilet goods, cosmetics, and radio and TV assembly.

Further information is given in the table below on the extent to which females were engaged in factories in New Zealand for 1973-74. 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 Moles per 100 FemalesTotal Population at 1 April 1974Total Persons Engaged per 1,000 of Population
Northland3,7916974,48854498,52046
Central Auckland58,42227,60186,023212775,460111
South Auckland - Bay of Plenty20,1424,83424,976417453,35055
East Coast1,8845892,47332048,15051
Hawke's Bay8,2272,38010,607346141,00075
Taranaki5,7391,2807,019448102,26069
Wellington30,80313,85944,662222581,76077
Marlborough1,0613891,45027333,43043
Nelson2,7937063,49939671,16049
Westland8872141,10141422,43049
Canterbury27,19310,54337,736258420,87090
Otago9,4793,76013,239252184,36072
Southland6,6276227,2491,065110,05066
  All areas177,04867,474244,5222623,042,80080

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
1959-603,7701,3681,0112942666,709
1964-654,1901,4881,1593883297,554
1969-704,0851,4991,2404903727,686
1971-724,1091,4511,3234924087,783
1972-733,9841,4461,323x5044127,669x
1973-743,9311,4821,3135304347,690
Number of Persons Engaged
1959-6019,49020,13531,22620,51765,410156,778
1964-6520,83421,68536,39126,65386,432191,995
1969-7020,72222,08939,03134,762103,504220,108
1971-7221,17121,37341,66934,717113,494232,424
1972-7320,89621,21641,400x35,398116,738235,648x
1973-7420,47221,73841,24.137,358123,713244,522

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 51 percent of the total number of factories in 1973-74.

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)$
1964-65318,8812,27859,9111,151378,7921,973
1965-66152,2792,39766,5021,183418,7812,061
1966-67380,4292,53171,3041,236451,7332,172
1967-68382,9362,57471,2391,278454,1752,221
1968-69469,4932,70073,9661,320483,4592,328
1969-70473,1402,95786,4641,439559,6042,542
1970-71570,1243,444105,8931,667676,0172,951
1971-72656,9273,898123,3811,932780,3083,357
1972-73738,1994,292137,0492,155875,2473,715
1973-74866,0894,892176,1252,6101,042,2144,262

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
1971-721972-731973-74
 $(000)
Food170,789196,293x218,450
Beverages11,53813,38615,012
Tobacco manufactures3,6974,0914,963
Textiles47,77450,52959,598
Footwear, other wearing apparel, and made-up textile goods60,48064,01576,999
Wood and cork products (except furniture)48,87154,79066,932
Furniture and fixtures17,58220,88726,786
Paper and paper products37,04740,81050,369
Printing, publishing, etc.53,35360,11267,761
Leather and leather products (except footwear and apparel)6,6897,5689,083
Rubber products15,41916,97319,459
Chemicals and chemical products24,25827,19932,031
Petroleum and coal products2,8243,0263,370
Non-metallic mineral products, n.e.i.29,99132,75140,990
Basic metal manufactures15,78719,95923,698
Metal products (except machinery and transport equipment)64,55473,58991,534
Machinery (except electrical)58,26765,86378,614
Electrical machinery and appliances31,05834,62643,507
Transport equipment48,03853,93166,247
Miscellaneous products32,29135,02346,813
Totals780,308875,420x042,214

In the following table an analysis is made of the 1973-74 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
Salaries and Wages Paid 1973-74
$(000)
Food8,36339,16921,465(*)23,20214,61330,453
Beverages(*)6,8591,3841711,226(*)2,063
Tobacco manufactures-(*)--(*)-(*)
Textiles(*)21,619(*)(*)2,659(*)12,128
Footwear, other wearing apparel, and made-up textile goods99733,0916,3032551,1512,10914,655
Wood and cork products (except furniture)1,45514,00223,5954141,9981,4705,855
Furniture and fixtures9515,3851,246(*)7222632,651
Paper and paper products-15,71022,919(*(*)(*)5,561
Printing, publishing, etc.92923,7423,939(*)2,4741,44719,097
Leather and leather products (except footwear and apparel)(*)3,526127(*)322(*)1,347
Rubber products(*)4,724474(*)113865,409
Chemicals and chemical products(*)12,5911,951(*)(*)1,2978,918
Petroleum and coal products(*)(*)(*)--(*)(*)
Non-metallic mineral products, n.e.i.3,75116,4332,4221478713444,571
Basic metal manufactures-12,055309(*)(*)(*)1,643
Metal products (except machinery and transport equipment)64249,7085,0181012,3471,29515,976
Machinery (except electrical)1,14530,14110,094(*)1,7603,56415,389
Electrical machinery and appliances18015,8972,684591,034(*)8,827
Transport equipment(*)21,0225,843(*)23520623,012
Miscellaneous products2,87428,3832,9299,0245,9394,78211,567
Totals20,431364,057112,70110,17146,05331,474189,123
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal, N.Z.

*To avoid disclosure of details of individual establishments, figures have been included in those for miscellaneous products.

†Including amounts drawn by working proprietors.

Salaries and Wages Paid 1973-74
$(000)
Food2,1373,352(*)30,87715,09622,244218,450
Beverages(*)117(*)(*)951(*)15,012
Tobacco manufactures-(*)----4,963
Textiles-(*)-13,8207,71170159,598
Footwear, other wearing apparel, and made-up textile goods(*)573(*)14,2902,27218476,999
Wood and cork products (except furniture)3422,0192,3048,7152,3522,41066,932
Furniture and fixtures(*)294(*)4,9031,00216526,786
Paper and paper products-(*)-2,255(*)(*)50,369
Printing, publishing, etc.(*)(*)2308,3654,4871,33367,761
Leather and leather products (except footwear and apparel)(*)(*)-2,1581,0553199,083
Rubber products-(*)(*)8,44253(*)19,459
Chemicals and chemical products(*)(*)-2,7521,702(*)32,031
Petroleum and coal products- -(*)51-3,370
Non-metallic minerals products, n.e.i.(*)(*)(*)6,0692,2961,06240,990
Basic metal manufactures-(*)-1,540(*)(*)23,698
Metal products (except machinery and transport equipment)(*)734(*)11,0863,58492391,534
Machinery (except electrical)464404(*)10,3683,1901,54878,614
Electrical machinery and appliances-101-9,608(*)17143,507
Transport equipment1,025(*)-9,6391,60544466,247
Miscellaneous products1,9096,7421,7457,3044,5078,10146,813
Totals5,87814,3354,280152,19251,91439,6051,042,214

A further analysis of salaries and wages paid is given in the table below. It 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 10 years ended 1972-73. This particular analysis is not available for 1973-74.

YearProprietors Actively EngagedManagers, OverseersAccountants, ClerksProfessional, TechnicalWage-earning EmployeesTotals
MalesFemalesMalesFemalesMalesFemalesMalesFemalesMalesFemalesMalesFemales
Average Salary or Wage
 $$$$$$$$$$$$
1963-642,3691,4503,2901,8632,2131,2202,5661,3812,0301,0632,1541,095
1964-652,5131,4673,4841,9722,3341,2932,6961,4372,1461,1152,2781,151
1965-662,7091,6513,6532,0312,4341,3442,7991,5142,2601,1422,3971,183
1966-672,7431,6303,8562,0702,5881,4042,8961,5512,3861,1922,5311,236
1967-682,5701,5473,8732,0602,6991,4453,0211,6212,4231,2332,5741,278
1968-692,8171,6264,0652,0602,7671,5253,2441,7442,5401,2652,7001,320
1969-703,1391,7244,4082,2703,1041,6623,5531,8782,7891,3802,9571,439
1970-713,4202,0065,0742,5803,4501,9664,0052,1193,2641,5953,4441,667
1971-723,9772,1615,6833,1094,0062,2294,5002,4583,6921,8533,8981,932
1972-734,3572,6986,3853,4884,3232,5215,0572,8294,0482,0564,2922,155

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 20B) 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 in recent years. Figures for 1973-74 are not available.

Class of Engine1968-691969-701970-711971-721972-73
ElectricNo.247,447256,629264,523274,616285,454
 hp1,362,7831,461,3361,521,3491,587,3461,691,418
SteamNo.196175178167162
 hp12,46211,82011,59610,59211,446
Petrol and light oilNo.838869822842766
 hp18,85421,58420,39221,12326,231
Heavy oilNo.168160148158148
 hp12,92910,97110,40510,8538,505
OtherNo.5480215196200
Totalshp2,3731,6183,1742,7663,399
 No.248,703257,913265,886275,979286,730
 hp1,409,4011,507,3291,566,9161,632,6801,740,999

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.

CONSUMPTION OF COAL—During the year 1973-74, 967,000 tonnes of New Zealand coal were used in industries covered by the statistics of factory production. Comparable figures for the 2 previous years were: 1971-72, 926,000 tonnes and 1972-73, 957,000 tonnes. 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 99,387 and 827,065 tonnes of coal respectively in 1973-74.

The following table shows for the year 1973-74 the consumption of coal by industrial groups.

Industry GroupTonnes of Coal Used
Food421,274
Beverages11,780
Tobacco manufactures-
Textiles23,974
Footwear, other wearing apparel, and made-up textile goods1,740
Wood and cork products (except furniture)47
Furniture and fixtures6
Paper and paper products51,854
Printing, publishing, etc.15
Leather and leather products (except footwear and apparel)3,438
Rubber products16,483
Chemicals and chemical products6,864
Petroleum and coal products54,843
Non-metallic mineral products, n.e.i.310,239
Basic metal manufactures60,726
Metal products (except machinery and transport equipment)157
Machinery (except electrical)227
Electrical machinery and appliances-
Transport equipment8
Miscellaneous products2,862
Total966,537

Approximately 82 percent of the amount of coal used is accounted for in three groups: food, non-metallic mineral products, and basic metal manufactures. Individual industries using more than 10,000 tonnes of coal in 1973-74 were as follows.

IndustryCoal Used
 tonnes
Milk products303,000
Cement277,000
Meat freezing and preserving108,000
Pulp, paper and paperboard52,000
Petroleum and coal products55,000
Basic metal industries61,000
Woollen milling11,000
Structural clay products15,000
Lime15,000
Motor tyres and tubes16,000
Brewing ale and stout12,000

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 of the latest year show that the cost of materials used in food manufacture was $1,060 million, and the goods produced were valued at $1,441 million, while the materials used in the manufacture of wood and cork products cost $144 million and finished goods produced were valued at $287 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 Materials Used
1971-721972-731973-74
 $(000)
Food895,5931,088,847x1,059,936
Beverages35,13443,97650,569
Tobacco manufactures18,64820,10520,703
Textiles162,111274,167283,947
Footwear, other wearing apparel, and made-up textile goods93,747104,290126,194
Wood and cork products (except furniture)101,829112,974143,662
Furniture and fixtures29,23235,01645,805
Paper and paper products92,027102,191125,795
Printing, publishing, etc.42,81547,76354,147
Leather and leather products (except footwear and apparel)13,11420,09726,727
Rubber products22,67322,72025,307
Chemicals and chemical products111,047127,971155,353
Petroleum and coal products73,91981,59190,310
Non-metallic mineral products, n.e.i.35,79441,39753,512
Basic metal manufactures56,66984,764120,949
Metal products (except machinery and transport equipment)115,132135,778184,205
Machinery (except electrical)98,368108,234133,596
Electrical machinery and appliances66,70174,69096,017
Transport equipment170,223199,903231,964
Miscellaneous products53,80260,72884,111
Totals2,288,5782,787,201x3,112,806

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, $1,060 million, represented 34 percent of the total cost of materials used by all industries, $3,113 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
1971-721972-731973-74
 $(000)
Food1,233,5341,491,522x1,441,483
Beverages76,38688,170100,664
Tobacco manufactures28,49931,58034,094
Textiles254,890375,741408,874
Footwear, other wearing apparel, and made-up textile goods185,913204,148250,055
Wood and cork products (except furniture)198,376224,769287,172
Furniture and fixtures58,38670,28390,612
Paper and paper products194,659213,229276,074
Printing, publishing, etc.142,159159,096178,746
Leather and leather products (except footwear and apparel)25,57233,98945,084
Rubber products52,91255,53563,571
Chemicals and chemical products183,040211,436253,019
Petroleum and coal products90,709100,297110,232
Non-metallic mineral products, n.e.i.111,419129,450158,653
Basic metal manufactures96,260144,233192,305
Metal products (except machinery and transport equipment)240,646280,275367,989
Machinery (except electrical)200,814223,375272,189
Electrical machinery and appliances123,166137,453175,283
Transport equipment254,762297,965358,597
Miscellaneous products122,185138,709186,184
Totals3,874,2874,611,256x5,250,878

A similar analysis by statistical areas, but limited to the year 1973-74, is now given.

Industry GroupNorthlandCentral AucklandSouth Auckland - Bay of PlentyEast CoastHawke's BayTaranakiWellington
Value of Production 1973-74
$(000)
Food69,157258,845251,314(*)112,988128,360177,620
Beverages(*)49,4157,7511,3998,043(*)11,555
Tobacco manufactures-(*)--(*)-(*)
Textiles(*)126,968(*)(*)34,313(*)84,905
Footwear, other wearing apparel, and made-up textile goods2,634112,41420,1087943,9375,96744,483
Wood and cork products (except furniture)5,89563,884105,2971,6457,5515,08925,544
Furniture and fixtures32051,8194,322(*)2,0287718,564
Paper and paper products-77,944131,528(*)(*)(*)30,217
Printing, publishing, etc.1,79567,7499,755(*)5,8442,70949,801
Leather and leather products (except footwear and apparel)(*)15,366536(*)4,157(*)(*)
Rubber products(*)14,8112,260(*)56634917,353
Chemicals and chemical products(*)89,81922,676(*)(*)17,16263,156
Petroleum and coal products(*)(*)(*)--(*)17,001
Non-metallic mineral products, n.e.i.15,57461,79610,2834993,9251,22518,612
Basic metal manufactures-121,211797(*)(*)(*)7,373
Metal products (except machinery and transport equipment)2,515196,71720,47349813,1865,15764,167
Machinery (except electrical)2,949108,15930,052(*)7,50312,67949,794
Electrical machinery and appliances42367,6098,3052383,534(*)34,392
Transport equipment(*)82,14733,475(*)763656177,513
Miscellaneous products92,995123,33717,60651,53747,29028,74950,516
Totals194,2571,690,009676,53856,610255,629208,873932,567
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal, N.Z.

*To avoid disclosure of details of individual establishments, figures have been included in those for miscellaneous products.

Value of Production 1973-74
$(000)
Food10,49119,429(*)160,00390,896114,0431,441,483
Beverages(*)587(*)(*)6,292(*)100,664
Tobacco manufactures-(*)----34,093
Textiles-(*)-78,13640,58428,362408,874
Footwear, other wearing apparel, and made-up textile goods(*)2,024(*)47,7375,920469250,055
Wood and cork products (except furniture)1,0699,6159,29834,6238,9668,696287,172
Furniture and fixtures(*)880(*)17,0003,64847190,612
Paper and paper products-(*)-14,693(*)(*)276,074
Printing, publishing, etc.(*)(*)45222,23712,0182,852178,746
Leather and leather products (except footwear and apparel)(*)(*)-9,6305,7043,34545,084
Rubber products-(*)(*)27,375246(*)63,571
Chemicals and chemical products(*)(*)-20,5009,322(*)253,019
Petroleum and coal products---(*)592-110,232
Non-metallic mineral products, n.e.i.(*)(*)(*)20,4828,3884,138158,653
Basic metal manufactures-(*)-4,891(*)(*)192,305
Metal products (except machinery and transport equipment)(*)3,239(*)42,83014,9823,742307,989
Machinery (except electrical)1,3191,239(*)38,68012,9325,368272,189
Electrical machinery and appliances-320-41,436(*)487175,283
Transport equipment2,213(*)-36,0694,0471,011358,597
Miscellaneous products5,30736,3289,50835,25815,37457,496186,184
Totals20,89973,66219,257652,181239,914230,4815,250,878

NET OUTPUT (NET VALUE ADDED)—This consists 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 the derivation of each concept.

Components1969-701970-711971-721972-73x1973-74

*National income at factor cost plus factor payments to rest of world.

†Provisional.

 $(million)
Value of production2,994.83,407.43,874.34,611.35,250.9
  Less cost of materials1,791.42,014.62,288.62,787.23,112.8
Added value1,203.41,392.81,585.71,824.12,138.1
  Plus interest (paid)21.526.134.839.248.1
 1,224.91,418.91,620.51,863.32,186.2
  Less other expenses357.8423.2489.2561.5683.7
Net output (net value added)867.1995.71,130.71,301.71,502.4
Contribution of manufacturing industry to net domestic output*20.921.2xpercent 20.5x20.219.6

The next table on net output for 1973-74 classifies factories into several net output groupings, giving a general picture of size distribution.

Net Output GroupEstablishmentsPersons EngagedSalaries and Wages PaidCost of Materials UsedValue of ProductionNet Output
TotalPer Person Engaged
$No.No.$(000)$(000)$(000)$(000)$
Under 5,000952045539731,7083131,535
5.000- 9,9993528652,7574,7318,9502,8063,244
10,000- 19,9999403,24611,54218,40810,26613,9974,312
20,000- 29,9998534,56317,55332,45961,83521,1874,643
30,000- 39,9996934,98819,04432,20465,26924,0704,825
40,000- 99,9992,22027,882107,120255,486450,659143,5945,150
100,000- 199,9991,15529,613115,399397,704623,263162,8105,497
200,000- 499,99982244,357172,814523,787875,857253,7945,721
500,000- 999,99928831,178127,327407,480682,274196,9196,315
1,000,000-1,999,99914832,507144,037424,285716,011210,6756,480
2,000,000-4,999,9997635,603170,196470,748801,600233,5846,560
5,000,000 and over4829,516153,873544,540923,186238,6368,084
Totals7,690244,5221,042,2143,112,8065,250,8781,502,3876,144

The analysis of net output (net value added) for 1973-74 by statistical areas now follows.

Industry GroupNorthlandCentral AucklandSouth Auckland - Bay of PlentyEast CoastHawke's BayTaranakiWellington
Net Output 1973-74
$(000)
Food9,30048,88625,126(*)26,17312,45628,299
Beverages(*)15,5842,9822211,971(*)4,207
Tobacco manufactures-(*)--(*)-(*)
Textiles(*)35,299(*)(*)4,088(*)18,716
Footwear, other wearing apparel, and made-up textile goods1,13944,5758,2283421,6652,57118,312
Wood and cork products (except furniture)1,95622,64937,4686412,6721,9749,093
Furniture and fixtures13520,4271,534(*)9153283,287
Paper and paper products-22,67432,722(*)(*)(*)9,532
Printing, publishing, etc.1,17433,7245,662(*)3,2441,82826,544
Leather arid leather products (except footwear and apparel)(*)5,360219(*)585(*)(*)
Rubber products(*)5,5681,011(*)2501518,048
Chemicals and chemical products(*)27,5175,143(*)(*)4,59717,669
Petroleum and coal products(*)(*)(*)- (*)3,341
Non-metallic mineral products, n.e.i.5,89126,4003,8592321,6095597,935
Basic metal manufactures-22,931374(*)(*)(*)2,332
Metal products (except machinery and transport equipment)88575,1447,1551463,5022,06423,834
Machinery (except electrical)1,35944,24612,946(*)2,8934,93518,860
Electrical machinery and appliances18221,7033,2421251,364(*)11,478
Transport equipment(*)27,3457,782(*)33125041,483
Miscellaneous products10,44245,9244,45511,91010,7876,34518,155
Totals32,463545,957159,90813,61662,05038,058271,125
Industry GroupMarlboroughNelsonWestlandCanterburyOtagoSouthlandTotal, N.Z.

*To avoid disclosure of details of individual establishments, figures have been included in those for miscellaneous products.

Net Output 1973-74
$(000)
Food2,1253,782(*)35,64627,10727,104255,565
Beverages(*)190(*)(*)2,501(*)33,860
Tobacco manufactures-(*)----10,686
Textiles-(*)-18,2229,81187088,661
Footwear, other wearing apparel, and made-up textile goods(*)738(*)18,3922,539210100,045
Wood and cork products (except furniture)4462,6023,29113,2333,3103,301102,634
Furniture and fixtures(*)372(*)7,3921,50919436,156
Paper and paper products-(*)-3,615(*)(*)71,848
Printing, publishing, etc.(*)(*)30012,4675,8551,61994,479
Leather and leather products (except footwear and apparel)(*)(*)-3,1841,85262014,043
Rubber products-(*)(*)11,865110C)27,243
Chemicals and chemical products(*)(*) 5,2762,771(*)70,131
Petroleum and coal products---(*)137 13,439
Non-metallic mineral products, n.e.i.(*)(*)(*)9,4603,7291,59867,609
Basic metal manufactures-(*)-2,078(*)(*)44,429
Metal products (except machinery and transport equipment)(*)1,107(*)16,2336,7191,242138,197
Machinery (except electrical)548536(*)13,0384,5352,184106,819
Electrical machinery and appliances-113 14,951(*)20559,217
Transport equipment815(*)-12,0121,91253296,345
Miscellaneous products2,42110,7932,38813,3935,91016,20170,980
Totals6,35420,2345,978210,45780,30755,8801,502,387

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 1973-74 amounted to $4,839 million, of which salaries and wages accounted for $1,042 million, cost of materials for $3,113 million, and other expenses for $684 million, while value of production totalled $5,251 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 1973-74.

Industry GroupCoalElectricityCoke, Gas, Oils, etc.Interest on Loans, etc.DepreciationOtherTotal
 $(000)
Food4,6079,5458,0418,42030,15273,636134,401
Beverages1156467171,8014.06310,69518,037
Tobacco manufactures-143512548921,6192,959
Textiles3782,0671,5573,0857,12925,13539,351
Footwear, other wearing apparel, and made-up textile goods319051751,4963,01519,68925,312
Wood and cork products (except furniture)12,6999022,5816,04231,23143,457
Furniture and fixtures-394685951,1537,0369,246
Paper and paper products5767,6035,0743,92524,53240,64682,356
Printing, publishing, etc.-9942111,7845,80523,10931,904
Leather and leather products (except footwear and apparel)322191523967913,1194,710
Rubber products1699645031142,3077,07811,135
Chemicals and chemical products741,5098001,4426,00619,14628,976
Petroleum and coal products-510222561,4674,2846,539
Non-metallic mineral products, n.e.i.4,4392,7972,8701,4456,58320,84338,977
Basic metal manufactures5044,6762,39510,4797,56711,78537,406
Metal products (except machinery and transport equipment)22,2741,1092,9747,42534,77748,561
Machinery (except electrical)61,3398032,4195,27424,35134,193
Electrical machinery and appliances-1,1293639433,49315,06420,992
Transport equipment-1,3307082,1506,39221,85732,437
Miscellaneous products271,7194731,7045,81623,05932,797
Totals10,96343,46327,19348,060135,905418,163683,746

CAPITAL ASSETS—For the year 1973-74 information is 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 2 previous 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 Year
Land and BuildingsPlant, Machinery and EquipmentTotal
Totals—$(000)
1971-7265,203167,297232,500
1972-7365,874x184.879x250,753x
1973-74—   
Food19,90339,93259,835
Beverages6,4795,88812,367
Tobacco manufactures841,1451,229
Textiles1,4798,0179,496
Footwear, other wearing apparel, and made-up textile goods2,0123,2345,246
Wood and cork products (except furniture)5,9879,85815,845
Furniture and fixtures9621,6032,565
Paper and paper products10,26753,48363,750
Printing, publishing, etc.2,9508,18311,133
Leather and leather products (except footwear and apparel)6611,3331,994
Rubber products1,3564,5925,948
Chemicals and chemical products2,9628,87811,840
Petroleum and coal products1553,0173,172
Non-metallic mineral products, n.e.i.2,2888,80011,088
Basic metal manufactures1,6852,8294,514
Metal products (except machinery and transport equipment)3,1808,06411,244
Machinery (except electrical)2,2255,3367,561
Electrical machinery and appliances2,2553,7125,967
Transport equipment15,29816,53231,830
Miscellaneous products2,1648,47610,640
Totals, 1973-7484,354202,911287,265

MANUFACTURERS' STOCKS-–The following table gives 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 31 MarchTotal StocksPercentage Change in Stocks at Annual IntervalsStocks Seasonally AdjustedPercentage Change in Stocks Seasonally Adjusted at Quarterly Intervals
MaterialsFinished GoodsTotalMaterialsFinished GoodsTotalMaterialsFinished GoodsMaterialsFinished Goods
   $(m)  percent $(m) percent
Including Primary Produce Processing Industries
1967284.5196.9481.4+8.6+12.7+10.2............
1968283.3243.8527.1- 0.4+3.9+9.5............
1969314.2252.7556.9+10.9+3.6+7.5............
1970347.7274.9622.6+10.7+8.8+9.8............
1971397.1314.1711.3+14.2+14.3+14.2............
1972445.2335.4780.7+12.1+6.8+9.8............
1973444.8381.4826.3- 0.1+13.7+5.8............
1974577.1428.21,005.3+29.7+12.3+1.7............
1975830.6536.11,366.7+3.9+5.2+5.9............
Excluding Primary Produce Processing Industries
1967273.3112.9386.2+8.6+15.8+10.6271.4115.0+.4+1.5
1968272.4134.3406.7- 0.3+19.0+5.3270.5136.8+.6+.9
1969302.5145.0447.5+11.0+8.0+10.0300.4147.8+.0+1.8
1970334.6166.2500.8+10.6+14.6+11.930.6170.3+1.7+6.2
1971383.3178.3561.7+14.6+7.3+12.2381.4179.9+1.4+2.8
1972427.6207.3634.9+11.6+16.3+13.0425.2208.9+.5+.9
1973429.8206.4636.2+0.5- 0.4+0.2426.7207.9+1.0+.1
1974560.9213.1774.0+0.5+3.2+1.7556.2214.5+11.4+.1
1975808.7313.41,122.1+44.2+47.1+3.0799.4313.8+5.0+2.1

More detailed information on stocks is given in the next table showing by industry groups comparative stock figures at the end of March.

Industry GroupStocks at 31 MarchPercentage Change in Stocks 31 March 1974 to 31 March 1975
19741975
MaterialsFinished GoodsTotalMaterialsFinished GoodsTotalMaterialsFinished GoodsTotal

*The "Motor Vehicle Repair" Industry is excluded from the revised survey. The industry is now classified in the distribution sector of the economy.

†The survey has been revised and is now based on the 1969-70 Census of Manufacturing.

    $(million)   percent 
Primary Produce Processing Industries         
Meat freezing, ham, bacon and casings13.05163.42176.4718.21124.30142.51+39.5-23.9-19.2
Dairy3.1051.6454.743.7398.42102.15+20.3+0.6+86.6
Totals16.16215.06231.2121.94222.71244.66+35.8+3.6+5.8
Other food38.7438.6477.3877.1153.07130.17+9.0+37.3+68.2
Beverages12.149.3221.4614.7112.3227.03+1.2+2.2+26.0
Tobacco manufactures18.50-18.5022. 52-22.52+1.7-+1.7
Textiles43.1312.6855.8150.1221.1971.31+16.2+67.1+7.8
Clothing34.5211.4145.9337.5917.9355.52+8.9+57.1+20.8
Footwear8.981.9410.928.464.8013.26- 5.8+147.4+1,4
Wood manufactures18.3213.8832.2126.0119.9545.96+42.0+43.7+2.7
Furniture and fixtures10.820.9611.7713.391.4014.79+3.8+5.8+5.7
Paper and products29.6118.8543.4643.7027.0670.76+7.6+43.6+6.0
Printing, publishing17.514.1021.6127.445.4532.89+56.7+32.9+52.2
Leather and products9.823.4613.2810.962.8713.83+11.6-17.1+4.1
Rubber products10.688.2618.9415.4213.8629.28+44.4+67.8+54.6
Chemicals and products41.2622.4763.7368.9539.00107.95+118.1+3.6+69.4
Petroleum, coal products3.532.345.377.703.9411.65+118.1+68.4+8.5
Non-metallic mineral products12.2412.6224.8619.6217.7437.36+60.3+0.6+50.3
Basic metal products19.203.9323.1325.317.3932.70+31.8+88.0+1.4
Metal products49.9413.0663.0070.8517.7088.55+1.9+35.5+0.6
Machinery48.569.8658.4265.1014.3179.41+34.1+7.8+36.3
Electrical products43.988.2352.2269.3311.6881.01+57.6+1.9+55.1
Transport equipment60.285.1165.3989.105.6094.70+7.8+9.6+4.8
Miscellaneous29.1912.1541.3545.3216.1261.43+5.3+32.7+8.6
Totals560.94213.10774.04808.69313.381,122.07+4.2+7.1+5.0
Grand totals, all manufacturing industries577.10428.161,005.26830.63536.091,366.73+3.9+25.2+5.9

VALUE AND VOLUME INDICES—The next table gives index numbers of added value, value of production, and volume of production.

Production YearAdded ValueValue of ProductionVolume of Production
Base: 1956-57 (= 1000)
1959-60129211681175
1960-61139212521290
1961-62154413301359
1962-63163913861420
1963-64185815901574
1964-652,04518071776
1965-662,33519621901
1966-672,4692,0442,006
1967-682,5352,0881983x
1968-692,7342,2972036x
1969-703,1192,6002279x
1970-713,6102,9582378x
1971-724,1103,3632477x
1972-734,7264,0032631x
1973-745,5424,5582,977

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 Output (Net Value Added)Volume of Production
1972-731973-741972-731973-741972-731973-74

*Index not available for group but allowed for in compiling total index.

 Base: 1956-57 (=1000)
Food3,1583,0524,8714,28918481847
Beverages4,2534,8554,5015,1402,0182,219
Tobacco manufactures2,6002,8073,4884,2742,1122,164
Textiles6,2136,7615,8047,2114,5365,241
Footwear, other wearing apparel, and made-up textile goods2,5863,1672,8123,47317011801
Wood and cork products (except furniture)3,0793,9343,2414,18416151870
Furniture and fixtures3,3884,3693,3934,292(*)(*)
Paper and paper products4,7766,1845,5556,6163,7304,444
Printing, publishing, etc.3,8114,2824,0454,6272,5082,719
Leather and leather products (except footwear and apparel)4,1555,5114,4505,8862,0452,318
Rubber products2,6283,0093,2473,8132,6542,736
Chemicals and chemical products3,9124,6814,4565,2302,7332,995
Petroleum and coal products20,78322,84113,56813,412(*)(*)
Non-metallic mineral products, n.e.i.3,4934,2813,8994,6562,3352,838
Basic metal manufactures21,33628,44716,96822,038(*)(*)
Metal products (except machinery and transport equipment)6,7098,8096,6538,555(*)(*)
Machinery (except electrical)4,2795,2144,9045,989(*)(*)
Electrical machinery and appliances6,4278,1966,5838,5084,7425,697
Transport equipment4,3775,2684,3035,444(*)(*)
Miscellaneous products11,70315,70912,04515,593(*)(*)
  All Groups4003*4,5584,6885,4102,6312,977

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.

Industry GroupTotal Overtime Hours Worked by Wage Earners (Both Male and Female)
1971-721972-731973-74
 (000)
Food9,29710,79310,475
Beverages706826824
Tobacco manufactures290268275
Textiles2,7052,4472,822
Footwear, other wearing apparel, and made-up textile goods9981,0621,196
Wood and cork products (except furniture)2,2672,4602,808
Furniture and fixtures8668151,188
Paper and paper products2,0221,1622,435
Printing, publishing, etc.1,5911,5341,805
Leather and leather products (except footwear and apparel)253233265
Rubber products581627664
Chemicals and chemical products1,0481,0921,407
Petroleum and coal products9296115
Non-metallic mineral products, n.e.i.1,7812,0412,351
Basic metal manufactures1,665x1,746x1,923
Metal products (except machinery and transport equipment)3,3933,7134,718
Machinery (except electrical)2,8893,6103,630
Electrical machinery and appliances1,2231,3601,677
Transport equipment2,5573,2962,807
Miscellaneous products2,1401,9982,121
Totals38,365x41,177x45,503

SUMMARY OF OPERATIONS—The following table, by assembling data from previous pages, affords an analysis of production costs in 1973-74, 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)
Food218,4501,059,936134,4011,412,7871,441,48328,695
Beverages15,01250,56918,03783,618100,66417,046
Tobacco manufactures4,96320,7032,95928,62534,0945,469
Textiles59,598283,94739,351382,896408,87425,978
Footwear, other wearing apparel, and made-up textile goods76,999126,19425,312228,505250,05521,549
Wood and cork products (except furniture)66,932143,66243,457254,051287,17233,121
Furniture and fixtures26,78645,8059,24681,83790,6128,775
Paper and paper products50,369125,79582,356258,520276,07417,555
Printing, publishing, etc.67,76154,14731,904153,811178,74624,934
Leather and leather products (except footwear and apparel)9,08326,7274,71040,52045,0844,564
Rubber products19,45925,30711,13555,90063,5717,671
Chemicals and chemical products32,031155,35328,976216,360253,01936,659
Petroleum and coal products3,37090,3106,539100,218110,23210,014
Non-metallic mineral products, n.e.i.40,99053,51238,977133,480158,65325,173
Basic metal manufactures23,698120,94937,406182,053192,30510,252
Metal products (except machinery and transport equipment)91,534184,20548,561324,299367,98943,690
Machinery (except electrical)78,614133,59634,193246,402272,18925,787
Electrical machinery and appliances43,50796,01720,992160,516175,28314,767
Transport equipment66,247231,96432,437330,648358,59727,949
Miscellaneous products46,81384,11132,797163,721186,18422,463
Totals1,042,2143,112,809683,7464,838,7665,250,878412,112

LIST OF CERTAIN COMMODITIES PRODUCED IN RECENT YEARS—The following is a list of certain commodities produced in New Zealand during 4 recent years. No comparable figures are available from the 1973-74 manufacturing census since the coverage of the census was temporarily reduced to main aggregates only in order to assist both respondents and Department of Statistics staff with the introduction of the new 1974-75 manufacturing census, which involved major changes in concept and timing.

Commodity1969-701970-711971-721972-73

*Includes mattress bases.

ToastersNo.77,28394,78770,55580,118
IronsNo.64,90281,82498,69352,817
Radiators, electricNo222,679293,838230,288235,146
Washing machines (clothes)No.47,37455,49162,543103,729
Refrigerators (home, commercial, and freezers)No.106,818117,076120,912149,778
Electric rangesNo.55,70955,19560,44954,777
Electric rangettesNo.2,6883,034
Radios, including radiograms,etc. No.112,039117,443140,461128,392
Television setsNo.44,95648,89338,85233,739
Blankets, woollenPairs205,000253,000269,000288,000
Floor coverings (textile top coverings)sq m(000)6,4747,1988,0398,644
Mattresses—     
Innerspring—     
  SingleNo.96,920*218,853139,348*285,038
  DoubleNo.40,132
Soft filled—     
  SingleNo.35,27445,99846,57449,954
  DoubleNo.9,8137,2296,301
InfantsNo.13,15214,11311,712
Venetian blindsNo.62,59160,34855,06157,641
Roller (Holland) blindsNo.174,937255,840219,074266,033
Newspapers produced—     
  Dailiesthousand332,945341,855341,417343,993
  Other than dailiesthousand57,89377,80778,58484,913
Hot-water bottlesNo.277,000326,615269,000..
Soap—     
  Toilettonnes4,95821,33120,50819,856
  Bartonnes3,731
  Powder and flaketonnes13,021
Household and industrial cleaners—     
Synthetic detergents—     
  Powders and pastestonnes5,1097,8767,2523,623
  Liquidlitres(000)12,70215,25616,04315,952
Other cleaners, etc.—     
  Powders and pastestonnes1,6411,6432,5728,292
  Liquidlitres(000)2,5502,0592,6184,078
Paints and enamelslitres(000)17,11116,96117,56119,170
Lacquerslitres(000)1,7221,8501,8772,091
Dentifricestonnes1,1281,1551,1911,100
Furniture and floor polishtonnes1,2341,1511,0471,237
Shoe polishes and cleanerstonnes273266194..
Water heaters—     
  Under 10 gallonsNo.10,4959,9374,3339,484
  10 gallons and overNo.37,43937,10740,66154,297
Sinks: stainless steelNo.31,20449,12948,95053,997
Sink tops: stainless steelNo.18,42726,89827,68830,877
WheelbarrowsNo.24,73834,76831,32927,772
Lawnmowers (mostly motor)No.78,21760,94859,36674,799
Prams, pushchairs, strollers—     
  Cane (inc. dolls)No.1,3132,1331,4191,032
  Other than cane (inc. dolls)No.30,28536,41640,55237,236

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. Details of principal products are not available for 1973-74. Fuller information is given in the annual Statistics of Industrial Production.

Item1971-721972-731973-74

*In addition 1,456,000 bundles were produced in the sausage casings industry in 1971-72, and 1,536,000 bundles in 1972-73.

†Includes products of establishments classified in other industries.

Meat Freezing and Preserving
Number of establishments 474849
Persons engagedNo.26,70327,31727,413
Production costs—    
  Salaries, wages$(000)115,644133,332143,441
  Materials$(000)373,458594,152500,354
  Other expenses$(000)49,32257,74063,815
Totals $(000)538,425785,224707,610
Value of production$(000)575,117844,675703,959
Net output (net value added)$(000)155,290195,797144,235
Overtime worked by wage earnersh(000)6,2126,9746,338
Volume index. Base: 1956-57 (=1000) 169117461584
Principal products—    
Meat—    
Lamb carcassesNo.(000)24,95424,270..
 tonnes(000)337309..
Mutton carcassesNo.(000)6,4417,470..
 tonnes(000)118141..
Boned muttontonnes(000)713..
Mutton and lamb piecestonnes(000)2928..
Beef quarters, bone intonnes(000)3440..
Beef cutstonnes(000)6869..
Boneless beeftonnes(000)99118..
Bobby vealtonnes(000)78..
Other vealtonnes(000)2....
Porktonnes(000)1412..
Edible offalstonnes(000)5152..
By-products—    
Runners (not processed)No.(000)5,196....
Casings*bundles(000)6,2996,779..
Woolly sheepskinsNo.(000)552833..
PeltsNo.(000)34,21934,736..
CowhidesNo.(000)854609..
Ox and bull hidesNo.(000)6511,100..
Bobby calf hidesNo.(000)1,075955..
Other calf hidesNo.(000)4633..
Woolkg(000)36,74136,274..
Boiling-down products—    
Tallowtonnes(000)8185..
Neatsfoot oillitres(000)570614..
Manures and stock meals    
Meatmealtonnes(000)1122..
Meat and bone mealtonnes(000)5872..
Other mealstonnes(000)212..
Bonedusttonnes(000)811..
Blood manuretonnes(000)
Blood and bonetonnes(000)1714..
Other manuretonnes(000)
Item1971-721972-731973-74

*Includes products of establishments classified in other industries.

Ham and Bacon Curing
Number of establishments 404141
Persons engagedNo.1,3191,3701,417
Production costs—    
  Salaries, wages$(000)4,2614,9015,719
  Materials$(000)18,37522,38828,821
  Other expenses$(000)2,5132,7613,302
Totals$(000)25,14930,05037,842
Value of production$(000)27,92133,06642,043
Net output (net value added)$(000)7,1007,99210,018
Overtime worked by wage earnersh(000)307315236
Volume index. Base: 1956-57 (=1000) 102310631143
Pigs dealt with—    
  CarcassesNo.(000)273245..
  Cost$(000)10,85112,675..
Principal products—    
  Ham and bacontonnes12,31511,534..
  Porktonnes274220..
  Smallgoodstonnes18,46920,826..
  Lard (edible)tonnes313183..
  Lard (inedible)tonnes   
Butter, Cheese, and Other Milk Products
Number of establishments—    
  Butter and cheese 161153137
  Other milk products 888
Persons engagedNo.4,6064,7284,694
Production costs—    
  Salaries, wages$(000)17,66720,34622,342
  Materials$(000)348,758297,616322,825
  Other expenses$(000)26,52526,91330,680
Totals$(000)392,950344,876375,847
Value of production3(000)393,807345,727377,375
Net output (net value added)$(000)19,34321,78024,744
Overtime worked by wage earnersh(000)1,3441,4201,404
Volume index. Base: 1956-57 (=1000) 140313671268
Milkfat used—    
  For creamery butterkg(000)202,116191,316..
  For cheesemakingkg(000)42,45840,843..
For whey buttermaking—    
  Recoveries from own wheykg(000)784891..
  Whey fat purchasedkg(000)1,8831,571..
  Second grade creamery milkfatkg(000)61151..
Total for whey butterkg(000)2,7282,612..
Principal products—    
  Creamery buttertonnes244,369234,148..
  Whey buttertonnes3,1073,046..
  Cheesetonnes105,618101,350..
  Condensed and evaporated milk, and whole and blended milk powdertonnes40,10743,779..
  Skim-milk powdertonnes203,465188,826..
  Buttermilk powdertonnes24,54622,490..
  Caseintonnes39,79244,425..
Ice Cream
Number of establishments 181919
Persons engagedNo.574519546
Production costs—    
  Salaries, wages$(000)1,6431,6992,111
  Materials$(000)7,0017,9759,382
  Other expenses$(000)1,9291,9712,313
Totals$(000)10,57411,64513,806
Value of production$(000)12,43013,59115,702
Net output (net value added)$(000)3,6473,7594,155
Overtime worked by wage earnersh(000)106105127
Volume index Base: 1956-57 (=1000) 2,5182,6792,992
Main materials used—    
  Ice-cream mixturetonnes2,7043,152..
  Buttertonnes
  Skim-milk powdertonnes1,3021,406..
  Sugartonnes5,1275,423..
Principal products—    
  Bulk ice creamlitres(000)14,87015,449..
  Ice cream, cartoned, wrapped, chocolate-coated, etc.litres(000)28,62135,020..
  Frozen confections, ice lollies, etc.litres(000)7,2902,883..
Grain Milling
Number of establishments 353333
Persons engagedNo.872857831
Production costs—    
  Salaries, wages$(000)2,6232,8433,242
  Materials$(000)23,65724,23829,259
  Other expenses$(000)2,5952,7342,984
 Totals $(000)28,87529,81435,484
Value of production$(000)31,44732,97837,942
Net output (net value added)$(000)5,4046,2325,877
Overtime worked by wage earnersh(000)123129152
Volume index. Base: 1956-57 (=1000) 152115561599
Main materials used—    
  Wheattonnes(000)275283..
  Oatstonnes(000)..10..
Principal products—    
  Flourtonnes(000)191209..
  Wholemeal, wheatmeal*tonnes(000)55..
  Bran and pollardtonnes(000)5759..
Breakfast cereals—    
  Oatmeal, rolled oatstonnes(000)54..
  Other (including cereals in biscuit, flake and puff form)*tonnes(000) Biscuits115..
Number of establishments 788
Persons engagedNo.1,3491,3751,390
Production costs—    
  Salaries, wages$(000)3,4723,8994,910
  Materials$(000)9,42010,10311,639
  Other expenses$(000)2,3922,5522,554
 Totals $(000)15,28316,55419,104
Item1971-721972-731973-74

*Includes chocolate sold for further manufacturing purposes.

†Includes products of establishments classified in other industries.

Value of production$(000)17,01019,09222,168
Net output (net value added)$(000)5,2876,5407,975
Overtime worked by wage earnersh(000)319344302
Volume index. Base: 1956-57 (= 1000) 156616891889
Main materials used—    
  Flourtonnes..14,518..
  Sugartonnes5,7886,376..
  Chocolatetonnes1,3351,344..
  Margarine, lard, confectionery fattonnes3,9444,109..
Biscuits manufacturedtonnes24,80825,352..
Cocoa, Chocolate, and Sugar Confectionery
Number of establishments 464340
Persons engagedNo.2,3472,2872,203
Production costs—    
  Salaries, wages$(000)6,0006,4187,269
  Materials$(000)16,02316,34718,478
  Other expenses$(000)3,1213,6084,590
 Totals $(000)25,14426,37430,337
Value of production$(000)28,64630,10033,972
Net output (net value added)$(000)9,59610,37411,147
Overtime worked by wage earnersh(000)380335441
Volume index. Base: 1956-57 (=1000) 185219132,079
Main materials used—    
  Sugartonnes14,06614,525..
  Cocoa buttertonnes532658..
  Glucosetonnes4,5084,721..
  Nutstonnes2,3913,115..
Confectionery manufactured—    
  Chocolate and chocolate-coated*tonnes12,02412,433..
  Sugartonnes10,60411,824..
  Potato crisps and stickstonnes2,0971,992..
Fruit and Vegetable Preserving
Number of establishments 242728
Persons engagedNo.2,9343,3273,587
Production costs—    
  Salaries, wages$(000)8,51510,42413,850
  Materials$(000)23,37928,93635,478
  Other expenses$(000)8,1597,8298,273
 Totals $(000)40,05447,18957,601
Value of production$(000)41,24649,84562,318
Net output (net value added)$(000)10,91814,29919,844
Overtime worked by wage earnersh(000)810684832
Volume index. Base: 1956-57 (=1000) 3,5303,9124,432
Main materials used—    
  Fruit (fresh)tonnes31,84643,298..
  Vegetables and tomatoestonnes91,676117,081..
  Sugartonnes7,7839,036..
Principal products—    
  Fruit (canned, bottled)tonnes17,01122,409..
  Vegetables (canned)tonnes17,16318,615..
  Vegetables (dehydrated, freeze dry, quick frozen)tonnes36,69039,433..
  Pickles and sauceslitres(000)5,6356,743..
  Jams, jellies, and conservestonnes4,2824,150..
Item1971-721972-731973-74

*Includes production by establishments classified in other industries.

Brewing of Ale and Stout, and Malting
Number of establishments 151415
Persons engagedNo.1,5511,5511,569
Production costs—    
  Salaries, wages$(000)6,8777,7298,486
  Materials$(000)20,86825,82428,457
  Other expenses$(000)8,39510,04611,135
 Totals $(000)36,14143,59848,078
Value of production$(000)47,90355,64663,080
Net output (net value added)$(000)19,11020,33324,105
Overtime worked by wage earnersh(000)578638577
Volume index. Base: 1956-57 (= 1000) 162417211888
Main materials used—    
  Malttonnes41,45843,401..
  Hopstonnes365358..
  Sugartonnes11,37112,108..
Beer produced for salelitres(000)346,991354,484..
Stout produced for salelitres(000)1,818
Wine Making (Wineries with annual production of 5,000 gallons or more)
Number of establishments 696968
Persons engagedNo.496567531
Production costs—    
  Salaries, wages$(000)1,4471,8322,178
  Materials$(000)6,6889,34112,068
  Other expenses$(000)2,0412,6852,988
 Totals $(000)10,17613,85817,235
Value of production$(000)11,59214,48317,292
Net output (net value added)$(000)3,3103,0282,915
Overtime worked by wage earnersh(000)567283
Main materials used—    
  Fresh grapestonnes20,37828,974..
  Sugartonnes10,24811,172..
  Fortifying spiritslitres(000)9771,327..
Sales—    
  Table wineslitres(000)7,66010,69211,678
  Dessert wineslitres(000)12,65612,77413,925
Spirits (Distilling, Rectifying and Blending)
Number of establishments 554
Persons engagedNo,143146116
Production costs—    
  Salaries, wages$(000)498544498
  Materials$(000)1,574,1,7191,735
  Other expenses$(000)574626483
 Totals $(000)2,6452,8892,717
Value of production$(000)3,1183,3303,177
Net output (net value added)$(000)1,0071,0391,059
Overtime worked by wage earnersh(000)899
Products—    
  Ginlitres(000)2,8372,964..
  Vodkalitres(000)695832..
  Genevalitres(000)95105..
Aerated Waters and Cordials
Number of establishments 484847
Persons engagedNo.9621,0421,043
Production costs—    
  Salaries, wages$(000)2,6993,2813,850
  Materials$(000)6,0047,0938,308
  Other expenses$(000)2,3502,6533,430
Totals $(000)11,05313,02715,588 
Value of production$(000)13,77214,71117,115
Net output (net value added)$(000)5,6535,2545,781
Overtime worked by wage earnersh(000)63107155
Volume index. Base: 1956-57 (=1000)2,4262,5362,893
Main materials used—    
  Sugartonnes11,02013,118..
  Fruit extracts and juiceslitres(000)600600..
Aerated waters madelitres(000)79,98283,801..
Cordials madelitres(000)3,5874,887..
Tobacco, Cigars, and Cigarettes
Number of establishments 555
Persons engagedNo.1,2001,1911,242
Production costs—    
  Salaries, wages$(000)3,6974,0914,963
  Materials$(000)18,64820,10520,703
  Other expenses$(000)2,5942,9312,959
 Totals $(000)24,93927,12628,625
Value of production$(000)28,49931,58034,094
Net output (net value added)$(000)7,4218,72110,686
Overtime worked by wage earnersh(000)290268275
Volume index. Base: 1956-57 (=1000)19882,1122,164
Tobacco leaf used in manufacturetonnes6,2436,472..
Cigarettes mademillion5,3675,708..
Tobacco madetonnes1,0171,018..
Woollen Milling
Number of establishments 232121
Persons engagedNo.4,4254,3474,417
Production costs—    
  Salaries, wages$(000)13,11613,85316,181
  Materials$(000)17,38922,73727,003
  Other expenses$(000)8,0158,12210,261
Totals $(000) 38,52044,71253,445
Value of production$(000)39,85846,95557,344
Net output (net value added)$(000)15,08916,79221,352
Overtime worked by wage earnersh(000)770682885
Volume index. Base: 1956-57 (=1000) 3,3913619x4,122
Main materials used—    
Wool fibres—    
  Greasy and slipe woolkg(000)9,9729,755..
  Scoured woolkg(000)1,2381,068..
  Tops, noilskg(000)1,1781,159..
  Woollen and worsted yarnkg(000)
Non-wool fibreskg(000)1,1491,680..
Principal products—    
  Woollen clothsq m(000)1,8771,211..
  Worsted clothsq m(000)920843..
  Flannelsq m(000)7653..
  Blanketspairs(000)269288..
  RugsNo.(000)9672..
Yarn produced for sale or transfer—    
  Fingeringkg(000)1,0611,170..
  Machine knittingkg(000)2,2932,470..
Hosiery and Other Knitting Mills
Number of establishments 868484
Persons engagedNo.5,6045,2255,415
Production costs—    
  Salaries, wages$(000)14,54914,91817,824
  Materials$(000)28,76629,41337,641
  Other expenses$(000)7,8827,7079,264
Totals$(00O)51,19752,03864,729
Value of production$(000)55,45557,56971,628
Net output (net value added)$(000)19,69321,19725,460
Overtime worked by wage earnersh(000)480501548
Volume index. Base: 1956-57 (=1000)Clothing3,8543,9734,346
Number of establishments 668639646
Persons engagedNo.21,15320,45020,547
Production costs—    
  Salaries, wages$(000)41,75344,56553,689
  Materials$(000)66,01973,56687,225
  Other expenses$(000)11,60812,821x16,999
Totals$(000)119,380130,952x157,914
Value of production$(000)129,268x142,045172,856
Net output (net value added)$(000)52,442x56,427x69,739
Overtime worked by wage earnersh(000)439520612
Volume index. Base: 1956-57 (= 1000)Footwear151116291716
Number of establishments 100101102
Persons engagedNo.5,2944,9795,045
Production costs—    
  Salaries, wages$(000)13,97314,08516,487
  Materials$(000)17,66818,71722,686
  Other expenses$(000)5,0185,2685,621
Totals$(000)36,65938,07044,795
Value of production$(000)39,68040,61848,203
Net output (net value added)$(000)17,24916,91120,123
Overtime worked by wage earnersh(000)382355440
Volume index. Base: 1956-57 (=1000) 184817731846
Main materials used—    
  Upper leathersq m(000)958890..
  Sole leatherkg(000)551434..
  Synthetic soling materialkg(000)924855..
  Ready-made soles—leather, rubber, and otherpair(000)3,5092,522..
  Ready-made heels—leather, rubber, wood, and otherpair(000)1,9841,615..
  Feltsq m(000)677..
  Crepe rubberkg(000)185242..
Sawmills
Number of establishments 312300283
Persons engagedNo.5,5415,6825,877
Production costs—    
  Salaries, wages$(000)19,09421,52925,897
  Materials$(000)34,03035,00541,970
  Other expenses$(000)15,24116,40719,407
Totals$(000)68,36572,94187,275
Value of production$(000)74,91081,380100,605
Net output (net value added)$(000)26,35230,77240,163
Overtime worked by wage earnersh(000)666918834
Volume index. Base: 1956-57 (=1000) 127913101509
Rough-sawn timber producedft bm(000)740,475756,581..
Planing Mills and Timber Preservation
Number of establishments 155152145
Persons engagedNo.2,0982,1372,187
Production costs—    
  Salaries, wages$(000)6,8567,8199,153
  Materials$(000)27,59332,37236,685
  Other expenses$(000)4,8125,4846,284
 Totals $(000)39,26145,67552,122
Value of production$(000)42,90050,04057,989
Net output (net value added)$(000)10,81512,61815,454
Overtime worked by wage earnersh(000)332313430
Dressed timber produced—    
  Floorboardsft bm(000)13,11012,933..
  Weatherboardsft bm(000)11,75512,324..
  Otherft bm(000)119,407149,062..
Joinery
Number of establishments 388388384
Persons engagedNo.4,4364,4554,652
Production costs—    
  Salaries, wages$(000)15,28616,73720,319
  Materials$(000)27,42930,06841,852
  Other expenses$(000)5,5706,4278,364
Totals$(000)48,28653,23370,536
Value of production$(000)52,38458,87278,063
Net output (net value added)$(000)19,89722,87628,491
Overtime worked by wage earnersh(000)695687859
Principal products—    
  Flush panel doorsNo.452,953561,472..
  Shop and office fittings$(000)4,2284,340..
  Pre-cut building parts$(000)4,7467,278..
  Other joinery work$(000)29,82332,565..
Furniture
Number of establishments 372364356
Persons engagedNo.4,8885,2715,625
Production costs—    
  Salaries, wages$(000)15,46018,36323,395
  Materials$(000)23,41327,89836,428
  Other expenses$(000)5,0436,1077,927
Totals$(000)43,91652,36867,750
Value of production$(000)48,36858,28474,607
Net output (net value added)$(000)20,27424,71030,794
Overtime worked by wage earnersh(000)7756721,015
Pulp, Paper, and Paperboard
Number of establishments 667
Persons engagedNo.4,0284,2134,469
Production costs—    
  Salaries, wages$(000)20,86623,00428,102
  Materials$(000)33,60235,68147,617
  Other expenses$(000)33,34239,50167,516
Totals$(000)87,80998,185143,235
Value of production$(000)99,715105,221149,037
Net output (get value added)$(000)33,99531,39437,139
Overtime worked by wage earnersh(000)9851,1581,100
Volume index. Base: 1956-57 (=1000) 3,4773,4874,371
Principal products—    
  Newsprinttonnes217,999213,230..
  Other papertonnes166,701162,140..
  Paperboardtonnes70,85772,097..
  Fibreboardsq m(000)11,57111,694..
  Wood pulp for saletonnes132,250151,496..
Cardboard Boxes, Cartons, and Paper Bags
Number of establishments 615855
Persons engagedNo.3,2123,2103,207
Production costs—    
Salaries, wages$(000)10,40111,331x13,796
Materials$(000)37,85343,05048,964
Other expenses$(000)6,8108,2179,337
Totals$(000)55,06562,598x72,097
Value of production$(000)61,30868,76079,075
Net output (net value added)$(000)17,56017,96821,236
Overtime worked by wage earnersh(000)747801979
Paper used in manufacturetonnes64,77973,888..
Cardboardtonnes42,20740,683..
Corrugated and laminated paperboardtonnes21,51926,371..
Cardboard boxes, cartons, made*$(000)43,12445,989..
Paper bags and paper sacks, made*$(000)9,98711,861..
Printing and Publishing
Number of establishments 959694
Persons engagedNo.7,7467,7767,617
Production costs—    
  Salaries, wages$(000)28,04531,99635,192
  Materials$(000)16,42118,08120,043
  Other expenses$(000)15,59817,15717,802
Totals$(000)60,06467,23573,037
Item1971-721972-731973-74

*Other principal products withheld to avoid disclosure of figures for individual establishments.

Value of production$(000)72,57280,68789,980
Net output (net value added)$(000)40,96745,94952,796
Overtime worked by wage earnersh(000)662699834
Volume index. Base: 1956-57 (=1000) 188419252,180
Newsprint usedtonnes86,6552017x..
Other paper usedtonnes5,3105,523..
Job and General Printing
Number of establishments 357359358
Persons engagedNo.7,0477,2397,138
Production costs—    
  Salaries, wages$(000)22,35625,00129,102
  Materials$(000)25,18028,27132,143
  Other expenses$(000)9,88411,60312,629
Totals$(000)57,42064,87573,874
Value of production$(000)63,58771,92381,064
Net output (net value added)$(000)29,21032,83537,338
Overtime worked by wage earnersh(000)849770898
Volume index. Base: 1956-57 (=1000) 3,0293,2653,559
Newsprint usedtonnes5,9996,148..
Other paper usedtonnes30,63233,327..
Cardboard usedtonnes Tanning6,9857,184..
Number of establishments 181819
Persons engagedNo.1,0291,0871,157
Production costs—    
  Salaries, wages$(000)3,3353,7804,493
  Materials$(000)7,49513,09316,666
  Other expenses$(000)1,8182,1632,964
Totals$(000)12,64819,03624,123
Value of production$(000)14,75520,76926,531
Net output (net value added)$(000)5,5585,6887,197
Overtime worked by wage earnersh(000)153153167
Volume; index. Base: 1956-57 (=1000) 176219742,138
Principal products*    
Leather—    
Hide—    
  Bendskg(000)697663..
  Shoulderskg(000)248537..
  Bellieskg(000)200
  Chrome and other sidessq m(000)917960..
  Tanned woolly skinssq m(000)585643..
Rubberware
Number of establishments 353539
Persons engagedNo.3,2553,2453,314
Production costs—    
  Salaries, wages$(000)13,36314,84117,104
  Materials$(000)18,31718,35520,960
  Other expenses$(000)6,3317,9639,441
Totals$(000)38,01141,15847,505
Item1971-721972-731973-74

*Combined in order to prevent disclosure of confidential information.

†Principal products shown for this industry include the production of establishments in other industries.

Value of production$(000)42,31944,90052,491
Net output (net value added)5(000)17,85418,70322,186
Overtime worked by wage earnersh(000)457508529
Volume index. Base: 1956-57 (= 1000) 2,5732,5592,672
Main materials used—    
  Natural rubberkg(000)6,8606,977..
  Synthetic rubberkg(000)10,29110,644..
  Latex$(000)787622..
Principal products—    
Pneumatic tyres (all types)No.(000)1,6601,926..
Tubes (all types)No.(000)1,1001,338..
Processed rubberkg(000)5,3156,556..
Milking rubberware$(000)2,1671,814..
Ready-made soles and heels
Mats and floor coverings
Hot water bottles
Chemical Fertilisers
Number of establishments 151516
Persons engagedNo.1,1841,1561,206
Production costs—    
  Salaries, wages$(000)5,1705,9157,074
  Materials$(000)40,88549,41359,996
  Other expenses$(000)6,5507,5318,075
Totals$(000)52,60562,85975,145
Value of production$(000)58,17371,54984,726
Net output (net value added)$(000)10,97114,79716,817
Overtime worked by wage earnersh(000)399334497
Volume index. Base: 1956-57 (= 1000) 2,0802,5032,546
Main materials used—    
  Rock phosphatetonnes(000)1,0391,283..
  Serpentine rocktonnes(000)68103..
  Sulphurtonnes(000)238246..
  Carbonate of limetonnes(000)118140..
  Sulphate of ammoniatonnes(000)1726..
  Potashtonnes(000)178237..
Principal products—    
Serpentine superphosphate and mixturestonnes(000)154224..
Basic and reverted superphosphate and mixturestonnes(000)4247..
Straight superphosphate and mixturestonnes(000)1,7471,895..
Aerial superphosphate and mixtures    
Other (including ground rock)tonnes(000)122282..
Superphosphate content of abovetonnes(000)1,6952,009..
Soap Manufacture
Number of establishments 111111
Persons engagedNo.545547541
Production costs—    
  Salaries, wages$(000)1,7091,8662,065
  Materials$(000)6,1695,7427,505
  Other expenses$(000)1,7231,6572,016
Totals$(000)9,6019,26511,587
Value of production$(000)11,20411,36614,267
Net output (net value added)$(000)3,6744,2054,965
Overtime worked by wage earnersh(000)92100127
Volume index. Base: 1956-57 (=1000) 160615781673
Main materials used—    
  Tallowtonnes12,64511,503..
  Other oils and fatstonnes
  Soda ashtonnes2,4332,348..
  Perfumes$(000)498....
Principal products—    
Soap—    
  Bartonnes20,50819,856..
  Toilettonnes
  Powder and flake Softtonnes
  Softtonnes
  Othertonnes
Sandsoaptonnes
Candlestonnes173166..
Paint and Varnish
Number of establishments 363532
Persons engagedNo.951932986
Production costs—    
  Salaries, wages$(000)3,2943,6104,206
  Materials$(000)15,29816,44719,587
  Other expenses$(000)2,3582,5843,446
 Totals $(000)20,94922,64127,239
Value of production$(000)23,44825,60030,188
Net output (net value added)$(000)5,8856,6557,260
Overtime worked by wage earnersh(000)113146186
Volume index. Base: 1956-57 (= 3,1000) 162817632,024
Main materials used—    
  White leadtonnes..167..
  Titanium dioxide (in terms of 100%TiO2) tonnes5,6195,449..
  Other pigments and extenderstonnes10,0598,433..
  Linseed oillitres(000)1,4871,568..
  Solventslitres(000)11,70112,656..
  Resinstonnes6,6677,972..
Principal products—    
  Paints and enamelslitres(000)17,56119,170..
  Lacquerslitres(000)1,8772,091..
  Varnisheslitres(000)1,6051,746..
Pharmaceuticals, Toilet Goods, and Cosmetics
Number of establishments 373638
Persons engagedNo.1,5571,5011,657
Production costs—    
  Salaries, wages$(000)3,9514,2715,605
  Materials$(000)15,74017,84521,943
  Other expenses$(000)2,5322,8544,072
 Totals $(000)22,22324,97031,621
Value of production$(000)26,54630,70137,455
Net output (net value added)$(000)8,38910,13211,710
Overtime worked by wage earnersh(000)9880109
Item1971-721972-731973-74

*Effective running footage.

Principal products—    
Pharmaceutical products$(000)9,75211,943..
Toilet preparations and cosmetics—    
  Dentifrices$(000)1,8041,726..
  Cosmetic creams and lotions$(000)1,2531,109..
  Hair dressing$(000)4,7114,390..
  Powder, face and talcum$(000)1,125957..
  Lipstick$(000)598475..
Structural Clay Products
Number of establishments 353231
Persons engagedNo.983883907
Production costs—    
  Salaries, wages$(000)3,3033,3383,956
  Materials$(000)1,5321,6252,085
  Other expenses$(000)3,0903,2553,649
Totals$(000)7,9258,2189,689
Value of production$(000)8,6579,94910,674
Net output (net value added)$(000)4,1995,3305,105
Overtime worked by wage earnersh(000)243296241
Volume index. Base: 1956-57 (= 1000) 1122991..
Clay used—    
  Purchasedtonnes(000)69121..
  From own quarrytonnes(000)218144..
Principal products—    
  Building bricks excluding hollow blocksNo.(000)26,62027,670..
Glazed pipes and fittings—    
  4 in. and belowmetres(000)1,9111,541..
  Over 4 in. but not exceeding 6 inmetres(000)*192127..
  Above 6 in.metres(000)*
Field tiles and fittings—    
  4 in. and belowmetres(000)2,2982,429..
  Over 4 in. but not exceeding 6 inmetres(000)458420..
  Above 6 in.metres(000)2842..
Pottery, China, and Earthenware
Number of establishments 101112
Persons engagedNo.9669451,010
Production costs—    
  Salaries, wages$(000)2,7262,9243,565
  Materials$(000)1,3561,1981,572
  Other expenses$(000)1,7141,6111,918
Totals$(000)5,7965,7327,056
Value of production$(000)6,7686,7277,836
Net output (net value added)$(000)4,0144,1774,598
Overtime worked by wage earnersh(000)201149220
Item1971-721972-731973-74

*Includes production of establishments in other industries.

Cement
Number of establishments 444
Persons engagedNo.664683775
Production costs—    
  Salaries, wages$(000)2,6753,3234,489
  Materials$(000)2,3653,0563,515
  Other expenses$(000)7,0638,59410,386
Totals$(000)12,10314,97818,390
Value of production$(000)16,40520,25522,935
Net output (net value added)$(000)7,1908,9279,428
Overtime worked by wage earnersh(000)265339302
Volume index. Base: 1956-57 (=1000) 17602,0722,271
Principal materials—    
  Limestonetonnes(000)7741,619..
  Clay, marl, cement rocktonnes(000)657
  Gypsumtonnes(000)31
Cement madetonnes(000)838987..
Concrete Products
Number of establishments 216201205
Persons engagedNo.2,4122,3462,593
Production costs—    
  Salaries, wages$(000)7,8498,61811,366
  Materials$(000)12,98914,12918,594
  Other expenses$(000)5,7846,3098,994
Totals$(000)26,62229,05638,954
Value of production$(000)32,41836,25945,911
Net output (net value added)$(000)13,97216,13518,696
Overtime worked by wage earnersh(000)485580637
Volume index. Base: 1956-57 (=1000) 19092133x2,615
Materials used—    
  Portland cementtonnes(000)161160..
  Sand, shinglecu m(000)623621..
  Reinforcingtonnes(000)1514..
  Marble chipstonnes(000)103..
  Pumicecu m(000)63103..
Principal products‡—    
  Fencing postsNo.(000)821749..
  Telegraph and power polesNo.(000)2725..
  Housing bricks and blocksNo.(000)31,79636,454..
  Pipestonnes(000)152203..
  Prestressed concrete beamsmetres3,851....
Plywood and Veneer
Number of establishments 131314
Persons engagedNo.1,0711,0271,243
Production costs—    
  Salaries, wages$(000)3,8414,1485,668
  Materials$(000)6,1587,30210,727
  Other expenses$(000)3,1653,9256,707
Totals$(000)13,16415,37523,102
Item1971-721972-731973-74

*Principal products shown for these industries include the production of establishments classified in other industries.

†Combined in order to prevent disclosure of confidential information.

Value of production$(000)15,07218,26727,531
Net output (net value added)$(000)5,9207,19910,480
Overtime worked by wage earnersh(000)394355444
Volume index. Base: 1956-57 (=1000) 3,0803,5334,842
Species of logs used—    
  Rimuft(000) (H. Dahl)6,4137,185..
  Radiata pineft(000) (H. Dahl)48,74047,582..
  Otherft(000) (H. Dahl)2,9192,988..
Veneer produced (1/16 in. basis)sq m(000)21,14023,277..
Plywood made (3/16 in. basis)sq m(000)5,4516,204..
Particle boardsq m(000)3,1113,587..
Range Making*
Number of establishments 678
Persons engagedNo.1,1001,0851,212
Production costs—    
  Salaries, wages$(000)3,4433,5924,559
  Materials$(000)6,0916,8998,572
  Other expenses$(000)1,6801,8312,237
Value of production$(000)11,81113,27716,853
Net output (net value added)$(000)4,1044,6166,150
Overtime worked by wage earnersh(000)188169252
Volume index. Base: 1956-57 (=1000) 2,0842,3232,785
Principal products—    
  Domestic electric rangesNo.60,44954,777..
  Domestic electric rangettesNo.
Radio and Television Assembly and Manufacture*
Number of establishments 212025
Persons engagedNo.2,0032,0362,555
Production costs—    
  Salaries, wages$(000)5,6176,0468,709
  Materials$(000)13,70715,96224,153
  Other expenses$(000)2,6243,3234,109
 Totals $(000)21,94825,33036,971
Value of production$(000)23,04425,64139,191
Net output (net value added)$(000)6,9346,51211,124
Overtime worked by wage earnersh(000)110166246
Volume index. Base: 1956-57 (= 1,1000)4,5724,7636,416
Principal products—    
Radios—    
  Car and portableNo.119,592113,537..
  TableNo.
  RadiogramsNo.20,86914,855..
  Television setsNo.38,85233,739..
Item1971-721972-731973-74

*Includes production of establishments classified in other industries.

Motor-vehicle Assembly
Number of establishments 151718
Persons engagedNo.5,4885,7866,406
Production costs—    
  Salaries, wages5(000)19,21522,68527,873
  Materials$(000)137,941165,606183,800
  Other expenses$(000)9,66910,91217,209
Totals$(000)166,824199,203228,881
Value of production$(000)177,265213,930249,323
Net output (net value added)$(000)29,82538,09749,704
Overtime worked by wage earnersh(000)1,2992,0981,108
Volume index. Base: 1956-57 (= 1000) 18892,0222,081
Vehicles assembled—    
  Cars and station wagonsNo.59,59072,389..
  Vans and busesNo.12,9968,320..
  Trucks and tractorsNo.8,0404,908..
Motor-body Building
Number of establishments 817980
Persons engagedNo.1,7251,5891,824
Production costs—    
  Salaries, wages$(000)5,5295,7857,520
  Materials$(000)8,9079,46213,876
  Other expenses$(000)2,0612,1972,729
Totals$(000)16,49617,44424,126
Value of production$(000)17,45318,93426,349
Net output (net value added)$(000)6,7277,54510,048
Overtime worked by wage earnersh(000)153207278
Main materials—    
  Timberft bm(000)1,6781,702..
  Plywoodsq ft(000)1,1891,622..
  Paints and oilslitres(000)168177..
  Iron and steeltonnes(000)75..
  Trimmings$(000)381445..
  Hardware$(000)1,1381,005..
  Glassware$(000)195187..
Motor bodies built—    
  BusesNo.146148..
  VansNo.485456..
Trucks—    
  CabsNo.11897..
  TraysNo.698923..
  CaravansNo.3,1233,062..
Sheet-metal Working
Number of establishments 238232222
Persons engagedNo.6,8206,7166,962
Production costs—    
  Salaries, wages$(000)23,99025,03230,050
  Materials$(000)44,79145,79764,401
  Other expenses$(000)13,41914,99617,394
Totals$(000)82,20085,825111,845
Value of production$(000)92,82295,795125,699
Net output (net value added)$(000)35,52735,94845,005
Overtime worked by wage earnersh(000)1,3681,2771,464
Volume index. Base: 1956-57 (=1000) 4,2624,269..
Metal Products, n.e.i.
Number of establishments 535551575
Persons engagedNo.9,51710,54011,410
Production costs—    
  Salaries and wages$(000)33,63240,91551,955
  Materials$(000)57,29473,81198,859
  Other expenses$(000)15,80919,89325,437
Totals$(000)106,735134,619176,250
Value of production$(000)121,273152,682201,742
New output (net value added)$(000)49,24860,31479,069
Overtime worked by wage earnersh(000)1,6302,0192,714
Agricultural and Pastoral Machinery
Number of establishments 188187185
Persons engagedNo.1,5021,5961,717
Production costs—    
  Salaries, wages$(000)4,9365,7396,989
  Materials$(000)20,41420,03223,296
  Other expenses$(000)2,3252,6463,642
Totals$(000)27,67528,41833,927
Value of production$(000)29,68131,58037,372
Net output (net value added)$(000)7,1839.13210,732
Overtime worked by wage earnersh(000)147204248
Plastics
Number of establishments 195206218
Persons engagedNo.5,9576,0906,764
Production costs—    
  Salaries, wages$(000)19,61821,53729,710
  Materials$(000)34,57640,68457,474
  Other expenses$(000)14,42617,03323,722
Totals$(000)68,62079,254110,906
Value of production$(000)77,48491,768125,902
Net output (net value added)$(000)29,26234,74145,931
Overtime worked by wage earnersh(000)1,7781,6371,705
Machinery, n.e.i.
Number of establishments 647624617
Persons engagedNo.14,39315,15715,427
Production costs—    
  Salaries wages$(000)53,33160,12471,625
  Materials$(000)77,95488,201110,299
  Other expenses$(000)24,36927,19530,551
Totals$(000)155,654175,519212,475
Value of production$(000)171,133191,795234,817
Net output (net value added)$(000)70,54078,33496,087
Overtime worked by wage earnersh(000)2,7423,4063,382
Principal products*    
  Washing machinesNo.62,543103,729..
  Refrigerators (home, commercial, and freezers)No.120,912149,778..
Industrial machinery—    
  Mining, quarrying$(000)2,7582,062..
  Road construction$(000)4,822....
  Logging, sawmilling, woodworking $(000)5,4834,422.. 
  Refrigeration$(000)7,2557,903..
  Heating, air-conditioning $(000)8,1865,661.. 
  Dairy factory$(000)3,5854,681..
  Pumping$(000)2,5454,126..
  Other$(000)27,31014,457..
Lawnmowers—hand and powerNo.59,36674,799..
Repairs to machinery$(000)31,22924,522..
Petroleum and Coal Products
EstablishmentsNo.181817
Persons engagedNo.392399392
Production costs—    
  Salaries and wages$(000)1,7781,9932,214
  Materials$(000)69,55876,56983,846
  Other expenses$(000)4,2633,6494,871
 Totals $(000)75,59982,21190,930
Value of production$(000)83,03291,56299,620
Net output (net value added)$(000)9,21711,35110,916
Overtime worked by wage earnersh(000)475449
Principal products—    
  Premium gasolinelitres(million)1,214.71,477.2..
  Regular gasolinelitres(million)382.9318.5..
  Automotive gasoillitres(million)615.5709.4..
  Marine diesel oillitres(million)89.399.0..
  Light fuel oillitres(million)278.3278.3..
  Heavy fuel oillitres(million)537.6598.3..
  Export fuel oillitres(million)22.515.9..
  Bunker fuellitres(million)90.7100.1..
  Bitumenlitres(million)103.4116.4..
  Power station fuellitres(million)106.3172.6..

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. A considerable amount of information on industrial production on a monthly, quarterly, and annual basis is included in the Monthly Abstract of Statistics.

Chapter 20. Section 19 BUILDING CONSTRUCTION AND HOUSING

Table of Contents

GENERAL—The building and construction industry makes an important contribution to growth and development since most of its work represents investment in the future. Because of its size and the demands it makes on a wide range of industries supplying building materials and services, and because not only commerce and industry but also the housing of the people depend on it, the well-being or otherwise of the industry is a matter of concern to all informed New Zealanders. The industry is a fairly large contributor to total national output. Buildings represent around 40 percent of gross domestic capital formation, and civil engineering and land development also contribute substantially.

The industry employs 7 to 8 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. The "off-site" supply services provide about 65 percent of the value of the work put in place.

The characteristic of the industry with its relatively high proportion of short-term construction (mainly dwellings) is reflected in the structure of firms. Over 80 percent of "on-site" building firms employ fewer than six persons, are usually under-capitalised, and tend to rely on extended credit from suppliers. Hence effective planning of the housing sector on a longer-term basis is important to the stability of the industry. During the last decade the Government has made use of building programming in an endeavour to promote this and to ensure that a sufficiency of the available resources are devoted to essential housing, especially for people on limited incomes.

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 $60,000 without the consent of the Minister of Works and Development.

In May 1974 restrictions were introduced whereby permits for single unit houses above 1,500 sq ft and for flats above 1,000 sq ft could be deferred for a period of up to 18 months. The restrictions were relaxed early in 1975.

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 35.3 for 1974-75. The greatest demand for flats has been in the main urban centres, Auckland and Wellington. Many flats are merely two or more one-storey units on the one section, thus making greater use of serviced sections and achieving a saving in costs. This construction is popular with builders and finds a ready market, particularly with people of retiring age.

The modern tendency is for people to buy, rather than rent, flats. Another development in residential accommodation is the growing popularity of town houses, a type of construction which combines some of the advantages of both houses and flats and makes more economical use of space than does the traditional house on the 1/4 acre section.

BUILDING INDUSTRY ADVISORY COUNCIL—The functions of the Building Industry Advisory Council are: (a) to give advice to Government through the Minister of Works and Development on matters affecting the building and construction industry; (b) to maintain an overall and continuing review of the industry and (c) to give advice to the industry on the likely effects of building trends. In December 1973 it produced a comprehensive report entitled Stability in the Building and Construction Industry.

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 and Development. Members have been appointed by the Minister of Works and Development on the recommendation of organisations within the building industry.

HOUSING COMMISSION—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 was enacted. More town houses and terraced houses in central urban areas were advocated.

A National Housing Commission has been appointed to follow up recommendations of the Commission of Inquiry.

Currently there are 3 appointed members, comprising the Chairman (a solicitor with an extensive local body housing background), a company director with wide land development and building experience, and the general manager of a lending institution.

The functions of the commission are primarily to advise the Minister on all matters relating to the provision of dwellings in New Zealand and to inquire into and to keep under review the housing needs of the people of New Zealand. In addition, it is charged with assisting in the co-ordination of all persons, bodies, and agencies, both public and private, concerned with housing in New Zealand and to promote co-operation between them.

TRENDS IN AVERAGE COSTS—The following table illustrates trends in the cost of building activity over a period. (Sources: Ministry of Works and Development, and Housing Corporation.)

Type of BuildingCost at End of Year
1950196019651970197319741975
 $$$$$$$
State rental house (976 sq ft)4,3445,5286,1647,45012,19513,71014,940
Buildings (reinforced concrete) of similar size and type50,20064,2003,40096,000136,000157,700179,778

CENSUS OF BUILDING AND CONSTRUCTION—The third 5-yearly census of the activities of the building and construction industry shows that the total value of work done in the production year 1973-74 was $1,716 million compared with $814 million in 1968-69. If subcontracts and other identifiable transactions between firms within the industry are deducted, the value of work done becomes $1,405 million for 1973-74 and $697 million for 1968-69. The net values are a relatively large proportion of the gross national product of the 2 years at 16.3 percent and 16.0 percent respectively.

In 1973-74 expenditure by the industry on capital goods for its own use such as plant and machinery, motor vehicles, and land and buildings was $96 million compared with $43 million in 1968-69 representing 4.6 percent and 4.5 percent of the estimated gross capital formation (excluding stock changes) in the two respective years.

Of the total gross value of production for the year 1973-74 of $1,716 million, $1,308 million or 76 percent was represented by work on buildings (involving construction, alteration, repair, maintenance, or demolition); $140 million was for work on roads, railways, bridges, tunnels, wharves, aerodromes, and airstrips; $56 million was for land drainage, sewerage, river protection, irrigation schemes, water supply, and well drilling; $62 million was for earthmoving, reclamation, and land development; $6 million was for the removal of overburden for mines or quarries; $82 million was for power, telephone, and telegraph-line erection, cable laying, radio and television masts, and power development; $46 million was for other construction; and $16 million was for plant hire.

One of the main purposes of the 5-yearly Census of Building and Construction is to examine the structure of the industry. Of the total gross output of $1,716 million in 1973-74, private firms were responsible for output to the value of $1,364 million both as main and subcontractors, Government departments used their own staff for a value output of $147 million, while local authorities did work to the value of $104 million with their own staff. Private owner-builders not normally engaged in building and construction undertook $101 million of their own building work. In 1973-74 Government and local authorities gave more work to private firms, and correspondingly reduced their own. activities.

Private Contractors—The business of private contractors in building and construction in 1973-74 is summarised in the following table.

Nature of BusinessUnitsPersons EngagedSalaries and WagesWorking ProprietorsMaterialsValue of Work Done
As Main ContractorAs Sub-ContractorTotal*

*Includes value of work done as labour-only contractors.

 No.No.$(m)No.$(m)$(m)$(m)$(m)
Building contracting5,67427,672124.04,070302.3761.047.9816.2
Civil engineering contracting3246,06933.86940.7112.221.6134.9
Shop and office fitting403671.7182.95.22.57.8
Electrical contracting9913,76316.545834.322.940.765.0
Plumbing and drainlaying1,3654,38018.679144.033.948.883.3
Painting and paperhanging1,2313,40514.51,0769.219.618.638.5
Plastering2137473.21342.02.05.98.0
Roofing contracting766553.72213.24.318.923.2
Bricklaying and/or blocklaying3851,0254.42978.14.413.818.5
Glaring895212.1235.32.57.29.7
Flooring contracting843061.3403.42.73.36.7
Earthmoving2871,5267.81153.132.35.037.5
Road sealing386193.085.612.31.313.8
Concrete contracting1156082.8604.15.44.410.0
Heating and air conditional contracting891,4546.81716.719.511.130.6
Demolition contracting221250.59-1.00.51.5
Scaffolding contracting111870.84-0.31.61.9
Other3913,49216.613319.625.031.656.9
Totals11,42556,921262.27,344514.81,066.6285.01,364.0

HOUSING—Nearly 450,000 of an estimated 974,000 dwellings (that is, nearly half of the total housing stock) have been built since the National Housing Conference in 1953. The standard house is about 94.95 square metres 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 $18,000 to build, and stands on a section costing more than $6,200 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 the war there has been no significant housing built for private rental, but some rental flats are created by conversion of existing dwellings. Accelerated property cost increases have made it difficult for persons on modest incomes to finance their way into home ownership. Early in 1975 the Government made special provision for release of sections and loans to assist in the purchase of private sections.

Since 1937 the State, using the services of private contractors, has been building rental dwellings. At March 1975, 77,231 of these houses and flats had been built and since 1950, 27,090 of them had been sold to the occupiers. Rental dwellings are let to applicants in difficult housing circumstances.

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, Christchurch and Dunedin, assisted with Government finance. Loans are available to private houseowners to renovate old houses.

The Unit Titles Act 1972 made provision for a new type of ownership of units in a multi-unit development. Individual owners are entitled to a legal estate in their respective units and can sell or transfer a unit without requiring the consent of other owners as is the case where a block of shares in a flat-owning company provides the right to a flat.

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 Housing Corporation and the Department of Maori 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.

Expenditure1972-731973-741974-75
 $(000)
Land purchase and development, State house construction, etc.12,92520,71071,475
Expenditure by Housing Corporation for other departments4,2564,7247,222
Department of Maori Affairs6,8278,91320,197
Department of Lands and Survey3124847,937
Advances for new urban houses77,77284,742119,090
Advances for new rural houses1,6151,0431,886
Loans to local authorities for rural housing, pensioners' housing, etc.7,73910,98216,509
Subsidies paid to local authorities, religious, and welfare organisations for housing of elderly1,3262,379x4,925
Advances under capitalisation of family benefits6,8817,0206,514
Totals119,652140,997255,755

HOUSES AND FLATS COMPLETED—Statistics of completions are given in the following table; they include flats created by conversion of existing dwellings. The statistics are dependent on the supply of information by local authorities and indications are that they have been understated.

Year Ended 31 MarchGovernmentPrivate and Local AuthorityTotal New Houses and FlatsFlats Created by ConversionTotal Housing Units
State RentalGovt. Tenancies*

*Includes Education and Hospital Boards.

†City, borough and county councils, etc., comprising pensioner units, staff housing, etc.

‡Additional dwelling units created by conversion of existing buildings, e.g., one house converted into two flats.

19691,53432819,10021,00076021,800
19701,24148720,40022,10067022,800
19711,19462320,40022,24072022,900
197266135721,40022,40068023,100
197376541226,30027,40056028,000
197465044130,90032,000x65032,700x
19751,05640533,00034,30036034,600

DEMOLITIONS—According to notifications received, the totals of dwellings demolished in recent years have been: 1968-69, 1,654; 1969-70, 2,188; 1970-71, 2,474; 1971-72, 2,279; 1972-73, 2,525; 1973-74, 3,137; and 1974-75, 2,145.

BUILDING STATISTICS—The principal official building statistics are the Department of Statistics monthly analyses of building permits and its quarterly analyses of the value of work put in place. Estimates of construction other than buildings (mostly in the Government sector) are derived from Government accounts and form part of gross domestic capital formation in the national income statistics. Other building information is available from the 5-yearly Census of Building and Construction, the 5-yearly Census of Population and Dwellings, and inter-industry statistics.

The prime source of the following 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, education and harbour boards are included, even though permits may not actually be 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 considerably greater than originally estimated. These rises are not apparent in building permit figures.

The values of building permits for the latest 6 years are analysed by types of building in the following table. Permits cover alterations and additions as well as new buildings. Government and other buildings not requiring building permits are included.

Type of BuildingYear Ended 31 March
197019711972197319741975

*Includes ancillary buildings.

†Includes alterations and additions.

‡Includes powerhouses from April 1973.

Dwellings$(million)
Houses156.0168.7182.1259.6378.6400.3
Flats36.647.464.3106.1166.1146.3
Alterations and additions28.635.340.249.467.675.8
Other Buildings      
Hostels, boardinghouses22.920.517.023.45.3x3.9
Hotels, motels, etc.*19.216.9
Hospitals and nursing homes*11.726.225.021.216.132.2
Education buildings*32.733.035.164.953.9x75.7
Shops, restaurants, taverns62.067.962.9108.537.528.8
Office and administrative78.1110.2
Warehouses1.40.338.5
Factories41.546.154.151.187.8x97.1
Social, cultural, and recreational56.168.557.961.615.424.7
Farm16.816.6
Miscellaneous buildings14.4x14.4
  All buildings448.0513.6538.8745.9997.3x1,081.3

The following table shows a percentage analysis of the value of building permits and authorisations during 1974-75 by type of building and sector of ownership. The high percentage of the total value of building permits represented by houses and flats built by the private sector highlights the importance of private investment in residential building as a key to stability in the building industry.

Type of BuildingCentral GovernmentPublic CorporationsLocal GovernmentPrivate SectorTotal
 Percent
Houses and flats4.7-0.652.357.6
Hostels and boarding houses.0.1--0.20.4
Hotels, motels, etc---1.51.6
Hospitals and nursing homes2.7--0.33.0
Education buildings6.6--0.47.0
Shops, restaurants, taverns--0.12.52.7
Office and administrative2.5-0.47.310.2
Warehouses-0.1-3.43.6
Factories, powerhouses, etc.0.30.10.28.28.7
Social, cultural, recreational- 0.61.72.3
Farm buildings0.1--1.51.5
Miscellaneous0.7-0.40.41.4
  All building17.80.22.379.8100.0

Compared with the previous year, in 1974-75 the value of permits and authorisations for hospitals, education buildings, and office and administration buildings made a higher percentage of the aggregate total, while permits for houses and flats made up a lower percentage (57.6 as compared with 61.3).

Some categories of buildings used in this and other building-permit tables require additional explanation. Hostels and boardinghouses, for example, include barracks, orphanages, nurses' homes, and boarding school accommodations; hotels and motels include private and licensed hotels, but exclude taverns; education buildings include primary and secondary schools, teachers colleges, technical institutes, university buildings, kindergartens, and play centres; and the broad category—social, cultural, recreational—include churches, halls, theatres, cinemas, clubrooms, community centres, and grandstands.

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 MarchNew HousesNew FlatsTotal Dwelling Permits*Total Permits, All Buildings*
Dwelling UnitsValueAreaDwelling UnitsValueNo. of Blocks

*Includes the value of permits for alterations and additions.

  $(m)sq metres (000) $(m) $(m)$(m)
196519,895138.8..5,46226.5..187.7357.7
196620,257149.1..5,67527.31,568201.6381.7
196718,777147.8..5,26928.31,480202.8391.5
196816,779137.0..4,58624.61,349187.3330.3
196917,421147.4..4,89627.41,605202.0395.4
197016,990156.0..6,09436.62,051221.2448.0
197116,230168.6..7,44947.42,565251.3513.6
197215,577182.11,865.68,75664.33,212286.6538.8
197319,916259.62,429.912,857106.14,4914,5.2745.9
197423,582378.63,021.516,152166.15,6226,2.3997.3
197521,436400.32,602.411,665146.34,336622.41,081.3

The average permit value for houses and flats in 1974-75 was $16,508, compared with $13,708 in 1973-74, $11,160 in 1972-73, $10,126 in 1971-72, and $9,123 in 1970-71.

The following diagram illustrates building-permit figures for new houses and flats.

Sector of Ownership—Permit values for the main groupings of building activity during the latest 2 years are analysed below according to sector of ownership. The 1974-75 total of 33,101 permits and authorisations for new dwellings to a total value of $546.6 million includes authorisations by the Central Government for 2,387 new houses (value $46.7 million) and 307 new flats (value $4.5 million).

Type of BuildingCentral GovernmentPublic CorporationsLocal GovernmentPrivate SectorTotal
 Value $(million)
 1973-74
Houses and flats23.9-5.9582.7612.3
Hostels and boarding houses2.8--2.55.3
Hotels, motels, etc.-0.21.317.819.2
Hospitals and nursing homes12.3-0.43.416.1
Education buildings50.7-0.13.153.9
Shops, restaurants, taverns-0.23.334.037.5
Office and administrative6.65.65.360.678.1
Warehouses0.50.34.634.940.3
Factories, powerhouses, etc.6.1-2.479.287.8
Social, cultural, and recreational buildings0.4-2.612.515.4
Farm buildings0.6- 16.116.8
Miscellaneous4.82.53.04.014.4
  All buildings108.88.829.0850.6997.3
Type of BuildingCentral GovernmentPublic CorporationsLocal GovernmentPrivate SectorTotal
 Value $(million) 1974-75
Houses and flats52.0-6.4564.0622.4
Hostels and boarding houses1.6-0.12.13.9
Hotels, motels, etc.0.1-0.116.716.9
Hospitals and nursing homes29.2--3.032.2
Education buildings70.8-0.14.775.7
Shops, restaurants, taverns0.2-1.227.428.8
Office and administrative27.30.34.378.3110.2
Warehouses0.40.80.237.138.3
Factories, powerhouses, etc.5.20.73.288.097.1
Social, cultural, and recreational buildings0.2 6 318.124.7
Farm buildings0.8  15.716.6
Miscellaneous7.40.22.74.214.5
  All buildings195.22.024.5859.61,081.3

The values of permits for alterations and additions are included for all types of buildings.

GEOGRAPHICAL LOCATIONS—The following table shows for urban areas and statistical divisions, building permit values and dwelling completions for the March year 1974-75. Where applicable the urban areas are included in the relevant statistical division.

 New Houses and FlatsTotal (All Permits)Dwelling
AreaNumberValueValueCompletions*

*Figures for completions of dwellings are rounded to indicate that exact numbers are not available and are dependent on notifications from local authorities.

  $(m) $(m)
Whangarei U.A.63310.014.8660
Northern Auckland U.A.2,00135.752.42,690
Western Auckland U.A.1,63326.040.61,340
Central Auckland U.A.1,86127.8107.12,470
Southern Auckland U.A.2,66544.487.83,440
Auckland S. Div8,876145.6306.310,420
Hamilton U.A.1,13417.934.21,390
Hamilton S. Div1,88831.455.21,960
Tauranga U.A.69612.120.1940
Rotorua U.A.5758.619.3690
Gisborne U.A.2764.88.0290
Napier U.A62310.519.21,140
Hastings U.A.5949.920.8550
Napier-Hastings S. Div.1,27021.542.01,720
New Plymouth U.A64011.422.5580
Palmerston North U.A.66911.224.4690
Palmerston North S. Div.92215.835.41,000
Lower Hutt U.A82915.125.9820
Upper Hutt U.A5069.112.7550
Porirua Basin U.A62712.918.8600
Wellington U.A.78214.263.61,000
Wellington S. Div3,27561.5134.13,400
Wanganui U.A.4036.410.8380
Masterton U.A.1572.64.5160
Nelson U.A.4397.012.6400
Christchurch U.A.3,30843.992.23,170
Christchurch S. Div.3,74851.5102.53,540
Timaru U.A.2554.38.3250
Dunedin U.A.78613.529.2650
Dunedin S. Div.82414.230.6680
Invercargill U.A.5458.821.4520
Totals New Zealand33,101546.61,081.334,300

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
 $(million)
196912.415.5.3167.728.2195.8
197014.9174.9189.830.4220.2
197112.9202.0214.934.5249.3
19729.0228.6237.639.8277.4
197311.4311.8323.248.3371.5
197414.5428.4442.960.2503.1
197533.1509.7542.875.6618.4
Year Ended 31 MarchOther Buildings*Grand Total
Hotels, Boarding-housesHospitalsFactoriesCommercial BuildingsSchoolsMiscellaneousTotal

*Includes alterations and additions.

†And ancillary buildings.

‡Includes churches, sports, and entertainment buildings.

$(million)
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
197221.219.451.371.139.155.7257.8535.2
197321.526.852.581.044.862.7289.3660.8
197425.019.174.4122.145.450.2336.1839.2
197523.423.099.1172.954.155.2427.71,046.1

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 labour force rose from 56,000 in 1963 to 64,000 in 1966. There was a sharp decline in 1968 when the labour force fell to approximately 59,300, but a rise was experienced in 1969 and 1970. The total at April 1971 was 69,500, at April 1973 it was 71,400, and at April 1974 it was 74,800. At April 1975 it had risen again to 76,700. Employment in the building of houses and flats fell from 15,600 in 1961 to 13,100 in 1970 and to 11,500 in 1971 but rose again to 13,000 by April 1973, and 14,500 by April 1974. There was a slight fall to 14,300 at April 1975.

In recent years the size of the "on-site" labour force in the building and construction industry has been affected by the tendency for a greater proportion of the work to be done by "off-site" supply industries in the form of prefabricated, preformed, or pre-assembled sections and units.

The average "working life" in the industry has been estimated by the Building Industry Advisory Council at about 10 years.

BUILDING MATERIALS—The following table shows the production of principal building materials during 11 recent years. Comparable figures for 1973-74 are not available, but production figures for some materials during the 3 latest calendar years are shown in a table on the following page.

Production YearRough-sawn Timber*Dressed Timber (from Rough-sawn)Building SheetPlywoodWallboardPaints, etc.
Paints and EnamelsVarnishesLacquers

*Source: New Zealand Forest Service, for years ended 31 March.

†Asbestos cement and cement sheet.

‡Includes fibrous plasterboard.

 cubic metres(000)square metres(000)litres(000)
1962-631,5183782,6304,77715,82714,0745731,337
1963-641,5723632,7974,91615,67815,0976181,573
1964-651,7374172,9005,03717,92716,5296271,682
1965-661,7864363,2155,26018,35516,4437141,568
1966-671,7644153,1225,30716,82116,5617551,659
1967-681,5923913,0303,76417,70416,5258721,455
1968-691,7294073,2624,76818,77316,9611,0731,664
1969-701,8053813,3555,12120,30617,8891,3271,723
1970-711,8514583,8664,82321,06818,2841,3681,850
1971-721,7473803,1695,45522,21219,7931,6051,877
1972-731,7854113,6666,20823,79719,1691,7462,091
Production YearConcrete Roofing TilesBricks and BlocksDrainpipes, Salt Glazed, 6 in. and BelowCement
Building Bricks, ClayConcrete
BricksBlocks

*In millions of effective running feet.

  No. (million)  tonnes(000)
1962-639.446.81.412.23.06663.7
1963-649.850.20.816.05.82*766.2
1964-658.851.70.819.56.95*799.1
1965-665.952.40.425.56.89*854.6
1966-675.250.80.624.27.33*872.8
1967-684.842.50.123.56.93*784.9
1968-697.140.30.122.26.86*786.7
1969-706.236.10.228.57.72*804.9
1970-717.029.6 26.56.63*821.3
1971-728.826.6 31.86.88*837.8
1972-73 27.7 36.55.47*986.2

Production of some principal building materials during the three latest calendar years is shown in the following table.

ItemCalendar Year
  197319741975

*Effective running feet.

Ready-mixed concretecu metres (000)1,5181,6171,533
Paint and varnish—    
Paints (not water) and enamels in liquid formlitres (000)14,85214,19413,061
Water paints, emulsion typelitres (000)7,3287,5908,547
Lacquers (clear), undercoats, and colourslitres (000)2,4092,5042,376
Structural clay—    
  Glazed pipesft (000)*7,1467,3067,831
  Field tilesft (000)*10,4429,6319,026
  Bricks and hollow blocksNo (000)32,19833,94827,532
Fibrous plaster sheetssq yds (000)1,3031,3291,053
Sawn timberbd ft (million)847874825
Particle boardcu metres95,594117,646129,102
Plywoodcu metres27,89926,32617,864
Cementtonnes (000)1,0581,1101,074

HOUSING FINANCE—The chief agency providing finance for housing in New Zealand is the Housing Corporation, a wholly Government-owned institution described in detail in Section 30B. For the year ended 31 March 1975 the Housing Corporation authorised loans valued at $126.4 million for new urban dwellings. Of the 15,904 housing loans authorised, 5,140 were authorised for the purchase of existing houses. Other important sources of housing finance are building societies, life assurance offices, trustee savings banks, and solicitors trust funds.

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 $130 million were authorised up to 31 March 1975 by the Housing Corporation to applicants holding eligibility certificates issued by the Social Security Commission.

The Housing 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. 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 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 subsidy, and home ownership accounts qualify for subsidy and preferential loan finance (see Section 29).

COST OF HOUSES AND SECTIONS—Freehold section and house costs in building proposals financed by the Corporation in the four areas of greatest housing demand in March 1974 and March 1975 were as follows:

CentreMarchSectionsHouses
NumberAverage CostNumberAverage Contract Price
   $ $
Auckland1974875,48010016,165
 1975867,9859217,865
Hamilton1974273,5002714,966
 1975136,040917,409
Wellington1974524,9054518,095
 1975626,3585820,425
Christchurch1974267,7004113,986
 1975119,4102116,834
New Zealand19743725,45037715,230
 19753485,62733918,566

Statistics compiled by the Valuation Department from sales in the major urban areas for the 1974 year gave the average sale price of sections as $7,179, the average sale price of houses as $23,299, and the average sale price of owner-occupier flats as $22,787. (Source: parliamentary paper G.26, 1975.)

URBAN HOUSE PROPERTY AND SECTION PRICE INDEX—This index is designed to measure changes in the average level of prices paid for house properties and sections sold during each half-year Variations in the average age of properties transferred, as an indicator of the average quality of such properties, are eliminated in the index methodology in order to arrive at a valid index of price level changes.

This revised series replaces the former urban house property price index which was current from 1960 to 1973 and which applied to a combination of all twenty five centres in which prices were collected for the Consumers Price Index. The new indexes are prepared for each of 17 principal market centres and for all 17 centres combined. A description of the revised index was published in at supplement to the January-February 1975 Monthly Abstract of Statistics.

The following table shows index numbers for individual centres (Base: Each centre separately' 1973 = 1000).

CentreResidential PropertiesSections
January-June 1975July-December 1975January-June 1975July-December 1975
Whangarei169417042,0582,328
Auckland1440148218641930
Hamilton1521155317791976
Tauranga1424148817481920
Rotorua168717402,0142,601
Gisborne1634166717811878
Napier-Hastings1450152313551586
New Plymouth1554158315331617
Wanganui1771189017202,265
Palmerston North1482152418871960
Masterton158416362,2151864
Wellington-Hutt1325139114821699
Nelson173316592,4452,243
Christchurch1434147919252,035
Timaru1529159217872,242
Dunedin1455152717862,288
Invercargill1325150514321669
  All 17 Centres Combined1452150318001939

The long-term series shown overleaf is obtained by linking the revised urban house property price index (on base: weighted average 17 centres combined, 1973—1000) to the index which it superseded.

Six Months EndedHouse PropertiesSections
1964—Jun449 
Dec464402
1965—Jun483424
Dec494447
1966—Jun506464
Dec523486
1967—Jun530504
Dec532512
1968—Jun536519
Dec546539
1969—Jun562557
Dec574594
1970—Jun596597
Dec626626
1971—Jun665647
Dec695688
1972—Jun750729
Dec806782
1973—Jun918905
Dec10821095
1974—Jun13221456
Dec14431642
1975—Jun14521800
Dec15031939

HOUSE MORTGAGES—Most of the housing advances made by institutions are in the form of table mortgages, being made initially for terms of usually over 20 years at the Housing Corporation, about 15 years at building societies and about 10 years at the private savings banks. The general experience of these institutions is that most house mortgages are redeemed in 7 to 12 years, seldom running the full term. Interest rates and the methods of calculating them vary from one institution to another. Some institutions prefer to lend on new houses, others cater for the purchase of older dwellings.

The value of house mortgages outstanding to major lending institutions is shown in the following table prepared by the Monetary and Economic Council.

Lending InstitutionsAt 31 March 1965At 31 March 1972

*Average for previous calendar year.

†Estimated.

 $(m)$(m)
Housing Corporation426581
Building societies126*228*
Trustee banks57134
Life insurance companies126202
Private savings banks 19
Trading banks2221
Total7571,185

There are no accurate statistics available for the value of the stock of housing mortgages outstanding from non-institutional sources. Undoubtedly the value is considerable, and it may well exceed the total of mortgages outstanding from the savings banks and building societies.

ROLE OF LOCAL AUTHORITIES—The housing policy of the Government includes the provision of loans to local authorities through the Housing Corporation for pensioner, rural, and community housing, including urban renewal.

Housing of the Elderly—Since 1951 Government has encouraged local authorities to meet the housing needs of elderly persons 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 one-sixth of the income from the appropriate basic Social Welfare Benefit the tenant or tenants concerned are entitled to receive for single and double units respectively.

The policy is administered by the Housing Corporation, which establishes the need for pensioner accommodation in a particular locality, provides technical services, and administers the loan and subsidy. The subsidy offered is up to 100 percent of the total cost of the units, including land and land development, less the amount of loan which remains at a maximum of $3,500 per unit.

The amount of subsidy approved in 1974-75 was $4,850,000 to provide housing for 660 persons. Since the inception of the policy in 1951, subsidy assistance has totalled $27,433,686 for the accommodation of 8,976 persons.

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 Housing Corporation is responsible for the supervision and general administration of the Act. Persons receiving loans (1,003 in 1974-75) are principally owners of economic farms.

Community Housing—The Housing Corporation has authority to grant loans for general housing purposes, i.e., for the benefit of the community in general. 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 a significant part of the city council's building programme has been financed from this source). The emphasis is on moderate-cost accommodation.

Urban renewal is also financed by the Housing Corporation. The area concerned must first be declared a reclamation area or a comprehensive urban renewal area; any loss on land purchase and demolition is eligible for a Government subsidy. The Freeman's Bay scheme in Auckland and the Nairn Street project in Wellington are examples.

Since 1970 over $27.5 million has been authorised for community housing and urban renewal schemes.

Provision has been made by the Government for an annual amount of $7 million for local authority urban renewal projects and residential land purchase and development. This recognises the need to curb urban sprawl and to bring more people into inner city areas, close to employment, health services, and other amenities.

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 Housing 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 Maori 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 Housing Corporation. Where the applicant does not qualify for special interest concessions the finance is made available at an interest rate of 5 5/8 percent.

All applications for State tenancies are dealt with by the Housing Corporation, although assistance with applications is often given by the department's staff.

From the inception of the scheme to 31 March 1975, the department has provided finance to enable 17,272 families to build new houses and 1,239 to purchase existing houses. Also, 8,511 advances have been made for additions and repairs to houses and other buildings.

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.

Flats for elderly Maoris have also been provided in semi-rural areas in close association with local marae.

WELFARE ORGANISATIONS: 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 November 1973, the subsidy has been 80 percent, with a limit of $5,000 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.

Since the policy commenced, subsidies totalling $1,964,095 had been approved up to 31 March 1975, to assist in providing hostel accommodation for 1,484 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.

CORPORATION RENTAL HOUSE CONSTRUCTION—State rental houses and flats (now known as Corporation rental houses and fiats) have been built since March 1937. These are allocated to tenants on the basis of need. Since 1950 there has been an income limit on applicants for tenancies for these dwellings. In 1973 the income limit was removed and a points system of priorities substituted.

The Housing Corporation acquires and develops land to provide sites for houses and flats and arranges contracts for their construction. A new scheme introduced during 1974-75 was the "design-and-build" operation, whereby the Housing Corporation arranges contracts with private builders or organisations for the construction of houses on land owned by the builders or organisations. The scheme provides for the construction of the houses and the purchase of the land within the one contract, and has proved a successful means of achieving integration of rental accommodation in privately-owned and developed subdivisions. These activities are covered by the Housing Act 1955.

The totals of rental units completed and handed over for occupation in the latest 11 years are shown in the following table. Up to 31 March 1975 there were 77,231 units completed.

YearRental Unite
1963-641,562
1964-651,622
1965-661,334
1966-671,469
1967-681,489
1968-691,534
1969-701,241
1970-711,194
1971-72661
1972-73765
1973-74650
1974-751,463

Planning of New Urban Areas—With a continuing high level of demand for State development in the main centres, it has been necessary to acquire significant areas of land which, when developed, have resulted in the creation of large new communities. 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.

Recently, large scale purchases of undeveloped land have also been made at a number of provincial centres, and developments have been planned for areas near Hamilton, Gisborne, and at Paraparaumu. In addition, schemes are underway at Invercargill and Nelson and major urban expansion is either being planned or undertaken at centres such as Napier, Palmerston North, New Plymouth, Masterton, and Dunedin. In planning these areas, and in State developments generally, it is recognised that there is a 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 design 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.

Further substantial areas of land have been acquired in Auckland for future development and in this and other major developments, departmental officers and local authority staff are working together in an attempt to obtain a high standard of land development.

Recognising the need for social diversification in Corporation developed areas it is now policy to make 50 percent of the sections available for sale to the public for private housing.

State Services Housing—State Services houses are houses for Government departments and the armed forces. The total number of such houses erected by the Housing Corporation to 31 March 1975 was 14,192. This includes houses built at the sites of major construction jobs, such as electric power schemes.

Finance—The cost of the Corporation housing programme, including the acquisition and development of land, is financed from the Housing Corporation vote, i.e., out of national development loan moneys.

The following table shows the annual expenditure from the Housing Construction (later, Housing Corporation) vote.

Year Ended 31 MarchCorporation HousingState ServicesLand Purchase and DevelopmentAdministration and GeneralTotal
   $(000)  
196510,1021223,3521,88615,462
19669,3941363,2921,86414,686
196711,2341242,7841,89816,040
196810,8651232,7691,92215,680
19699,849893,2921,89015,120
197010,2761343,2642,03615,710
19718,803-2,3952,10413,302
19726,551-2,4351,99810,984
19737,903-2,5272,49512,925
19748,999-9,0282,68320,710
197543,380-23,2544,84171,475

The next table shows the annual total expenditure by the Housing Corporation on house construction in the latest 6 years.

YearVoteOn Behalf of Other Departments (Charged Direct)Total
Construction Land Purchase and Development, AdministrationOn Behalf Of Other Departments*Total

*Expenditure on behalf of other departments charged meantime to vote, "Housing Construction".

   $(000)  
1969-7015,57613415,7103,59219,302
1970-7113,302-13,3023,89917,201
1971-7210,984-10,9842,96413,948
1972-7312,925-12,9254,25617,181
1973-7420,710-20,7104,72425,434
1974-7571,475-71,4757,22278,697

Room Content of Units (Corporation 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. Houses constructed under the "design-and-build" scheme are not included.

Number of Bedrooms1973-741974-75Totals to Date
Number of UnitsPercentage of TotalNumber of UnitsPercentage of TotalNumber of UnitsPercentage of Total
One bedroom or bed-sitting room575.8433.04,9905.5
Two bedrooms646.5937.025,69028.2
Three bedrooms72673.21,04678.052,76858.0
Four or more bedrooms14414.516012.07,5688.3
Totals991100.01,342100.091,016100.0

Sheathing Materials Used (Corporation 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.

Materials1973-741974-75Totals to Date
Weatherboards24535250,498
Brick veneer17526015,870
Concrete block veneer2732697,262
Other sheathing including asbestos cement products29846118,377
Totals9911,34292,007

Land Acquisition and Development—During 1974-75 a total of 624 developed unit sites were purchased as a charge against the Housing Corporation vote, also 1,622 hectares of undeveloped land estimated ultimately to yield 14,727 unit sites. In the same period, 1,570 fully-serviced house unit sites were developed on land already held. Land acquisition was stepped up in 1973, 1974, and 1975.

Corporation Rental Housing Tender Prices—The following table shows typical tender prices being accepted in the 4 main centres at the end of the latest 11 financial years for similar types of 3-bedroom corporation 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 metre (1 square metre = 10.764 square ft).

YearAucklandWellingtonChristchurchDunedin
$$$$$$$$

*The 1973-74 and 1974-75 prices include the cost of carports not built in the previous years.

1964-656,726(69.00)6,888(70.61)6,104(62.54)6,632(68.03)
1965-666,942(71.15)7,178(73.52)6,434(65.88)6,758(69.10)
1966-676,894(70.83)7,372(75.67)6,488(66.63)6,990(71.80)
1967-686,366(65.23)6,830(69.97)6,273(64.26)6,586(67.49)
1968-696,753(69.21)7,264(74.49)6,669(68.35)7,124(72.98)
1969-707,184(74.63)7,675(78.58)6,759(69.21)7,661(78.47)
1970-718,304(85.04)8,603(88.16)7,566(77.50)8,836(90.53)
1971-7210,021(102.69)10,613(108.82)8,698(84.13)10,236(104.84)
1972-7311,185(114.64)12,000(122.92)10,530(107.96)11,825(121.20)
1973-74*14,146(144.99)15,250(156.29)14,057(144.02)15,091(154.79)
1974-75*17,987(184.32)19,081(195.51)17,415(178.40)18,658(191.21)

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 $10,000. Further, on the death of one of the spouses there is an exemption 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 12 years are shown in the following table.

Year Ended 31 MarchHomes Settled
196413,056
196513,224
196614,149
196712,738
196813,278
196914,040
197014,545
197116,118
197215,232
197316,925
197420,710
197525,402

CENSUS INFORMATION: Nature of Dwelling—The following table shows the nature of dwellings at the censuses at 1966 and 1971. home provisional Figures from the 1976 Census are included in the Latest Statistical Information section.

Nature of DwellingNumbersPercentage of Total Inhabited Dwellings
1966197119661971
Inhabited dwellings—    
Permanent private dwellings—    
Private house626,580682,00386.584.2x
Private house, partly sublet1,1625,2340.20.6
Flat74,999105,45910.413.0
Dwellings combined with shop, rooms attached to offices, etc.5,8204,7360.80.6
Bach7,4844,1731.00.5
Other5981--
Totals716,104801,68698.8x99.0
Mobile and temporary dwellings—    
Mobile residence (including caravans)1,0359940.10.1
Other (including tents)13475--
Totals1,1691,0690.2x0.1
Non-private dwellings—    
Hotel, boardinghouse, apartment house, hostel5,3173,9760.70.5
Public or private hospital5337400.10.1
Educational institution209384--x
Other1,1121,9820.20.2
Totals7,1717,0821.00.9
Grand totals, inhabited dwellings724,444809,837x100.0100.0
Uninhabited dwellings—    
Occupants temporarily away14,97918,116....
Untenanted dwelling26,27226,184....
Holiday residence29,53432,446....
Totals70,78576,746....
Building—    
Dwellings in course of erection10,6679,182....

In 1971 the average number of occupants per permanent private dwelling was 3.38, compared with 3.52, 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.

Tenure of Dwelling—The following table classifies the inhabited permanent private dwellings according to tenure.

Tenure19661971
Permanent Private DwellingsPercent of Total SpecifiedPermanent Private DwellingsPercent of Total Specified
Renting or leasing177,42924.9206,46525.9
Free dwelling provided with job35,3875.034,6834.4
Loaned without payment7,9191.113,1711.7
Owned with table mortgage213,80730.0247,58231.1
Owned with flat mortgage80,88511.382,15110.3
Unspecified mortgage226-....
Owned without mortgage197,08527.7212,37426.7
Not specified3,366..5,260..
Totals716,104100.0801,686100.0

In the following table the tenure of inhabited permanent private dwellings in 1971 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.

Employer5,0743,22932,41715,44856,686
Worker on own account6,3854,69930,09515,54957,231
Wage or salary earner154,71632,246236,53575,348501,009
Unemployed1,5041699036793,291
Assisting relative713131548
Not specified3023913873648
Totals, actively engaged167,98840,395300,101107,112618,913
Retired11,9543,18012,31460,76889,169
Full-time student3,0751303471583,731
Housewife21,9793,91815,94242,71185,477
Other1,4692311,0291,6254,396
Totals, not actively engaged38,4777,45929,632105,262182,773
Total heads206,46547,854329,733212,374801,686

Amenities of Dwellings—The following tables present the various amenities, as at the 1971 Census, which were used by the occupants of permanent private dwellings.

AmenityHouseholds Not SharedPercentage Not SharedHouseholds SharedPercentage Shared
Flush toilet776,23096.92,4110.3
Television set678,41484.7383-
Telephone685,27885.62,0280.3
Washing machine725,61890.68,0701.0
Refrigerator771,97996.45600.1
Deep freezer345,92343.2227-
Motor mower518,90064.82,2500.3
Clothes dryer215,11326.91,1800.1
Means of CookingHouseholdsPercentage
Electric694,06886.6
Gas, including rock gas66,6628.3
Wood, coke, coal38,6244.8
Other (including combination)1,1220.1x
No means253..
Not specified9570.1
Totals801,686100.0
Principal Means of HeatingHouseholdsPercentage
Electricity338,14242.2
Oil44,5485.6
Wood, coke, coal401,06550.0
Gas, including rock gas11,4211.4
Other7810.1
Not specified5,790.7
Totals801,686100.0
Type of Hot Water ServiceHouseholdsPercentage
Electric717,20289.5
Gas21,7022.7
Other55,853x7.0
No hot water service4,0000.5
Not specified2,9290.4x
Totals801,686100.0
Type of Water SupplyHouseholdsPercentage
Piped public or private supply742,96192.7
Rainwater tanks58,237x7.3
No water laid on417x0.1x
Not specified71-
Totals801,686100.0

New questions asked at the 1971 Population Census revealed that 79 percent of households (634,233x) had motorcars available for use (24 percent (192,774) with two or more cars), while nearly 10 percent (77,529) owned or had an interest in pleasure boats, and 4 percent (35,581) owned or had an interest in a holiday residence.

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
1956196119661971
Wood411,370431,318455,213454,266
Stone1,1212,4568,9101,540
Concrete, including concrete blocks17,86922,51028,34732,832
Concrete and wood1,0872,0393,0937,621
Brick, including hollow brick47,42065,17194,100123,766
Brick and wood3,3326,1578,81815,438
Brick and other material3,455x7,065x6,297x16,670
Wood and iron3,7213,3142,5076,651
Iron3,8623,0832,5542,711
Proprietary wallboards of asbestos type28,862x50,955x56,025x47,976
Roughcast28,445x25,958x37,283x66,784
Other materials5,135x12,90311,172x24,553
Not specified7,3737781,785878
Totals563,052633,707716,104x801,686

Houses and flats with outer walls constructed of concrete, brick, and roughcast increased both in number and as a percentage of the total between 1966 and 1971, thus continuing the post-war trend.

Materials for Roofs—Most dwellings (70.8 percent) in 1971 were roofed with sheet or corrugated iron.

Tiles of clay, concrete, or asbestos roofed 23.0 percent of dwellings, and an additional 1.5 percent had roofs of metal-based, bituminous-coated tiles. Asbestos sheet, flat or corrugated, roofed 2.6 percent, and flat or corrugated aluminium sheet roofed just under 1 percent.

Easily the most popular type of house construction in New Zealand featured wooden walls and a roof covered with galvanised iron. This description applied to 355,061 (45.4 percent) of the 801,686 inhabited permanent private dwellings enumerated at the 1971 Census of Population.

Numbers of Rooms and Occupants—The following table classifies inhabited permanent private dwellings in 1971 according to the number of rooms and the number of occupants.

Number of RoomsNumber of Occupants
12345678 and OverTotal DwellingsAverage Per Dwelling
15,08075617980288826,1411.26
213,4479,0442,141922331147614926,1421.72
320,41025,06810,1125,9232,8701,58086199167,8152.41
431,29456,64627,23620,48510,2824,8202,2232,519155,5052.75
525,94772,66254,50368,44248,14123,8379,2527,256310,0403.62
69,82129,80323,68828,73923,14314,0937,0286,686143,0013.95
72,5208,4047,6199,6358,7425,6472,7472,45347,7674.18
87792,8172,6233,4563,2552,2511,0991,03517,3154.32
92729279651,1751,1537914744156,1724.42
101364333954754353581951862,6134.39
11 and over963162923003072281361401,8154.40
Not specified3,4874,6782,5152,3241,7671,09264685117,3603.30
Totals113,289211,554132,268141,956100,45454,85224,73022,583801,6863.38

Of the total number of dwellings (where number of rooms was specified) 608,546, or 77.6 percent had either 4, 5 or 6 rooms and of these 382,204 were occupied by either 2, 3 or 4 persons.

The number of dwellings with only 1 occupant increased from 89,384 in 1966 to 113,289 in 1971 a rise of 26.7 percent; those living alone in dwellings of 3 rooms rose from 14,828 to 20,410; those in 4 rooms from 24,996 to 31,294; and those in 5 rooms from 21,399 to 25,947.

TENANCY—Under the Rent Appeal Act 1973 administered by the Department of Labour, rent appeal boards have been appointed to determine on application by either a landlord or tenant the equitable rent for dwellinghouses. The amounts to be paid for rent in advance and as a bond are limited by the Act. The Tenancy Act 1955 governs rents and conditions of possession of certain private tenancies in existence before 18 November 1961. All private tenancies 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. It is estimated that 8,800 tenancies are protected by this Act.

Chapter 21. Section 20 ENERGY

20 A—ENERGY DEMAND AND SUPPLY

SOURCES OF ENERGY—The main source of the energy we now use is the sun. Radiation energy (sunlight) falling on the earth is absorbed by it and mostly re-radiated out into space. The fraction of this energy retained is absorbed by vegetation and converted by photosynthesis into chemical energy which is essential for the life process. Most of the residues from the life process are oxidised by the atmosphere and lose their accessible chemical energy storage ability but some, by movement of the earth's crust causing the exclusion of oxygen and the passage of millions of years, resulted in the formation of the hydrocarbon fuels of coal, oil, and natural gas. Such chemical fuels are clearly finite in extent and the marginal cost of finding and extracting them increases as the supplies are less readily available. The existence of the hydrocarbon fuels has been known to man for thousands of years but it is only in the last hundred years or so that the technology has become available to extract and use the energy usefully and cheaply, particularly in the internal combustion engine, thus stimulating the demand for energy.

The second source we identify as originating in the "mechanics" of the world—tide, wind, and water power. Each of these sources requires a rather restrictive set of physical conditions for extracting useful amounts of energy and is highly capital intensive, so that although operating costs are low, the resource requirements for construction are high and the physical limitations of siting, etc., limit the amount of energy we can expect from this source.

The third source originates from the internal heat of the earth—a residue of its formation. In theory, this source of geothermal power is available all over the world but in practice exploitation has been limited to a few natural sites where the earth's crust is particularly thin thus reducing the capital cost of extraction very significantly.

The fourth source arises from the structure of matter itself. The "cement" of the atomic nucleus is energy and the rebuilding of the nucleus can be made to provide a surplus of energy. The nucleus of the heavy element uranium can readily be restructured in this way by the fission process. Restructuring the other way by building heavier elements is possible using deuterium in the fusion process. Supplies of deuterium in the world are found in sea water and are therefore virtually boundless in extent; however, large amounts of energy are required to release energy in fusion and the technology is not yet available to do it, even on a laboratory scale.

Of our main present-day primary fuels only hydro-electricity and geothermal power are renewed year by year; their use will continue to expand but they cannot alone be expected to meet the increasing demand of home and industry.

Nobody can say with any certainty what is the total quantity of any of the fossil fuels in the ground; further discoveries are being made all the time and further information becomes available about deposits already known to exist. But there is now a belief that oil and natural gas reserves may not last very long if demand continues to grow as it has been doing. Until 3 or 4 years ago most experts believed (or acted as though they believed) that oil supplies would last for as far ahead as it was necessary to worry about, and prices were low relative to the potential value of the product. But now there has been a great swing of opinion. An increasing number of producing countries are adopting conservationist policies and most countries are tending to raise their prices.*

The annual consumption of energy over the next 10 years will be unprecedented in New Zealand's history. The demand for electricity alone can be taken as an example. In the 1975 report of the Committee to Review Power Requirements it is estimated that electricity generation will have to grow from more than 18,300 GW hours in 1974-75 to nearly 39,800 GW hours by 1984-85—more than double. Peak power demand over the same period will also more than double, from just over 3,500 MW to nearly 7,900 MW.

*Hutber and Forster in Resources and Population, Academic Press, 1973.

The estimated capital expenditure on the generating plant necessary to achieve this output totals $2,134 million spent over the next 10 years. This estimate was made in the 1975 report of the Planning Committee on Electrical Power Development. To the figures for electrical energy must be added the requirements for other forms of energy and the cost of producing them. There are estimates for the next 10 years, which is a relatively short period. A continual review is being made so that a rolling plan can be formulated. Already planners are looking in detail at subsequent years, and giving general consideration to the demand and supply of energy to the end of the century. An immense increase in the demand for energy of all types is being experienced in all developed countries and is causing everyone to reconsider the question of available resources and how they can best be used to meet the demand. Advanced technology is enabling mankind to utilise energy that was unobtainable as recently as 10 years ago.

There are two reasons for reviewing energy resources on a continuous basis. First, our traditional source of energy is limited, but we are discovering new sources, and so the supply scene is changing. Secondly, the cost of producing and supplying energy from various sources changes, as do consumer preferences. The second point can be best illustrated by looking at our own experience in New Zealand over the last 30 or 40 years. Prior to the Second World War coal provided most of the energy required for domestic and industrial use. Oil was mainly used in the transportation field or for lubrication, the major role of electricity was for lighting, and manufactured gas was largely used as a cheap form of energy for heating and cooking. What has happened in recent years is that the fuels with a high labour content in the cost of supply have moved up in price, whereas those with a low labour content have moved down, and this has steadily improved their competitive position. As a consequence, coal has lost its dominant position. In 1950 coal still held 50 percent of the New Zealand market, but by 1974 its share had dropped to 16 percent. Oil has increased from 38 percent to 58 percent in the same period and electricity has more than doubled its share from 10 percent to 23 percent. In 1974 the total of manufactured and natural gases accounted for about 3 percent of the market.

Looking ahead to about 1981, the ratios for consumer energy in New Zealand are expected to be: coal, about 14 percent; oil 49 percent; electricity, 29 percent; and natural gas, 7 percent, with manufactured gas an additional 1 percent. It is interesting to note that although gas supplies only about 8 percent of the market, this represents a more than twofold increase on present consumption. But more than the ratios will change; our demand for energy will also increase rapidly. Countries such as ours are relatively large users of energy, and the experience of the United Kingdom, the United States, and other developed countries indicates that as gross national product increases so does the per capita consumption of energy. The estimated annual increase in consumption, averaged over the next 10 years, is about 3.5 percent for oil and an even higher rate for electricity. In practical terms, by 1975 the annual increase in demand for electricity had reached about 350 MW. By 1985, just 10 years later, it could be round about 550 MW, which is almost equal to an additional Benmore power station each year.

At present the installed hydro system totals about 3,500MW and another 1,400 MW is expected to be installed in the next 10 years. There is some potential in geothermal fields and investigations are under way to assess these.

Fossil fuels will need to be used to a greater extent for electricity generation in the future. Our hydro resources in the North Island are almost fully exploited apart from the station on the Motu River and some potential on some other rivers, although this is not very great. In the South Island there is still potential in the Clutha River, but this, apart from the Upper Waitaki, which is now being developed, is about the only remaining hydro power of significance.

Large reserves of natural gas have been discovered at Kapuni and are presently being distributed to nine North Island gas undertakings as a premium fuel. Another gas field, the Maui field, more than 10 times the size of the Kapuni field, has been discovered off the Taranaki coast, and is now under development (see Minerals section). An oil refinery at Marsden Point near Whangarei was opened in 1964.

Nuclear power must be considered as a source of energy in the future, although the decision to develop the Maui natural gas field has delayed this prospect. Natural gas will be available from the Maui field from late 1978; at present approximately 75 percent of total natural gas reserves, less gas field condensate, is tentatively committed to electricity generation.

Methods for the direct conversion of solar energy to useful heat or electricity are now being actively developed but their widespread use is presently hindered by the high cost of equipment.

Changes in social attitudes and a heightened interest in protecting our environment have far-reaching implications in the production, supply, and use of energy.

During the 120 years in which coal has been mined in New Zealand it has had varying fortunes as an energy resource. Between the 1850s and the 1940s coal grew to be the most widely used source of energy in the country, accounting for more than 50 percent of the primary energy market and included the railways, many gasworks, and a large share of industrial and domestic energy users amongst its customers.

In the last 30 years, however, coal has declined in importance as an energy source to the point where it now accounts for 18 percent of the primary energy market.

Despite periods of heavy demand coal's proportionate contribution to New Zealand's primary energy needs has been declining for over 50 years, as the following table on the shares of primary energy shows.

Primary Energy192419341944195419641974x
 percent
Coal937266473518
Hydro electricity147101516
Petroleum62427425062
Natural gas-----4
Totals100100100100100100

Technological change, consumer preference for cleaner and more convenient fuels, and the relative prices of different energy forms have all played their part in turning consumers away from coal to electricity, oil, and, in recent years, natural gas.

Until 1973 there seemed to be no difficulty in meeting the incremental demand for energy from a mixture of hydro electricity and the fossil fuels of oil and natural gas and New Zealand had been moving into a position of increasing dependence on an imported fuel.

Earlier misgivings over the future of oil were fully substantiated in October 1973 when members of the Organisation of Arab Petroleum Exporting Countries announced that they were going to reduce production.

This whole exercise illustrated quite dramatically that oil was no longer a reliable form of energy in terms of supply.

At the same time it has become more expensive. On 1 January 1976, the members of the Organisation of Petroleum Exporting Countries (OPEC) increased the posted price for Arabian light crude from US$11.65 per barrel to US$12.38. At the beginning of 1973 it had been US$2.59 per barrel.

Some industries may choose to remain on oil despite price increases, simply because very often expenditure on energy is a relatively small part of the total cost of production and even a large increase does not significantly affect overall costs. Where the energy input is large, increased costs are often passed on to the consumer in the form of higher prices.

ASSESSING DEMAND—The continuance of a reliable supply of energy at a reasonable cost is essential to both the economic growth of this country and the enjoyment of a higher standard of living. If the supply were to fall short of the demand, even for brief periods, the disruptions caused to both domestic and non-domestic users would be strongly resented. In the non-domestic field these would involve considerable economic waste.

Developed countries seem to need about a 0.8 to 0.9 percent growth in energy for each 1 percent increase in gross national product—the rate which New Zealand has maintained since the Second World War with short-term variations.

Energy consumption in New Zealand has been rising fairly steadily since 1951 by about 3.7 percent a year.

Comparative statistics on per-head consumption by geographical areas in 1971 are shown n the following table.

Geographical AreaEnergy Consumption Per Head
 kWh
New Zealand22,600
Australia43,600
North America88,500
Developing countries2,800
World15,400

New Zealand has an abnormally low ratio of energy consumption to gross national product, which reflects the agricultural basis of the economy. More rapid industrial development would accelerate energy consumption per head. Apart from the aluminium and steel smelters, the manufacturing industries are not heavy consumers of electricity. In fact, consumption is mainly concentrated in only four areas—food processing, pulp and paper, cement, and fertiliser manufacture.

During the 1973 production year these industries spent 84 percent of the total manufacturing industries' expenditure on coal, 50 percent of fuel oil expenditure, 31 percent of the cost of coke and gas, and 42 percent of electricity expenditure. (The net output of these same industries was valued at 20 percent of the total.)

About 44 percent of electricity generated is used domestically, which is a reflection of the country's high standard of living combined with relatively low industrialisation.

The following table sets out energy supply and demand for the 1974 calendar year.

ItemSolidOilGasElectricityTotal

*Kapuni condensate.

†The energy used by the energy producing industries and the energy losses in producing, refining, and transporting fuels. Included here is oil refineries' own use and losses, natural gas production, treatment, transport (compressor fuel) and distribution losses, and all electricity transmission losses. It does not include the losses incurred in transforming fuels such as in gas manufacture or thermal electricity generation.

‡Estimated.

 (000 Terajoules)
Supply     
  Indigenous primary61.27.9*14.155.4138.6
  Imports0.2200.4--200.6
  Secondary production2.51.12.010.315.9
  Gross supply63.9209.416.165.7355.1
Deductions     
  Exports0.2---0.2
  International transport use-20.9--20.9
  Use in electricity generation19.017.02.6-38.6
  Use in synthetic fuel production (gasworks)4.20.6--4.8
  Consumption by energy sector and losses0.18.94.97.721.6
  Non-energy use (bitumen)-5.0--5.0
  Increase in stocks-0.47.2--6.8
Total deductions23.159.67.57.797.9
  Net supply40.8149.88.658.0257.2
Demand     
  Industry25.538.56.123.893.9
  Transport-93.1-0.193.2
  Commercial6.415.91.18.331.7
  Domestic8.92.31.425.838.4
Total usage40.8149.88.658.0257.2

It seems that the demand for energy tends to be unresponsive to price changes; that substitution between the various forms of energy is limited largely to heating and is further limited by the cost of equipment required by the user; that waste of energy where it exists would be difficult to eliminate except possibly by the insulation of houses; that the scope for reducing or "ironing out" peak loads at particular times of the day or particular seasons is limited.

The large increases in crude oil prices announced by the producing countries in recent years have resulted in substantial changes in the future prospects for the use of all fuels. Preliminary revised assessments forecast the likely usage in primary energy terms as follows:

Source19741980-811985-86
 Joules x 1015
Oil208218223
Coal6175104
Primary electricity557991
Natural gas1498187
Totals338470605

ENERGY USES—The following table gives a summary of uses of oil. (Usage of electricity, coal and gas is discussed in the respective subject matter sections.) The transport sector uses about 46 percent of the oil, i.e. 28 percent of total energy consumption.

Agency1974

*Percentage of total oil consumption.

 Percent*
Motor vehicles42.0
Aircraft (internal)2.9
International transport10.4
Electricity generation8.4
Other users36.3

Electricity and gas supply are discussed in succeeding sub-sections, while coal and natural gas are dealt with in Section 17—Minerals. The oil refinery statistics are covered in Section 18—Manufacturing and statistics of imports of oil and petrol are given in Section 22.

The market shares of the various energy resources for 1974 were as follows:

SourceIndustry and CommerceTransportHouseholdsThermal Electricity Generation
 Percent
Oil43.399.96.044.0
Coal25.4-23.249.2
Gas (natural or manufactured)5.7-3.66.8
Electricity25.60.167.2-
Totals100.0100.0100.0100.0

The proportion of thermal electricity generation based on oil will fall after 1974-75 as both coal and natural gas are used more extensively by power stations. By 1982 these inputs are planned to provide over 80 percent of thermal electricity generation.

A report of May 1974 by the Monetary and Economic Council included a survey of energy supplies and of energy pricing.

Substantial increases in prices of oil products took place during 1974 and 1975. A 60-percent increase in bulk electricity charges was announced to take effect from 1 April 1976. The consequential rise in vital electricity tariffs, including provision for electrical supply authorities to recover increases in their costs, was on average 45 percent.

Coal prices increased by about 20 percent during 1975.

EXPENDITURE PATTERN—Consumer expenditure on various forms of energy in New Zealand during 1975 is estimated to have been $989 million. Of the total expenditure about 25 percent was spent on electricity, about 72 percent on oil products, 1.5 percent on coal, and 1.5 percent on gas. During 1974 about $213 million was spent in new capital formation, about 89 percent for electricity. If present trends continue, an increasing demand will be made on resources of money, manpower, and materials to satisfy the market for electricity.

Petroleum products—Petrol accounts for about 40 percent of New Zealand's total consumption of petroleum products. In the year ended December 1974, New Zealand used a total of 5,349 million litres of petroleum products. The following table shows the proportions of this total by the various products and the total in millions of litres in each case.

Productlitres (million)Percentage
Aviation gasoline53.41.0
Aviation turbine fuel247.84.6
Motor gasoline (petrol)2,199.841.2
Light distillate fuel (gasworks naphtha)18.60.3
Kerosene58.21.1
Automotive gas oil1,043.519.5
Marine diesel fuel45.90.9
Fuel oils1,401.726.2
Lubricants85.31.6
Bitumen123.52.3
Chemical and other petroleum products71.11.3
Totals5,348.6100.0

Nearly all of New Zealand's petroleum supplies are derived either directly (at the Marsden Point refinery) or indirectly (at overseas refineries) from Middle East crude oil, with 83 percent coming from Kuwait in 1973. Locally refined production catered for about three-quarters of the demand in 1974. Most of the aviation fuel comes from Australia, and other lubricants, kerosene, chemicals, and detergents are imported from the Middle East, Australia, and Singapore.

About 41 percent of the Marsden Point refinery's annual output is petrol, 21 percent is diesel, 35 percent light and heavy fuel oils, and 3 percent is bitumen.

MINISTRY OF ENERGY RESOURCES—A Ministry of Energy Resources was provided for by legislation in 1972. It is the function of the ministry to advise the Government on policies that will ensure the effective and efficient production, supply, and use of all forms of energy in New Zealand, bearing in mind the need to conserve resources. The Ministry of Energy Resources advises the Government on an overall energy policy and also provides an independent view on proposals concerning the production, supply, and use of energy in all its forms in both the public and the private sectors.

One of the difficulties in policy-making in the energy sector has been the lack of information relating to it. The Fuel and Power Committee of the National Development Conference pointed out, for example, that there was a lack of information on consumer preference and on consumer demand characteristics, and so the ministry is charged with developing and maintaining a coordinated information service on the production, supply, distribution, and use of energy. The Energy Resources Commission, which was set up as an interim body prior to the establishment of the ministry, began work on the development of a matrix on energy supply and use in New Zealand. The gaps in statistics have been pinpointed and work is going ahead to fill in these gaps. The administration of the Gas Council has been transferred from the New Zealand Electricity Department to the Ministry.

The role of the Ministry of Energy Resources lies in its advisory capacity to the Government. While the ministry does not have the power to decide what shall be conserved and what used, it does have the role of analysing all courses of action available and presenting the costs, economic, social, and environmental of each alternative. Conservation does not mean just conservation of the environment of physical resources such as coal or gas, but includes technical and monetary resources. It is well recognised that, in order to make a sound decision on which of several alternatives to follow, an assessment is necessary of the cost of each of these. Only then is it practical to weigh up the relative merit of various proposals.

While the community demands increasing amounts of energy it is not always happy about the various adverse effects, whether in the end use of the fuel or in the production of it—for example coal fires for domestic use or the construction of thermal power stations near cities. The growth of the energy industry is inextricably tied up with the desire for higher standards of living.

Any material benefits cause natural disturbances to some degree or other and it is necessary to strike a balance between the benefits and any adverse consequences. Hydro sites are now limited and the best involve quite drastic changes in the areas nearby. Supplies of fossil fuels are not everlasting and concern is expressed in some quarters at the nuclear alternative.

In recent years the growing world wide concern about the wasteful use of natural resources, including energy resources, as well as the realisation that oil can no longer be regarded as a cheap and abundant source of energy, has led to measures designed to encourage the conservation and economic use of energy rather than the furtherance of its unlimited and unrestricted use by affluent societies.

20 B—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. Hydro energy provides over 80 percent of the national electricity supply with 8 percent coming from geothermal energy and the balance from fossil fuels—coal, oil, and natural gas.

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 has been built at New Plymouth to use as fuel either natural gas or oil, and a large gas and coal-fired station is being built at Huntly.

An oil-fired steam station has operated since 1967 at Marsden, near Whangarei. and gas turbines have been generating at Otahuhu since mid-1968. Until the use of nuclear power about 1990, most future North Island stations will be steam stations using natural gas, oil, and coal. Because of the effect on the environment by way of air pollution and the transfer of heat to natural waters used to cool the condensers, environmental impact reports are required for projected schemes.

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 183 m head between Manapouri and the sea. Intakes at the West Arm of Manapouri lead the water into vertical penstocks to the turbines 213 m underground and it is discharged into Deep Cove at Doubtful Sound through a tunnel almost 10 kilometres in length.

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 installed capacity 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 the now-completed lake control works at Te Anau and Manapouri.

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 178 m above sea level to an operating level of 185-190 m while the minimum lake level was set at 175.4 m. 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. The dam at Mararoa to control Lake Manapouri has been built on a narrow base to control the lake within a normal range of levels. Lake Te Anau which feeds Lake Manapouri through the Upper Waiau River is controlled at natural levels between 199 m and 202 m by a dam near its outlet.

The purpose, planning, and the development of the Manapouri project were 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, 64 km 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 kilometres 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 102, 152, and 203 mm in diameter have been drilled to depths varying between 174 m and 1220 m.

Marsden power station was commissioned in 1967 using oil from the nearby refinery, and at Otahuhu gas turbines went into service in 1968.

The 600 MW thermal station at New Plymouth produced its first electricity in 1974 and was scheduled to attain its full capacity early in 1976. Until the Maui natural gas wells off the coast of Taranaki begin production in 1978, the energy source will be Kapuni natural gas, supplemented by some oil-firing. A chimney 193 m high has been built to disperse the hot exhaust gases.

Construction Projects:Hydro—A catchment area of nearly 260,000 hectares 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. A 6100 m tunnel connects Lake Rotoaira with the power house at Tokaanu. When the whole project is completed by 1977 it will increase the capacity of the 8 existing power stations on the Waikato River by about 18 percent. Also included in the scheme is a 200 MW power station at Tokaanu. The total output from the development will be equivalent to one-third of the present output from the Waikato stations.

Late in 1973 approval was given for the construction of the 120 MW Rangipo power station to develop the "head" in the Tongariro River between the Moawhango Tunnel outfall and the Poutu intake; this extension of the Tongariro scheme provides continuity for the work force built up at Turangi.

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 began with the construction of a township at Twizel, and on the Tekapo B project, which should be completed by late 1976. Work is underway on the Ohau A power station, which is scheduled for completion in 1977. The Government has also given approval for Ohau B and C stations, and work has started on both these.

Thermal—Agreement was reached late in 1973 between the oil consortium and the Government on the development of the Maui off-shore natural gas field. The first stage to be completed in 1978 involves the installation of a platform structure at the Maui 3 location and the laying off-shore of a 610-mm diameter gas pipeline and a 254-mm diameter condensate pipeline. Part of the natural gas delivery of 17 million cubic metres a day will be used to feed four thermal power stations, one of them being the New Plymouth station.

One natural-gas-fired power station of 1,400 MW is proposed in the Auckland area and a second of 1,050 MW south of Auckland. A 1,000 MW station is being built at Huntly, the first unit (250 MW) of which is scheduled to be commissioned in April 1978. Investigations by the Mines Department over the years have confirmed the existence of a large underground coal-field sufficient to provide fuel for such a station, but natural gas from the Maui field is to be used for one or more of the generating units.

Construction is underway on a 220 MW gas turbine station at Stratford and another of 220 MW at Whirinaki, near Napier. Stratford will burn gas and came into operation in late 1975. Whirinaki, to be operational in 1976, will burn oil. Approval was given in November 1972 for a further 2 generating units of 50 MW to be added to Otahuhu gas turbine station. These are designed to run on distillate oil and will come into operation about April 1976. Construction of an oil-fired intermediate load station, Marsden B station, was approved on 30 July 1974 and first power is scheduled for April 1978.

The guaranteed market for gas for electricity generation has made the development of the Maui field, with the recovery of the associated valuable condensate, an economically viable proposition. This guaranteed gas demand involves a progressive increase in annual consumption until a maximum level is reached in the mid 1980s. At this level, about 17,600 GWh of electricity could be produced annually from gas-fired power station plant of 3,300 MW capacity. This capacity would, of course, be reduced by the extent to which gas is diverted for other uses, but the annual consumption rates set out in the Maui Gas Purchase Contract are expected to be maintained. Some idea of the magnitude of this output can be gauged from the fact that these figures are roughly equivalent to electrical energy consumption and peak demand for the whole of New Zealand for the 1972-73 year.

The conclusion of this long-term fuel contract of 30 years' duration will fix the pattern of major base-load thermal power station development for some years and could mean that New Zealand can defer the introduction of nuclear power stations until at least the late 1980s.

Upper Clutha Hydro-electric Development—The Government has approved in principle the proposals of the Clutha Development Commission for the building of 6 dams over a period of 15 years on the Upper Clutha and Kawarau Rivers to produce 1,490 megawatts, or in total twice the generating capacity of Manapouri. Two dams will be built in the Cromwell Gorge and 2 further dams will be built on the Upper Clutha River above Cromwell. The final 2 dams will be built on the Kawarau River which drains Lake Wakatipu and joins the Clutha River at Cromwell.

A number of alternative schemes have been produced, and in July 1976 the new Government asked the Clutha Valley Advisory Committee to comment on the proposed scheme and the alternatives.

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 40 km in Cook Strait, but also the construction of a 570 km, 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.

As output from the Waitaki River development will fall off during the filling of Lake Pukaki, it may be necessary for energy to be transmitted from the North Island, so conversion work to enable transmission in both directions through the cable was planned for completion by April 1976.

PLANNING FOR ELECTRIC POWER—Forward planning is continually under review by a series of specialised committees. The Committee to Review Power Requirements considers estimates for 5 years ahead from the Electrical Supply Authorities Association and projects demand for a further 5 years. Peak power forecasts are also derived from the basic energy forecasts.

The personnel of this committee, representing the generating and distributing portions of the electrical industry, together with the Department of Statistics, Treasury, and this year the Ministry of Energy Resources, apply a wider judgment on long-run considerations to frame forecasts for the 10-year period. The independent forecast prepared by the Department of Statistics provides a valuable comparison with the work done in the industry.

Forecasting electricity demand would be one of the longest-term planning processes in New Zealand. It is of critical importance to the electrical industry and the economy of the country. The long sequences of events in providing generating plants, spanning about 7 years, is today lengthening because of a more critical appraisal of their environmental impact. If demand estimates are low, or plant is not ready on time, a difficult supply situation results. On the other hand, if estimates are high, a premature commitment of resources and capital can materially affect what is available for other national development and social programmes.

A Planning Committee on Electrical Power Development in New Zealand, which consists of members of the New Zealand Electricity Department, Ministry of Works and Development, Ministry of Energy Resources, Treasury, and supply authority representatives, considers the findings of the Review Committee in relation to the construction of stations to meet power requirements. The planning period was increased, in 1974, from 10 to 15 years to provide for the extra time necessary for the careful environmental impact planning and generally lengthening construction times of major projects.

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 1975 by the Committee to Review Power Requirements were as follows (in million kWh): 1975-76, 20,747; 1976-77, 23,079; 1977-78, 24,876; 1978-79, 26,577; 1979-80, 29,449; 1980-81 31,629; 1981-82, 33,108; 1982-83, 35,506; 1983-84, 37,600; 1984-85, 39,835; 1985-86, 42,220; 1986-87, 44,764; 1987-88, 47,479; 1988-89, 50,376; 1989-90, 53,467.

There has been sustained growth of electricity consumption in New Zealand with increased use of electricity in households, growth of the services sector, and increases in industrial production. Electricity generated to meet this rising demand doubled between 1965 and 1975 to reach 18,352 million kilowatt-hours. In the same period generating capacity of power plants has more than doubled to reach 4.78 million kilowatts. Projected electricity requirements are expected to more than double again by 1985 to reach 39,835 million kilowatt-hours. The projected average annual growth rate is about 7 percent. To meet these estimated electricity needs the generating capacity must be increased to 9.5 million kilowatts by 1985.

A marked trend is the steadily increasing share of electricity consumption used in commerce and industry. Household consumption was 47 percent in 1974-75 and is expected to continue to fall as a proportion of the total. In the future the growth of electricity consumption will become even more closely related to the growth of goods and services in the economy. Major consumers of industrial electricity are currently the pulp and paper, aluminium smelting, steel making, and the primary product processing industries.

In addition, electricity provides for many public services such as transport, communications, water supply, and sewerage that make urban life possible. The Committee to Review Power Requirements is concerned when making forecasts that adequate provision is included for the unimpeded growth of these productive and service activities in the future.

The electrical industry has put considerable emphasis on conservation, an example of this being the home insulation loan assistance scheme that allows householders and those building new homes to finance thermal insulation over a two-year period with an interest-free loan, repayments being with their electricity accounts. Many electric supply authorities operate advisory services and these, with the Electrical Development Association, provide advice to consumers, both household and commercial and industrial, on economic and efficient consumption of electricity.

FINANCE FOR ELECTRICITY—Up to 1965 some $834 million had been expended in generation transmission, and distribution, of which Government share was $608 million. By 1975 the capital invested by the Government had risen to $1, 488 million and with the further expenditure by the electrical supply authorities on distribution, the total capital outlay had increased to $1,966 million. The provision of sufficient generating capacity to meet the forecast electricity requirements will involve expenditure by Government of $2,977 million to 1985. Further capital expenditure will be necessary for the strengthening of both the New Zealand Electricity Department's transmission network and electrical supply authorities distribution systems. Until recently this capital investment programme was partly financed from a surplus of current revenue but with the stabilisation of electricity tariffs a greater portion had to come from loan funds.

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 39 electric power boards actually functioning at 31 March 1975, 15 had generating stations of a total rated generating capacity of 52,710 kW. There were also 22 municipal electric supply authorities, 8 of them having generating stations of a total rated generating capacity of 78,385 kW, and 2 county councils. New Zealand Electricity Department acts as the distributing authority for Southland Electric Power Supply, while Rotorua is controlled by an area electric authority. 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 the more isolated and less accessible parts of the country lack this amenity.

The supply of electricity to the 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 up under the Electricity Act 1945, and up to 31 March 1975, had approved subsidies of 15,954 route kilometres of line to supply some 15,399 consumers. At this date, 15,542 route kilometres of line were completed and 15,239 consumers connected. The total capital expenditure was estimated at $17,648,292 and the subsidy paid for the year amounted to $1,206,152.

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 1975, their installed capacity, static head where applicable, and annual energy generation. Stations are State-owned unless otherwise indicated.

StationInstalled capacity at 31 March 1975Static HeadAnnual Energy Generation Year Ended 31 March 1975Annual Load Factor
Number of UnitsMW
  Hydrometresmillion kWhpercent
Arapuni8157.853787.556.36
Aratiatia390.034284.738.50
Atiamuri484.025266.237.99
Karapiro390.030517.563.24
Mangahao519.22393.251.15
Maraetai10360.061803.738.89
Matahina272.061358.054.85
Ohakuri4112.035356.534.32
Tokaanu4200.0208515.125.68
Waikaremoana—     
  Kaitawa232.0135151.6 
  Piripaua240.0113186.651.54
  Tuai352.0206295.2 
Waipapa351.016242.649.10
Whakamaru4100.038480.151.42
Arnold23.11321.271.26
Aviemore4220.037858.340.69
Benmore6540.0922,087.140.98
Cobb632.0594186.762.83
Coleridge934.5149160.645.21
Highbank125.2101103.254.83
Manapouri7700.01773,197.561.90
Monowai36.04723.644.83
Roxburgh8320.0461,260.145.21
Tekapo125.230130.454.94
Waitaki7105.021449.246.95
Waipori*1165.2360129.2-
Auxiliary6155.6-251.4-
  Sub-totals..3,591.8..14,197.2..
  Thermal  

*Owned by Dunedin City Council.

†Owned by other supply authorities and industries.

‡Excludes capacity of generating plant owned and operated by industries.

§New station being commissioned.

Marsden2240.0987.547.26
Meremere7210.01,155.674.41
New Plymouth§3360.0582.741.31
Otahuhu4180.0161.913.96
Wairakei13192.41,248.689.64
Auxiliary1010.318.2-
  Sub-totals..1,192.74,154.5..
Totals..4,784.518,351.7..

The next table summarises general statistics of all supply authorities.

Item 1972-731973-741974-75

*Excluding stocks and materials.

†Calculated on revenue from retail sales only.

Establishments 919292
Kilowatts of prime moverskW (000)4,4714,7995,039
Materials used—    
  Coaltons607,119807,228787,568
  Light oilgals (000)1,79016,8754,929
  Heavy oilgals (000)55,49271,62594,377
  Natural gasBTU's (m)2,910,7283,431,7161,664,907
Persons engagedNo.13,08813,28913,795
Salaries and wages—    
  (charged to operations and management)$(000)44,91849,98460,475
  (charged to capital)$(000)12,65314,14016,966
Capital Expenditure*    
  During year (net outlay)$(m)140.7128.0188.7
  To date$(m)1,596.41,724.41,913.2
Generation and Sales—    
  Generation per head of mean populationkWh5,9836,0475,910
  Retail sales per head of mean populationkWh5,2265,3245,317
  Retail sales per customer (domestic)kWh7,8217,6627,536
Revenue per unit sold (retail sales)cents1.1831.1901.210

REVENUE AND EXPENDITURE—Financial operations of all supply authorities are summarised.

Item1972-731973-741974-75

*These figures represent transfers within the electrical supply industry and therefore do not represent additional revenue or expenditure to the industry.

Revenue—$(000)
  Gross revenue (including bulk sales and standby charges, excluding rates)287,040302,108328,935
  Revenue from bulk sales to supply authorities105,540108,278108,731
  Net revenue (excluding rates, bulk sales, and standby charges)181,500193,830220,204
Expenditure—   
  Operating (including cost of energy purchased in bulk)153,564168,294188,649
  Cost of energy purchased in bulk*105,540108,278108,731
  Operating (excluding cost of energy purchased in bulk)48,02460,01679,918
  Management, etc.27,44829,43935,260
  Capital charges90,83699,019111,434
Total annual expenditure (excluding cost of energy purchased in bulk)166,308188,474226,612
Surplus15,1915,356-6,408

GENERATION—Means of generation of electrical energy for public supply is given in the following table.

Year Ended 31 MarchGenerated by Means of
HydroSteamOil and GasTotal
million kWh
1969-7010,189.72,709.126.812,925.6
1970-7111,265.72,365.574.513,705.7
1971-7212,969.72,135.089.015,193.7
1972-7314,109.42,922.1222.017,253.5
1973-7414,150.93,534.0429.518,114.4
1974-7514,197.23,992.4162.118,351.7

The following table sets out generation by supply authorities and 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 
197012,6033012112,92611,0691,856
197113,3603291713,70611,7451,960
197214,8303461715,19413,1122,082
197316,8383922317,25315,0312,223
197417,7363532518,11415,9472,167
197517,9533811818,35216,2722,079

SALES—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.

Year Ended 31 MarchDomesticIndustrialCommercialFarmingStreet LightingRail and Bus TractionTotalNumber of Consumers
  million kWh    
19706,187 4,740 974511,0691,086,703
19716,4542,9111,9053311004411,7451,109,577
19726,8113,7392,0653501034413,1121,129,375
19737,3894,8612,2603741064115,0311,154,271
19747,4405,6422,3603621043915,9471,182,469
19757,5545,8042,4033701043716,2721,214,922

The following diagram portrays the growth in the use of electric power, and shows also the principal purposes for which the power was employed.

The distribution of the expenditure per unit sold retail is given hereunder.

Expenditure1970-711971-721972-731973-741974-75
 centscentscentscentscents
Operating expenses0.2950.3020.3200.3740.491
Miscellaneous expenses0.1700.1870.1830.1870.217
Capital charges0.6900.6530.6040.6210.685
Totals1.1561.1421.1071.1821.393

The revenue per unit sold in 1974-75 was, by categories: Domestic 1.158 cents; commercial 2.137 cents; industrial 0.839 cents; farming 1.997 cents; public lighting 1.455 cents; railway traction 1.397 cents.

Consumer Research—A survey of household electricity consumption was carried out in 1972 by the Department of Statistics on behalf of the New Zealand Electricity Department and the Electrical Supply Authorities of New Zealand. Results showed that 79 percent of all households used only electricity for cooking purposes; 73 percent used only electricity for water heating; and 30 percent used only electricity for home heating. (This was a small sample survey.)

Most electrical energy in households is consumed in water heating, space heating, and cooking in that order. Other appliances add considerably to the material quality of life, but consume little energy by comparison.

20 C—GAS

GENERAL—Gas was produced from coal as an early source of light and heating in New Zealand and by 1916 there were 56 establishments engaged in the marketing of gas to the public. From that date the numbers of gas undertakings steadily declined because of the growth of electricity usage. In recent years there has been an increased demand from the industrial sector but the loss of domestic consumers was viewed with concern in relation to satisfaction of the energy demand, and a Gas Council was established in 1958 to arrest the decline. Since 1970 the gas industry has been rejuvenated by the reticulation of natural gas. There is, however, a major difference between that part of the industry distributing natural gas and the remainder which is still manufacturing gas from coal and oil. The manufactured gas industry has, for many years, not been able to operate without financial assistance, and its problems intensified during 1974-75, largely because of the massive increases in the price of oil from which the lowest-cost gas had previously been produced.

The oil consortium, Shell B.P. and Todd Oil Services Ltd., discovered natural gas at Kapuni in 1959. In 1967, when further investigations had confirmed that the field was sufficiently large to justify exploitation, the Natural Gas Corporation was set up by the Government to develop this new energy resource. It is now 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. Gross trading profits of the Natural Gas Corporation were $62,144 in 1971-72, $719,966 in 1972-73, $1,826,000 in 1973-74 and $1,894,000 in 1974-75, but interest and depreciation charges resulted in net losses of $2.8 million, $2.2 million, $1.3 million, and $1.3 million in the respective years.

Those gasworks not receiving a piped supply of natural gas continue to receive financial incentives which are provided by the Gas Council; in 1974-75 subsidies on coal prices and gas sales totalled $1,460,021 compared with $1,451,640 in 1973-74.

Restrictions on electricity usage in the winters of 1973 and 1974 led to an unprecedented increase in demand but this could not be met until the Natural Gas Corporation completed extensions to its gas treatment plant at Kapuni. However, during 1974-75, total gas processed at the Kapuni plant increased to 120,463,502 therms.

GAS INDUSTRY—In 1974-75 there were 12 gasworks producing and distributing coal gas, oil gas, and water gas, 4 operating in the North Island and 8 in the South Island; and 9 gas undertakings distributing natural gas ex the pipeline operated by the Natural Gas Corporation of New Zealand; all 9 undertakings operated in the North Island.

The following table combines the production of natural gas and manufactured gas showing the total gas energy available and how disposal was effected.

Production1973-741974-75Disposal1973-741974-75

*Includes bulk sales for the generation of electricity.

 Therms (000) Therms (000)
Natural gas produced112,615120,464Distribution losses21,80724,639
Manufactured gas produced12,00112,480   
   Sales—  
Total production124,616132,944Domestic10,88512,383
Less gas used for internal consumption16,09617,391Industrial and commercial*75,82778,531
Quantity available108,519115,553Total gas disposal108,519115,553

The following table shows the retail consumers and the prices per therm of gas of all manufactured and natural gas distributed by gasworks, gas-undertakings and the Natural Gas Corporation. The table excludes the bulk sales of natural gas for the generation of electricity.

Item1971-721972-731973-741974-75
Consumers—     
  North IslandNo.73,64073,25274,49374,921
  South IslandNo.35,95433,85631,87431,441
Total New ZealandNo.109,594107,108106,367106,362
Gas Sales—     
  North Islandtherms(000)25,51934,07643,49663,973
 $(000)5,6476,6557,6819,963
  South Islandtherms(000)8,1328,4998,5098,765
 $(000)2,4392,6972,7153,125
Totals New Zealandtherms(000)33,65142,57552,00572,738
 $(000)8,0869,35210,39613,088
Average price of gas to consumer per therm—     
  Domestic$0.330.330.340.37
  Industrial and commercial$0.200.180.160.15
Average consumption of gas per consumertherms307.1397.5488.9683.9

The next tables summarise the main statistics of the industry for the last 4 years. Because of the introduction of natural gas nine establishments are now only distributors. The natural gas production plant at Kapuni is not included in these statistics.

PRODUCTION AND DISTRIBUTION OF MANUFACTURED GAS BY GASWORKS—The table which follows shows the production of coal gas, oil gas, and water gas during the latest 4 years; the amounts available for distribution and how distribution was effected. The figures relate to gasworks operating in New Zealand (14 in 1973-74; 12 in 1974-75) and exclude the gas undertakings handling only natural gas.

Item1971-721972-731973-741974-75
Production—Therms(000)
  Manufactured by gasworks—    
  Coal gas9,1848,5178,1808,107
  Oil gas3,0493,1123,4144,142
  Water gas1,099395407230
Quantity manufactured13,33212,02512,00112,480
Less gas used for internal consumption1159511198
  Manufactured gas available for distribution13,21711,92911,89012,382
Distribution—    
  Distribution losses2,0392,1102,0572,198
  Sales—Domestic4,3143,6093,4303,300
  Industrial and commercial6,8636,2116,4036,885
Total distribution by gasworks13,21711,92911,89012,382

The next table summarises the main statistics of gasworks during the latest 4 years. During 1974-75 the closure of gasworks at Hokitika and Westport reduced the number of manufactured gas undertakings to 12.

Item1971-721972-731973-741974-75
EstablishmentsNo.15151412
Persons engaged—     
  Managerial, accountant, and clerks—     
  MalesNo.76747273
  FemalesNo.38363840
Professional and technical—     
  MalesNo.19181815
  FemalesNo.----
Wage earners—     
  MalesNo.322309300284
  FemalesNo.5433
TotalsNo.460441431415
Overtime worked by wage earnershrs(000)62566461
Operating expenditure—     
  Salaries and wages paid—     
  Managerial, accountants, and clerks—     
  Males$(000)311334363418
  Females$(000)8188107132
  Professional and technical—     
  Males$(000)74779185
  Females$(000)----
Wage earners—     
  Males$(000)1,1591,1871,3191,500
  Females$(000)10959
Total salaries and wages$(000)1,6351,6951,8852,143
Costs of materials used, etc.$(000)2,0032,2682,3292,955
Other expenditure, including interest and depreciation$(000)7959319791,075
Total operating expenditure$(000)4,4334,8945,1936,173
Revenue—     
  Product sales$(000)3,4713,7523,8464,508
  Subsidies$(000)7731,1331,3491,530
  Other revenue (net)$(000)136178205246
Total revenue$(000)4,3815,0635,4006,283

DISTRIBUTION OF NATURAL GAS BY GAS UNDERTAKINGS—The following table shows the amount of natural gas purchased and available for distribution by gas undertakings, and how distribution was effected over the last 4 years.

Item1971-721972-731973-741974-75
Purchases—Therms(000)
  Purchased by gas undertakings32,02243,98954,73375,189
  Less—    
  Internal consumption by gas undertakings159737498695
  Quantity available for distribution32,86343,25254,23674,494
Distribution—    
  Distribution losses14,86415,30616,70716,033
  Sales—    
  Domestic5,5087,0397,4559,083
  Industrial and commercial12,49120,90730,07449,379
Total distribution32,86343,25254,23674,494

The next table summarises for the latest 4 years the main statistics of the 9 gas undertakings.

Item1971-721971-731973-741974-75

*Included in managerial, etc., to avoid disclosure of individual details.

†Total only shown to avoid disclosure of confidential information.

EstablishmentsNo.9999
Persons engaged—     
  Managerial, accountants, and clerks—     
  MalesNo.130148148144
  FemalesNo.48717791
  Professional and technical—     
  MalesNo.45465656
  FemalesNo.1131
  Wage earners—     
  MalesNo.358328320323
  FemalesNo.7411
TotalsNo.589598605616
Overtime worked by wage earnershrs(000)108107142116
Operating expenditure—     
  Salaries and wages paid—     
  Managerial, accountants, and clerks—     
  Males$(000)564600690870
  Females$(000)110175209338
  Professional and technical—     
  Males$(000)162178235310
  Females$(000)-*12*
  Wage earners—     
  Males$(000)1,4111,2881,548 
  Females$(000)126**
Totals, salaries and wages$(000)2,2592,2472,6953,164
Costs of purchased natural gas$(000)1,4951,9802,4753,419
Costs of other materials used, etc.$(000)50814311296
Other expenditure, including interest and depreciation$(000)1,4571,7341,4692,001
Total operating expenditure$(000)5,7196,1046,7518,680
Revenue     
  Product sales$(000)4,978   
  Subsidies$(000)646,2757,3859,691
  Other revenue (net)$(000)271   
Total revenue$(000)5,3136,2757,3859,691

Chapter 22. Section 21 MARKETING

21 A—MARKETING OF FARM PRODUCE

DEPENDENCE ON AGRICULTURAL AND PASTORAL EXPORTS—Despite the rise in the last decade in exports of timber, wood pulp, and paper and of manufactured products in general, products of animal origin still average annually over 70 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 remains one of the largest exporters in the world of butter and also (in some years) of meat, and is also one of the leading exporters of wool and cheese.

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)
1969114.842.623.121.7204.7309.4212.455.4968.9
1970109.744.331.125.8213.8368.9204.248.71,064.5
1971113.948.034.130.2228.9390.8187.850.61,108.1
1972183.966.376.525.4355.2399.0228.662.21,346.6
1973135.179.487.022.0326.1539.8424.296.41,753.7
1974107.261.8130.628.6330.7534.8363.467.21,744.7
1975122.348.4103.814.7289.3439.7262.562.71,548.7

The countries of destination for some of the main exports for 1972-73 are shown in the following table on a percentage basis.

Country of DestinationButterCheeseLambBeef and VealMuttonWool
United Kingdom70.869.074.78.25.317.4
United States0.9712.04.066.7-7.3
Japan4.377.42.83.573.612.8
Canada5.05-2.19.10.20.5
France--0.60.30.37.7
Belgium--0.50.20.27.2
West Germany0.040.22.00.10.27.7
Italy--1.10.10.13.8
Other19.511.410.611.720.135.6
Totals100.0100.0100.0100.0100.0100.0

The United Kingdom has always been New Zealand's main export market for farm products. Until Britain joined the European Economic Community the British consumer 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 reflected close political and economic connections between their people and governments.

GENERAL MARKETING SITUATION: Meat—Most meat produced in the world is supplied to domestic markets, and only about 8 percent of world output enters into international trade. Among the few countries with significant levels of exports are Australia, New Zealand, Argentina, 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-quarter of world trade) and to 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. With the Common Market countries, the pattern of trade has been greatly affected by the beef and veal regulations of the common agricultural policy.

Currently, over 100 countries import New Zealand meat. Of these, 3 may be regarded as major markets. They are the United Kingdom, which accounts for about 75 percent of New Zealand's lamb; Japan, which takes about 60 percent of New Zealand's export mutton production; and North America (United States and Canada), which purchases about 80 percent of the country's 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. New Zealand's beef and veal trade with both the United States and Canada in 1975 was under import controls. In the United States the trade has been restricted by what is termed a "voluntary" quota agreement which applies to all imports of fresh, chilled, or frozen meat except lamb, while in Canada, controls have been imposed in the form of an import licensing system. Elsewhere, in Japan and the EEC, virtual embargoes were placed on New Zealand's beef and veal trade with these destinations in 1974 and 1975.

Imports of beef and sheepmeats into the United States are shown in the following table.

Country of ExportBeef and VealMutton and Lamb
19711972197319741971197219731974
 tonnes(000)
New Zealand10912113211869106
Australia226305315232263383
Canada35262517----
Mexico36373018---1
Nicaragua20252515----
Costa Rica19232227----
Other countries54535961----
Total imports49959060948832421810
United States production10,07610,2729,71310,558247241228206

Shipments of beef and veal to the United States and Canada totalled 128,500 tonnes and 23,800 tonnes respectively in the year ended September 1975.

In Japan, imported mutton is used mainly for processing into sausage-type foods. Shipments of New Zealand mutton in the year ended September 1975, including those to South Korea where the meat is processed and reshipped to Japan, totalled 59,500 tonnes, compared with 62,000 tonnes in 1974 and 73,000 tonnes in 1973. The other major mutton market for New Zealand recently has been the Soviet Union, which has imported 51,000 tonnes during the past 2 years.

It has been the policy of the Meat Board to diversify exports of lamb. The original initiative for this was the likelihood of Britain joining the EEC (which has been now realised and brought with it the possibility of a more comprehensive system of protection than the present tariff), and also the need to cushion continued dependence on only one market.

In 1960 the Meat Export Development Company was established, 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, the directorate of which 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 Toronto.

There is a 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 2.2c a kilogram on the shortfall below the target figure. When the scheme was instituted in the 1966-67 season, the development target was 10 percent. This has gradually been increased to 30 percent, the target for the 1975-76 season.

In 1971 the United Kingdom imposed levies on all imports of beef and veal and, more importantly for New Zealand, lamb and mutton. The purpose of the levies was ostensibly to bring about an overall increase in the price of meat in Britain and thereby reduce the burden of deficiency payments imposed upon the British Treasury. The first stage of the lamb levy, namely £9.33 a ton, was introduced on 1 July 1971, and this was increased to £18.67 a ton on 1 January 1972. The proposed third and final stage of the levy was abandoned in November 1972 following representations by New Zealand.

On 1 January 1974 Britain began phasing in the EEC Common Customs Tariff rate of 20 percent on sheep-meat.

By July 1977 the import levy of 0.83 new pence per lb on lamb will be phased out and the EEC Common External Tariff of 20 percent phased in. How this is being done is set out below.

DateImport LevyCommon External Tariff
 U.K.p%
19730.83-
Jan 19740.508
Jan 19750.3312
Jan 19760.1716
Jul 1977-20

The levy on mutton is half that on lamb.

During the past 2 years a major development in New Zealand's lamb trade has been sales to the Middle East. In the 1974-75 season, Iraq (8,500 tonnes), Iran (3,300 tonnes), and Kuwait (2,600 tonnes) were the second, ninth, and tenth largest New Zealand lamb importers. Besides the United Kingdom and North America, other major markets were Japan (8,200 tonnes), Greece (5,900 tonnes), West Germany (4,800 tonnes), and Italy (4,500 tonnes).

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. About 18 to 20 percent of wool is sold privately in New Zealand and a small percentage of wool produced is shipped to England for sale. Prices fluctuate according to the demand for wool. After a period of relative price stability dating back to the early 1950s, demand slackened in late 1966 and prices remained low for the next 5 years. Following a recovery which reached a peak toward the end of 1973 the market again declined sharply although not to the low levels of the late 1960s. The 1974-75 season was again characterised by low prices, weak demand, and (in the face of very large intervention stockpiles in producing countries) considerable uncertainty as to future price movements. However, following the devaluation of the New Zealand dollar in August 1975, the 1975-76 wool selling season opened with the winter round of sales realising prices considerably above the opening prices of the 1974-75 season, and this improvement continued into the main sales. By the end of 1975 the Wool Marketing Corporation's stockpile had been reduced from a peak of nearly 233,000 bales to just over 136,000 bales. The threat of competition from synthetic materials is such that the International Wool Secretariat is actively promoting advertising, merchandising, and research.

World wool production increased steadily until 1968-69, particularly in Australia, New Zealand, and the Soviet Union. 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. The downward trend was reversed in 1974-75. 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 75 percent of world production; of the world total Australia alone produces 31 percent, and with New Zealand, Argentina, and South Africa some 53 percent.

The International Wool Secretariat, founded by the woolgrowers of Australia, New Zealand, and South Africa in 1937 and now a partnership of the wool boards of these 3 countries plus Uruguay, is continually engaged in research, merchandising, advertising, and the general promotion of the use of wool. In recent years wool, in common with other natural fibres, has had to meet very strong competition from synthetics.

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, are determined by the type of pasture, breed of sheep, average age of flock, and age of 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.)

CountryWoolled SheepWool Production
1971-721972-731973-74*1971-721972-731973-741974-75*

*Provisional.

 (million)tonnes(000) greasy
Australia162.9140.1145.3875736703790
New Zealand60.956.755.9322309286294
Argentina39.040.041.2189177185189
South Africa27.928.529.1113114113115
Uruguay15.515.916.554606063
United States18.817.716.482807265
United Kingdom26.927.928.548484950
U.S.S.R.139.9139.1142.6429420433461
World total937.8913.8924.62,6862,5432,4972,627

The major importing countries for raw wool are shown in the following table. (Source: Commonwealth Secretariat.)

Country of Import19701971197219731974

*10 months only.

 tonnes(000)
Belgium95.375.669.353.043.1
France158.5171.1164.6121.5125.5
Italy126.9104.3121.490.456.9*
Japan320.5307.8348.1315.7163.0
United Kingdom205.6160.5207.0150.8121.0
United States91.572.855.734.513.3
West Germany98.4111.3115.758.947.2

Dairy Produce—There are now four main dairy exporters, namely New Zealand, EEC, Australia, and Canada, in that order of magnitude, who provide about four-fifths of all exports. Poland, the Soviet Union, and a number of other countries export relatively smaller quantities.

The change on the importing side is far more significant, and nowadays about two-thirds of international trade flows to the less affluent countries of Asia, Latin America, and Africa, in that order.

The Dairy Board exports annually about 600,000 tonnes of manufactured dairy products, of which about 250,000 tonnes will go to the affluent countries in Europe, North America, and Japan and 350,000 tonnes to the rest of the world, with a heavy emphasis on South-east Asia and Latin America.

Nevertheless international dairy trade remains marginal in character and it is still vulnerable to fluctuations from external causes whether these be climatic, commercial, or political. New Zealand now relies on the United Kingdom for less than half the value of its dairy export exchange earnings, although the United Kingdom remains the principal market for butter.

Industrial countries have a tendency to express social and political policies towards their farmers through price support mechanisms; high prices which are fixed with little regard to commercial reality encourage production but discourage consumption, thus creating surpluses. 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 minimal success in GATT or in other international organisations in its attempts to negotiate improved conditions of access for agricultural products in developed countries apart from Britain. New Zealand has maintained strong and consistent pressure in international councils to achieve a stable balance between supply and demand in international trade, particularly in agricultural products. 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 US $180 a tonne was established and since then has been progressively raised to a level of US $350 a tonne. In 1971 negotiations for the establishment of minimum prices for butter and anhydrous milkfat continued until, in 1973, agreement was reached to establish a minimum price for anhydrous milkfat of US $680 per tonne.

In 1974 the total production of butter by 18 of the main producing countries of the world amounted to just under 3 million tonnes. In the same year world exports by 16 of the leading exporters amounted to about 786,000 tonnes, that is, only about 26 percent of world production entered into international trade. However, since trade between the member states of the EEC does not enter international trade as such, this percentage is in effect considerably lower. Of this quantity 455,500 tonnes 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 vi subsidies can have a disproportionate effect on world trade.

The following tables compare production and exports of butter, cheese, and skim-milk powder by selected countries. (Sources: Commonwealth Secretariat; United States Department of Agriculture.)

PRODUCTION

CountryButterCheeseSkim-milk Powder
197119721973197419711972197319741971197219731974

*Twelve months ended 30 June of following year.

†Twelve months ended 31 May of following year.

 tonnes(000)
Australia*1951851751618193969993118142157
Canada13013211410587878696137156140137
Denmark12313614613712013112715032525353
France474539555508819869893892688688730709
Ireland, Republic of76768472334641585282119109
Netherlands12616516917229831832636985125120139
New Zealand2492422192431041018989197189194244
United Kingdom66959652162184181217109169156105
United States5225104294361,0771,1811,2031,329643561439465
West Germany462485510508230249252280337432460495

EXPORTS

CountryButterCheeseSkim-milk Powder
197119721973197419711972197319741971197219731974

*Twelve months ended 30 June of following year.

†Including donations shipped overseas.

 tonnes (000)
Australia*365838193330383450489467
Canada2---1510541355212159
Denmark77871001017075849547594036
Finland201912-212023--6--
France592717280129158160163268172227225
Ireland, Republic of32384939282639473836125-
Netherlands929716116018018421023125144874
New Zealand*18517216016488957065126161216114
United Kingdom2313234612224411450
United States39192-333318912884
West Germany7319115148586482102143191201179

Much of the export trade of Denmark, France, Netherlands, and West Germany amounts to transfers within the European Economic Community and as such the commodities do not really enter into international trade.

In the United Kingdom market, for butter and cheese entering under Protocol 18 of the Luxembourg Agreement from 1 February 1973 New Zealand was guaranteed a c.i.f. price of £361 a ton for butter and £312 a ton for cheese. In 1973 monetary compensatory amounts became available and these went some way towards compensating New Zealand for the decline in the sterling value of the c.i.f. price In November 1974 the EEC agreed to a rise of 18 percent in the prices New Zealand gets for its butter and cheese exports to Britain. The adjustment was based on New Zealand's claim that inflation and rising freight and production costs had severely eroded returns to New Zealand farmers.

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 totals about 2.5 million tonnes. Until 1975, world demand was buoyant, stimulated by a growing number of milk recombining plants in Asia, South America, Africa, and the Caribbean. Much of the world trade in skim-milk powder is covered by pricing arrangements set well in advance of delivery. During 1975 world demand declined due to economic recession and high support prices. As a result of increasing stocks, especially in the EEC, prices on the international market in 1975 declined.

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 recombining 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 reconstituted milk.

Casein—Lactic casein, which is produced from skim milk, 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 coatings for high quality paper. New Zealand is the largest exporter of casein, with much of the production going to the United States, Japan, and EEC countries.

The chief countries exporting and importing casein are shown in the following table. (Source: Commonwealth Secretariat.)

Country of Export1971197219731974

*Years ended 30 June of following year.

†11 months only.

 tonnes(000)
New Zealand*42.127.839.917.6
Australia*29.815.020.56.1
France15.016.618.925.2
Argentina6.98.78.64.2
Poland7.410.5--
United States43.944.146.946.8
Japan24.620.819.521.7
West Germany17.112.311.312.8
United Kingdom7.64.25.34.7
Italy9.08.710.07.9

Since 1970 there has been a world decline in the availability of liquid skim milk for casein manufacture, due to the higher return available from the alternative manufacture of skim-milk powder. New Zealand has attempted to maintain supplies of casein, but fluctuations in prices and availability of casein have caused some industrial users to shift to substitutes.

On the other hand there has been an increase in demand for casein and casein derivatives for edible uses.

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. By 1970 this had risen to 27 percent, but in 1972 54 percent of the exchange earned from dairy exports came from markets outside the United Kingdom.

By 1974-75 66 percent of the exchange earned from dairy exports came from markets outside the United Kingdom. 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, Japan, and Europe. It is expected that the future long-term growth in markets for New Zealand 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.

The following table shows the changing direction of New Zealand's dairy exports for June years over a 5-year period.

Product1970-711972-731974-75Percentage to United Kingdom
United KingdomAll MarketsUnited KingdomAll MarketsUnited KingdomAll Markets1970-711972-731974-75
 tonnes(000)percent
Butter, milkfat160.0191.4127.1174.8112.5164.283.672.768.5
Cheese67.892.559.991.224.964.673.365.738.5
Milk powder7.6157.62.2200.8-157.54.81.10.0
Casein5.970.32.429.50.417.68.48.12.3
  All products241.3511.8191.6496.3137.8403.947.238.634.1

EUROPEAN ECONOMIC COMMUNITY—The Rome Treaty establishing the European Economic Community (EEC) came into force on 1 January 1958. The member countries were 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 common 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 Common Agricultural Policy, with its high internal prices supported at the Community frontier by variable levies, and its export subsidies, has encouraged the production of surpluses, most notably of dairy products, while reducing consumption.

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.

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 special arrangement was subsequently incorporated in Protocol 18 to the Treaty of Accession of the applicant countries (United Kingdom, Denmark, and Ireland) to the EEC.

Article 1

  1. The United Kingdom is authorised, as a transitional arrangement, to import from New Zealand certain quantities of butter and cheese on the following terms.

  2. The quantities referred to in paragraph 1 shall be:

    1. in respect of butter, for the first five years:

      1973, 165,811 metric tons

      1974, 158,902 metric tons

      1975, 151,994 metric tons

      1976, 145,085 metric tons

      1977, 138,176 metric tons

    2. in respect of cheese:

      1973, 68,580 metric tons

      1974, 60,960 metric tons

      1975, 45,720 metric tons

      1976, 30,480 metric tons

      1977, 15,240 metric tons

    The Council, acting by a qualified majority on a proposal from the Commission, may make adjustments between those quantities of butter and cheese, provided that the tonnage expressed as milk equivalent corresponding to the total quantities laid down for those two products for the year in question remains unaltered.

  3. The quantities of butter and cheese specified in paragraph 2 shall be imported into the United Kingdom at a price, the observance of which must be guaranteed at the c.i.f. stage by New Zealand. That price shall be fixed at a level which enables New Zealand to realise a price representing the average price obtained by that country on the United Kingdom market during 1969, 1970, 1971, and 1972.

  4. The products imported into the United Kingdom in accordance with the provisions of this Protocol may not become the subject of intra-Community trade or of re-exportation to third countries.

Article 2

  1. Special levies shall be applied to imports into the United Kingdom of the quantities of butter and cheese specified in Article 1. Article 55 (1) (b) of the Act of Accession shall not be applicable.

  2. The special levies shall be fixed on the basis of the c.i.f. price referred to in Article 1 (3) and of the market price of the products in question within the United Kingdom, at a level such as to allow the quantities of butter and cheese to be effectively marketed without prejudicing the marketing of Community butter and cheese.

Article 3

The Council, acting by a qualified majority on a proposal from the Commission, shall adopt the measures necessary for implementing Articles 1 and 2.

Article 4

The Community shall continue its efforts to promote, the conclusion of an international agreement on milk products so that as soon as possible conditions on the world market may be improved.

Article 5

  1. The Council shall, during 1975, review the situation as regards butter in the light of prevailing conditions and of supply and demand developments in the major producing and consuming countries of the world, particularly in the Community and in New Zealand. During that review, among the considerations to be taken into account shall be the following:

    1. progress towards an effective world agreement on milk products to which the Community and other important producing and consuming countries would be parties;

    2. the extent of New Zealand's progress towards diversification of its economy and exports, it being understood that the Community will strive to pursue a commercial policy which does not run counter to this progress.

  2. Appropriate measures to ensure the maintenance after 31 December 1977 of exceptional arrangements in respect of imports of butter from New Zealand, including the details of such arrangements, shall be determined by the Council acting unanimously on a proposal from the Commission in the light of that review.

  3. After 31 December 1977, the exceptional arrangements laid down for imports of cheese may no longer be retained.

The pricing arrangements under the Protocol (Article 1:3) are not regarded as satisfactory by New Zealand.

Continued Access—In March 1975 the Common Market heads of government agreed to continued access for New Zealand butter for 3 years after 1977 with regular price adjustments taking into account prices paid to the EEC's own farmers and rising production costs in New Zealand and increased freight rates. The EEC Commission is drawing up details in accordance with the agreement.

The way was also left open for Britain to negotiate protected imports of New Zealand cheese after 1977.

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 play an important part in developing sheepmeat policy in the enlarged community. 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 lamb to an enlarged EEC. It can be expected that Britain will wish to ensure that imports from these countries, in particular New Zealand on which it is heavily dependent, will not be curtailed.

UNITED KINGDOM MARKET: Dairy Produce—New Zealand's important position in the supply of butter and (to some extent) 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*
197219731974197219731974197219731974

*Includes both whole-milk powder and skim-milk powder.

 tonnes(000)
New Zealand11813213264471941-
Australia2813-31----
Denmark7174100111415-21
Ireland, Republic of353736233745171711
Netherlands1761110192024353
Other countries7414763017221375
Total Imports344332454151137125373220
United Kingdom production949753183182218209192156

The following table shows the comparative figures for consumption of butter and margarine in the United Kingdom. (Source: Commonwealth Secretariat.)

Product193819671968196919701971197219731974
 kilogram per head
Butter10.99.38.88.78.57.97.07.68.6
Margarine4.55.35.15.45.45.96.55.85.0

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*
197219731974197219731974197219731974

*Including pig-meat, offal, bacon and ham.

 tonnes(000)
New Zealand29423920413147333280236
Australia3123767862312313541
Argentina---645928645928
Denmark---1325264263278
Ireland, Republic of311804810514580138
Other countries321536061177164130
Total Imports3312652132782702491,106981848
United Kingdom production2192362529098761,0782,1972,1572,424

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 Marketing Corporation Act 1972, 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 products 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. Increasingly the board is posting its own personnel overseas in key markets as liaison representatives and where warranted, subsidiary trading companies have been established.

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 current levy is 0.77c per kilogram.

Funds from the levy totalled $4.6 million in the year ended September 1975. Expenditure exceeded income by $400,000, the balance being drawn from the industry reserve account.

The board's main responsibilities are:

  1. Meat export licensing;

  2. The grading, storage, and shipment of meat;

  3. Market research;

  4. The promotion of New Zealand meat;

  5. Improvement in the quality of New Zealand meat.

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. These powers were further extended in 1974 by an Order-in-Council which enables the Board to buy and sell beef. In the 1971-72 season, the Board purchased a sizeable proportion of lambs slaughtered for export, while, at one stage in the 1974-75 season, it was purchasing mutton, beef and lamb.

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, Tokyo and Brussels. The board established an office in Brussels in October 1972, partly for developing the European market and partly for purposes of safeguarding the position of New Zealand meat with Britain joining the EEC.

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 from producer to consumer in the quickest and most efficient manner with due regard to the stability of prices and markets.

A Pork Industry Council functions under the Pork Industry Act 1974. Its principal functions are to promote and organise the orderly development of the pork industry; to assist in the marketing of pigs; to maintain and improve quality; to increase production; to promote efficiency; to ensure a supply of foodstuffs for pigs.

Wool—The Wool Marketing Corporation was established from 1 December 1972 by the Wool Marketing Corporation Act 1972. The corporation is a grower-controlled authority which has as its object to obtain, in the interest of growers, the best possible long-term returns for New Zealand wool. It will do this by developing a marketing system suited to the requirements of the world's textile industry, by marketing New Zealand wool to the best advantage in competition with other textile fibres, and by bringing about efficiencies in the handling and distribution of wool. It is empowered to acquire the whole of the wool clip, but 60 percent majority at a referendum of wool-growers is necessary before this part of the Act can be brought into force.

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 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 are 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 of Agriculture and Fisheries approves. The balance is added to the reserve. 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
 $(000)$(000)$(000)$(000)
1968-699617532082,369
1969-70-1,410-1,410-959
1970-712931691241,128
1971-72-2,631-2,631--1,503
1972-732,6522,410242906
1973-74-4,103-4,103--3,197
1974-751,0181,018--2,179

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 and Fisheries.

Retail prices are fixed by Order in Council. The price for the milk to the producer is fixed by the Minister of Agriculture and Fisheries after consultation with the Milk Beard. 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 the rate of 3.33c per dozen, was paid by the Government in respect of eggs received at authorised egg floors (as the licensed distributors are known) until the end of April, 1976.

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 denned 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 and Fisheries 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, Tauranga and Gisborne.

Honey—The Honey Marketing Authority, set up in 1953, undertakes the packing and marketing, within New Zealand and for export, of all honey supplied to it. Beekeepers have the option of supplying the authority, selling to private packers, or packing and marketing their own honey.

A levy on honey sold locally other than by the authority is payable to the authority at the rate of 0.834c per pound. The funds derived from this levy are administered by the authority for the benefit of the honey-producing industry generally.

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.

Prices and sales of honey are set out in the following table.

Item1969-701970-711971-721972-731973-74
Payment to producerscents per kg24.8229.0637.8544.5854.98
Average selling price—      
  New Zealandcents per kg50.0355.0461.6564.0384.42
  Overseascents per kg38.5736.2551.4276.1487.78
Sales—      
  New Zealandtonnes949846726549780
  Overseastonnes5161,0121,3831,826398

TRANSPORT AND OVERSEAS MARKETS—Farm products form the bulk of New Zealand's exports. They come 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 Exports and Shipping Council, an independent body whose main purpose is to improve the efficiency and economy of New Zealand export trade as it relates to transport services. Shipping received special attention as shipping costs absorb a substantial portion of market realisations.

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 was 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.

PRICES FOR FARM PRODUCTS: Wool—Under the Wool Marketing Corporation Act 1972, the Wool Marketing Corporation continues to operate a Minimum Prices Plan which was first introduced in 1952. The corporation prepares a table of minimum prices which becomes effective by agreement with the Minister of Agriculture and Fisheries. Where trade bids for any wool offered at auction fail to reach the minimum price the corporation may either purchase the wool at minimum price, let it be sold to the highest trade bidder, or purchase the wool at a price less than the minimum price. In the latter two cases the corporation, out of its funds, supplements the sale price to the minimum price level. Procedures also exist for applying minimum floor price protection to privately sold wool.

Up to 23 January 1975, any supplement paid by the corporation and its predecessor organisation, the New Zealand Wool Commission, came from their own funds. (The Wool Commission from 1967 to 1972 paid out to farmers in supplementation of market prices $10 million, $8.7 million of which was paid out in the 1966-67 season. Because the floor price was well below market levels from its formation up to 23 January 1975, the corporation made no supplementary payments in that period.) As from 24 January 1975 the Government made funds available under its wool price stabilisation scheme to meet supplementary payments. By agreement with Government, the corporation raised the minimum average price from 70 cents per kilogram to 93 cents per kilogram at that time, with the result that to 30 June 1975 supplementary payments amounting to $2.3 million were made from the wool price stabilisation account.

Apart from the Minimum Prices Plan, the Wool Marketing Corporation is empowered to purchase wool at any price level. Under this provision it has pursued a policy of market intervention aimed at supporting the market. In pursuance of this policy it has purchased a total of 324,751 bales at auction in 1973-74 and 1974-75. (During its twenty-one years of existence the Wool Commission purchased 761,000 bales in application of the Minimum Floor Price Plan, the bulk of them in 1966-67.)

The following table shows weight, sale value and average value per kilogram of greasy wool sold at auction. The last column shows the average minimum price to growers set by the Wool Marketing Corporation, or its predecessor, the Wool Commission.

SeasonGreasy Wool Sold at AuctionTotal Sale ValueSale Value per KilogramAverage Minimum Price per Kilogram
 Tonnes (000)$(million)¢¢
1964-65201.03155.677.4064.31
1965-66230.97176.676.4664.31
1966-67242.13156.964.7766.14
1967-68244.85123.450.4255.12
1968-69234.28144.961.8649.05
1969-70224.12126.656.4849.05
1970-71218.22116.653.4246.30
1971-72209.02139.066.4646.00
1972-73196.21282.5143.9650.00
1973-74195.13271.6139.1970.00
1974-75210.25192.991.7593.00
1975-76212.52333.9157.12124.00

The next table shows index numbers based on prices of new clip greasy wool sold at auction in New Zealand adjusted to a clean f.o.b. New Zealand port basis. The All Wool and each group index is on its own base: average over all sales of 1974-75 season (=1000).

SeasonAll WoolFine Wools*Medium WoolsCoarse Wools

*Count 56's and finer.

†Count 48/50's to 50/56's.

‡Count 46/50's and lower.

1964-65814776840835
1965-66809804845818
1966-67713776763700
1967-68556680596531
1968-69678809751643
1969-70629744684601
1970-71585597608582
1971-72723642723746
1972-731528164816621444
1973-741511165915801451
1974-751000100010001000
1975-761669145616481716

Dairy Produce—Basic prices (then known as guaranteed prices) were introduced in 1936 for butter and cheese. The present legislative authority for the fixing of purchase prices for all dairy produce which the Dairy Board acquires for export is the Dairy Board Act 1961, as amended by the Dairy Board Amendment Act 1972. Under the Act, the Dairy Products Prices Authority fixes the prices to be paid by the board for butter. This price for butter sets the basic price for milk fat. The prices paid for other dairy produce acquired by the board are set by the board, after consultation with the authority.

The price paid for cheese is based broadly on three components. The first component is the value of the fat, which is based on the basic price of butter.

The second component is the value of the solid non-fat component of cheese, which is worked out under the new snf (solids-non-fat) formula. Adjustments are also made for by-products.

The third component is manufacturing costs.

The objective of the cheese price is to ensure that suppliers of whole milk for manufacture into cheese will, on average, receive a return closely related to the average return they would have received had the milk been manufactured into butter, buttermilk powder, and skim-milk powder or casein. A similar objective exists for suppliers of whole milk for manufacture into whole-milk powder, and other product mixes.

The main purpose of the 1972 amendment was to introduce the new snf formula for payment for solids-non-fat products, including the snf portion of cheese. What the formula does is to limit the difference between the returns for the solid-non-fat products to 6.61c per kilogram of milk fat in the original whole milk (i.e., 3c per pound milk fat) at the factory stage.

Overseas realisations determine purchase prices. The price for butter may not vary by more than 5 percent from the price fixed for the previous season. This, in turn, also limits the movement in the price paid for the fat component of cheese, and for other products containing fat, such as frozen cream, anhydrous milk fat (a.m.f.), and whole-milk powder.

The main Dairy Industry Trading Account at the Reserve Bank, which receives the proceeds from the fat products, may be in surplus or deficit if the overseas realisations are different from the guaranteed price for milk fat set by the butter price.

When this account is in surplus, the Dairy Board may authorise the distribution of up to 50 percent of any surplus achieved in a trading year; part or all of the balance may also be distributed if the Minister of Agriculture and Fisheries agrees. When the trading account is in deficit, this deficit is charged against the Dairy Industry Reserve Account.

Realisations from other products such as milk powders with less than 14 percent fat and casein are put into pool accounts. All of these proceeds, after payment of selling and administrative expenses, are paid out to dairy companies, after the application of the snf formula. There is a partial linkage between the pools accounts and the Dairy Industry Trading Account through the cheese price.

The Dairy Board Amendment Act of 1975 extended the basic purchase price to cover the solid non-fat (snf) portion of the milk and changed the basis of payment for dairy products.

Commencing in the 1975-76 season, the Dairy Product Prices Authority established values for milkfat and not butter and also establishes the value for the solid non-fat portion of the milk.

The Dairy Board uses the milkfat value to calculate the purchase price for butter and other fat products and uses the snf value to calculate the purchase price for snf products.

Cheese and wholemilk powder purchase prices are based on both milkfat and snf values.

The movements in snf and milkfat values from one year to the next is limited to 10 percent upwards and 5 percent downwards for both components.

The farmers, therefore, receive a stabilised return for milk solids. Because the Prices Authority establishes milkfat and snf values rather than purchase prices, the producers are cushioned from processing cost increases and receive the full effect of movements in milkfat and snf values.

As from the beginning of the 1975-76 season the Dairy Board will declare the values of milkfat and snf on a "at farm" rather than factory door basis.

The new legislation provides for two trading accounts—the milkfat trading account, and the snf trading account. Any annual surplus or deficit in the trading accounts at the end of any trading period is transferred to the Dairy Industry Reserve Account and the provisions for distribution of surpluses are unaltered by the 1975 amendment.

The following table gives the prices in cents per kilogram of product paid by the Dairy Board to companies for the main products acquired for export. Prior to 1975-76, these were f.o.b. realisations to companies. For the 1975-76 season they are based on milkfat in milk at farm (N.Z. average).

Season Ended 31 MayCreamery Butter (Finest Grade 93-93 1/2 pt)Cheese (First Grade 92-92 1/2 pt)

*These extra amounts are surplus payments expressed on a product basis.

 cents per kilogram
1969-7054.7038.65
1970-7157.43T44.80
2.17*1.08*
1971-7260.3056.88
10.85*5.40*
1972-7363.3259.48
2.75*1.36*
1973-7463.3268.71
1974-7566.4969.78
1975-7666.9572.63

The prices quoted in the preceding table for butter and cheese were designed to enable dairy companies to pay to suppliers the following amounts in cents per kilogram of milkfat used for butter or cheese manufacture. Also given is the actual net revenue per kilogram of milk fat supplied achieved by companies for the main products.

Season Ended 31 MayButter-making (Basic Price)Cheese-making (Final Price)Actual Average Net Revenue
Butter-makingCheese-makingSpray Skim-milk PowderAcid Casein

*Estimate only.

 cents per kilogram of milk fat
1964-6562.2875.1466.0279.76  
1965-6662.2882.8864.1184.25  
1966-6762.2882.9563.7984.10 18.82
1967-6858.6277.2759.9177.7016.1620.64
1968-6958.6271.9160.2274.1110.3317.92
1969-7058.6274.1060.0875.1213.4017.17
1970-7161.4083.6465.8089.4325.3219.08
1971-7264.04110.6979.26124.8758.6932.32
1972-7370.90116.6474.21119.9646.0139.40
1973-7470.83132.8470.57*132.45*61.88*55.27*
1974-7572.15127.43    
1975-7670.88     

NOTES—(1) The basic price for buttermaking is on a farm gate fat in cream basis up to and including 1971-72. 1972-73 to 1974-75 figures are on a factory stage basis (i.e., milk and cream collection costs must be paid out from these amounts).

(2) Columns (1) and (2) do not include surplus payments. These are price structure calculations.

(3) Columns (3) and (4) do include the surplus payments shown below:

 Cents per Kilogram milk fat
1963-642.76
1964-651.84
1970-712.65
1971-7213.23
1972-733.31
1973-74-
1974-752.97

(4) From 1972-73 buttermaking basic prices include revenue items.

Most milk fat is now collected by tankers. Only 7 percent of suppliers supply cream and they make up an even smaller proportion of total milk fat supply, i.e., 2 percent.

The main product mixes obtained from whole milk are:

CheeseButterWhole milk powderAnhydrous milk fat
Whey butterButtermilk powderButterButtermilk powder
Separated wheySkim-milk powder or casein (acid or rennet) Skim-milk powder or casein

Production of dairy factories is shown in Section 14A—Farming.

Town Milk Supply—The objects of the New Zealand Milk Board are the provision of an adequate supply of milk of good quality for human consumption and the organisation of the town milk industry on an economic basis. The board arranges supply contracts with milk producer companies for all districts, reports to Government on the adequacy of the town milk producer price, makes recommendations to Government or reports to the Milk Prices Authority, as the case may be, as to national margins for pasteurising, bottling, distribution, and other aspects of price fixation, fixes local allowances for cartage and such special distribution allowances as may be necessary, makes financial adjustments with all those in the industry to see that they get the prices or allowances to which they are entitled, and in doing so pays out subsidy on behalf of Government.

The total Government subsidy on town milk paid during recent twelve-month periods ended 31 August has been as follows: 1971-72, $34,098,797; 1972-73, $36,476,950; 1973-74, $43,941,904; 1974-75, $49,196,949. These figures include deferred payments.

The following table shows production and sales of town milk under the control of the New Zealand Milk Board.

Year Ended 31 AugustProductionQuantity on Which Town Milk Price PaidVolume of Town SalesPrice per Litre Paid to ProducersGovernment Subsidy Per Litre
litres(m)¢¢
1965575.7407.3336.05.7083.7716x
1966597.0421.7345.56.0614.2333
1967628.0434.0345.46.0674.3844x
1968627.4436.1345.15.7284.0067
1969634.4436.2352.75.4073.6852x
1970633.7441.5365.05.5384.3283x
1971618.1458.2375.96.3125.9008x
1972657.0471.9382.38.5648.9182
1973646.6484.4394.28.358x9.2527x
1974640.6503.9410.29.005x10.7115x
1975671.7517.1422.69.23211.5413

The town milk industry has converted to the metric system and bottles of 600 ml, 300 ml, and 150 ml have been progressively introduced.

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 lamb at the end of the last week in March. Approximately 35 percent of the value of all New Zealand exports of frozen and chilled meat is generally accounted for by lamb, and the 8-12.5 kg and 13-16 kg P grades quoted in the table usually account for approximately 20 percent and 35 to 40 percent respectively of all lamb carcasses exported.

End of Last Week in MarchPrime GradeY Grade
8 to 12.5 kg13 to 16 kg16.5 to 25.5 kg8 to 12.5 kg13 to 16 kg
N.Z. cents per kilogram equivalent
197170.566.158.064.258.4
197276.771.067.071.767.0
197394.6-96.694.6-96.692.893.7-94.695.5-96.1
1974107.7106.697.299.099.0
1975118.9-120.9114.9-116.9107.0-109.0114.9-118.9112.-114.9
1976151.9-154.0136.8-139.1126.1-128.2151.9-153.1136.8-139.1

Schedule Prices—A schedule of buying prices is issued each week by the meat operators in New Zealand. 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, on the hoof, or they can sell through a producer co-operative.

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 the Meat Export Control Act to permit it to purchase and market lamb, issued its own schedule of prices.

In the 1974-75 season, for the first time ever, the New Zealand Meat Producers Board issued its own schedule of prices for all three major meat export categories—lamb, mutton and beef. The board had, in the 1971-72 season, intervened in the market but, on that occasion, only for lamb. This decision had been made because the board considered exporters were unduly pessimistic in their assessment of future market prices. As a result, the board purchased 12.5 million lambs and, because overseas prices picked up, made a profit of about S8 million.

In the 1974-75 season, the circumstances were quite different. Indeed, at the time the board decided to issue its own lamb, mutton and beef schedules, its assessment of market prospects were not too different from that of the exporters. Market prices had slumped very badly, with the situation being compounded as far as producers were concerned by a massive increase in charges between farm gate and export markets. Using its statutory powers, the board announced guaranteed minimum payments to producers for all classes of stock. During the season the board purchased virtually the entire mutton export kill and some 2.6 million lambs. After a short period of buying, the board, in March 1975, implemented a scheme worked out in conjunction with the Meat Exporters Council whereby the trade resumed the responsibility for marketing all export beef while the board paid producers payments beyond the exporters' prices, to ensure they received the guaranteed minimum payments.

The opening schedules for the latest five 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.

OPENING NORTH ISLAND SCHEDULE PRICES

Class of Meat1971-721972-731973-741974-751975-76

*Schedule issued by New Zealand Meat Producers Board.

†New Zealand Meat Producers Board Minimum Price.

Lamb—cents per kg
PL, 8.0-12.5 kg29.1*50.771.444.462.7
PM, 13.0-16.0 kg27.3*47.069.742.459.2
YL, 8.0-12.5 kg25.6*47.067.944.455.7
Mutton—     
EL, 22 kg and under14.319.844.114.0*24.0
EM, 22.5-26.0 kg12.117.641.912.0*22.0
Beef—     
Pl—Steer, 220.5-270 kg55.163.978.039.055.0
Ll—Steer, 220.5-270 kg55.163.970.037.048.0
M—Cow. 140.5 kg and over46.356.266.026.042.0
Bull, 160.5-260 kg52.962.079.038.050.0

Minimum Prices for Export Meat—The scheme which had operated since 1954 has been replaced by a more comprehensive system with two principal aims: first, to establish floor prices at a more realistic level and, second, to provide a mechanism which will enable the N.Z. Meat Producers Board to build up the Meat Industry Reserve Account by levying farmers' receipts when prices exceed certain levels.

Minimum prices are based on the average of the actual price for the preceding season, the estimated price for the current season (towards the end of which the determinations are made) and a forecast for the following season during which the prices will operate. The Meat Export Prices Committee will have discretion to set the minima up to 10 percent above or below the average of the three seasons. The Committee also determines the trigger prices for each class of meat at a level 20 to 30 percent above the minima. If prices exceed the trigger level, an ad valorem levy is imposed, the proceeds going into individual buffer accounts (sheep meats and beef) established at the Reserve Bank within the Meat Industry Stabilisation Account.

In general the scheme aims at placing a floor under the prices the producers receive, financed by funds accumulated when returns are at higher levels. It is, in short, a price-smoothing scheme which at the same time, pays necessary regard to changes in market demand. Because of the importance of meat in the national economy, it will also have the effect of softening the impact of any sharp movements in overseas prices.

The minimum prices established for the 1975-76 meat season were:

  • Lamb PM 13 to 16 kg—49.5 cents per kg

  • Mutton EL 22 kg and under—22.0 cents per kg

  • Beef:

  •   Steer —Pl —220.5-270 kg —55 cents per kg

  •   Steer —Ll —220.5-270 kg —50 cents per kg

  •   Steer —M

  •   Heifer—M—140.5 kg and over—40 cents per kg

  •   Cow —M

  •   Bull 160.5-260 kg — 50 cents per kg

These are known as the "benchmark" prices. They are the key grades for each category of meat. Other grades will be priced as appropriate differentials.

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 (now the capital funds of the Wool Marketing Corporation) arose in the main from the profits derived from the sale of wartime surplus stocks, and in part from a contributory charge levied on wool sold at that time, much of it was used to buy in wool in 1966-67 but this was all resold by 1972. About half of the meat industry reserve was used to purchase lambs in 1971-72 to provide a higher price schedule, but was recovered from the ensuing marketing of the meat. The meat industry and wool reserve accounts were both drawn on again in 1974-75. Under a new stabilisation scheme for the wool industry, from the start of the 1976-77 selling season, wool growers paid a 3 percent levy on gross wool proceeds into a stabilisation fund. Where necessary, supplementary payments back from the fund will assure them of a minimum price.

The following table shows the balances in the various farm industry reserve accounts at given dates.

YearDairy Account at 31 MayMeat Industry Reserve Account at 30 SepWool Corporation 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.

§$15 million was contributed to the sheep retention scheme in 1972.

 $(000)
1965- 37390,94072,800
1966- 57893,49773,709
1967-11,19195,29670,700*
1966-12,84497,33759,630*
1969-16,00198,19255,835*
1970-20,123100,78652,200
1971-20,123102,66648,197
197213,83487,32752,353
1973+18,41888,59254,745
1974+11,77693,55855,900
1975+17,78577,83456,711

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 fifth of New Zealand's 5-yearly Censuses of Distribution, which provide the basis for the monthly and quarterly surveys of retail and wholesale trade, was for the year ended 31 March 1973. It covered wholesale trade; retail trade; selected service trades; the hotels, motels, taverns, and restaurant group; motor vehicle trades including repairs and servicing; laundries and dry-cleaners; and cinemas.

Results from the 1973 Census of Distribution were released last year in a series of bulletins available from the Department of Statistics, and a full report entitled Census of Distribution 1973 is being published. This section contains a summary of the results.

CENSUS OF DISTRIBUTION 1973—The Census of Distribution for 1972-73 revealed aggregate retail sales of $4,314 million, or average turnover of $128,100 by each of the 33,700 retail stores included in the Census.

At 31 March 1973 there was one retail shop to every 88 persons over 40 percent of them dealing in food and drink. A large proportion of the goods sold had earlier passed through wholesale stores, of which 5,215 with an aggregate turnover of $3,632.9 million were included in the Census.

Retail Trade—In the following table the main retail trade figures from the latest two censuses are set out. To allow for comparisons, a number of store-types surveyed only in the latest Census have been omitted.

Item19681973Percentage Increase
Number of retail stores29,33130,5864.3
Sales ($ million)2,099.73,968.789.0
Average sales per store ($)71,600129,80081.3
Labour force—   
Paid employees103,254147,62843.0
Total137,251188,32137.2
Salaries and wages paid ($ million)181.1376.3107.8

Some comparisons between the results of the 1968 and 1973 Censuses are shown by store-type group in the following tables. As in the previous table, store-types surveyed for the first time in 1973 have been omitted.

Store-type Group Number of StoresTotal SalesAverage Sales per StoreLabour Force
Paid EmployeesTotal
Food and drink—  $(m)$(000)Number 
Packaged19738,881752.584.722,56037,028
 19689,915499.350.419,34533,313
Consumed19734,134364.788.229,57835,998
 19684,077198.348.614,11619,789
Apparel19734,565273.459.912,95517,830
 19684,119168.140.810,23914,194
Furniture19731,659213.0128.47,6159,359
 19681,578118.074.86,3277,648
Automotive sales19732,1081,054.9500.422,47124,821
 19681,344292.3217.56,3847,586
Hardware19731,093195.3178.76,1647,376
 19681,008119.4118.45,6646,568
Chemists19731,19397.181.44,1875,628
 19681,16758.550.13,5354,564
Miscellaneous19736,9531,017.6146.442,09850,281
 19686,123645.9105.537,64443,589
Totals197330,5863,968.7129.8147,628188,321
 196829,3312,099.771.6103,254137,251
Food and drink—      
  No.$$No.$(m)
Packaged19734.220,322253.033546.6
 19633.414,988181.4x278x30.4
Consumed19738.710,131122.672066.8
 19684.910,02172.0x675x23.6
Apparel19733.915,33491.965227.4
 19683.411,84361.1x668x16.1
Furniture19735.622,75971.61,79323.5
 19684.815,42942.9x1,744x13.0
Automotive sales19739.342,500354.61,41172.8
 19685.638,530106.2x2,048x13.7
Hardware19737.726,47865.72,72218.6
 19686.518,17843.4x2,731x11.7
Chemists19734.717,25332.62,34310.0
 19683.912,81121.22,359x6.4
Miscellaneous19737.220,238342.1428110.6
 19687.114,818236.1x450x66.3
Totals19736.121,0741,334.291376.3
 19684.715,298762.8x94181.1

In the previous table the store-type group "Food and drink—consumed" includes restaurants, licensed hotels, taverns, chartered clubs, cafeterias, coffee bars, fish and chip shops, and similar eating establishments.

In the 1968 Census of Distribution, licensed hotels were asked to supply only the value of sales of beer, wine, spirits, tobacco and cigarettes, with the appropriate related employment and wage data for that area. In the 1973 Census of Distribution, sales or turnover, labour force, and salaries and wages for licensed hotels also included accommodation services and a la carte dining rooms where meals were charged for separately to guests (that is, not included in tariff) and the general public. Also included in the 1972-73 figures were 22 licensed hotels (with total sales of $4.9 million) for which the provision of accommodation services was the predominant activity and which were therefore classified as service establishments, although a large proportion of their turnover (slightly less than 50 percent) was attributable to retail sales. The breakdown of sales for licensed hotels only was as follows: retail sales, $187.8 million; accommodation services, $37 million; wholesale sales, $0.3 million; and hiring and leasing services, $0.3 million.

The store-type group "automotive sales" includes the store-type "sales of motor vehicles (including motor cycles)". It should be noted that, in the 1968 Census of Distribution, only licensed motor vehicle dealers, wholly concentrated in the sale of motor vehicles were included. In the 1973 Census, the store-type content for the automotive sales group was extended to include service stations and motor vehicle repair shops, taking in the sales of petrol, oil, parts, and accessories, and also repair and maintenance work. In many cases, where service stations or repair shops had car sale yards attached, and the sale of cars was predominant (that is 50 percent or more of total value of sales), such establishments would be store-typed as "motor vehicle dealers." The 1973 Census figures are, therefore, not a true comparison with those of 1968. The breakdown of sales and paid employee occupation content in 1973 is as follows:

  1. Sales—retail sales (including petrol, oil, parts and accessories) $895.9 million; wholesale sales $21.9 million; services (maintenance, repairs, etc.) $66.9 million; and hiring and leasing services $0.7 million.

  2. Paid employee occupation—managerial, clerical, etc., 4,380; selling and distribution (including petrol, oil, parts and accessories) 5,007; motor mechanics, auto electricians etc., 8,766; and other paid employees 1,338.

The following table deals only with those store-types first surveyed in the 1973 Census which were omitted in the previous tables.

Newly-surveyed Store TypesNumber of StoresTotal SalesAverage Sales per StoreLabour Force at 15 April 1973Salaries and Wages Paid
Paid EmployeesTotal
  $(m)$(000)  $(m)
Food and drink (packaged)—      
Milk vendors1,07925.023.22,2003,7521.2
Food and drink (consumed)—      
Caterers1809.653.21,6161,9312.1
Licensed motels205.6279.76706901.5
Totals20015.276.02,2862,6213.6
Automotive—      
Service stations1,545220.5142.77,2679,71521.6
Caravan and trailer dealers5510.3186.61292060.4
Powered boats and accessories dealers9016.0177.34185301.3
Totals1,690246.7146.07,81410,45123.2
Hardware—      
Timber merchants10245.2443.11,5431,6335.3
Concrete and cement products5317.7334.05856391.9
Totals15562.9405.82,1282,2727.1
Miscellaneous—      
Other miscellaneous120.541.729410.1
Totals, newly-surveyed store types3,136350.3111.714,45719,13735.2

It may be noted that the tables giving comparisons between the 1968 and 1973 Census of Distribution show total retail sales in 1973 as $3,968.7 million. The above table dealing with store-types omitted in the tables of comparisons show total sales of $350.3 million. This gives a grand total of retail sales or turnover recorded at the 1973 Census of Distribution of $4,319.0 million whereas the following tables show a figure of $4,314.0 million. The explanation of this discrepancy lies in the 22 hotels mentioned previously, of which the predominant activity was the provision of accommodation services. These hotels were accordingly classified as service establishments. However, in the tables of comparisons only, these 22 hotels were included with the bulk of the licensed hotels classified as retail establishments, and the total retail sales were accordingly inflated by $4.9 million.

In the following table retail sales are shown by method of purchase as recorded at the 1973 Census. Figures given in parentheses are in each case the percentage of total sales. A survey of hire purchase is carried out at quarterly intervals, and some results from this are given later in this section.

Hire Purchase
Store-type GroupCashCharge AccountNot Assigned to Finance CompaniesAssigned to Finance CompaniesLaybyInstalments, Budgets, Store Credit, etc.OtherTotal Turnover (1972-73)

*Receipts by chemists for dispensing charges claimed from the Department of Health were included under "cash" in 1968 and under "Other" in 1973.

Food and drink—$ (million)
Packaged667.3109.9---0.2-777.5
 (85.8)(14.1)-----(100.0)
Consumed339.832.9----2.4375.0
 (90.6)(8.8)    (0.6)(100.0)
Apparel222.234.30.30.310.34.61.4273.4
 (81.3)(12.5)(0.1)(0.1)(3.8)(1-7)(0.5)(100.0)
Furniture64.2101.034.811.11.00.9-213.0
 (30.1)(47.4)(16.3)(5.2)(0.5)(0.4)-(100.0)
Automotive639.3420.566.8169.60.20.74.41,301.6
 (49.1)(32.3)(5.1)(13.0)--(0.3)(100.0)
Hardware47.5201.90.40.60.67.1-258.2
 (18.4)(78.2)(0.1)(0.2)(0.2)(2.8)-(100.0)
Chemists, etc.52.77.0----37.3*97.1
 (54.3)(7.2)----(38.4)(100.0*
Miscellaneous449.6474.342.38.27.326.69.81,018.1
 (44.2)(46.6)(4.2)(0.8)(0.7)(2.6)(1.0)(100.0)
Total, all groups2,482.71,381.9144.6189.819.540.255.44,314.0
 (57.6)(32.0)(3.4)(4.4)(0.5)(0.9)(1.3)(100.0)

The following table shows details of all industries surveyed in the 1973 Census of Distribution by turnover-size groups.

Amount of Total TurnoverNumber of StoresNumber of Paid Employees on 15 April 1973Total Labour Force on 15 April 1973Salaries and Wages Paid During 1972-73Turnover During 1972-73Stocks at Close of Year (March 1973)
MalesFemales
$    $(m)$(m)$(m)
Under 4,000467361077550.11.10.4
4,000-9,9991,3283135952,6581.09.52.2
10,000-19,9993,6769992,4988,6734.456.29.5
20,000-39,9997,7314,0407,79423,39117.4227.231.9
40,000-59,9995,3864,1587,21419,41921.8265.736.0
60,000-99,9996,2318,12711,40728,70943.0480.360.8
100,000-199,9994,76213,62512,09531,75965.1652.981.9
200,000-499,9992,62118,62111,86332,61185.8800.496.9
500,000-999,99990914,3039,31824,15867.0634.878.5
1,000,000-1,999,99940310,4485,76216,40948.2554.562.8
2,000,000 and over18610,7587,32418,20055.9631.380.1
Totals, All Retail Stores33,70085,42875,977206,742409.74,314.0541.1

The following table shows retail stores by type of organisation or ownership. The figures quoted in parentheses are in each case the percentage of total.

Type of OrganisationNumber of StoresTurnover During 1972-73Stocks at Close of Year (March 1973)
  $(m)$(m)
Individual ownership7,843266.026.5
 (23.3)(6.2)(4.9)
Partnership4,675231.519.3
 (13.9)(5.4)(3.6)
Private registered companies18,3772,644.2332.2
 (54.5)(61.3)(61.4)
Public registered companies1,9601,002.6142.9
 (5.8)(23.2)(26.4)
Other845169.820.3
 (2.5)(3.9)(3.7)
Totals33,7004,314.0541.1
 (100.0)(100.0)(100.0)

Geographical Distribution of Retail Trade—Details of retail trade by statistical areas in 1973 are shown in the following table.

Statistical AreaEstimated Population at 31 March 1973Number of Retail StoresTotal SalesAverage SalesPurchases
Per StorePer Head of Population
 (000) $(m)$(000)$$(m)
Northland97.41,120132.51181,361101.6
Central Auckland747.38,1361,064.51311,424796.4
South Auckland - Bay of Plenty442.45,264693.81321,568531.3
East Coast47.845461.81361,29447.2
Hawke's Bay138.31,621198.21221,433151.0
Taranaki101.91,185152.41291,495117.2
Wellington570.06,298848.81351,489633.1
North Island2,145.124,0783,152.21311,4692,377.8
Marlborough32.739444.01121,34433.3
Nelson70.088495.41081,36271.2
Westland22.535531.0871,37723.2
Canterbury412.44,451566.11271,373431.6
Otago183.02,262254.51121,390191.1
Southland108.91,276171.01341,570128.5
South Island829.59,6221,161.81211,401878.9
New Zealand2,974.733,7004,314.01281,4503,256.7

In 1973 the principal centres of population (urban areas) included 68 percent of New Zealand's population, but contained 69 percent of all retail stores, with almost 74 percent of total retail turnover.

Urban AreasEstimated Population at 31 March 1973Number of Retail StoresTotal SalesAverage SalesPurchases
Per StorePer Head of Population
 (000) $(m)$(000)$$(m)
Whangarei35.445566.51461,87950.8
Northern Auckland123.91,225130.01061,05098.8
Western Auckland99.172982.911483763.3
Central Auckland289.74,155585.61412,022429.3
Southern Auckland185.41,473204.11391,101156.9
Hamilton87.81,073176.21642,007132.9
Tauranga44.465673.91131,66556.7
Rotorua43.453089.11682,05566.2
Gisborne31.236454.91511,76142.0
Napier46.455066.21201,42749.7
Hastings48.258681.41391,68862.0
New Plymouth40.751974.91441,84055.9
Palmerston North59.8729108.11481,80981.1
Upper Hutt Valley33.026834.51291,04526.2
Lower Hutt Valley94.9957126.41321,33395.8
Porirua Basin52.029739.513375829.8
Wellington139.41,792281.31572,018202.2
Wanganui38.050861.31211,61246.2
Masterton20.628239.61401,92130.2
Nelson39.851264.61261,62148.3
Christchurch285.93,153404.11281,413303.8
Timaru29.539757.01431,92945.3
Dunedin112.41,334161.91211,440121.1
Invercargill52.3702112.81612,15884.6
Totals2,033.223,2463,176.71371,5622,379.2

The next table gives the number of stores and value of sales or turnover for boroughs with over 4,000 population not included in the 24 main urban areas of the preceding table.

BoroughsEstimated Population at 31 March 1973Number of Retail StoresTotal SalesAverage SalesPurchasesTotal Labour Force
Per StorePer Head of Population
   $(m)$(000)$$(m) 
Dargaville4,1609913.81393,31911.0623
Pukekohe8,04016425.61563,18119.91,058
Huntly5,2909513.31402,51810.6517
Cambridge6,68012214.41182,15711.2733
Ngaruawahia4,080573.7659102.7241
Te Awamutu7,06016622.81373,22817.61,019
Morrinsville4,44012721.61704,87617.6797
Te Kuiti4,85010812.81182,6309.6547
Taumarunui6,71011817.21462,56413.4731
Thames5,87012915.11172,56711.9653
Matamata4,19011814.41223,44311.4604
Putaruru4,62010013.31332,87110.4515
Taupo11,90019825.31282,12919.61,044
Whakatane10,25018729.11562,83822.61,217
Kawerau7,670568.01421,0376.2352
Wairoa5,54010514.51382,61611.2702
Dannevirke5,60012815.01172,68111.5763
Waitara5,320686.6981,2475.2346
Stratford5,38010515.71502,92112.4652
Hawera8,21017528.71643,49722.61,153
Feilding9,98015620.51322,05615.7962
Marton4,6709013.51502,88310.5573
Levin13,85022128.51292,05522.01,238
Blenheim15,60023632.41372,08024.71,593
Westport4,880969.0941,8526.6536
Greymouth7,75017118.81102,42714.4958
Rangiora5,1509113.21452,55610.2586
Ashburton13,70018832.51732,37426.01,405
Oamaru13,05021928.61312,19222.01,366
Balclutha4,7108214.61783,09711.5643
Gore8,88016427.51683,09721.41,045

Types of Retail Stores—In 1972-73, approximately 42 out of every 100 retail establishments dealt in food and drink, either for home preparation and consumption (for example, the bulk of the commodities sold by butchers, bakers, grocers, milk vendors, and so forth) or for consumption on the premises when the establishment was a restaurant, hotel, cafeteria, milk bar, or similar. Total sales of food and drink amounted to $1,152.5 million, almost 27 percent of total retail turnover.

In the following table, leading results of the 1973 Census of Distribution are given by both store-type groups and store-types. Unlike the store-type tables given earlier in this section, the following table includes store-types surveyed for the first time in 1973.

Store TypeNumber of StoresSales or TurnoverAverage Turnover per StoreTotal Trading IncomePurchasesTotal Trading ExpenditureCost of Goods Sold as percentage of Turnover*

*Cost of goods sold is equivalent to purchases during the year plus stocks at start less stocks at close.

†Builders' hardware stores, excluding stores selling timber and constructional materials.

  $(m)$(000)$(m)$(m)$(m)Percent
Food and drink (packaged)—       
Baker and pastry-cook, cake shop57020.235.420.410.918.153.8
Butcher, delicatessen, poulterer1,778125.670.7126.190.4116.771.7
Grocer and dairy4,983507.4101.8508.8426.7484.983.5
Confectioner1223.326.83.31.82.955.7
Fish shop (wet fish)2107.837.17.84.96.762.8
Fruiterer, greengrocer89838.542.938.628.333.973.5
Milk vendor1,07925.023.225.415.219.560.6
Wine shop, independent bottle store27139.0144.039.327.134.168.1
Other food and drink (packaged)4910.7218.610.98.910.282.6
Totals9,960777.578.1780.4614.2727.178.5
Food and drink (consumed)—       
Licensed restaurant12915.3119.015.66.914.744.5
Hotel, tavern, chartered club1,392255.9183.8259.7140.3240.354.6
Unlicensed restaurant, tea-room, coffee house, cafeteria1,20442.735.442.822.738.153.0
Takeaway food bar, milk bar, fish and chip shop1.38745.933.146.028.840.062.3
Other food and drink (consumed)20015.275.815.36.513.842.3
Totals4,312375.087.0379.4205.2346.854.4
Apparel—-       
Footwear74448.665.348.833.944.768.9
Draper91161.467.461.743.757.968.9
Hosiery, lingerie, children's clothing, wool, corsets, millinery, and haberdashery73822.330.222.415.821.068.6
Dress and coat shop1,35869.551.269.849.765.669.3
Men's and boys' clothier74269.493.569.748.463.768.4
Other apparel722.230.72.31.21.952.4
Totals4,565273.459.9274.6192.8254.968.7
Furniture—       
Furniture store48281.2168.584.658.176.569.1
Floor coverings and soft furnishings34841.2118.541.531.940.672.0
Household appliance store59974.6124.578.952.174.068.4
Radios, television, etc.23015.969.316.410.915.464.6
Totals1,659213.0128.4221.3153.1206.469.1
Automotive—       
Service station (oil, petrol, accessories sales predominant)1,545220.5142.7221.8175.6212.879.2
Motor vehicles (including motor cycles)1,436985.4686.2992.0832.2955.583.8
Parts and accessories (including tyres and batteries)53665.0121.365.344.261.866.4
Other automotive28130.7109.331.323.929.475.9
Totals3,7981,301.6342.71,310.41,075.91,259.582.0
Hardware—       
 $(m)$(000)$(m)$(m)$(m)Percent 
Domestic hardware, crockery, glass and china33220.461.420.614.819.470.0
Paint, varnish, and wallpaper23825.7108.126.418.824.971.5
Builders hardware ()21462.4291.663.446.857.774.1
Timber and building materials294137.9468.9145.2101.6130.872.8
Other hardware17011.969.812.37.811.363.7
Totals1,248258.2206.9268.0189.8244.272.4
Chemicals       
Chemist1,16093.380.593.764.485.767.3
Other chemicals333.8115.44.43.04.178.0
Totals1,19397.181.498.267.389.867.7
Miscellaneous—       
General store687129.5188.5131.6108.4126.283.1
Department and variety store379292.6772.0302.2210.5284.970.6
Toys, novelties, etc.37016.544.716.710.714.864.9
Bookseller, newsagent, and stationer1,26483.866.386.360.079.670.2
Electrical goods10413.5130.113.98.813.165.0
Florist2735.720.85.72.94.950.6
Jeweller53723.844.323.915.32,1.760.6
Pawnbroker and secondhand dealer34421.763.021.916.621.274.0
Seedsman and nurseryman26211.343.211.46.310.254.7
Tobacconist50513.727.214.010.212.273.7
Leather goods and harness1446.041.86.04.05.764.7
Music and record store13312.190.812.58.311.866.3
Office supplies store11127.0243.227.213.423.752.3
Sports goods dealer27618.868.318.913.717.869.7
Agricultural machinery and farm equipment17753.6302.654.738.551.267.9
Photographic dealer1317.255.37.35.06.967.9
Sewing machine dealer1178.270.38.45.17.661.3
Other miscellaneous1,151272.9237.1290.2220.7272.079.5
Totals6,9651,018.1146.21,052.9758.5985.573.2
Grand Totals33,7004,314.0128.04,385.33,256.74,114.274.5

The following table shows the number of retail stores handling particular commodity groups and the total sales of each commodity group during the year ended 31 March 1973.

Commodity GroupNumber of Stores Handling CommoditiesTotal Sales of Commodity
 No.$(m)
Groceries (excluding processed meat, fish, smallgoods, etc.)1 6,546367.3
Fresh and frozen fish (including molluscs, etc.)2,23612.3
Fresh fruit and vegetables5,10674.3
Fresh and frozen meat5,202154.3
Processed (other than tinned) meat, fish, bacon, ham, small goods, etc.4,69031.6
Bread, cakes, and pastries5,98348.7
Milk, cream, yoghurt5,56236.2
Cooked take-away food, fish and chips, hamburgers, etc.1,99934.8
Beer, wine, and spirits1,985254.2
Confectionery, ice cream, soft drinks, snack foodstuffs, etc.8,69290.4
Meals consumed on premises and separately charged1,75064.1
Cigarettes, tobacco, and tobacconists' sundries10,29294.3
Drapery, millinery, haberdashery, soft furnishings, bedding household textiles2,93998.5
Women's, girls', and infants' clothing and accessories3,343160.6
Furniture (including mattresses, blinds, etc.)1,21678.3
Floor coverings (including carpets, lino, floor tiles, etc.)85656.1
Footwear—men's and boys'1,91125.1
Footwear—women's, girls', and infants'1,74439.8
Men's and boys' clothing and accessories2,362109.4
TV sets, parts, and accessories (excluding rental sets)1,21914.5
Radios, record players, tape recorders, etc.1,31922.4
Musical instruments, records, sheet music, etc.77316.0
Domestic refrigerators and freezers1,18126.2
Washing machines, stoves, household heating and ventilation appliances, etc.1,28529.6
Sewing and knitting machines, parts, etc.56610.0
Other household appliances and accessories (including vacuum cleaners, motor mowers, toasters, food mixers, electric blankets, etc.)2,06732.5
Domestic hardware (including kitchenware, china, glass-ware, cutlery, garden tools, etc.)2,62152.8
Wallpaper and glass58915.0
Timber (including joinery and fencing)69891.2
Wood-based panel products (e.g., hardboard, softboard, plywood)34121.6
Cement, clay, plaster, and concrete products, sand and gravel, bricks, tiles, pipes, etc.57936.9
Paints and varnishes1,35424.9
Plumbing supplies4356.0
Electrical supplies (builders)46712.9
Hand tools (including electrical)1,00011.5
Other builders' hardware and materials (including structural steel, metal joinery, etc.)83455.3
Motorcars and station wagons—new775323.6
Motorcars and station wagons—used1,520335.9
Trucks, vans, buses, and other vehicles except motor cycles—new51167.4
Trucks, vans, buses, and other vehicles except motor cycles—used62031.8
Motor cycles and motor scooters—new26616.7
Tyres and tubes (including stock retreads and recaps)2,66543.7
Motor vehicle parts and accessories (including batteries)3,067136.4
Motor spirit (not including diesel fuel)3,095170.1
Diesel fuel1,4906.8
Lubrication oil2,47212.1
Caravans and trailers (including fixtures and fittings)21012.2
Boats, outboard and inboard motors, parts, etc.36619.3
Agricultural machinery and implements (including tractors, parts, and accessories)81567.6
Industrial machinery and equipment (including fork lifts, machine tools, parts, etc.)26836.3
Office and business machines and equipment, parts and accessories18622.5
Fertilisers and manures77548.1
Grain, bulk seed, feed, and fodder62769.4
Medical and pharmaceutical goods1,29925.0
Stock remedies54311.6
Agricultural chemicals58613.7
Toiletries, cosmetics, perfumes, etc.3,06639.3
Prescription medicines (including dispensing and payments from Department of Health)1,16239.4
Photographic equipment, accessories, and supplies (including projectors, enlargers, chemicals, and film)1,14410.5
Souvenirs and novelties1,34012.7
Travel goods, briefcases, handbags, etc., of leather or plastic7128.3
Sports goods and requisites, camping equipment, toys, games etc.1,85136.2
Watches, clocks, jewellery, precious stones1,39324.8
Seeds, plants, and other garden supplies (excluding garden tools)1,22415.8
Books, stationery, newspapers, magazines, greeting cards, etc.4,24792.0
Secondhand goods, antiques, etc.61532.1

The following table shows 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 as recorded by store-type group at the 1973 Census.

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
Full TimePart Time
 $  $$ 
Food and drink—      
  Packaged78,0592.51.620,322253.021.2
  Consumed86,9715.13.710,131122.629.8
Apparel59,8842.71.215,33491.93.8
Furniture128,3814.80.822,75971.65.8
Automotive342,7088.11.242,500354.611.8
Hardware206,9306.80.926,47865.76.4
Chemists, etc.81,4273.31.417,25332.66.7
Miscellaneous146,1805.81.420,238342.15.8
  All retail stores128,0114.51.621,0741,334.28.7

Shopping Malls—Unlike the 1968 Census of Distribution, in 1973 no comparable statistics were obtained for multiple stores engaged in retail trading. Statistics have, however, been taken out for shopping malls.

The following table gives the total of all retail establishments confined to shopping malls, excluding service establishments such as hairdressing salons.

LocationNumber of Stores in Shopping MallsSalesStocks at End of Year (March) 1973Total Labour Force on 15 April 1973Salaries and Wages Paid 1972-73
Full timePart time
Main Urban Areas—No.($m)($m)No.No.($m)
Northern Auckland496.31.02091640.6
Western Auckland416.51.02341110.6
Central Auckland8810.02.14852291.3
Southern Auckland U.A.14221.72.76544571.9
Total, Greater Auckland32044.56.81,5829614.4
  Wellington8714.62.05631841.5
  Lower Hutt Valley U.A.242.80.499650.3
Total, Greater Wellington11117.42.46622491.8
  Christchurch11616.32.15383041.5
  Secondary Urban Areas573.40.4143860.3
  Smaller Centres717.71.12721950.8
  Other Urban Areas201.70.383230.2
Totals69590.913.13,2801,8189.0

The following table shows the number of shopping malls by turnover-size groups, together with the number of stores (including, in this case, service establishments), aggregate sales, and average sales per store for each turnover-size group.

Turnover-Size Groups of Shopping MallsNumber of Shopping MallsNumber of Stores in Shopping MallsSalesAverage Sales per Shopping Mall
$No.No.($m)($m)
Under 250,0007420.80.1
250,000-499,9998772.80.4
500,000-999,99911948.20.7
1,000,000-1,999,9993383.91.3
2,000,000-2,999,9993667.82.6
3,000,000-3,999,99937810.83.6
4,000,000-4,999,999515222.44.5
5,000,000-8,999,999312119.26.4
9,000,000 and over29418.79.3
Totals4576294.62.1

Self-Service Stores—With the advent of equal pay for female shop assistants, shortages of staff, and the introduction of more varieties of goods, combined with larger selling areas, the numbers of self-service stores operating have grown considerably over the past few years.

The following table gives statistics for the units which were mainly self-service in 1972-73, followed by those which were mainly counter-service units.

LocationNumber of StoresSalesStock at End of Year (31 Mar 1973)Paid Employees as at 15 April 1973
Full TimePart Time
  $(m)$(m)  
Main Urban Areas—Mainly Self-Service
Northern Auckland17226.22.1470491
Western Auckland10720.11.1371325
Central Auckland52366.46.71,424898
Southern Auckland21642.53.1892749
Total, Greater Auckland U.A1,018155.213.03,1572,463
Wellington21631.03.3884406
Lower Hutt Valley11118.32.3376197
Upper Hutt Valley416.80.514983
Porirua Basin489.40.617897
Total, Greater Wellington U.A.41665.56.71,587783
  Hamilton14118.51.8429214
  Christchurch35149.43.81,107516
  Dunedin15618.42.1430184
Secondary Urban Areas729106.19.72,5391,029
Smaller centres45369.16.61,729693
Other Urban Areas30634.73.7705318
Rural32224.52.9346207
Totals, mainly self-service3,892541.450.112,0296,407
LocationNumber of StoresSalesStock at End of Year (31 Mar 1973)Paid Employees as at 15 April 1973
Full TimePart Time
Main Urban Areas—Mainly Counter-Service
Northern Auckland1,053103.811.02,2831,551
Western Auckland62262.87.01,432711
Central Auckland3,632519.268.315,9985,039
Southern Auckland1,257161.618.83,8561,848
Total, Greater Auckland U.A. 6,564847.4105.223,5699,149
Wellington1,576250.332.96,6852,851
Lower Hutt Valley846108.212.72,1661,322
Upper Hutt Valley22727.73.6574388
Porirua Basin24930.13.5681358
Total, Greater Wellington U.A. 2,898416.252.610,1064,919
  Hamilton932157.721.54,0671,239
  Christchurch2,802354.750.510,3644,738
  Dunedin1,178143.519.44,3711,532
  Secondary Urban Areas6,061843.8115.024,6518,893
  Smaller centres4,054548.572.614,4424,548
  Other Urban Areas2,660265.634.97,1952,535
  Rural2,659194.819.34,6382,013
Totals, mainly counter-service29,8083,772.6490.9103,40339,566
Totals, all retail stores33,7004,314.0541.1115,43245,973

Wholesale Trade—The total of 5,215 wholesale establishments included in the 1973 Census of Distribution had an aggregate turnover of $3,632.9 million, an average turnover of $696,627 per store (Oil companies, with 119 outlets and a turnover of $318.8 million, are not included in these figures. A separate summary is given later in this section.)

Auckland and Wellington (including the Hutt Valley and Porirua Basin) Urban Areas, together accounted for 46.2 percent of wholesale stores and 55.6 percent of turnover.

The following table shows the distribution of wholesale trade by statistical areas. The figures in parentheses are in each case the percentage of total.

Statistical AreaEstimated Population at 31 March 1973Number of StoresPurchases During 1972-73Turnover During 1972-73Stocks at Close of Year (March 1973)
 (000)  $(million) 
Northland97.410036.245.24.8
 (3.3)(1.9)(1.3)(1.2)(0.9)
Central Auckland747.41,6411,107.41,366.2205.9
 (25.1)(31.5)(38.0)(37.6)(40.0)
South Auckland - Bay of Plenty442.4485191.7243.732.4
 (14.9)(9.3)(6.6)(6.7)(6.3)
East Coast47.85711.815.41.9
 (1.6)(1.1)(0.4)(0.4)(0.4)
Hawke's Bay138.319693.7115.517.1
 (4.6)(3.8)(3.2)(3.2)(3.3)
Taranaki101.912658.471.69.2
 (3.4)(2.4)(2.0)(2.0)(1.8)
Statistical AreaEstimated Population at 31 March 1973Number of StoresPurchases During 1972-73Turnover During 1972-73Stocks at Close of Year (March 1973)
 (000) $(million)  
Wellington570.01,192775.5973.1131.3
 (19.2)(22.9)(26.6)(26.8)(25.5)
Marlborough32.7316.78.50.8
 (1.1)(0.6)(0.2)(0.2)(0.2)
Nelson70.09027.842.44.7
 (2.3)(1.7)(1.0)(1.2)(0.9)
Westland22.5297.08.90.9
 (0.8)(0.6)(0.2)(0.2)(0.2)
Canterbury412.4811436.2536.073.1
 (13.9)(15.6)05.0)(14.8)(14.2)
Otago183.0309110.0145.524.6
 (6.1)(5.9)(3.8)(4.0)(4.8)
Southland108.914849.760.97.6
 (3.7)(2.8)(1.7)(1.7)(1.5)
Totals, all wholesale stores2,974.75,2152,912.33,632.9514.5
 (100.0)(100.0)(100.0)(100.0)(100.0)

The following table shows details of wholesale establishments by store-type groups in 1973.

Store-type GroupNumber of StoresNumber of Paid Employees on 15 April 1973Total Labour Force on 15 April 1973
MalesFemales
Food and drink96910,7554,42615,898
Apparel and textiles4963,2222,2505,921
Furniture3122,2519463,423
Automotive3734,1231,1405,501
Timber and hardware8908,8641,96511,405
Chemicals2182,5161,2073,784
Miscellaneous1,95715,1386,62323,329
Totals, all wholesale stores5,21546,86918,55769,261
Store-type GroupAverage Labour Force per StoreSalaries and Wages Paid During 1972-73Sales or Turnover During 1972-73Average Turnover per Unit of Labour ForceStocks at Close or Year (March 1973)
 No.$(m)$(m)$$(m)
Food and drink16.448.8880.062,05476.8
Apparel and textiles12.017.9289.055,11348.4
Furniture10.911.4202.163,84825.5
Automotive14.717.7407.075,10155.0
Timber and hardware12.838.1479.944,17186.8
Chemicals17.313.4209.459,14841.2
Miscellaneous12.073.41,165.654,797180.7
Totals, all wholesale stores13.3220.73,632.957,014514.4

A classification by size of turnover shows that stores with a turnover of under $100,000 numbered 1,641 (31.5 percent) but accounted for only $68,195,000 or 1.9 percent of the total turnover. At the other end of the scale, a total turnover of $2,522,193,000 (69.4 percent was accounted for by only 789 stores (15.1 percent) which had turnovers of 51,000,000 or more.

Amount of TotalNumber of StoresNumber of Paid Employees on 15 April 1973Total Labour Force April 1973Salaries and Wages During 1973Turnover During 1972-73Stocks at Close March 1973
MalesFemales
$    $(000)$(m)$(m)
Under 6,0002314913041,0562,1520.30.2
6,000-9,999662421126790.50.1
10,000-19,9991841691335626512.70.5
20,000-39,9993794803751,3252,08111.31.5
40,000-59,9992835953311,2782,46614.02.4
60,000-99,9994981,4246672,5855,97639.36.3
100,000-199,9998283,3611,4115,33815,073120.819.6
200,000-299,9995202,8221,0634,26512,277127.521.3
300,000-399,9994022,9561,0624,20513,247139.724.9
400,000-499,9993012,6949223,77412,107134.624.4
500,000-599,9992042,0427552,8999,650111.721.5
600,000-799,9993243,9501,4605,57618,344224.737.0
800,000-999,9992062,7989873,90513,018183.628.5
1,000,000-1,499,9993035,5541,9767,64426,278365.554.0
1,500,000 and over48617,5097,09024,72387,2892,156.7235.9
Totals, all wholesale stores5,21546,86918,55769,261220,6853,632.9478.1

The following table shows a commodity analysis of wholesale trade, repair work, hiring, leasing, and renting.

Commodity GroupNumber of Stores Handling CommodityTurnover During 1972-73
AmountPercentage of Total
 No.$(000) 
Groceries, other food, drink, and tobacco459395,43710.9
Fresh and frozen meat, poultry, game, etc.191192,7895.3
Fresh and frozen fish, etc.14622,8620.6
Processed meat, fish, bacon, ham, smallgoods, etc., other than canned12238,7701.1
Fresh fruit and vegetables12465,5361.8
Bread, cakes, and pastries18341,0281.1
Milk, cream and yoghurt (wholesaler), confectionery, ice cream, soft drinks, etc.29671,5002.0
Other foods14750,8351.4
Beer, wine, and spirits167109,4823.0
Cigarettes, tobacco, and tobacconists sundries210111,5893.1
Fabrics, drapery, piecegoods, millinery, haberdashery, woollen goods, soft furnishings, etc.406138,3573.8
Footwear26831,8170.9
Men's and boys' wear27176,2052.1
Women's, girls', and infants' wear31892,1272.5
Furniture and floor coverings32792,2632.5
Television sets and parts (excluding rentals)8912,0990.3
Radios, radiograms, record players, and tape recorders17722,0460.6
Musical instruments (including records)4610,6610.3
Domestic and commercial refrigerators and freezers13831,7370.9
Washing machines, stoves, heating and ventilation equipment21235,1751.0
Other household appliances, motor mowers, electrical goods, and accessories37635,0611.0
Domestic hardware, cutlery, china, and glassware43861,9571.7
Building materials and supplies (excluding timber, bricks and concete products)19133,9950.9
Wallpaper and glass13113,8920.4
Timber only, including joinery and fencing materials21966,9581.8
Panel products (wood based) hardboard, soft board, and plywoods12119,6480.5
Cement, clay, pipes, bricks, and concrete products, sand and gravel, etc.14445,3671.2
Plumbing supplies25960,5051.7
Electrical supplies28763,0391.7
Hand tools (including electrical)24212,9134.0
Other builders supplies, structural steel, metal joinery, etc.515184,9985.1
New and used motor vehicles62247,2846.8
Automotive parts and accessories, fuel, and lubricants522145,7644.0
Caravans, trailers, boats, bicycles, etc.16220,4450.6
Agricultural machinery, implements, tractors, parts, and accessories16232,5200.9
Industrial machinery and equipment464118,7113.3
Construction, earthmoving, mining, and quarrying machinery, etc.9627,8340.8
Other machinery, including office18923,6820.7
Florists goods, plants, seeds, and garden supplies24729,4490.8
Agricultural chemicals10421,8550.6
Fertilisers and manures10440,9041.1
Grain, seed, feed, and fodder9440,8361.1
Medical and pharmaceutical goods (including payments received from Department of Health)23170,3791.9
Toiletries, cosmetics, perfumes, etc.18733,2260.9
Industrial chemicals and allied products14471,3292.0
Books, stationery, newspapers, etc.21254,1601.5
Paper in bulk (not stationery)7838,1981.1
Photographic equipment and supplies6513,2570.4
Printers supplies, paper, and ink369,7400.3
Professional and scientific equipment, including medical, optical, and dental equipment13014,9320.4
Sports goods (including toys and games)21429,7830.8
Travel goods, leather goods, etc.14016,8310.5
Watches, clocks, jewellery, silverware, etc.27518,6310.5
Wrapping and packaging materials15624,1010.7
Wool, hides, and skins, and sheepskin products90205,2205.6
Other34531,0100.9
Totals, wholesale commodities 3,620,72999.7
Totals, wholesale repairs and services 10,9800.3
Totals, wholesale hiring, leasing, and renting 1,201 
  3,632,910100.0

Wholesale Distribution of Petroleum and Petroleum Products 1972-73—Petrol wholesalers were not included in the previous tables on wholesale trade as the 7 oil companies surveyed under the Census of Distribution supplied aggregated figures for their respective installations. In all, 119 depots with aggregate sales valued at $318.9 million were covered by the survey. Details of sales of petroleum and petroleum products during 1972-73 are given in the following table.

Wholesale Sales of GoodsVolumeValue

*Included in these figures are the following over/under recoveries from the Petroleum Pool Account.

 litres (Million)$(Million)
Motor gasoline2,184.8209.9*
Aviation gasoline35.82.4
Lighting and power kerosene35.21.8
Jet kerosene20.18.2
Light fuel oil251.75.9*
Heavy fuel oil743.414.3*
Diesel1,074.140.4*
Other petroleum products 35.9
Total 318.8
 $(million) 
Motor gasoline9.2(over)
Diesel1.3(under)
Light fuel oil0.1(under)
Heavy fuel oil0.3(under)

The following table gives a summary of the income and expenditure of the 119 oil company installations in New Zealand and also includes Head Office expenses such as sales promotions.

ItemValue
Trading income—$(million)
Sales of goods (see above)318.8
Sales of services (mainly to other companies in this group)6.4
Other trading income (interest, rent, etc.)2.6
Total trading income327.8
Value of stocks 
  Beginning of year40.9
  End of year42.1
Trading expenses 
  Purchases of petroleum and petroleum products (includes refinery fees and coastal shipping charges)144.5
  Commodity duties and taxes100.3
  Salaries and wages (includes overtime)14.7
  Rent and leasing of land, buildings, plant, vehicles, etc.2.9
  Advertising and sales promotion2.6
  Gross interest paid1.9
  Transport costs —operating costs of own vehicles4.3
  —Contract freight and cartage7.7
  Depreciation on fixed tangible assets (as charged in books of account)8.4
  Other trading expenses24.3
Total trading expenses311.6

All figures in these tables dealing with the wholesale trading activities of oil companies include inter-company sales but exclude manufacturing activities which mainly involve the blending and packaging of lubricating oils.

Total paid employees of the 7 companies surveyed numbered 3,211. The table below shows the fixed tangible assets of the oil companies.

Fixed Tangible AssetsPurchases During Trading YearSales During Trading YearBook Value at End of Trading Year
  $(million) 
Land0.50.610.6
Buildings0.10.15.7
Road transport vehicles1.70.77.1
Other assets4.90.442.3
Total7.21.865.7

Service Establishments—Service establishments surveyed in the 1973 Census of Distribution fell into 5 main groups as follows: renting, hiring, and leasing; accommodation; motor vehicle repair, maintenance, and servicing; other miscellaneous repair and maintenance servicing; and personal services.

Of the 7,416 service establishments, 5,516 or 74 percent provided services only, and in the remainder some secondary trading was also carried on. Services establishments covered by the Census comprised 5,350 (or 72 percent of the total) in the North Island and 2,066, or 28 percent, in the South Island.

The principal centres of population (Urban Areas) contained 70 percent of service establishments with 79 percent of the total turnover of such establishments.

The following table gives details of numbers and location of those services covered by the census in 1973.

ItemRenting, Hiring, and Leasing ServicesAccommodation ServicesMotor Vehicle, Repair, Maintenance, and ServicingOther Miscellaneous Repair and Maintenance ServicesPersonal ServicesTotal
Number of establishments2971,5762,1718592,5137,416
Sales or turnover during 1972-73 $(000)44,95336,72499,59729,80764,773275,854
Location of establishments—      
  Main urban areas1763691,0594781,4073,489
  Secondary urban areas754045061945241,703
  Smaller centres22160298100336916
  Other urban1623315267181649
  Rural84101562065659
Paid employees on 15 April 1973      
  Males1,6328706,0441,6784,26414,488
  Females1,1483,36681042911,25317,006
Totals2,7804,2366,8542,10715,51731,494
Total labour force on 15 April 19733,0257,0759,9673,17418,38541,626
Salaries and wages paid during 1972-73 $(m)10.56.521.37.127.172.4

Service establishments are further analysed in the following table.

Amount of Total TurnoverNumber of EstablishmentsNumber of Paid Employees on 15 April 1973Total Labour Force 15 April 1973Salaries and Wages Paid During 1972-73Turnover During 1972-73
MalesFemales
$    $(000)$(000)
Under 2,000223202729525.5277.9
2,000- 3,99946549117741165.71,412.4
4,000- 5,99956037236988341.82,814.8
6,000- 9,9991,1751458322,5061,357.49,303.2
10,000- 19,9991,7506451,9485,0934,405.925,031.4
20,000- 29,9991,0121,1821,4034,1115,244.024,899.4
30,000- 39,9995469788892,6884,189.018,848.9
40,000- 59,9996501,7991,2443,9887,773.731,960.2
60,000- 99,9995552,5911,7805,15510,848.542,620.7
100,000-199,9993132,5111,8484,74911,602.542,486.4
200,000-499,9991322,5613,7106,36513,817.639,390.2
500,000 and over351,9702,9724,94712,620.536,809.1
Totals7,41614,48817,00641,62672,392.2275,854.4

The nature of the service establishments covered in the Census of Distribution 1973 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— 
Laundry, drycleaner, carpet cleaner, dyer383
Cleaner (office, window, shop)166
Men's hairdresser143
Ladies' hairdresser, beauty salon1,417
Photographer (portrait and commercial)223
Funeral director and undertaker78
Health centres, saunas, etc., gymnasiums54
Other49
Total, personal services2,513
Renting, hiring, and leasing services— 
Cars and other motor vehicles101
Television46
Towels and linen20
Apparel13
Excavation, construction, building, and agricultural machinery59
Office machinery and equipment13
Other45
Total, renting, etc.297
Accommodation— 
Unlicensed motels973
Motor camps and cabins275
Unlicensed hotels, guest houses, hostels, boardinghouses285
Licensed hotels/motels (accommodation predominant)43
Total, accommodation1,576
Motor vehicle repairs— 
Service stations226
Panelbeater714
Spray painter218
Car washer25
Car trimmer85
Engine reconditioners and engineers655
Auto electrician170
Other78
Total, motor vehicle repairs2,171
Other miscellaneous repair and maintenance services— 
Boot and shoe repairer102
Electrical goods repairer322
Watchmaker88
Carpet sewer and fitter44
Agricultural machinery and equipment repairer39
Gunsmith and locksmith15
Tool repairer and sharpener35
Other214
Total, other services859
Grand total, all services establishments7,416

Turnover figures for the 14 main types of service establishments covered were as follows: Panel-beating, $33.6 million; engineers and engine reconditioners, $28.5 million; service stations, $18.5 million; laundry, dry-cleaning, dyeing, $17.1 million; electrical repairs, $16.3 million; hairdressing and beauty salons, $16.2 million; office and shop cleaning, $15.4 million; renting, hiring or leasing office machine equipment, $14.5 million; car hire, etc., $8.0 million; auto electrician, $7.7 million; towel and linen hire, $7.9 million; licensed hotels (accommodation predominant) $7.4 million; unlicensed motels, $5.9 million; and renting, hiring television, etc., $5.2 million.

The following table shows details of total services provided by retail, wholesale and service establishments for the above groupings.

Type of ServiceNumber of Establishments Handling Service SpecifiedTurnover During 1972-73
 No.$(000)
Personal services—  
Services only1,97955,528
Retail and wholesale establishments5349,245
Totals, personal services2,51364,773
Renting, hiring, and leasing—  
Services only20218,135
Retail and wholesale establishments9526,818
Totals, renting, hiring, and leasing29744,953
Accommodation—  
Services only1,26320,424
Retail and wholesale establishments31316,300
Totals, accommodation1,57636,724
Motor vehicle repair—  
Services only1,59860,280
Retail and wholesale establishments57339,317
Totals, motor vehicle repair2,17199,597
Other miscellaneous repair and maintenance services—  
Services only4749,648
Retail and wholesale establishments38520,160
Totals, other miscellaneous repair and maintenance services85929,808
Grand totals, all services7,416275,854

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 1970 and the results of this sample are 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 became fairly volatile, firstly as a result of the easing of import controls and, later, as a result of changes in the incidence of sales tax and of the general economic situation.

*Since these tables were compiled, the series has been revised in the light of the results of the 1972-73 Census of Distribution. The revised figures will be found in the Monthly Abstract of Statistics.

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) Retail Sales
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
1972—            
Mar30.2115.066.79.747.526.120.439.519.669.2123.6567.5
Jun32.0116.065.313.459.232.023.441.220.786.1126.4615.6
Sep33.3123.768.110.255.435.523.743.022.183.3132.9631.3
Dec35.7138.276.513.668.339.027.949.227.5106.7164.0x746.6
1973—            
Mar35.0131.174.810.954.935.024.446.424.579.6151.3667.7
Jun38.7133.075.414.469.540.028.847.624.196.3150.1718.1
Sep40.9136.079.412.167.547.431.251.225.795.5163.0749.9
Dec43.8154.991.216.481.356.738.362.233.3130.5205.3913.9
1974—            
Mar38.1143.787.812.767.645.834.453.027.797.6184.5792.9
Jun40.5147.389.016.082.156.241.351.929.1116.6182.9852.7
Sep38.8158.892.814.178.560.846.758.732.1113.4187.9882.6
Dec39.2183.2102.818.691.261.053.167.340.4142.5229.11,028.4
1975—            
Mar33.4167.496.813.769.145.444.453.733.8100.9186.5845.2
Jun35.9169.897.419.592.655.057.655.535.7129.9193.7942.5
Sep37.0177.7102.415.984.264.163.559.138.4129.6213.8985.7
Dec42.1207.6115.820.8103.672.771.169.946.2168.3284.31,202.5
Retail Stocks at 31 March
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
19721.230.77.217.470.023.319.836.014.768.1106.3394.6
19731.433.57.817.172.425.521.437.216.669.1106.4408.5
19741.637.89.218.382.835.123.937.919.185.6136.3487.6
19751.643.410.523.399.657.434.345.922.0103.1154.3595.2

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 Current $sIn Constant 1957-58 $s
As RecordedSeasonally AdjustedBefore Seasonal AdjustmentSeasonally Adjusted
ValueIndex Number*ValueIndex Number*

*Base: Average quarterly values during the year ended March 1958 — 1000.

†Provisional.

 Total Sales
 $(m)$(m) $(m)$(m) 
1971—Mar510.3541.22,212334.5354.71450
Jun553.0559.22,286350.5354.01447
Sep559.2581.12,376350.2364.01488
Dec652.2586.82,399400.0359.91471
1972—Mar567.5604.42,471341.8364.01489
Jun615.6621.02,539369.4372.81524
Sep631.3652.12,666375.1387.51584
Dec746.6673.52,754440.4397.11624
1973—Mar667.7711.72,910382.7407.91668
Jun718.1729.72,983403.3409.91676
Sep749.9773.33,161408.7421.31722
Dec913.9821.43,358493.6443.91815
1974—Mar792.9841.93,442419.6445.41821
Jun852.7871.53,563443.5453.41854
Sep882.6907.63,711446.2459.11877
Dec1,028.4923.03,773503.4451.91847
1975—Mar845.2909.03,716399.0429.01754
Jun942.5964.03,945430.4440.51901
Sep985.71,009.64,128428.5439.11795
Dec1,202.51,076.04,399495.9443.61813
 Sales per Head of Population
 $$ $$ 
1971—Mar178.64189.481740117.09124.171140
Jun193.54195.711797122.67123.911138
Sep195.47203.141865122.42127.261169
Dec226.19203.491869138.72124.751146
1972—Mar195.01207.701907117.47125.101149
Jun211.75213.581961127.02128.221177
Sep216.65223.832,055128.74133.001221
Dec253.77228.922,102149.69134.981239
1973—Mar225.00239.802,202128.93137.451262
Jun241.83245.762,257135.84138.051268
Sep252.14260.012,388137.42141.671301
Dec304.12273.352,510164.27147.721356
1974—Mar261.25277.402,547138.26146.771348
Jun280.96287.162,637146.12149.411372
Sep290.55298.782,744146.88151.111388
Dec334.78300.472,759163.88147.111351
1975—Mar272.59293.182,692128.69138.381271
Jun304.40311.642,861139.01142.281306
Sep318.63326.372,997138.52141.931303
Dec384.98344.483,163158.76142.001304

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, the values of sales during the quarter.

QuarterFood and DrinkApparelFurnitureAutomotiveHardwareChemicalsGeneral MerchantsMachinery (Agricultural, Heavy Electrical and Industrial)
 $ (million)
1971—Mar137.947.227.697.466.637.129.040.1
Jun141.750.031.5106.767.140.930.139.6
Sep142.754.833.2111.568.936.534.343.4
Dec163.149.733.2130.271.442.135.947.1
1972—Mar145.349.528.4118.672.140.528.140.5
Jun144.250.634.6143.875.438.131.342.2
Sep149.955.733.9138.281.044.337.945.1
Dec171.555.043.0152.489.045.540.753.5
1973—Mar162.653.636.8150.890.043.936.052.3
Jun165.663.944.3155.594.946.542.450.5x
Sep172.570.852.7167.6103.550.444.661.6
Dec194.273.055.0184.9109.057.948.562.8x
1974—Mar174.968.549.6156.9107.755.945.461.2
Jun181.078.060.5165.5119.058.049.561.2
Sep195.779.275.2189.7133.755.060.176.5
Dec225.284.369.9173.7125.757.059.376.9
1975—Mar198.975.353.2151.1113.148.546.177.9
Jun197.579.969.7185.3125.052.843.873.2
Sep211.886.078.5203.9137.357.848.181.5
Dec255.184.185.2187.5139.971.055.784.3
QuarterElectrical SuppliesPaper and StationeryGrain and SeedsRubber, Leather, and Canvas GoodsOffice, Printers and Photographic SuppliesOtherAll Groups
1971—Mar18.919.17.67.39.535.5580.7
Jun24.117.68.78.110.346.4622.6
Sep23.620.010.38.711.542.7642.0
Dec24.920.88.18.611.558.9705.4
1972—Mar16.320.98.67.510.147.7634.0
Jun21.820.58.38.99.851.2680.8
Sep25.522.29.710.010.555.7719.6
Dec23.322.28.810.212.967.0794.9
1973—Mar24.724.010.510.212.457.0764.9
Jun28.724.311.011.112.865.2816.8
Sep42.627.112.712.213.367.3898.8
Dec34.227.310.912.215.788.9974.3
1974—Mar28.827.912.411.614.566.3881.5
Jun34.628.212.912.815.973.3950.5
Sep44.235.115.513.516.882.11,072.3
Dec42.833.112.511.522.189.51,083.4
1975—Mar36.831.111.210.518.475.5947.4
Jun43.531.111.812.519.187.01,032.2
Sep51.134.013.114.120.799.11,137.1
Dec48.333.813.613.726.5105.51,204.0

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.

The Hire Purchase Act 1971 is the governing legislation in New Zealand.

Regulations to control hire-purchase trade have existed since 22 July 1955. From 3 March 1976 the minimum deposit on colour television sets was increased from the previous 10 percent to 60 percent and the repayment period reduced from 30 months to 18 months hire purchase sales of new cars and light trucks were prohibited; and the repayment period for second-hand cars and light trucks was reduced from 18 months to 12 months. Earlier regulations made in recent years are summarised below.

CommodityDate EffectiveMinimum Deposit (Percent)Maximum Repayment Period (Months

*Reduced by 3 months from 6 December 1968, except television sets.

New motorcars and light trucks7 Sep 19725024
 4 Sep 19746012
Secondhand cars and light trucks17 May 19685018*
 7 Sep 19725024
 4 Sep 19746018
Motor cycles17 May 196833 1/318*
 7 Sep 1972 4 Sep 19746012
Furniture and furnishings22 Mar 19681024*
 19 Sep 19691024
 28 Mar 19721030
Other consumer goods19 Sep 19691024
 28 Oct 19701524
 28 Mar 19721030

A limited quarterly survey of hire-purchase trade is made by the Department of Statistics. It includes selected merchandising firms and finance corporations and for the 1967-68 March year surveyed business was estimated to cover 72 percent of hire-purchase sales recorded in the 1968 Census of Distribution. Only sales covered by the regulations governing hire-purchase are included in the quarterly survey. Credit sales, charge accounts, laybys, and other forms of instalment or credit selling covered by the Census of Distribution, and shown in an earlier table in this section are not included in the quarterly figures. 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.

1971—$(m)
        $(m)      %
Mar32.216.615.65.81.34.50.40.10.38.41.66.846.7112.83.1
Jun29.414.814.67.31.75.60.50.10.49.6148.246.8115.43.0
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
1972—               
Mar36.218.317.99.32.96.40.40.10.39.21.37.955.1129.93.5
Jun40.521.319.28.32.75.60.50.10.412.21.810.461.6143.83.3
Sep43.222.320.98.42.36.10.50.10.49.91.48.561.9140.33.2
Dm51.726.425.310.32.77.60.40.10.314.22.112.176.6153.43.1
1973—               
Mar49.225.224.110.42.77.70.40.10.310.51.59.070.4158.72.9
Jun46.423.223.18.92.06.90.40.10.412.21.710.567.9157.72.7
Sep51.825.826.113.53.210.30.60.10.512.81.811.078.8177.92.4
Dec61.629.931.814.03.011.11.20.20.917.12.814.394.0192.92.6
1974—               
Mar50.324.925.48.82.46.41.10.20.912.81.910.873.0192.62.7
Jun52.027.024.99.63.16.51.60.31.313.32.111.376.5195.82.8
Sep52.727.924.89.33.06.32.00.41.614.22.311.978.1195.53.0
Dec43.125.517.610.43.47.12.10.51.614.52.512.070.1190.83.3
1975—               
Mar42.124.317.810.43.47.01.80.41.412.42.410.066.7192.53.3
Jun53.629.324.312.25.07.22.90.82.116.03.013.084.7185.53.3
Sep57.429.627.714.54.510.04.11.13.016.83.013.892.7.200.24.6 
Dec62.433.229.215.34.610.84.11.13.018.93.315.6100.7.220.13.9 

The average amount covered by hire-purchase agreements in the quarter ended 31 December 1975 was: motor vehicles, $1,852; machinery, $9,439; television sets, $547; other household and personal goods, $106.

Chapter 23. Section 22 EXTERNAL TRADE

22 A—GENERAL

GENERAL—New Zealand has always been heavily dependent on overseas trade for its development and progress. Today the value of New Zealand's overseas trade as a proportion of gross national product is among the highest in the world. In the early days of colonisation the infant farming industry found a ready market in Australia for basic foodstuffs such as potatoes, grain, butter, and cheese. Timber and gold temporarily constituted a sizeable proportion of exports, but the most consistent export was wool, which made up 22 percent of the value of exports in 1853, when statistics were first compiled. In the 1870s it accounted for over half the value; from 1880 to 1898 its share was from 40 percent to 50 percent. From 1899 to 1964 wool consistently earned one-third of New Zealand's export receipts; since then the proportion has progressively declined, and in 1975 wool made up only 16 percent of exports by value.

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 British economy, to the benefit of both. The proportion of New Zealand's total exports going to Britain grew from 70 percent in 1860 to 77 percent in 1900, and reached 88 percent in 1940. 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 occurred after 1900, and was encouraged by the centralised factory production of butter. From 1913 onwards, meat, dairy products, and wool have accounted for over 60 percent of total exports of New Zealand goods. The proportion in the year ended June 1975 was 63.87 percent.

New Zealand's heavy dependence on the British market continued into the post-Second World War era. From about the beginning of the 1960s the increasing emphasis on diversification away from this dependence has been reflected in the growth of beef exports to the United States, of mutton and forest products exports to Japan, of lamb exports to Greece, the United States and Canada; the establishment of a rapidly growing trade in meat and dairy produce with the developing countries of South-east Asia, the Middle East, and Latin America; the expansion of trade with Australia under NAFTA and with other South Pacific countries; and the growth of secondary industry within New Zealand to supplement agriculture as a source of export earnings as well as to supply the domestic market.

Britain's entry into the European Economic Community has in recent years lent special importance to New Zealand's efforts in the field of economic diplomacy. Although the terms of the special arrangement concerning the importation of New Zealand butter and cheese into Britain were decided at Luxembourg in June 1971, this was preceded by an intensive programme of official contacts and representations 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.

An important development affecting New Zealand's future trading relations with Britain and Europe arose in March 1974 when a new Labour Government was elected in Britain on the pledge to renegotiate the terms of Britain's terms of entry into the EEC. Of particular significance to New Zealand was the British Government's objective of seeking improved conditions of access for certain foodstuffs, including dairy products and meat from the Commonwealth. Following discussions with New Zealand, Britain submitted renegotiation proposals to a meeting of EEC Heads of Government in Dublin on 10 March 1975 making specific reference to New Zealand dairy products, and the EEC Commission was invited to submit a proposal for continuation of the special arrangement for dairy products beyond 1977 with suitable adjustment of prices. In June 1975, the British public voted by a large majority in favour of Britain remaining in the EEC. In July and November 1975, the EEC Commission, in accordance with the Dublin declaration and its responsibilities for the 1975 Review of Protocol 18, presented a number of outline recommendations to the Council of Ministers concerning arrangements for New Zealand's dairy trade for the period 1978-1980. (See Section 21 A—Marketing of Farm Produce.)

Access into the North American market is vitally important. New Zealand's trade with the United States is circumscribed by various quantitative restrictions imposed on beef, mutton, veal, and dairy products. The quantitative restrictions on beef, veal, and mutton apply from time to time, although the situation is reviewed every quarter, as provided by law, but New Zealand's exports of dairy products are subject to a formidable array of quota controls. Dairy products exported to Canada are also subject to quantitative restrictions, and quotas were applied to beef entering Canada in 1975.

New Zealand's economic and trade relations with Japan have become closer. Bilateral trade has increased, both in volume and value, and consultations between the two Governments, at Ministerial and official level, have been extended. Continued efforts have been made to improve access for New Zealand agricultural exports, particularly dairy products and beef. Beef sales, which were suspended in February 1974 with the freeing of the global import quota, recommenced on a limited scale in the latter half of 1975, following the establishment of several small quotas.

The newly-independent nations of the Pacific have attracted particular attention since the formation in 1971 of the South Pacific Forum. There is now much more awareness of the scope for closer trade relations with and between the Islands, and New Zealand has taken several initiatives in this direction.

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. Credits have been extended to both Peru and Chile to assist them to finance purchases of mutton and dairy products from New Zealand.

Activity in the trade field has included other countries of the Pacific Basin. From April 1970 New Zealand has extended 6 annual trade credits totalling $4.0 million to Indonesia.

New Zealand's trade relations with Australia, dealt with in more detail later in this section, have always been close, but in recent years, and especially since the New Zealand - Australia Free Trade Agreement came into effect in 1966, two-way trade has grown at an unprecedented rate.

New Zealand's trade relations with the U.S.S.R. and Socialist countries of Europe have grown to such an extent that the U.S.S.R. is now New Zealand's fifth largest export market by value. New Zealand's strengthening of its diplomatic and trade links with the Socialist European countries included, in 1975, the first visit by a New Zealand Economic Mission to this area.

The sudden increase in world oil prices had greatly increased the revenues of Middle East oil-producing countries, thus presenting new market opportunities for New Zealand. Following on from expanded exports of meat and dairy products in 1974, continued substantial sales of meat were made to Iran and Iraq in 1975. Sales of meat to Kuwait and Saudi Arabia also increased considerably. Iraq proved to be a good market for increased sales of dairy products and New Zealand-made fishing vessels were sold to Bahrain.

The pattern of New Zealand export commodities is changing. Whereas in 1970, meat, dairy products, and wool comprised 74.13 percent, by value, of total exports, in the year ended June 1975 they represented 63.87 percent. In the same period manufactured goods, including logs and forest products, rose from 12 to 19.9 percent of total exports. The value of meat, dairy and wool exports has not fallen however, and in the year ended June 1975 it had increased in value by 25.34 percent over the year ended June 1970.

The following table shows the changing pattern of external trade by countries of destination and origin. The percentages are based on value data, exports f.o.b. and imports c.d.v.

YearBritainAustraliaJapanUnited StatesOther Countries

*Provisional.

Exports percent
18607027..-3
18705246..-2
18807521..22
18907515..64
19007714..63
1910849..34
1920745..165
1930803..512
1940883..45
1950663..1021
1960534..1330
June Year     
1970368101530
197134991731
1972318101535
1973*277131538
1974*2110141738
1975*2211121243
Imports percent
18605642..11
18705836..15
18805631..49
18906717..610
19006117..1012
19106214..816
19204817..1817
1930478..1827
19404716..1225
19506012..721
19604318..1029
June Year     
1970302181328
19712921101228
19722823111027
1973*2425131127
1974*1924131232
1975*1920141334

TRADE RELATIONS WITH THE UNITED KINGDOM—The preceding table shows that the United Kingdom has remained the predominant market for New Zealand's exports and the second biggest supplier of her imported goods. The British consumer for a long time enjoyed virtually unrestricted availability of New Zealand butter, cheese, and lamb as a result of trading arrangements reflecting traditional economic, political, and cultural bonds between the people and governments of the two countries.

Under the terms of the New Zealand - United Kingdom Trade Agreements of 1932, 1959, and 1966, New Zealand received duty free and unrestricted access to the United Kingdom market for most of its agricultural exports. New Zealand's agricultural industry was thus encouraged to specialise in the production, especially for the British market, of pastoral products which the country's climate, resources, and skills have enabled it 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 countries.

In recent years the United Kingdom's share of New Zealand's export trade has gradually declined. This decline was given impetus by New Zealand's increased efforts to diversify her export products and markets in view of British moves towards joining the EEC. Thus in 1950 the United Kingdom took 66 percent of New Zealand's exports, but by the year ended June 1975 its share had fallen to 22 percent. However, the United Kingdom is still New Zealand's main export market, taking the bulk of our lamb and butter exports (71 percent, and 62 percent, respectively, in the 1974-75 year), and about one-sixth of our wool and a substantial part of our cheese.

Entry into the EEC, involving assumption of obligations under the community's common agricultural policy, required Britain to terminate the 1959 and 1966 trade agreements with New Zealand on 31 January 1973, and to begin to phase in the common customs tariff and other EEC policies affecting the import of goods from those countries. In consequence, New Zealand is to phase out by 1 July 1977 the tariff preferences currently given to imports from Britain.

DIVERSIFICATION—Britain's prospective entry into the EEC also caused an intensification of New Zealand's efforts to develop new markets for its exports and to broaden the range of its export commodities. Progress in diversification by the dairy industry is reflected in the fact that dairy export receipts from markets outside Britain rose to 67 percent of the total in 1975, compared with 64 percent the previous year and 57 percent in 1973. An important factor in the diversification effort is the greater exchange of views and co-operation between the principal dairy exporters.

Reference has been made earlier to the important structural changes taking place in New Zealand's export trade and, in particular, the growing importance of manufactured exports and of new markets, especially in the Pacific basin region.

North America—The United States is one of New Zealand's largest markets outside Britain, and the major market for beef and veal, taking 66.6 percent of our total exports of these commodities in the year ended June 1975. This trade is, however, circumscribed by United States import restrictions, introduced in 1964. These were suspended in mid 1972 but reimposed in 1975. Dairy exports are subject to a formidable array of quota controls, but in 1973 and 1974 New Zealand was able to take advantage of emergency import quotas for cheese, milk powder, and butter.

New Zealand's exports to Canada have increased from $10.6 million in the year ended June 1967 to $44.8 million in the year ended June 1975. Beef is our main export to Canada, followed by butter, sausage casings, lamb, wool, sheepskins, milk powder, apples, and textile yarns. In July 1973 New Zealand and Canada agreed in an exchange of letters to continue tariff preferences on the same general basis as those derived from their trade agreements with Britain prior to the termination of these agreements on 1 February 1973 because of Britain's entry into the European Economic Community. The July 1973 agreement included undertakings against increasing duties against each other, and for maintenance of margins of preference. In August 1974 Canada introduced import quotas on beef which limit New Zealand's ability to expand sales to this market. New Zealand's main objectives in the trade policy field are to have the quotas removed and to obtain permanent access for dairy products.

Japan—Exports to Japan have shown a marked increase from $6.2 million in 1953 to $186 million in the year ended June 1975. Meat (mainly mutton), forest products, and wool comprise 44 percent of our total exports to Japan. Other principal commodities are dairy products, aluminium, and ironsands. Japan is our main market for mutton and until February 1974, when Japan froze imports under its global quota, it was our fourth largest beef market. New global beef quotas were announced in June, August, and October 1975 for limited quantities of beef to be imported up till March 1976. Except for cheese, New Zealand exports of which have increased steadily, dairy imports are under tight control.

South Pacific—The Pacific Islands have attracted particular attention in recent years and in 1971 New Zealand and Australia, with the Cook Islands, Fiji, Nauru, Tonga, and Western Samoa, formed the South Pacific Forum. Since then Papua New Guinea has become a full member. The Forum has initiated studies into regional shipping, market expansion for Island products, and the rationalisation of agricultural production. There is now more awareness of the scope for closer trade relations with and between the Islands. New Zealand has established a Pacific Islands Handicraft Scheme which provides for duty-free entry for specified quantities of handicrafts from these countries.

Latin America—Peru, Brazil, Chile, and Mexico have become useful new markets for dairy products and some meat. Peru is our main market in this area purchasing largely milk powder and anhydrous milk fat and also live sheep, mutton, seeds, and casein. Chile also purchases milk powder and anhydrous milk fat. Trade with Peru and Chile has been facilitated by several trade credits established in favour of dairy products and meat imports.

Asia—Activity in trade diversification has included other countries in the Pacific Basin. Annual trade credits to Indonesia have assisted in the expansion of exports from $0.48 million in the year ended June 1970 to $9.2 million in the year ended June 1975. In the last 4 years the People's Republic of China has become a useful market for New Zealand, increasing its purchases from $0.8 million in 1970 to $19.9 million in 1974. Most of this increase has taken place since the establishment of diplomatic relations in December 1972 and the signing of the Trade Agreement in October 1973. Wool and tallow are the main exports, but the last 3 years contracts have been signed for a number of new products, including pulp and linerboard, logs, boilers, and a range of hides and skins. The first meeting of the New Zealand - People's Republic of China Joint Trade Committee took place in Wellington in 1975. The committee, which has the task of overseeing the development of trade between the two countries, is to meet annually.

Markets have also been developed in Malaysia, the Philippines, Hong Kong, Korea, Singapore, and Thailand, for both pastoral and manufactured products.

Socialist Countries or Europe—Efforts have continued to increase and diversify trade with the socialist countries of Europe, whose purchases from New Zealand have traditionally been mainly wool, hides, and skins.

In the year ending 30 June 1975, the U.S.S.R. became New Zealand's fifth largest export market by value, purchasing to a total of $45.5 million from New Zealand. Whereas in the past the U.S.S.R mainly purchased large quantities of wool, in the year to June 1975 substantial purchases of meat, principally mutton, to the value of $19.8 million were also made.

During a visit to Moscow in 1973, the Minister of Overseas Trade signed a protocol to the 1963 New Zealand - U.S.S.R. Trade Agreement, establishing a joint trade commission to promote the growth of mutual trade. The first meeting of the commission took place in Wellington at the end of 1974 and included business as well as Government representatives. Meetings of the commission are to take place at least every 2 years, alternately in Wellington and Moscow. The setting-up of New Zealand embassies and trade posts in Moscow and Vienna is now facilitating our trade development with the socialist countries of Europe.

In February 1975 the Prime Minister visited Romania and Yugoslavia for discussions on the development of trade relations between New Zealand and these two countries. While in Yugoslavia the Prime Minister signed a trade agreement under which the two countries accord each other most favoured nation treatment in all matters relating to trade.

The first Economic Mission from New Zealand visited, Hungary, Romania, Poland, and Yugoslavia in September-October 1975. The Mission was led by the Deputy Secretary (Trade), Department of Trade and Industry, and comprised leading members of relevant economic and commercial organisations in New Zealand interested in expanding trade relations with these countries.

Middle East—Substantial increases in oil reserves have given a sudden impetus to the economies of the producing countries in the Middle East, thus presenting the prospect of new market opportunities in that region. Substantial sales of meat have been made to Iran, and of meat and dairy products to Iraq. Ministerial, official, and business contacts with the region have increased markedly since the visit of the then Minister of Finance to Iran in January 1974, and of the New Zealand Government goodwill mission to other Middle East states in February 1974. During the visit to New Zealand in September 1974 of the Shahanshah of Iran a trade agreement was signed with the purpose of expanding trade between New Zealand and Iran and setting up a joint commission for trade and economic development. The New Zealand Embassy in Tehran, established in January 1975, has given further impetus to New Zealand's trade with Iran and the Arabian Gulf states. In February 1975 the Minister of Agriculture and Fisheries visited Saudi Arabia and Iran for discussions which included trade topics and in May 1975 the Minister of Trade and Industry visited Iraq.

Australia—New Zealand's trade relations with Australia have always been close, but recent years have witnessed unprecedented growth in two-way trade, particularly in manufactured goods. The 1965 New Zealand - Australia Free Trade Agreement (NAFTA) has been an important factor in this expansion. A number of projects for co-operation in industrial development, including the motor vehicle industry, have been developed and there has been increased co-operation in implementing the Memorandum of Understanding on Defence Supply signed in 1970.

The New Zealand - Australia Free Trade Agreement was signed on 31 August 1965 and came into effect on 1 January 1966. The main aim of the agreement, which runs for an initial period of 10 years, 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".

The central element of the agreement is its list of goods (Schedule A) on which duties are progressively reduced and bound at tree in the tariffs of both countries. The agreement also contains general provisions governing the conduct of trade between Australia and New Zealand covering such matters as dumping, the maintenance of import restrictions, the encouragement of industrial rationalisation between the two countries, and the holding of consultations on a regular basis and for specific purposes.

The original Schedule A contained some 990 items. Since then a further 799 items have been added to give a total of 1,798 at 1 July 1975. On inclusion in Schedule A, goods free of duty are bound at free; goods with duties not exceeding 5 percent become free; duties of between 5 and 10 percent are halved and eliminated 2 years later; and duties of more than 10 percent are reduced by one-fifth on inclusion and by a further fifth every 2 years. There is provision for either quicker or slower reduction of duties where agreed to by both countries. Schedule A trade represents about 54 percent of total trans-Tasman trade.

There has been some reluctance on the part of manufacturers in both countries to accept inclusion of their products in Schedule A because of the resulting exposure to unrestricted competition. Accordingly, in November 1973 it was agreed to establish a series of new arrangements (Schedules B, C, and D), which provide for partial participation in the free trade provisions of the agreement, for example, by way of duty free quotas or partial elimination of duties. A number of joint panels have been set up by New Zealand and Australian industries to study the possibility of using the new partial free trade arrangements as a basis for developing industries on a complementary basis through reciprocal trade.

Complementary development of trade has been encouraged since 1967 by reciprocal concessions under trading arrangements between firms in New Zealand and Australia under Article 3:7 of NAFTA. Approvals for such inter-firm arrangements totalled about $39.4 million in the June year 1975. The new partial free trade arrangements, while not replacing the old arrangements, will offer wider opportunities, will not be limited to specific firms, and should encourage co-operation on an industry wide basis as well as co-operation between individual firms. The advantages of co-operation accompanied by the complementary development of industries are obvious; they include specialisation and longer production runs to supply the whole NAFTA area as one market. The reciprocal advantages available under the new schedules will encourage such complementary developments; in addition, in agreed circumstances, the two governments have decided to protect each other's production against competition from other sources.

Continued development of the concept of reducing tariffs within the NAFTA area as a preferential free trade area was the aim of an interim agreement on tariff rates and preferences concluded by a ministerial exchange of letters on 7 May 1973. This agreement preserves to the fullest possible extent for each country the benefits of the British preferential tariff system which formerly derived from the trade agreements both countries had with the United Kingdom prior to British entry into the EEC on 1 February 1973. The basic features are undertakings not to increase tariffs against each other, while maintaining agreed minimum margins of tariff preference over imports from non-preferential countries. In addition, the agreement makes clear the intention of both Australia and New Zealand to set tariffs against each other on manufactured goods at the lowest possible level consistent with protection of domestic production, while permitting reasonable competition from the NAFTA partner. Since 30 September 1974 the agreement has been extended by ministerial exchanges of letters. In due course it is expected that New Zealand and Australia will conclude a longer-term agreement taking account of progress in the GATT multilateral trade negotiations; the effects of British entry into the EEC; and the operation of this new interim agreement. It is also intended that the terms of the interim agreement should be taken into consideration in formulating any future long-term agreement between the two countries.

A number of special industry bodies have been established within the NAFTA framework to promote trade in particular products. Among these is the Joint Consultative Council on Forest Industries, the Joint Committee on Dairy Products, the Joint Pea and Bean Industry Panel, and the Joint Industry Panel on Sawmilling Products.

The tenth anniversary of the establishment of the NAFTA, in 1975, was the occasion for the Governments of the two member countries to set in train a joint review of the Agreement and its success in developing mutual trade. It was expected that this review might bring to light ways in which the mechanisms of NAFTA might be adjusted to take account of changed circumstances since the Agreement was concluded. However the prime objective from New Zealand's point of view—the creation of conditions that facilitate the expansion of New Zealand's exports especially forest and other manufactured products—would not change.

Trans-Tasman trade statistics are given in the following table.

June YearN.Z. Imports from Australia (NZ$ Million)N.Z. Exports* to Australia (NZ$ Million)Value of Trade Imbalance with Australia (NZ$ Million)Ratio of Imbalance in Australia's Favour

*Including re-exports.

†Provisional.

1970197.987.3-110.61:2.26
1971225.596.1-129.41:2.35
1972267.3112.8-154.51:2.37
1973323.5131.2-192.31:2.47
1974449.3171.8-277.51:2.62
1975502.6187.5-315.11:2.68

TRADE BY AREAS—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 Community (Excl. U.K. and Ireland, Rep. of)European Free Trade Association (Excluding United Kingdom)Other Countries
Percentage of Total Export Trade (f.o.b.)
196560.3014.9416.430.937.40
196654.9316.2915.990.8111.98
196754.1518.4711.990.7014.69
196855.8919.5610.730.7013.12
196952.2920.4012.470.6714.18
197050.2421.1811.340.7916.44
197150.6721.7810.890.6216.05
197248.6120.1810.910.5919.71
197341.8219.7012.930.6424.91
1974*38.2722.3210.820.6227.96
1975*44.7917.4410.270.5926.91
Sterling AreaDollar AreaEuropean Economic Community (Excl. U.K. and Ireland, Rep. of)European Free Trade Association (Excluding United Kingdom)Other Countries

*Provisional.

Percentage of Import Trade (c.d.v.)
65.0315.806.632.909.64
65.6415.876.862.269.37
64.1217.307.652.328.61
61.9516.207.372.6911.79
60.8916.448.262.7211.69
60.4517.697.702.1312.02
58.8716.659.182.2213.18
60.8713.728.522.6814.19
58.1014.718.342.3816.47
54.6415.199.862.4117.90
51.1615.639.622.3721.22

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

*Provisional.

 $$$
1965282.95276.20559.16
1966288.54298.13586.67
1967268.57300.32568.89
1968299.04245.91544.95
1969357.56308.32665.88
1970388.31359.92748.23
1971398.19406.57804.76
1972475.93428.87904.80
1973x607.91466.161,074.07
1974*593.50668.741,262.24
1975*524.27889.971,414.24

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 domestic product, and also the value of total external trade in goods in 1973 per head of population, using c.i.f. valuations for imports.

(Source: United Nations Statistical Office.)

CountryExport of Goods as Percentage of Gross Domestic ProductValue of External Trade per Head
197219731973

*Exports include a large volume of goods originating in inland Europe passing through ports.

†Fiscal year beginning 1 April.

‡Fiscal year beginning 1 July.

§1970.

 percent(NZ)$
Netherlands37*40*2,510
Belgium and Luxembourg44* 3,087
Switzerland23232,301
Norway22251,943
New Zealand20221,136
Sweden21 1,975
Canada19211,547
Austria19191,162
West Germany18191,386
France13 980
Israel1615955
United Kingdom16 874
Italy1616642
Australia15 868
Japan109489
South Africa1313251
Argentina7§ 159
United States45465

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.

NOTE: Minus signs indicate an excess of imports.

 $(000)
1965-66-25,489
1966-67-85,984
1967-68145,782
1968-69136,210
1969-7079,463
1970-71-23,809
1971-72135,973
1972-73417,842x
1973-74*-226,614
1974-75*-1,124,853

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 fairly soon after the period to which they relate. A publication entitled External Trade of New Zealand (Country Analyses) is also published.

Annual volumes are also published by the Department of Statistics, the latest available issues being Exports January-June 1972 and Imports January-June 1972. 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.

Period1972-731973-741974-75
Exports (including Re-exports) f.o.b.ImportsExports (including Re-exports) f.o.b.ImportsExports (including Re-exports) f.o.b.Imports
c.d. Valuec.i.f. Valuec.d. Valuec.i.f. Valuec.d. Valuec.i.f. Value
 $(million)
Month of July111.894.2101.1124.1152.4162.7124.7205.5227.9
2 months ended August219.1199.3213.6279.2283.8303.7276.9414.2462.5
3 months ended September345.5284.2306.0419.7414.9444.3391.7634.4706.2
4 months ended October447.7389.4419.6565.7555.7596.2518.4858.1957.8
5 months ended November558.4511.1548.0678.8694.6747.9636.41,096.01,224.0
6 months ended December707.4615.6659.4833.5821.3884.5779.71,334.01.485.4
7 months ended January844.6726.7778.3977.5978.81,056.8895.11,527.41,701.0
8 months ended February1,034.2827.5886.31,141.41,124.01,215.31,025.41,740.31,938.7
9 months ended March1,254.9941.41,009.01,316.01,269.21,377.21,139.81,912.92,128.8
10 months ended April1,412.51,033.01,106.71,497.91,428.51,553.51,303.82,101.52,334.3
11 months ended May1,595.51,153.21,234.01,639.11,637.91,785.91,458.92,273.12,522.7
12 months ended June1,787.01,276.21,366.31,787.61,842.32,014.21,612.62,470.42,737.5

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 meal 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) became available at item level.

The proportional difference between the two figures of valuation now made available—viz, c.d.v. and c.i.f.—varies from period to period depending on: (1) the make-up of imports in the different periods. (2) differential charges 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 36 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.Imports
c.d.v.c.i.f.

*Provisional

Year ended June$(million)
1965742.2662.7724.5
1966767.3729.4792.8
1967727.2752.2813.2
1968820.5622.9674.7
1969989.1799.2852.9
19701,086.7944.31,007.2
19711,131.71,070.61,155.5
19721,375.01,152.71,239.0
1973x1,792.01,282.21,374.1
1974*1,787.61,842.32,014.2
1975*1,612.62,470.42,737.5
Year ended December$(million)
1965729.2703.8766.7
1966780.0722.4787.0
1967727.1672.4725.6
1968920.9749.0805.3
19691,082.5843.0898.9
19701,093.71,038.31,111.8
19711,200.41,097.41,184.5
19721,504.61,188.81,276.3
1973x1,918.11,487.91,599.3
1974*1,733.82,355.02,615.1
1975*1,796.52,385.22,613.4

The following table shows for the June year 1975 the values of merchandise exports to, and imports from, each of the countries trading with New Zealand.

TRADE BY COUNTRIES, YEAR ENDED JUNE 1975*

CountryExports f.o.b.Imports c.d.v.
New Zealand ProduceTotalBy Country of Origin

*Provisional.

†Does not include that part of China known as Taiwan.

Sterling Area Countries $(000) 
  Associated States in Eastern Caribbean4415135
  Australia166,843187,523502,639
  Bahamas5775777
  Bahrain1,1981,19910,354
  Bangladesh6947001,661
  Barbados3,5643,56814
  Belize (British Honduras)33-
  Bermuda2,1622,3391
  Botswana33-
  British Solomon Islands62265344
  British Virgin Islands22-
  Brunei4449-
  Cayman Islands11-
  Cyprus1,6141,61426
  Falkland Islands22-
  Fiji20,19123,3934,874
  Gambia55-
  Ghana4,0494,0498,280
  Gibraltar281281-
  Gilbert and Ellice Islands2272939,499
  Guyana288288126
  Hong Kong16,82317,21933,664
  India, including Sikkim, etc.48779619,783
  Ireland, Republic of4,1084,1131,488
  Jamaica10,54410,544792
  Jordan3,7853,7861
  Kenya7557561,671
  Kuwait2,0932,18181,621
  Lesotho55-
  Libya7373396
  Malawi835835-
  Malaysia20,79220,9739,098
  Maldives528- 
  Malta, including Gozo and Comino2,2972,29753
  Mauritius and Dependencies2,6602,664-
  Montserrat99-
  Namibia11-
  Nauru23524112,949
  New Hebrides Cond.1,6111,6961
  New Zealand (Re-imports)....4,882
  Nigeria1,2541,25933
  Norfolk Island7177652
  Pakistan2,7904,2011,510
  Papua New Guinea3,6763,8922,469
  Pitcairn Island1416-
  Qatar9090-
  Seychelles and Dependencies11-
  Sierra Leone12123
  Singapore17,24620,62167,748
  South Africa (excl. Namibia)10,73111,0439,725
  Sri Lanka7717744,227
  Swaziland--201
  Tanzania, United Republic of2462523,750
  Tonga4,4334,7941,026
  Trinidad and Tobago6,5746,57549
  Uganda221,395
  United Kingdom341,007344,079465,078
  Western Samoa7,1667,7942,675
  Whale fisheries (British)--3
  Zambia953954-
Totals, Sterling Area667,607702,8961,263,825
EFTA Countries   
  Austria1981984,957
  Iceland--5
  Norway1,7611,7623,747
  Portugal (incl. Madeira and Azores)9419412,403
  Sweden4,3244,40121,726
  Switzerland and Liechtenstein1,8841,96525,699
Totals, EFTA9,1099,26958,537
EEC Countries—(Excludes U.K. and Ireland, Republic of)   
  Belgium and Luxembourg16,17816,34117,416
  Denmark2,4392,4689,346
  France and Monaco43,34543,39824,340
  Germany, Federal Republic of (West)41,02941,900110,553
  Italy and San Marino20,36920,96939,018
  Netherlands35,52836,09036,926
Totals, EEC158,888161,167237,600
Dollar Area Countries   
  American Samoa2,5212,626-
  Antarctic stations (U.S.)78-
  Bolivia1166
  Canada44,82445,08148,898
  Colombia5959254
  Costa Rica989990-
  Dominican Republic1,7981,79848
  Ecuador14142,586
  El Salvador (or San Salvador)960962-
  Guam763765-
  Guatemala--16
  Honduras (not British)3333-
  Liberia1010-
  Mexico4,3374,3392,182
  Nicaragua434324
  Panama Canal Zone2,5032,503-
  Panama Republic592592-
  Philippines29,19929,2471,807
  Puerto Rico, etc.1515322
  U.S. Trust Territories in the Pacific.5861-
  United States of America179,486183,847329,939
  Venezuela7887881
  Totals, Dollar Area268,999273,780386,141
Other Countries   
  Afars and Issas, French Territory of1414 
  Afghanistan118
  Albania--2
  Algeria10104
  Angola (incl. Cabinda)98983
  Arab Republic of Egypt1,7341,7349
  Argentina470470701
  Brazil1,7861,7905,910
  Bulgaria43343336
  Burma17017040
  Burundi3535-
  Cambodia447
  Cameroon, United Republic of33-
  Central African Republic--44
  Chad2626-
  Chile5,1575,163241
  China†10,16710,18313,699
  China (Taiwan)9,3279,3307,254
  Congo (People's Republic)3535-
  Cuba--16,580
  Czechoslovakia4,1194,1213,311
  Dahomey2525-
  Ethiopia7070104
  Finland8378382,284
  French Guiana5454-
  French Polynesia6,3436,81650
  German Democratic Republic (East)2,3552,355645
  Greece29,94929,953477
  Guadeloupe230230-
  Guinea---
  Hungary584584534
  Indonesia8,4208,5062,160
  Iran16,90916,91195,146
  Iraq10,80710,8074,581
  Israel135138961
  Ivory Coast1137
  Japan (including Okinawa)185,944186,756335,625
  Korea, Democratic People's Republic of---
  Korea, Republic of5,4955,5194,595
  Laos55-
  Lebanon1,0641,0653
  Macao9393S3
  Malagasy Republic62062042
  Mali2525-
  Martinique325325-
  Morocco484840
  Mozambique2,7012,701307
  Nepal31134415
  Netherlands Antilles961963560
  New Caledonia3,9844,20990
  Niger2525-
  Oman111111-
  Paraguay--1
  Peru27,96427,964110
  Poland10,59710,5971,134
  Portuguese Guinea--5
  Reunion434310
  Rhodesia (Southern)23-
  Romania224224354
  Saudi Arabia1,6891,68912,280
  Senegal826826-
  Somalia77-
  Spain7,2537,2615,275
  Sudan434398
  Surinam66-
  Syria1,2091,20930
  Thailand8,5188,6142,395
  Tunisia8787-
  Turkey506506376
  United Arab Emirates1,1281,128-
  U.S.S.R.45,41045,4103,300
  Upper Volta44-
  Uruguay170170-
  Vietnam, Democratic Republic of7070-
  Vietnam, Republic of South413414180
  Yeman, People's Democratic Republic of85852,226
  Yugoslavia2,1772,177353
  Wallis and Futuna Is.6268-
  Zaire Republic--85
Totals, Other Countries420,509422,317524,330
Totals, All Countries1,525,1121,569,4292,470,434
  Passengers' purchases3709,673-
  Ships' stores16,62926,901-
  Destination optional6,6046,604-
Grand Totals1,548,7151,612,6072,470,434

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, Denmark, France and Monaco, West Germany, Italy, and Netherlands, (United Kingdom and Ireland are included in Sterling Area).

‡Austria, Iceland Norway, Portugal, Sweden, and Switzerland.

$(million)
 Sterling AreaDollar Area
1967390.0482.3495.0133.0130.2132.8
1968454.2385.9399.8158.9100.9106.3
1969511.1486.6507.7199.3131.4132.6
1970540.2570.8597.5227.7167.1165.4
1971566.3631.5664.0243.5175.9171.9
1972660.1700.9736.9274.1159.2154.0
1973x741.0744.9776.9349.1188.6189.2
1974*672.61,006.6 392.3280.0 
1975*702.91,263.8273.8386.1  
 EEC CountriesEFTA Countries
196786.457.554.55.117.415.8
196887.245.943.15.716.814.7
1969121.866.063.06.521.718.8
1970121.972.869.58.520.116.7
1971121.798.393.16.923.819.6
1972148.298.292.58.030.927.0
1973x229.0106.9101.111.530.526.4
1974*190.1181.7 10.944.3 
1975*161.2237.6 9.358.5 

VOLUME INDEX OF EXTERNAL TRADE—For the index of the volume of external trade, both the import and the export series are linked chain series with changing (price) weighting patterns, each year being calculated on base previous year and then linked on. This revised series is described in a supplement to the Monthly Abstract of Statistics May 1972.

Exports—Base: Year Ended June 1971 (=1000)

June YearButterCheeseDairy ProduceMeatWoolMeat, Wool, and ByproductsAll Pastoral and Dairy Produce
19659801038901753785....
196610031067916711907....
196710531137991745750....
196810541088977856886....
196910659519699241025....
1970101997710179911014....
19711000100010001000100010001000
197297395810161032107110471041
1973x9181031101110879441047x1046
1974*861x7521025x917x738842893
1975*875693808983767899880

Exports—Base: Year Ended June 1971 (=1000)—continued

June YearFood Beverages, and TobaccoManufactured Goods other than FoodCrude Materials other than FuelsAll Groups

*Provisional.

1965......733
1966......760
1967......756
1968......860
1969......997
1970......997
19711000100010001000
19721004131710741048
19731029167510351074
1974*9441916826958
1975*8911876828928

Imports—Base: Year Ended June 1971 (=1000)

June YearPetroleum and ProductsTextile Yarn, Fabrics, etc.Iron and SteelMachinery Other than ElectricElectric Machinery ApparatusTransport Equipment
196510629159637669901006
1966825986111410048821085
1967992981103696810921286
1968845831798669703647
1969929898956710751830
197010099669918618181096
1971100010001000100010001000
1972994106083310289571370
1973x11021090970102610561254
1974*x1327x15501301130113391540
1975*127712651513157618991420
June YearFood Beverages, and TobaccoManufactured Goods other than FoodCrude Materials other than FuelsFuelsAll Groups

*Provisional.

1965........865
1966........940
1967........964
1968........725
1969........824
1970........934
197110001000100010001000
197297110429819941027
197310131086115511051086
1974*12901410141713201386
1975*14321459123612711421

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 had to 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 Control Regulations 1973 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 Trade and Industry 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 1966 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.

The Export Incentive Scheme introduced in 1962 enabled import licences to be made available to all manufacturers who manufacture for export or who undertake to do so. Import 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.

Import Selection—Before 1973 administration of import licensing policy was the joint responsibility of the Customs Department and the Department of Trade and Industry. On 2 April 1973 the Department of Trade and Industry assumed sole responsibility for licensing administration in terms of the Trade and Industry Amendment Act 1973.

Import provisions are published in an annual Import Licensing Schedule. Summaries of changes in the schedules and import policies in general up to the period 1974-75 are contained in earlier issues of the Yearbook.

The 1975-76 Import Licensing Schedule provided, in general, for a level of licensed imports at 100 percent of the 1974-75 allocation. There were, however, a number of items where because of high stocks or downturn in domestic demand this level was reduced.

The 1975-76 Schedule complemented other policies adopted by the Government to ensure sufficient internal demand and importing capacity to sustain full employment and reasonable economic growth, while having sufficient regard to the serious balance of payments situation. Provision was made for manufacturers' raw materials and components to cover reasonable requirements which could not be met from domestic resources. Likewise, where there was no domestic alternative licences were issued to enable old plant to be replaced or updated but for new plant account was taken of the end product and the overall capacity of the industry as well as the need to sustain investment activity and promote exports of manufactured products.

The objectives of the import licensing policies for 1975-76 were to ensure a stable market for industry to utilise domestic resources to the fullest extent, to maintain full employment, and to encourage investment and greater productivity.

The 1976-77 Import Licensing Schedule provided an allocation of 100 percent of the licences issued in 1975-76, but when the devaluation of the New Zealand dollar and increases in the prices of exports were taken into account, this meant that controlled imports were effectively cut by about one-third. When announcing the new Schedule the Minister of Trade and Industry stated that it had been prepared "in a climate of the most serious downturn of New Zealand's terms of trade since the war".

Industries Development Commission—From 19 September 1975 the Tariff and Development Board was superseded by the Industries Development Commission, operating under the same legislation.

As with the Board, one of the main functions of the Industries Development Commission is to inquire into and report on revisions of the Customs Tariff and necessary levels of protection. It was also intended that it should study the needs and requirements of industry on a broader basis under the general direction of the Government.

From its inception in June 1962 until the end of January 1976 the Tariff and Development Board issued a total of 371 reports dealing with a very wide range of products and commodities. During 1975, 37 reports were issued. The subjects included fruit, vegetables, vegetable oils, fish, various types of machinery, plastic, paper, rubber products and tyres, matches, railway vans and containers, recording media, tube and pipe fittings, aluminium, paint, and varnishes.

TRADE COMMISSIONER SERVICE—Facilities for the promotion of overseas trade are provided by the Department of Trade and Industry through the service of 37 Trade Commissioner posts—Athens, Baghdad, Bangkok, Bonn, Brisbane, Brussels, Canberra, Djakarta, Hong Kong, Kuala Lumpur, Lima, London, Los Angeles, Manila, Melbourne, Moscow, New Delhi, New York, Noumea, Paris, Peking, Perth, Port Moresby, Rome, San Francisco, Santiago, Singapore, Suva, Sydney, Tehran, Tokyo, Toronto, Trinidad, Vancouver, Vienna and Washington. While this representation is modest in comparison with other countries, it reflects the country's interest in the desirability of diversifying export markets. In addition, some Air New Zealand overseas managers act as trade correspondents of the Department of Trade and Industry. At present there are Air New Zealand correspondents in 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 in advance 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 Trade and Industry in New Zealand, which is often able to give preliminary advice and assistance.

The addresses of overseas representatives are listed in Section 39, 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. Members are drawn from leaders of industry and commerce, and all sectors of export activity are represented. The Council advises the Minister of Overseas Trade (Chairman) and the Government on the exploration of new or potential markets by such means as trade surveys and missions; co-ordination of promotional schemes, trade fairs, and publicity in overseas markets; improvements of facilities in New Zealand and overseas to assist exporters; provision of export incentives and export finance; and encouragement of support from the business community for exporting and understanding of export problems. The Council co-operates with the Cabinet Committee on Policy and Priorities as required, and with other sector councils on matters of national interest. The Council's Export Award affords recognition to individuals, companies, and organisations who have made significant contributions to the expansion of New Zealand's export trade. There is also the Governor-General's Award for exceptional export performance, which is open only to winners of the Export Award who have had at least a further 5 year's exporting with outstanding export development. Export seminars for businessmen have been conducted by the Department of Trade and Industry in major cities. To date eight annual series have been held covering both the advantages of exporting and the techniques required for success. Contacts with exporters and prospective exporters have been continued by the work of export liaison officers who travel widely in New Zealand explaining the facilities and incentives that are available to exporters.

The Export Guarantee Office operates under the Export Guarantee Act 1964. As an offshoot of the State Insurance Office it insures exports, including contracts insured under the national interest provisions of the Act. In 1974 it insured exports valued at $143 million compared with $130 million in 1973. Since its inception the office has insured exports to the value of approximately $720 million.

Export-Import Corporation—A. corporation has been established under the New Zealand Export-Import Corporation Act 1973 to engage in overseas trade and act on behalf of any manufacturers, producers, exporters, and importers who request it to do so, including the Government. Capital to the amount of $2 million has been made available from the National Development Loans Account.

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. New Zealand's export trade has become more diversified in recent years, as regards both products and markets. While the traditional export commodities, dairy products, meat, and wool, remain the backbone of the export trade, new commodities such as wood pulp, paper, and other products of our forest industries, and manufactured goods, are of growing importance.

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". 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 m 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 11 June years by the main commodity groups.

Year Ended JuneMeat and Meat PreparationsDairy ProductsHides, Skins, and PeltsWool
ButterCheeseCaseinTotal*
f.o.b. value $(million)
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
1970368.9109.744.325.8213.948.7204.2
1971390.8113.948.030.2228.950.6187.8
1972399.0183.966.325.4355.262.2228.6
1973x540.9137.179.222.0329.395.9424.0
1974534.8107.261.828.6330.767.2363.4
1975439.7122.348.414.7289.362.7262.5

EXPORTS

Year Ended JuneSausage CasingsTallowFruit and VegetablesPulp, Paper, and Paper-boardTotal*Re-exportsTotal Exports

*Including commodities not listed.

†Provisional.

f.o.b. value $(million)
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
197014.09.021.628.31,064.522.21,086.7
197114.110.121.328.21,108.123.61,131.7
197215.48.923.133.81,346.628.31,375.0
1973x14.29.730.836.41,758.733.31,792.0
197416.613.935.951.81,744.742.81,787.6
197518.315.640.280.31,548.763.91,612.6

The commodity groups shown above normally account for about 80 percent of the total value of merchandise exports. In recent years, however, manufactured goods have come to play an increasingly important part in Mew Zealand's export trade.

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. The preceding subsection includes a table of volume index numbers for these commodities and for manufactured goods and other commodities. A table showing the export price index numbers and terms of trade is given in Section 23, Prices.

For many years, exports of pastoral products averaged over 80 percent (by value) of New Zealand's export trade. Despite the growing importance of manufactured goods, they still make up about three-quarters. During the June years 1974 and 1975, exports of pastoral products made up 78 percent and 72 percent respectively of the total value of exports.

Of exports other than pastoral the principal ones of economic significance for the June years 1974 and 1975 were: logs of radiata pine ($26.0 m and $12.2 m), fish and fish products ($19.0 m and $21.4 m), newsprint ($14.5 m and $20.8 m), sawn timber ($13.4 m and $10.4 m), wood pulp ($25.6 m and $43.6 m), apples ($12.8 m and $18.2 m), and grass and clover seed ($8.9 m and $10.0 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)Jane Year 1973*June Year 1974*June Year 1975*

*Provisional.

Mining products—    
Pumicetonne622611394
Cementtonne13,8738,0624,719
Fishery products—    
Fish, fresh and frozen.tonne11,53210,18010,530
Crayfishtonne1,6441,6791,634
Fish oils and fish-liver oils litre25,56341,02719,361
Forest products—    
Kauri gumtonne623
Timber—    
Logs, radiata pine(000)cu m1,7571,064463
Sawn(000) cu m253245168
For cases in shookscu m1,3261,5851,319
  Wood pulptonne141,521232,006312,603
  Newsprinttonne122,971103,099120,583
  Building board(000)sq m2,495744383
  Plywood(000)sq m556713209
Pastoral products—    
Buttertonne176,619159,464164,231
Caseintonne27,72839,96517,119
Cheesetonne95,25569,54464,603
Milk, dried and condensedtonne197,797278,348154,924
Sugar of milktonne7,9086,6196,141
Eggs—    
  In shell(doz)94,270240,781383,980
  Not in shelltonne4,2171,8892,675
Honeytonne1,8161,026554
Meat, frozen and chilledtonne691,865572,780613,273
Meat, cannedtonne2,4611,8401,511
Meat extractkg71,19845,743118,083
Other preserved meattonne1,7091,098766
Sausage casings(000) hanks7,3997,2626,371
Liver mealkg460,726337,718309
Cattlehides(000)1,6871,5711,569
HorsehidesNo.2,0062,306500
Calfskins(000)9159161,041
Deerskins(000)1219579
Opossum skins(000)1,2401,5721,788
Sheepskins and pelts(000)34,71027,99530,552
Horsehair and other coarse animal hair kg22,53164,0492,829
Wooltonne288,079214,213218,848
Lardkg1,321319254
Edible tallowtonne42319065
Edible Stearinetonne8325-
Inedible tallowtonne72,52553,82366,494
Neatsfoot oiltonne751532374
Live cattleNo.7,5688,8321,526
Live sheepNo.9,07298,2354,980
Live horsesNo.1,5601,8661,801
Agricultural products—    
Barleykg (000)39,76912-
Applestonne66,83761,24575,023
Pearstonne2,7322,6361,539
Hopskg5k 80229,41334,273
Potatoestonne10,88311,1588,185
Onionstonne14,35315,5509,598
Canned vegetablestonne1,6512,2002,147
Frozen vegetablestonne18,58515,82611,148
Peas, foodtonne28,46425,50521,582
Peas, seedtonne10,35211,37910,044
Seeds, grass and clovertonne15,9549,37011,425
Seeds, othertonne568444357
Miscellaneous—    
Biscuitstonne2,4302,2802,578
Ale, beer, stoutlitre (000)4,3533,7654,853
Sugarkg640,363616,994541,748
Drinking chocolatetonne5,6252,3594,829
Cigaretteskg172,179204,111211,604
Cut tobaccokg68,67172,18662,002
Textile wastekg535,848616,295757,172
Soapstonne1,2771,2251,531
Chamois leathersq m44,99248,24147,554

The values of the principal exports are given in the following table.

Commodity (New Zealand Produce)June Year 1973xJune Year 1974xJune Year 1975*

*Provisional.

 $(000)$(000)$(000)
Mining products—   
Pumice222316
Cement270150139
Other1181,222179
Totals4101,395334
Fishery products—   
Fish, fresh and frozen7,2036,8467,215
Fish, other2,5281,7123,344
Crayfish10,06710,43810,784
Fish oils, fish-liver oils142010
Totals19,81219,01721,353
Forest products—   
Kauri gum723
Timber—   
  Logs, radiata pine30,80025,95212,233
  Sawn10,78413,40810,369
For cases in shooks90110126
Wood pulp14,10025,57343,587
Newsprint16,19414,53920,848
Other paper and paperboard4,86210,95615,015
Building board3,210487325
Plywood434651267
Other4,0538,3035,332
Totals82,53499,982108,105
Pastoral products—   
Butter137,087107,152122,345
Casein22,02828,55614,652
Cheese79,19461,80548,423
Milk, dried and condensed87,380130,644100,865
Sugar of milk2,0761,6691,964
Other dairy produce2,5652,5432,974
Eggs—   
  In shell40104135
  Not in shell1,124938992
Honey1,288900540
Meat, frozen and chilled535,719530,387435,728
Meat, canned3,6173,3662,772
Meat extract252109466
Other preserved meat1,326986763
Sausage casings14,20916,60718,297
Liver meal11211595
Cattlehides25,10517,81813,066
Calfskins3,2383,1143,211
Deerskins656483301
Opossum skins2,0213,8694,638
Sheepskins and pelts64,36241,29140,968
Wool424,041363,410262,470
Inedible offals (including dried blood)6,7356,1946,616
Edible tallow995425
Edible Stearine144-
Inedible tallow9,63113,79715,585
Neatsfoot oil134123116
Live cattle2,8853,9251,847
Live sheep3521,978295
Live horses7,0729,0778,107
Other6,5777,1845,056
Totals1,440,9391.358,2041,113,312
Agricultural products—   
Barley1,9681 
Apples12,82112,77318,167
Pears530531397
Hops754147
Potatoes7901,2801,094
Onions1,5642,2781,200
Canned vegetables7711,0121,020
Frozen vegetables5,0534,7153,803
Peas, food3,3725,9995,534
Peas, seed1,4221,7252,227
Seeds, grass and clover6,5198,86710,027
Other seeds626888806
Other6,5047,10112,077
Totals42,01547,21356,399
Miscellaneous—   
Biscuits1,6991,7922,266
Ale. beer, stout8148031,150
Sugar139165351
Soups295402496
Drinking chocolate2,6741,1413,204
Infant and invalid food (cereal)2617121
Cigarettes7699711,002
Cut tobacco264301287
Textile waste209345578
Soaps530699985
Scrap metal1,0462,2592,162
Dairy machinery2,0991,4462,488
Chamois leather180216220
Vitamins and concentrates2023128
Other162,224208,351234,074
Totals172,988218,931249,212
Totals, New Zealand produce (excluding gold)1,758,6981,744,7411,548,715
Gold (excluded from above)122347111

In the following table exports (excluding re-exports) are summarised according to the Sections and Divisions of the Standard International Trade Classification (Revised).

Exports, New Zealand Produce—Section and DivisionJune Year 1974*June Year 1975*

*Provisional.

Section 0. Food and Live Animals$(000)$(000)
  Div. 00 Live animals15,06110,427
  Div. 01 Meat and meat preparations534,849439,729
  Div. 02 Dairy products and eggs303,186275,734
  Div. 03 Fish and fish preparations18,98221,325
  Div. 04 Cereals and cereal preparations2,2163,085
  Div. 05 Fruit and vegetables35,86640,194
  Div. 06 Sugar and sugar preparations2,9133,146
  Div. 07 Coffee, tea, cocoa, spices, and manufactures thereof3,6185,680
  Div. 08 Feeding stuff for animals (not including unmilled cereals)10,32412,756
  Div. 09 Miscellaneous food preparations2,0062,396
Totals, Section 0929,020814,470
Section 1. Beverages and Tobacco  
  Div. 11 Beverages1,0391,445
  Div. 12 Tobacco and tobacco manufactures1,3001,301
Totals, Section 12,3392,746
Section 2. Crude Materials, Inedible, Except Fuels  
  Div. 21 Hides, skins, and fur skins, undressed67,20762,691
  Div. 22 Oil seeds, oil nuts, and kernels3416
  Div. 23 Crude rubber, including synthetic and reclaimed--
  Div. 24 Wood and cork47,66327,934
  Div. 25 Pulp and waste paper25,81844,088
  Div. 26 Textile fibres (not manufactured into yarn, thread, or fabrics) and waste364,872263,093
  Div. 27 Crude fertilisers and crude minerals, excluding coal, petroleum, and precious stones334323
  Div. 28 Metalliferous ores and metal scrap16,39612,806
  Div. 29 Animal and vegetable crude materials, n.e.s.37,70239,511
Totals, Section 2560,028450,462
Section 3. Mineral Fuels, Lubricants and Related Materials  
  Div. 32 Coal, coke, and briquettes13426
  Div. 33 Petroleum and petroleum products7,44814,943
  Div. 34 Gas21
Totals, Section 37,58414,971
Section 4. Animal and Vegetable Oils and Fats  
  Div. 41 Animal oils and fats15,79617,171
  Div. 42 Vegetable oils and fats, unprocessed431
  Div. 43 Animal and vegetable oils and fats, processed418464
Totals, Section 416,21817,665
 $(000)$(000)
  Div. 51 Chemical elements and compounds2,0921,405
  Div. 52 Mineral tar and crude chemicals from coal, petroleum, and natural gas23
  Div. 53 Dyeing, tanning, and colouring materials744993
  Div. 54 Medicinal and pharmaceutical products2,9934,053
  Div. 55 Essential oils and perfume materials, toilet, polishing, and cleansing preparations2,0002,472
  Div. 56 Fertilisers, manufactured143466
  Div. 57 Explosives and pyrotechnic products4627
  Div. 58 Plastic materials, regenerated cellulose, artificial resins1,9192,061
  Div. 59 Miscellaneous chemical materials and products33,20220,265
Totals, Section 543,14031,745
Section 6. Manufactured Goods Classified by Material  
  Div. 61 Leather, leather manufactures, n.e.i., and dressed furs8,3229,162
  Div. 62 Rubber manufactures, n.e.s.1,9422,068
  Div. 63 Wood and cork manufactures (excluding furniture)6,2097,652
  Div. 64 Paper, paperboard, and manufactures thereof28,65439,361
  Div. 65 Textile yarn, fabrics, made-up articles, and related products25,46219,879
  Div. 66 Non-metallic mineral manufactures, n.e.s.3,0402,952
  Div. 67 Iron and steel5,27711,816
  Div. 68 Non-ferrous metals42,42337,131
  Div. 69 Manufactures of metal8,59811,530
Totals, Section 6129,927141,551
Section 7. Machinery and Transport Equipment  
  Div. 71 Machinery other than electric13,60123,084
  Div. 72 Electric machinery, apparatus, and appliances18,06722,232
  Div. 73 Transport equipment7,4299,484
Totals, Section 739,09854,800
Section 8. Miscellaneous Manufactured Articles  
  Div. 81 Sanitary, plumbing, heating and lighting fixtures, and fittings680838
  Div. 82 Furniture and fixtures2,2271,927
  Div. 83 Travel goods, handbags, and similar articles859977
  Div. 84 Clothing3,0013,791
  Div. 85 Footwear6201,082
  Div. 86 Professional, scientific and controlling instruments; photographic and optical goods, watches and clocks1,3731,696
  Div. 89 Miscellaneous manufactured articles, n.e.s.8,5069,586
Totals, Section 817,26719,896
Section 9. Commodities and Transactions not Classified According to Kind$(000)$(000)
Goods under $20 in value46239
Other75161
Totals, Section 9121400
Total New Zealand produce exports1,744,7411,548,715
Re-exports42,82263,892
Grand total, merchandise exports1,787,5631,612,607
  Exports of gold (excluded from above)347111

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 me 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, and with the greater involvement of the United Kingdom with Europe, the proportion of New Zealand's exports going to this market has fallen and by the June year 1975 represented only 22 percent of the total value of exports to all countries, compared with 36 percent 5 years earlier, during June year 1970.

Australia, which took 11.95 percent (by value) of our exports during the 1975 June year, has always been an important trading partner. Among other principal markets are Japan, which took 11.90 percent of our exports in 1975, and the United States of America, which took 11.71 percent.

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 3 latest June years.

CountryJune Year 1973xJune Year 1974*June Year 1975*

*Provisional.

†Does not include statistics for that part of China known as Taiwan.

  Sterling Area$(000)$(000)$(000)
Associated States in Eastern Caribbean488962513
Australia131,163171,789187,523
Bahamas548555577
Bahrain1402971,199
Barbados2,6292,6843,568
Bermuda2,3342,5362,339
British Solomon Islands365556653
Brunei404949
Cyprus2,2412,5901,614
Fiji17,78920,25323,393
Ghana1,6642,1014,049
Gilbert and Ellice Islands232270293
Guyana38185288
Hong Kong15,56417,24717,219
India6,4754,260796
Ireland, Republic of3,4884,5894,113
Jamaica9,77710,74810,544
Jordan7072,9793,786
Kenya455346756
Kuwait3437922,181
Malawi159278835
Malaysia16,91018,41220,973
Malta4315072,297
Mauritius and Dependencies9671,0272,664
Montserrat32189
Nauru258159241
New Hebrides1,7561,7295,696
Nigeria3525031,259
Norfolk Island673779765
Pakistan1,1039454,201
Papua, etc.1,7872,2293,892
Pitcairn Island192316
Qatar and Trucial Sheikdoms3811690
Seychelles751
Sierra Leone4212
Singapore13,70714,45620,621
South Africa6,7353,12011,043
Sri Lanka (Ceylon)3,518553774
Tanzania18442252
Tonga2,3082,96)4,794
Trinidad and Tobago6,3296,4736,575
Uganda18262
United Kingdom480,173365,790344.079
Western Samoa5,2635,5267,794
Zambia451795954
Others1,3313501,604
Totals, sterling countries740,993672,611702,896
  EFTA   
Austria574448198
Iceland10--
Norway1,9341,0161,762
Portugal3,9074,005943
Sweden3,1712,6454,401
Switzerland and Liechtenstein1,7932,8131,965
Totals, EFTA countries11,39010,9269,269
  EEC   
(Excluding United Kingdom and Ireland, Republic of)   
Belgium and Luxembourg42,67935,78916,341
Denmark1,9741,8182,468
France and Monaco61,71737,80243,398
Germany, Federal Republic of (West)51,23041,04641,901
Italy and San Marino31,62026,83520,969
Netherlands39,78146,84836,090
Totals, EEC countries229,001190,138161,167
  Dollar Area   
American Samoa3,4152,5552,626
Canada42,41452,43645,081
Colombia15669659
Costa Rica269863990
Dominican Republic1074511,798
El Salvador29273962
Guam1,9201,031766
Guatemala110-
Liberia14410
Mexico2,6638,9994,339
Panama Canal Zone9448252,503
Panama Republic1591,465592
Philippines19,04925,90729,247
Puerto Rico, etc.401315
Ryukyu Islands, etc.813621-
U.S. Trust Territories in Pacific5217961
United States of America275,498295,343183,847
Venezuela1,043447788
Others1220098
Totals, dollar area349,064392,315273,781
  Other Countries   
Arab Republic of Egypt1482171,734
Argentina91331470
Brazil2328,2751,790
Bulgaria304877433
Burma267-170
Chile19,37717,7385,163
China5,95316,95210,183
China (Taiwan)9,2848,8829,330
Czechoslovakia3,0355,5374,121
Finland966945838
French Guiana14721754
French Polynesia5,9756,0866,316
Germany, Democratic Republic of3,9805,7442,355
Greece38,15521,65829,953
Guadeloupe242138230
Hungary914415584
Indonesia4,5125,5418,506
Iran5,75417,01816,911
Iraq2441,75910,807
Israel252111138
Japan233,489248,798186,756
Korea, Republic of5,5859,6095,519
Laos5992445
Lebanon1944241,065
Martinique270294325
Morocco983148
Mozambique1,7651,0842,701
Nepal76248344
Netherlands Antilles9651,402963
New Caledonia4,2063,9244,209
Oman35174111
Peru16,79521,30227,964
Poland16,85013,71510,597
Romania568278224
Saudi Arabia4218321,689
Spain5,9755,7057,261
Sudan7343
Syria6959341,209
Thailand9,6689,2338,614
Tunisia26-87
Turkey101147506
U.S.S.R.30,19238,14645,410
Uruguay508248170
Vietnam, Republic of1,1872,053414
Wallis and Futuna Islands27119068
Yugoslavia12,53411,9842,177
Others1,6011,9903,252
Totals, other countries441,313491,414422,317
Totals, all countries1,771,7611,757,4051,569,429
Ships' stores14,63115,30526,901
Passengers5,5879,3879,673
Destination optional-6,5586,604
Grand totals1,791,9791,788,6551,612,607

The table which follows shows for each of the last 7 June 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 1969June Year 1970June Year 1971June Year 1972June Year 1973.xJune Year 1974*June Year 1975*

*Provisional.

†Iceland included in EFTA from 1970.

STERLING AREA—percent
Australia7.708.128.608.317.409.7811.95
Fiji0.780.821.111.071.001.151.49
Hong Kong0.380.430.600.660.880.981.10
Jamaica0.400.410.680.860.550.610.67
Malaysia0.650.680.711.160.95!051.34
Singapore0.860.810.850.990.770.821.31
Trinidad and Tobago0.390.410.490.570.360.370.42
United Kingdom39.1635.9034.4130.8927.1020.8121.92
Other3.972.633.174.092.812.704.59
Totals, sterling countries52.2950.2450.6648.6141.8238.2744.79
EFTA—       
Austria0.020.070.030.020.030.030.01
Norway0.140.110.110.110.110.060.11
Portugal0.150.170.160.130.220.230.06
Sweden0.260.240.190.200.180.150.28
Switzerland0.110.200.130.130.100.160.13
Iceland------
Totals, EFTA countries0.670.790.620.590.640.620.59
EEC (excluding U.K. and Ireland, Republic of)—       
Belgium and Luxembourg1.971.982.282.322.402.041.04
Denmark0.190.230.180.120.i40.100.16
France3.762.672.473.083 482.152.77
Germany, Federal Republic2.942.762.712.552.892.342.67
Italy2.212.211.721.361.781.531.34
Netherlands1.391.501.521.482.252.672.30
Totals, EEC countries12.4711.3410.8910.9112.9310.8210.27
CountryJune Year 1969June Year 1970June Year 1971June Year 1972June Year 1973xJune Year 1974*June Year 1975*

*Provisional.

†Iceland included in EFTA from 1970.

‡Does not include statistics for that part of China known as Taiwan.

DOLLAR AREA—percent
Canada1.684.222.882.962.382.982.87
Philippines0.720.610.821.041.081.471.86
U.S.A.17.3715.4817.2515.3015.5516.8111.71
Other0.630.870.830.880.681.061.00
Totals, dollar countries20.4021.1821.7820.1819.7022.3217.44
OTHER—       
China0.380.380.150.130.340.960.65
Greece0.630.791.101.502.151.231.91
Japan9.009.829.199.6213.0714.1611.90
Peru0.240.380.621.560.971.211.78
Spain0.460.420.180.230.340.320.46
U.S.S.R.1.191.571.601.871.702.172.89
Others2.273.043.164.806.367.907.32
Totals, other countries14.1816.4416.0519.7124.9127.9626.91
Totals, all countries100.00100.00100.00100.00100.00100.00100.00

The principal destinations of New Zealand's exports of merchandise (including re-exports) are given in the table below.

June YearUnited KingdomCanadaAustraliaFrance and MonacoGermany Fed. Rep. of (West)United StatesOther Countries*Total Merchandise Exports

*Including ships' stores, passengers' duty free purchases, and destination optional.

†Provisional.

 $(million)
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
1970386.045.387.328.729.7166.5343.11,086.7
1971384.732.296.127.630.3192.8368.01,131.7
1972419.640.1112.841.834.6207.8518.11,375.0
1973480.242.4131.261.751.2275.5749.81,792.0
1974365.852.4171.837.841.0295.3824.41,788.5
1975344.145.1187.543.441.9183.8766.81,612.6

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 particularly 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
1970197119721973x1974*1975*

*Provisional.

 $(000)
Austria779316250574448198
Belgium and Luxembourg21,29225,52931,54842,67935,78916,341
Bulgaria264797355304877433
Czechoslovakia2,7761,6361,8483,0355,5174,121
Denmark2,4541,9751,6481,9741,8182,468
Finland1,003873645966945838
France and Monaco28,68227,64841,82461,71737,80243,398
Germany, Federal Republic of (West)29,68230,29734,64551,23041,04641,900
Germany, East6671,5732,1403,9805,7442,355
Greece8,46812,29020,42238,11621,65829,953
Hungary859150283916415584
Italy23,72419,22818,46031,62026,83520,969
Netherlands16,11317,01420,07639,78146,84836,090
Norway1,1981,1801,4921,9441,0161,762
Poland3,1293,2746,02516,85013,71510,597
Portugal1,7981,8321,7813,9074,005942
Spain4,4751,9623,1735,9755,7057,261
Sweden2,5922,1082,6543,1712,6454,401
Switzerland2,1501,4591,8241,7862,8131,965
Turkey534852110114787
U.S.S.R.16,93417,92525,35630,19238,14645,410
Yugoslavia3,7202,1403,04112,15911,9842,177
Totals172,812171,255220,011352,977305,918274,250
 percent
Percentage of total New Zealand exports taken by European countries16.0715.3216.2020.03x17.4117.48
 $(000)
Value of wool exported to European countries102,05699,515127,747227,767*203,437153,493
 percent
Percentage of wool exports to total exports to European countries (value basis)59.0658.1158.0664.64x66.5355.88
Percentage of total New Zealand wool exports taken by European countries (value basis)49.9752.9855.8753.53x55.9458.41

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 available June years.

Country to Which ExportedJune Year 1971June Year 1972June Year 1973
QuantityValueQuantityValueQuantityValue

†Excludes that part of China known as Taiwan.

Wool (Greasy, Slipe, and Scoured)
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia7,0035,2967,8796,3948,61514,057
Bulgaria1,351757261197132142
Belgium and Luxembourg33,66519,17334,56623,85923,31630,943
Canada1,6751,3411,8181,5401,2912,118
China1,2797681,7671,2762,9464,539
Czechoslovakia3,1161,6002,7541,7562,1703,015
Denmark1,2579901,043889620718
Finland541435302242138183
France and Monaco26,39915,37629,67020,41623,10532,707
Germany, East2,4941,5733,1192,1393,6963,979
Germany, Federal Republic of (West)20,78915,18122,11217,63022,60632,886
Greece7,9626,88910,1379,94012,52521,727
Ireland, Republic of2,6261,8352,9742,1331,5662,061
Italy12,6388,23311,6898,41510,46316,338
Japan27,24619,35122,46617,30934,67154,038
Mexico903531763518526562
Netherlands13,0027,28014,2719,26518,00025,779
Norway805669650565293353
Poland5,1103,2417,1855,0756,24510,302
Portugal3,0251,7232,2611,5612,5363.617
South Africa1,1639631,2711,093266369
Spain1,0155851,6591,1771,9692,779
Sweden884737813775467672
U.S.S.R.20,74713,31727,45321,23218,73130,190
United Kingdom56,40434,02765,35345,24652,67775,367
United States32,93120,62130,17821,55023,84031,153
Yugoslavia2,3671,6353,0432,2645,67110,036
Other countries5,0963,7224,9124,1828,99813,411
Totals293,494187,850312,370228,639288,079424,041
Frozen and Chilled Beef and Veal
 tonnes$(000)tonnes$(000)tonnes$(000)
American Samoa303293334362335408
Bahamas67539410289100
Barbados1,4039501,7501,4931,4171,282
Belgium and Luxembourg685599460402447503
Bermuda1,0351,1629551,2919731,533
Canada27,84722,64728,31926,76718,55621,935
Cyprus4904666587276981,004
Fiji519185137117218
France and Monaco156186233284525682
French Polynesia1,5211,9491,4802,1561,6942,709
Germany, Federal Republic of (West)28316291135199
Greece5639--155175
Guam1,1731,1681,6451,9541,0921,368
Hong Kong1,0401,3221,0731,7181,7033,305
Italy88703120161206
Jamaica1,9801,3932,6872,1971,8481,917
Japan3,3492,6034,0543,4927,1798,534
Korea4533151012--
Malaysia176211109170297520
Netherlands814892798861430486
Netherlands Antilles308308685804400569
New Caledonia75111265
Philippines510654611773505688
Puerto Rico9911,026693707292363
Ryukyu Islands, etc.5736901,1761,541297465
Singapore2,0672,3091,5552,1931,6742,770
Sweden86163316628317723
Switzerland7728346547118993
Tonga351885417446
Trinidad and Tobago2,3271,9232,5492,4901,5041,700
United Kingdom17,14315,56911,62711,95916,67119,797
United States108,568106,987114,871116,767137,972160,806
Other countries4,7553,4885,7234,3105,8776,157
Totals180,858170,414185,390187,173203,529241,266
Frozen Lamb
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia32532014
Barbados424205485226588282
Belgium and Luxembourg5532788944251,639976
Bermuda372289285219331310
Canada2,3131,3843,6742,2975,3714,471
Cyprus8233641,8548301,048609
Fiji8993278523161,252542
France and Monaco129871,1067201,2531,201
French Polynesia295221299228383367
Germany, Federal Republic of (West)3,0721,4043,7291,7076,9124,316
Greece10,4624,60821,3879,65324,80014,869
Hong Kong523249654329531309
Italy1,2827141,5148283,7162,434
Jamaica253193299214188142
Japan3,8262,0224,9952,5479,1305,944
Malaysia23292333149264149
Netherlands2,0349682,3831,1453,7292,518
Singapore754351496230775466
Switzerland4232281,3847371,4791,152
Tonga838154936182876184
Trinidad and Tobago299167551317313220
United Kingdom287,357139,853281,724122,992252,711160,575
 tonnes$(000)tonnes$(000)tonnes$(000)
United States8,4435,4447,3954,85710,4808,711
Western Samoa1,0191741,0592251,043251
Zambia17473384167290107
Other countries2,7681,3323,5471,8855,8954,022
Totals329,567161,182342,224153,430335,017215,141
Frozen Mutton
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia------
Barbados13132128427426
Belgium and Luxembourg2267724710713269
Canada1,50487733316815684
Cyprus456170967401462212
Fiji34998415120331123
France and Monaco15243342152226137
French Polynesia13743226234
Germany, Federal Republic of (West)68616138310124897
Greece9361951,5623411,298468
Jamaica2,0566043,2168642,017886
Japan51,52313,92465,74416,42476,63831,203
Netherlands507138429166511281
Papua and New Guinea1834922461306113
Peru--3,7859947,5722,655
Singapore87201324319496
Tonga42893188822
Trinidad and Tobago40213643416213864
United Kingdom22,8415,58914,0681,3237,6292,219
United States433111248--
Western Samoa671478186318
Other countries13,5413,11711,9533,0888,6693,579
Totals95,74525,291104,68924,661106,81442,386
Frozen Pork
 tonnes$(000)tonnes$(000)tonnes$(000)
Belgium and Luxembourg9129153345
Fiji7457102864236
France and Monaco219272379543403690
French Polynesia5253373778
Germany, Federal Republic, of (West)157117126108168174
Guam--484021
Japan181711173351
Nauru------
Netherlands211721175255
New Caledonia221813121112
Singapore141017131 
United Kingdom724639--
Other countries584495838592
Totals6516199031,0118371,164
Other Frozen Meat
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia2814181412
Canada363245179174198208
Cyprus51341366810157
France and Monaco2,5992,0203,1112,2933,5023,502
French Polynesia176139150130194211
Germany, Federal Republic of (West)2,5843,1943,6254,5253,1764,801
Greece527178382112391105
Hong Kong36012816253376122
Italy296195259211566661
Jamaica9604681,3125751,266692
Japan1,0796801,4318121,7221,461
Netherlands5286185315428921,264
Netherlands Antilles229125244122233126
Philippines133213255124337
Singapore1889617889204114
Sweden362435435448420490
Trinidad and Tobago15684668311391207
United Kingdom28,73218,05725,95714,77929,31019,266
United States5656396156177891,105
Other countries1,0498581,4081,0681,4291,131
Totals40,96528,22841,12926,99545,40435,562
Canned and Other Preserved Meats
 tonnes$(000)tonnes$(000)tonnes$(000)
American Samoa851314276211449
Fiji289282257325283362
French Polynesia326400269461231421
Gilbert and Ellice Islands981099613569101
Italy2896317415954
Jamaica1369743197731
Japan3516448238384228
Nauru12014614421098150
Papua and New Guinea745523262426
Philippines11249416103
Tonga18517610212893124
United Kingdom1,3241,4831,2301,7638031,079
Other countries1,0736127446999651,078
Totals4,1453,6193,4574,0913,4074,106
Butter
 tonnes$(000)tonnes$(000)tonnes$(000)
American Samoa10870117100137114
Bahamas366215632547346291
Barbados258154341303261204
Bermuda313159337285285215
Canada1711338,5116,826
Chile--6,6076,2677,1946,878
Cyprus804919317011094
Fiji7565069208181,091928
French Polynesia208138251236276261
 tonnes$(000)tonnes$(000)tonnes$(000)
Germany, Federal Republic of (West)2871761721889758
Ghana53585566559480
Guyana126----
Hong Kong390213467401558468
India112233
Jamaica3,2832,1324,3713,8502,4271,877
Japan113581,6551,8718,2825,908
Malaysia6774623,9233,6812,8392,261
Mexico2,4571,1111,3501,3921,9831,832
Netherlands Antilles234142302266187142
Nigeria  6644
Panama Canal Zone122103145150164133
Panama Republic182140101097
Peru8,2013,6449,8639,9846,5706,002
Philippines1,3776652,0741,9803,0342,636
Singapore1,8871,0022,9232,5501,9421,531
South Africa7,8744,8768,9657,272206119
Sri Lanka (Ceylon)457218431320212234
Thailand7274211,7591,715494434
Tonga12481121102128103
Trinidad and Tobago1,2457651,4141,2111,007744
United Kingdom160,03194,711134,304134,215124,06393,024
United States8476451852171,3361,316
Western Samoa185121174148207167
Other countries1,6419293,2563,0942,0971,793
Totals194,464113,926187,860183,922176,619137,087
Cheese
 tonnes$(000)tonnes$(000)tonnes$(000)
Ass. States in Eastern Caribbean214131212168152128
Australia1,1568681,2111,0471,5721,418
Barbados734343757429694370
Belgium and Luxembourg------
Bermuda151671538511675
Cyprus114561519614088
Fiji683268427555
French Polynesia1047211499111113
Germany, Federal Republic of (West)346172196157141130
Guyana------
Hong Kong84431076312280
Italy  ----
Jamaica3,4011,2972,7271,4301,8481,012
Japan6,8162,8708,3084,1889,1355,764
Malaysia1471161710
Netherlands12759194140206190
Philippines7083321,089637270165
Singapore1878914783200124
South Africa1,8771,0463,5292,7334,6043,213
Trinidad and Tobago2,1858072,4151,3622,1871,205
United Kingdom67,95934,78260,70848,60459,96554,659
United States6,1464,8045,9654,66312,5139,567
Other countries2941724032891,187828
Totals92,68148,05088,46466,32495,25579,194
Milk (Dried, Condensed, etc.)
 tonnes$(000)tonnes$(000)tonnes$(000)
Barbados548103464147366150
Canada956242982351721286
Chile3,99395715,8046,69517,4748,034
China (Taiwan)3,7097983,0021,4733,6171,850
Denmark40672----
Fiji9733211,0144581,435674
French Polynesia214731746815280
Hong Kong688142669303508207
India8,7901,64313,4375,58714,0605,850
Indonesia2,6256293,2831,2116,5442,729
Italy2,000446----
Jamaica6,4701,1737,1952,2396,4972,770
Japan17,6313,28718,6907,57719,4599,232
Kuwait31577506248380179
Malaysia22,6704,92425,3139,58626,14311,251
Mauritius1,186343719401922509
Mozambique1,1072282,0106521,937681
Pakistan1,3952581,4316781,101502
Peru16,9143,23327,24010,15819,2957,969
Philippines22,9164,59017,3186,58325,21310,566
Ryukyu Islands, etc.1271524498600317
Singapore7,7721,4828,5163,0758,0113,461
South Africa51210491643621
South Vietnam1 30172,067808
Sri Lanka (Ceylon)3,9661,2746,1123,1435,1652,954
Thailand15,1252,97614,1364,72314,9466,311
Trinidad and Tobago4,8901,4584,1741,7473,8271,978
United Kingdom7,5081,9384,4592,1583,7391,910
Western Samoa26591305147288151
Venezuela30351304146892397
Other countries4,4771,12413,4796,38912,3965,573
Totals160,45134,052191,92576,494197,75787,380
Casein
 tonnes$(000)tonnes$(000)tonnes$(000)
Canada690300571569130121
France and Monaco3,5251,6141,111547300223
Germany, Federal Republic of (West)11,2014,8608,3713,8662,1841,660
India842255
Italy3,4741,598777378466349
Japan16,7037,12211,3556,27611,7269,387
Netherlands2,9321,3161,595736474342
Spain1,059467487216146113
Sweden1,0154522791526544
United Kingdom5,7902,6242,3911,5292,0221,813
United States20,1938,56014,22510,6019,5827,424
Other countries2,9441,285948511628546
Totals 69,53430,20242,11325,38427,72822,027
Edible Tallow
 tonnes$(000)tonnes$(000)tonnes$(000)
Burma769----
China8716----
Fiji1534679117
France--14319--
Hong Kong141276112204
India------
Japan3172596--
Kenya399761,311245--
Malaysia1422710723204
Singapore405777616--
Tanzania27049366--
United Kingdom34069255547916
Other countries176362103721058
Totals2,0563892,97051642099
Inedible Tallow
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia500941222061
Burma5161,017157811115
China2,6914422,8503876,152945
Fiji8491511,0041581,309196
France and Monaco8,2361,2699,01795012,1701,573
Germany, Federal Republic of (West)128141,053110--
India------
Japan17,5982,7207,99098712,3961,623
Kenya519802,7314271,192161
Malaysia2,300368420632,091291
Mauritius1,8022411,4271721,065103
Mozambique2,6824193,2614584,385586
Netherlands5,2026956,1206804,729539
Philippines2,2253432,0132672,190298
Singapore1,2572031,8252351,734223
South Africa1,1411623,1894013,256408
Sri Lanka (Ceylon)3946771610833245
Trinidad and Tobago25944--6110
United Kingdom10,4551,60312,9791,5779,8641,366
Other countries5,1708278,9471,2368,7831,148
Totals63,4609,74766,6818,39472,5269,631
Cattle and Horse Hides
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia294103287123475319
China--5924572378
Denmark2187419779339260
Germany, Federal Republic of (West)1,2103681,5425832,4481,821
Greece8092976592901,019779
Italy15,8155,41216,1736,4229,7877,068
Japan4,7421,7683,3691,3933,8923,190
Netherlands9113101,2224521,306895
Norway600188823311734587
Poland59331,3086437,2736,283
Spain1,3113711,048360981664
United Kingdom4211341,148476430318
Yugoslavia1,3364171,7247122,7261,896
Other countries8122961,646709869698
Totals28,5379,76931,20612,57832,85125,157
Calf and Kid Skins
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia166  24
France and Monaco128871711277541,094
Germany, Federal Republic of (West)10072194127185172
Italy1,6961,148827636608834
Japan254162274208344429
Netherlands16191604023
Spain4819309242237281
United Kingdom159115161135114174
United States11151411
Other countries427169236131242246
Totals2,9911,8712,2481,6602,4893,238
Sheepskins (With Wool)
 tonnes$(000)tonnes$(000)tonnes$(000)
France and Monaco1,7125751,7817461,7441,589
Italy110441184985
Netherlands3520----
Portugal ---44
Spain319104447214593498
United Kingdom449219209113106128
Other countries834813267259294
Totals2,7101,0112,6871,1892,7142,518
Sheepskins (Without Wool)
 doz(00.)$(000)doz(000)$(000)doz(000)$(000)
Australia7971627513259
Belgium and Luxembourg2193,1332864,3502897,788
Canada212335076122494
Finland362102121829478
France and Monaco4434,90295513,34075414,645
Germany, Federal Republic of (West)241783239528443
Italy8197757847942,533
Netherlands2253,1332303,6571845,198
Spain1918364592641,021
United Kingdom6928,5245167,97963414,520
United States1,16115,25580812,77763913,724
Other countries242744647834693
Totals2,95237,1013,08245,6682,78461,846
Sausage Casings
  hanks hanks hanks
 (000)$(000)(000)$(000)(000)$(000)
Australia1225651364585
Canada1,8702,8992,6884,3581,6132,962
Germany, Federal Republic of (West)5041,2005751,2705751,243
Japan237572364921263648
United Kingdom3,0966,0372,6274,7492,9255,219
United States1,3512,9731,5493,3461,6433,513
Yugoslavia22562964511
Other countries166341279536330528
Totals7,25914,1028,17515,3807,39914,209
Apples (Fresh Whole Fruit)
 tonnes$(000)tonnes$(000)tonnes$(000)
Belgium and Luxembourg5,4349015,7981,0207,6541,454
Canada2,1963632,1663852,016425
Fiji3165238162563107
Finland4918144580574111
French Polynesia271453445724153
Germany, Federal Republic of (West)4,9928256,3281,2172,355443
Hong Kong1,4612421,7293001,681310
Ireland, Republic of1,3612251,66929940879
New Caledonia303502934819037
Norway7571258551531,140220
Philippines8214----
Singapore445746981192,007357
Sweden272459161643,383653
United Kingdom29,5184,84929,7825,32238,0327,231
United States2,1803604,5998382,811619
Venezuela1,002166339601,415268
Other countries1,0631791,7233102,367454
Totals52,1438,59558,06410,43466,83712,821
Seeds (Grass and Clover)
tonnes$(000)tonnes$(000)tonnes$(000) 
Australia1,3226532,1377663,3201,449
Chile55115733097952339
France and Monaco1,5487111,5667273,4471,173
Germany, Federal Republic of (West)509357563332689313
Ireland, Republic of578228916253894287
Italy84373218726085
Japan145118216133419266
Netherlands191131341175305118
South Africa3793077017
United Kingdom4,3402,0994,6531,5874,7812,062
United States396856569180
Uruguay--4122100108
Other countries375230470191626222
Totals9,7194,89611,6404,43315,9546,519
Peas (Food), Including Frozen
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia1,9658434,7821,6204,6191,599
Belgium and Luxembourg2,4451581,3151042,797244
Fiji65780800971,067133
Hong Kong6351116771421,020224
Japan7,2408042,0113833,575593
Netherlands1,347101881693,766337
Singapore81613251189611100
South Africa4,1484645,0645135,429764
United Kingdom4,4403405,54841812,4251,773
United States386294804260159
Other countries4,0384382,9753255,084612
Totals28,1183,49925,0443,80340,9946,438
Peas (Seed)
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia3,1274055,2637224,853685
Fiji51525323802
France and Monaco139161512120429
Germany. Federal Republic of (West)267327728918324
Italy154183384229541
Japan1 475536
Netherlands260314816155173
South Africa5986177211515
United Kingdom4,7736163,7755233,720508
Other countries126173914529939
Totals8,9581,14612,0891,60310,3531,422
Wood Pulp and Waste Paper
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia82,8427,78886,7708,55493,1899,577
Japan2,8162911,55813813,6331,197
Philippines6,45078117,0071,80520,4931,999
Other countries7,1146409,83188515,2551,381
Totals99,2229,499115,16611,382142,57014,154
Timber (Sawn Conifer)
 cu m(000)$(000) cu m(000)$(000) cu m(000)$(000)  
Australia103x4,360104x4,384984,705
Japan89x2,36895x2,7141113,375
New Caledonia14x98211x6938492
Tonga2x1423x186169
United Kingdom33x93416x469 2
Western Samoa3x1755x3492139
Other countries19x1,04826x1,439281,634
Totals263x10,010262x10,23324810,416
Sawlogs and Veneer Logs (Conifer)
 cu m(000)$(000)cu m(000)$(000)cu m(000)$(000)
Australia--   12
Japan1,75525,2961,79729,1271,87432,916
Korea, Republic of5170534537671,230
Other countries    --
Totals1,80626,0011,83129,6641,94134,158
Fish (Other than Canned)
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia4,3943,0643,813x2,556x3,8032,563
France and Monaco11380172x168x111118
Japan1,1646023,123x1,778x4,7462,910
Netherlands417228785x563x544363
United States2,22811,2042,675x12,461x853573
Western Samoa11631153x46x12744
Other countries1,7771,7092,062x1,843x1,560898
Totals10,20916,91912,783x19,415x11,7447,469
Newsprint
 tonnes$(000)tonnes$(000)tonnes$(000)
Australia107,20413,597127,55416,105114,30315,356
Philippines917709286921815
Singapore86163375281,526115
Thailand--46538637
Other countries2,4602992,0222546,538670
Totals111,44214,028130,92416,461122,97216,193

EXPORTS BY PORTS—The following table shows for the latest available June years the value of total exports, including re-exports, according to the ports at which goods were loaded for export.

PortYear Ended June
196819691970197119721973
 $(million)
Whangarei32.334.836.938.048.245.2
Auckland249.2277.8318.0309.6375.9475.2
Hamilton----0.22.5
Tauranga46.972.189.7116.8177.6175.4
Gisborne7.19.410.712.39.512.6
Napier83.2105.6113.8130.6128.5182.4
Taranaki73.779.884.691.599.0105.1
Wanganui-0.1--2.63.3
Palmerston North-0.1----
Wellington99.9115.5124.3116.8180.2266.3
Picton3.84.33.54.23.64.6
Nelson8.312.913.614.218.718.4
Greymouth--0.1---
Lyttelton64.180.285.181.583.9133.4
Timaru47.761.561.667.568.6101.3
Oamaru------
Otago29.438.140.341.862.399.8
Bluff74.696.8104.3106.7116.1165.3
Totals820.5989.11,086.71,131.71,375.01,792.0

Auckland occupies a commanding position in the export trade of New Zealand, since over a quarter of all exports are 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 recent years, passengers duty-free purchases, ships' and international aircraft stores, have made 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 Ended JuneRe-exports

*Provisional.

 $(000)
19648,844
19658,512
196610,454
19679,601
196815,838
196920,219
197022,195
197123,628
197228,342
1973x33.281
1974*42,773
197563,892

The destinations of this re-export trade for the latest available June years are shown in the following table.

CountryJune Year
19721973x1974*

*Provisional.

 $(thousand)
Australia9,51011,59912,502
Fiji2,0882,2683,014
Hong Kong136424632
Malaysia495460
Papua and New Guinea1166274
Singapore551762647
South Africa1485561
Tonga210186217
United Kingdom1,4121,0951,572
Western Samoa456526463
Germany, Federal Republic of (West)550274647
Netherlands10282128
Canada177151300
Philippines4214959
United States2,9633,3763,672
Brazil-2713
Indonesia14335140
Japan331558504
Other countries1,0181,5651,851
Ships' stores3,7394,7167,289
Passengers goods4,6015,3178,931
Totals (excluding gold and current coin)28,34233,28142,773

EXPORTS TO COOK, NIUE, AND TOKELAU ISLANDS—Trade with the Cook, Niue, and Tokelau Islands is not included in external trade statistics. The values of exports (including re-exports) to the islands are summarised below.

Year Ended JuneExports

*Provisional

 $(000)
19653,020
19662,846
19672,796
19683,461
19693,590
19705,024
19716,995
19725,923
1973x5,476
1974*6,889
1975*7,793

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

*Provisional.

$(thousand)
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
197045,2128,66651,39659,0941,709116,345
197155,31212,23747,35460,6252,586134,804
197258,58312,87344,93966,5932,743142,790
1973x67,12015,42453,72376,8762,789167,907
1974*85,83819,76277,027169,9977,869246,859
1975*124,59521,60094,660316,95811,022288,268
Imports (c.d.v.)
Year Ended JuneManufactured Goods Classified Chiefly by MaterialMachinery and TransportMiscellaneous Manufactured ArticlesCommodities and Transactions not Classified According to KindTotal Merchandise Imports

*Provisional.

$(thousand)
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
1970271,612319,71366,5524,027944,324
1971296,296370,81177,22813,3141,070,567
1972285,775444,50384,0819,8571,152,736
1973316,042466,621100,61415,0691,282,185
1974*492,157597,549132,35112,8551,842,263
1975*618,280800,950172,44121,6592,470,434

The next table gives fuller details of imports according to sections and divisions for the latest available June years.

Section and Division S.I.T.C., RevisedJune Year 1974*June Year 1975*
c.d.v.c.i.f.c.d.v.c.i.f.

*Provisional.

Section 0. Food and Live Animals$(thousand)
  Div. 00 Live animals5,1875,7853,5843,815
  Div. 01 Meat and meat preparations4,4094,7922,0392,299
  Div. 02 Dairy products and eggs4774991,9282,082
  Div. 03 Fish and fish preparations9,28910,0706,8257,568
  Div. 04 Cereals and cereal preparations12,39114,88525,29229,913
  Div. 05 Fruits and vegetables20,32725,74022,36530,058
  Div. 06 Sugar and sugar preparations17,24119,59636,60643,335
  Div. 07 Coffee, tea, cocoa, spices, and manufactures thereof13,02715,94222,95026,634
  Div. 08 Feeding stuff for animals (not including unmilled cereals)7507281,0281,301
  Div. 09 Miscellaneous food preparations2,7402,7301,9782,302
Totals, Section 085,838100,767124,595149,306
Section 1. Beverages and Tobacco    
  Div. 11 Beverages11,71012,59113,63315,377
  Div. 12 Tobacco and tobacco manufactures8,0518,7347,9678,950
Totals, Section 119,76221,32521,60024,326
Section and Division S.I.T.C., RevisedJune Year 1974*June Year 1975*
c.d.v.c.i.f.c.d.v.c.i.f.

*Provisional.

Section 2. Crude Materials, Inedibles, Except Fuels$(thousand)
  Div. 21 Hides, skins, and fur skins, undressed1,7081,812736834
  Div. 22 Oil seeds, oil nuts, and oil kernels5,7846,5024,3484,935
  Div. 23 Crude rubber, including synthetic and reclaimed12,74114,37111,18213,224
  Div. 24 Wood and cork9,37912,3047,83710,661
  Div. 25 Pulp and waste paper1,7842,1811,2011,415
  Div. 26 Textile fibres (not manufactured into yarn, thread, or fabrics) and waste16,12517,81412,80614,545
  Div. 27 Crude fertilisers and crude minerals, excluding coal, petroleum and precious stones19,73233,98145,93767,681
  Div. 28 Metalliferous ores and metal scrap2,2482,6752,7583,525
  Div. 29 Animal and vegetable crude materials, n.e.i.7,5257,9467,8568,410
Totals, Section 277,02799,58494,660125,230
Section 3. Mineral Fuels, Lubricants, and Related Materials    
  Div. 32 Coal, coke, and briquettes2495128531,332
  Div. 33 Petroleum and petroleum products169,640203,408316,033347,146
  Div. 34 Gas10815272110
Totals, Section 3169,997204,072316,958348,588
Section 4. Animal and Vegetable Oils and Fats    
  Div. 41 Animal oils and fats252298172204
  Div. 42 Vegetable oils and fats, unprocessed6,3586,9489,0739,818
  Div. 43 Animal and vegetable oils and fats, processed, and waxes of animal or vegetable origin1,2601,3891,7761,999
Totals, Section 47,8698,63411,02212,022
Section 5. Chemicals$(thousand)
  Div. 51 Chemical elements and compounds78,53388,96390,731109,155
  Div. 52 Mineral tar and crude chemicals from coal, petroleum, and natural gas8239661,0211,343
  Div. 53 Dyeing, tanning, and colouring materials14,84816,12914,31316,480
  Div. 54 Medicinal and pharmaceutical products39,42935,48350,50944,353
  Div. 55 Essential oils and perfume materials; toilet, polishing, and cleansing preparations7,6348,1979,31210,331
  Div. 56 Fertilisers, manufactured17,32823,15321,38829,630
  Div. 57 Explosives2,3222,1832,5242,342
  Div. 58 Plastic materials, regenerated cellulose, artificial resins65,72173,12970,392SI,790
  Div. 59 Miscellaneous chemical materials and products20,22122,92028,07832,710
Totals, Section 5246,859271,124288,268328,133
Section 6. Manufactured Goods Classified Chiefly by Material    
  Div. 61 Leather, leather manufactures, n.e.i., and dressed furs2,5652,7342,7953,042
  Div. 62 Rubber manufactures, n.e.i.20,34620,49323,83725,055
  Div. 63 Wood and cork manufactures (excluding furniture)7,8339,3008,61710,830
  Div. 64 Paper, paperboard, and manufactures thereof22,17925,65735,31143,386
  Div. 65 Textile yarn, fabrics, made-up articles and related products181,388195,042167,804183,792
  Div. 66 Non-metallic mineral manufactures, n.e.i.22,69825,86631,66237,011
  Div. 67 Iron and steel129,493143,028211,961241,617
  Div. 68 Non-ferrous metals54,96655,07358,52961,010
  Div. 69 Manufacture of metals50,68852,35377,76481,817
Totals, Section 6492,157529,549618,280687,558
Section 7. Machinery and Transport Equipment    
  Div. 71 Machinery other than electric249,353261,653372,661397,435
  Div. 72 Electric machinery, apparatus, and appliances104,347107,245169,651175,063
  Div. 73 Transport equipment243,849262,208258,638288,258
Totals, Section 7597,549631,106800,950860,756
Section 8. Miscellaneous Manufactured Articles$(thousand)
  Div.81 Sanitary, plumbing, heating, lighting fittings, and fixtures2,5522,8643,4764,058
  Div. 82 Furniture and fixtures9911,1401,2731,518
  Div. 83 Travel goods, handbags, and similar articles357383553581
  Div. 84 Clothing5,1045,4996,1446,671
  Div. 85 Footwear2,9243,1914,0804,526
  Div. 86 Professional, scientific and controlling instruments: photographic and optical goods, watches, and clocks51,24448,87168,28466,643
  Div. 89 Miscellaneous manufactured articles, n.e.i.69,17972,74788,63195,128
Totals, Section 8132,351134,695172,441179,124
Section 9. Commodities and Transactions Not Classified According to Kind12,85513,32021,65922,417
Grand totals, merchandise imports1,842,2632,014,1772,470,4342,737,460

DIRECTION OF IMPORT TRADE—From the eighties of the last century until the early seventies of this century, the chief source of supply of New Zealand's imports was the United Kingdom. Prior to that, the main source of supply was Australia and, in the latest years, as the United Kingdom has become more involved in Europe, Australia has once more moved into first place. During the year ended June 1975, imports from the United Kingdom were valued at $465.1 million and imports from Australia at $502.6 million.

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 years 1974 and 1975 only 19.1 and 18.8 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 years ended June 1974 and 1975, 24.4 percent and 20.3 percent, respectively, of imports came from Australia. Japan is becoming an important trading partner; in the years ended June 1974 and 1975, 13.5 percent and 13.6 percent, respectively, 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.v.) during the latest 11 years from the United Kingdom, Australia, the United States, and Japan.

Year Ended JuneCountry Where PurchasedCountry of OriginTotal Merchandise Imports
United KingdomAustraliaU.S.A.United KingdomAustraliaU.S.A.Japan

*Provisional.

 $(million)
1965262132782421287537663
1966289143752781358445729
19672911501012751439744752
1968208141751881336851623
196926717210224315810065799
197030022012327919812378944
19713292521273102251301101,071
19723463001153292671171291,153
1973x3223601473043231461671,282
1974*   351449%2252481,842
1975*   4655033303362,470

The next table gives imports on a c.d.v. basis by countries of origin for the latest June years.

CountryJune Year 1973xJune Year 1974*June Year 1975*

*Provisional.

†Does not include statistics for that part of China known as Taiwan.

Sterling Area$(000)$(000)$(000)
Australia323,468449,313502,639
Bahamas261867
Bahrain6,01711,12210,354
British Solomon Islands 646444-
Brunei---
Fiji5,2337354,874
Ghana2,2823,1198,280
Gilbert and Ellice Islands2,6302,5809,499
Guyana11433126
Hong Kong20,01140,78033,664
India10,93614,82119,783
Ireland, Republic of6028321,488
Jamaica1,4182,652792
Kenya5457931,671
Kuwait28,62057,59581,621
Malawi92145396
Malaysia8,08011,7509,098
Malta including Gozo252553
Mauritius and Dependencies1131-
Nauru4,7724,68512,949
New Hebrides Cond.1411581
New Zealand Re-imports 2,0852,5324,882
Nigeria412133
Pakistan7152,0031,510
Papua and New Guinea7691,6162,469
Singapore8,43931,56867,748
South Africa4,3725,9909,725
Sri Lanka (Ceylon)3,6273,0544,227
Tanzania (inch Pemba)1,8552,0993,750
Tonga4848011,026
Trinidad and Tobago7510749
Uganda4015621,395
United Kingdom303,592350,921465,078
Western Samoa1,2772,8732,675
Other2,0151,0601,920
Totals744,9361,006,5961,263,825
E.F.T.A.   
Austria2,2893,6304,957
Iceland--15
Norway2,1025,7023,747
Portugal1,0591,5522,403
Sweden12,28315,58121,726
Switzerland and Liechtenstein12,78017,85725,699
Totals30,51344,32458,537
E..E.C. (excluding United Kingdom and Ireland, Republic of)   
Belgium and Luxembourg7,09013,50517,416
Denmark3,7345,3199,346
France and Monaco12,82418,11524,340
Germany, Federal Republic of (West)50,96986,767110,553
Italy and San Marino16,21129,54139,018
Netherlands16,07428,41836,926
Totals106,902181,666237,600
Dollar Area   
 $(000)$(000)$(000)
Canada34,64244,66548,898
Colombia1,690260254
Costa Rica93-
Dominican Republic2,0543,92548
Ecuador2,7602,8592,586
Mexico9581,6892,182
Philippines5461,4521,807
United States145,857224,984329,939
Other119138427
Totals188,635279,976386,141
Other Countries   
Angola incl. Cabinda3245833
Argentina152458701
Brazil2,0144,5045,910
Bulgaria182536
Central African Republic-8044
Chile212402241
China6,89114,30113,699
China (Taiwan)3,0636,5727,254
Congo People's Republic (Brazzaville)25--
Cuba2616,580
Czechoslovakia1,7702,8353,311
Finland7375,4912,284
French Polynesia482951
Germany, East492725645
Greece112231477
Hungary225542534
Indonesia1,7771,8242,160
Iran9,77618,59495,146
Iraq2732494,581
Israel500744961
Ivory Coast4-37
Japan166,736248,047335,625
Korea, Republic of1,4497,6844,595
Morocco151040
Mozambique310412307
Netherlands Antilles78115560
New Caledonia 5490
Peru5258110
Poland4276281,134
Romania107520354
Saudi Arabia6,3454,62112,280
Spain1,9183,2765,275
Sudan401398
Syria193130
Thailand1,0291,7192,395
Turkey122124376
U.S.S.R.9441,8173,300
Yemen8911,7272,226
Yugoslavia99340353
Zaire Republic (Congo Kinshasa)3711985
Other2,166190442
Totals211,199329,700524,330
Grand totals1,282,1851,842,2632,470,434

On a country of origin basis the following table shows for the latest 7 June years the percentage of the value (c.d.v.) of total New Zealand imports.

CountryJune Year 1969June Year 1970June Year 1971June Year 1972June Year 1973xJune Year 1974*June Year 1975*

*Provisional.

†Iceland included in EFTA from 1970.

‡Does not include statistics for that part of China known as Taiwan.

Sterling Areapercent
Australia19.8120.9521.0623.1925.2324.3920.35
Bahrain0.210.390.420.510.470.600.42
Fiji0.310.100.290.240.410.040.20
Ghana0.130.290.190.150.180.170.34
Hong Kong1.721.891.741.671.562.211.36
India1.110.900.641.070.850.800.80
Malaysia0.830.680.520.440.630.640.37
Nauru0.770.670.520.460.370.250.52
Singapore0.380.320.160.370.661.712.74
South Africa0.490.420.310.280.340.330.39
Sri Lanka (Ceylon)0.620.470.340.380.280.170.17
United Kingdom30.4729.5528.9528.5423.6819.0518.83
Western Samoa0.160.150.140.110.100.160.11
Other3.893.673.733.403.344.124.56
Totals60.8960.4558.9960.8058.1054.6451.16
E.F.T.A.       
Austria0.110.150.170.170.180.200.20
Iceland      
Norway0.190.140.200.240.160.310.15
Portugal0.080.070.060.090.080.080.10
Sweden1.170.770.791.190.960.850.88
Switzerland1.160.991.021.001.000.971.04
 2.722.132.222.682.382.412.37
E.E.C. (excluding U.K. and Ireland, Republic of)       
Belgium and Luxembourg0.520.470.630.560.550.730.71
Denmark0.230.260.260.360.290.290.38
France and Monaco0.830.831.030.981.000.980.99
Germany, Fed. Rep. of (West)4.233.894.594.283.984.714.48
Italy1.391.261.341.341.271.601.58
Netherlands1.051.021.321.011.251.541.49
Totals8.267.709.188.528.349.869.62
Dollar Area       
Canada3.813.973.583.172.702.421.98
U.S.A.12.4713.0412.1310.1211.3812.2113.36
Other0.160.680.720.520.630.560.29
Totals16.4417.6916.4313.8114.7115.2015.63
Other Countries—       
China0.620.460.420.460.540.780.55
Czechoslovakia0.190.190.170.120.140.150.13
Indonesia0.130.170.080.100.140.100.09
Iran1.271.210.840.920.761.013.85
Japan8.088.2710.3011.1613.0013.4613.59
Netherlands, Antilles0.01   0.010.010.02
Saudi Arabia0.620.530.420.320.490.250.50
Other0.761.190.931.111.392.142.49
Totals11.6912.0213.1814.1916.4717.9021.22
Grand Totals100.00100.00100.00100.00100.00100.00100.00

ORIGIN OF PRINCIPAL IMPORTS—The table which follows shows details of principal commodity imports by country of origin for years ended June 1972 and 1973. C.d.v. basis of valuation is used.

ORIGIN OF PRINCIPAL IMPORTS

Commodity and Countries of OriginValue of Imports
1971-721972-73

*Does not include statistics for that part of China known as Taiwan.

 $(000)
Oranges  
Australia1,3521,138
All countries2,4882,057
Bananas  
Costa Rica--
Ecuador1,5052,759
Tonga101100
Western Samoa15351
All countries1,8072,929
Dried Fruits  
Australia4,4375,242
U.S.A.1,0771,058
All countries5,9866,798
Whisky  
United Kingdom2,6222,947
All countries3,0543,577
Tobacco—-  
(Unmanufactured)  
South Africa14882
U.S.A.3,7664,769
All countries5,0646,135
Rubber (Crude and Synthetic)  
Canada215452
France and Monaco281485
Malaysia2,5422,240
United Kingdom295132
U.S.A.716598
All countries6,6297,146
Wood (Shaped or Simply Worked)  
Australia806674
Canada439342
Ghana378351
U.S.A.6011,887
All countries2,5493,801
Pulp and Waste Paper  
Canada232-
Finland-128
Germany, Fed. Rep.21
Sweden2011
All countries1,6841,853
Wool and Other Animal Hair  
Australia8512,418
United Kingdom6691,039
All countries1,5773,468
Sugar (not refined)  
 $(000) 
Australia2,76411,200
Fiji2,5074,950
All countries18,44121,714
Natural Phosphates  
Australia2,9573,273
Gilbert and Ellice Islands4,4132,630
Nauru5,2954,772
U.S.A.  
All countries12,66710,677
Raw Coffee  
Brazil1,7411,298
Papua/New Guinea517668
Tanzania567590
Uganda1,200391
All countries4,4793,713
Cocoa  
Ghana1,2261,878
Netherlands507724
All countries1,9643,334
Tea  
India295278
Sri Lanka (Ceylon)4,1163,345
All countries5,3815,277
Petroleum Spirit  
Australia3,2522,238
Iran2,4232,443
Malaysia-
People's Democratic Republic of Yemen92-
Singapore376794
Venezuela--
All countries10,3649,264
Kerosene  
Australia4,7863,506
Iran6521,538
People's Democratic Republic of Yemen8593
Singapore1391,573
All countries6,3067,816
Lubricating Oils and Greases  
Australia2,8933,236
United Kingdom413367
U.S.A.529713
All countries3,9454,555
Organic Chemicals  
Australia5,8167,982
Germany, Fed. Rep.1,6211,401
Japan2,5643,018
United Kingdom4,3095,923
U.S.A.5,9286,034
All countries22,95326,971
Inorganic Chemicals$(000)
Australia11,30711,577
Germany, Fed. Rep.878820
Japan2,6042,479
United Kingdom2,0952,334
U.S.A.2,1632,138
All countries22,22623,014
Medicinal and Pharmaceutical Products  
Australia7,9489,746
Germany, Fed. Rep.2,6863,234
Switzerland3,3163,317
United Kingdom9,35910,880
U.S.A.3,1092,739
All countries28,95132,903
Sulphur (Other Than Sublimed, etc.)  
Canada2,9762,890
U.S.A.121924
All countries3,1653,866
Plastic Materials, Regenerated Cellulose, and Artificial Resins  
Australia5,5996,930
Germany, Fed. Rep.2,0922,759
Japan4,7368,259
United Kingdom6,2437,766
U.S.A.4,3096,090
All countries26,05736,602
Rubber Tyres and Tubes  
United Kingdom1.1161,837
U.S.A.8371,068
All countries3,4926,478
Paper and Paperboard  
Australia2,2542,344
Japan1,7672,282
United Kingdom3,3313,199
U.S.A.1,3101,252
All countries10,60411,607
Textile Yarn and Thread  
Australia3,3054,369
Hong Kong2,7962,469
Japan1,7262,127
United Kingdom4,2963,702
All countries15,64916,753
Cotton fabrics Suitable for Manufacture of Apparel  
Australia451562
China*1,6362,226
Hong Kong4,2444,211
Japan3,2474,428
United Kingdom515512
U.S.A.7881,288
All countries13,56016,304
Cotton Furnishing and Household Fabrics  
Hong Kong3,7442,819
India948449
United Kingdom1,092894
All countries8,8777,051
Manufactured Fertilisers  
Canada1,5481,767
Germany, Fed. Rep.9552,054
U.S.A.3,5525,923
All countries7,89114,534
Woven Fabrics of Synthetic Fibres  
Australia1,3391,612
Japan11,88613,235
United Kingdom1,2221,315
U.S.A.7161,125
All countries19,01523,407
Woven Fabrics of Regenerated Artificial Fibres  
Japan1,9571,848
United Kingdom2,0191,481
U.S.A.320341
All countries6,8666,697
Knitted or Crocheted Fabrics  
Australia1,118x1,463
Hong Kong2,408x2,188
United Kingdom1,738x1,588
U.S.A.171x188
All countries7,286x7,319
Household Linens  
China*281371
Hong Kong616616
India250216
Japan400380
United Kingdom251349
U.S.A.126170
All countries2,5792,747
Glass  
Netherlands172148
United Kingdom2,0792,135
U.S.A.308470
All countries3,6264,591
Bars and Rods of Iron or Steel  
Australia2,8723,237
Canada376449
United Kingdom1,056819
All countries5,2795,333
Woven Woollen Fabrics  
Australia450300
United Kingdom1,9301,358
All countries2,7982,045
Woven Jute Fabrics  
India3,2523,050
United Kingdom10058
All countries3,7843,326
Universals, Plates, and Sheets of Iron or Steel  
Australia6,92910,622
Japan23,66127,362
United Kingdom4,5333,638
All countries37,01144,946
Hoop and Strip of Iron or Steel  
Australia9841,502
Japan1,0091,362
United Kingdom708623
All countries3,0193,948
Iron and Steel Wire  
Australia2,0792,380
United Kingdom1,5951,549
All countries4,5945,362
Tubes, Pipes, and Fittings of Iron or Steel  
Australia3,6275,697
United Kingdom4,2982,429
All countries9,4939,739
Copper and Copper Alloys  
Australia9,97511,612
Canada1,039927
United Kingdom2,3532,563
All countries13,57715,430
Aluminium and Aluminium Alloys  
Australia5,1743,311
Canada3,91387
United Kingdom670456
U.S.A.748442
All countries11,1764,805
Nails, Screws, Nuts, Bolts, etc., of Iron, Steel, Copper  
Australia781971
United Kingdom1,3561,260
All countries3,3803,625
Angles, Shapes and Sections of Iron or Steel  
Australia2,3074,256
Japan1,4361,586
United Kingdom1,6681,008
All countries5,5627,081
Aircraft Engines  
United Kingdom441296
U.S.A.3,6999,202
All countries4,1929,522
Internal Combustion Engines, Not Aircraft  
Australia1,0903,067
Canada1,5301.045
United Kingdom3,6843,494
U.S.A.2,7554,417
All countries10,52113,746
Agricultural Machinery and Appliances  
Germany, Fed. Rep.295498
United Kingdom1,0361,597
U.S.A.405612
All countries2,4934,518
Tractors  
Italy7141,760
Japan7101,029
United Kingdom8,64510,764
U.S.A.2,8232,861
All countries14,00517,375
Office Machines  
Germany, Fed. Rep.5851,318
Japan1,7792,318
United Kingdom4,2083,441
U.S.A.1,9006,616
All countries11,21316,832
Metalworking Machinery  
Australia752689
Germany, Fed. Rep.1,5241,392
Japan328410
United Kingdom3,8251,834
U.S.A.547574
All countries9,4455,901
Textile Machinery  
Germany, Fed. Rep.1,2821,288
United Kingdom3,2242,061
U.S.A.334431
All countries7,1886,045
Cutlery  
Australia964986
Japan474642
United Kingdom963879
All countries3,0953,398
Excavating, Levelling, Boring, etc., Machinery  
United Kingdom1,9942,014
U.S.A.2,2684,548
All countries6,1809,476
Pumps and Centrifuges  
Australia4,2753,622
United Kingdom4,1063,927
U.S.A.1,5691,806
All countries14,49013,195
Mechanical Handling Equipment  
United Kingdom4,0353,422
U.S.A.2,3472,325
All countries9,7289,707
  Ball, Roller, and Needle Roller Bearings—  
Sweden470471
United Kingdom2,0591,310
U.S.A.492533
All countries4,3013,823
Taps, Cocks, Valves  
Australia1,1111,283
United Kingdom2,3362,858
U.S.A.621722
AD countries5,1526,063
Transmission Shafts and Cranks  
 $(000) 
Australia1,001798
United Kingdom2,7342,385
U.S.A.1,0961,304
All countries6,0535,939
Electrical Power Machinery and Switchgear  
Australia3,6924,445
Germany, Fed. Rep.481685
Italy526878
Japan3,7231,939
Sweden1,059980
Switzerland482750
United Kingdom13,31015,199
U.S.A.1,2061,252
All countries27,17928,747
Printing and Bookbinding Machinery  
Germany, Fed. Rep.2,3081,186
United Kingdom1,4213,231
U.S.A.1,3991,191
All countries6,1066,843
Electrical Measuring and Controlling Apparatus  
United Kingdom2,5852,647
U.S.A.9501,627
All countries5,3126,073
Telecommunications Equipment  
United Kingdom8,6836,134
U.S.A.308678
All countries11,26012,117
Railway Vehicles  
Australia192914
Canada2-
Japan2,8707,601
United Kingdom354669
All countries7,8959,485
Motorcars  
Australia50,27666,200
France and Monaco1,682926
Germany, Fed. Rep.1,5401,356
Italy2,1241,445
Japan11,44915,187
United Kingdom40,11431,886
All countries107,633117,456
Lorries, Trucks, and Vans  
Australia6,1756,954
United Kingdom16,6178,398
All countries28,47922,030
Aircraft  
United Kingdom1,321417
U.S.A.4,7293,785
All countries6,9054,563
Ships and Boats  
Hong Kong--
United Kingdom15,0267,469
All countries18,19912,457
Equipment for Distributing Electricity  
Australia1,1501,258
United Kingdom2,0451,955
All countries4,0924,040
Watches and Clocks  
Germany, Fed. Rep.521475
Switzerland1,2453,265
United Kingdom536458
All countries4,0234,422
Photographic Films, Plates, and Paper (Not Developed Cinematographic Film)  
Australia3,9394,634
United Kingdom1,1521,079
All countries7,6519,127
Clothing  
Australia423554
Hong Kong522813
United Kingdom1,3041,145
All countries3,1953,899
Printed Books and Pamphlets  
Australia3,8284,326
United Kingdom8,1208,903
U.S.A.3,2313,249
All countries17,69519,567
Newspapers and Periodicals  
Australia2,426x3,148
United Kingdom1,748x2,260
U.S.A.1,046x1,333
All countries5,335x6,938

QUANTITIES OF PRINCIPAL ITEMS IMPORTED—The following table shows the quantities imported during June years of a large number of the principal items.

ItemUnit of QuantityYear Ended 30 June
19721973x1974*1975*

*Provisional.

Fish, canned, and fish preparationstonne3,1193,7265,5734,027
Wheat, unmilledtonne46,788-51,363134,422
Ricetonne4,9645,9366,1226,491
Orangestonne16,69417,49317,04016,446
Bananastonne24,54933,06634,96739,279
Fruit—     
  Driedtonne10,38910,5859,0958,705
  Cannedtonne7,3157,8787,4925,318
Desiccated coconuttonne1,3191,4821,3411,202
Edible nutstonne1,1461,3541,5161,660
Sugartonne196,232181,050179,437203,123
Coffee, rawtonne6,5324,9685,1267,147
Teatonne8,0328,3337,4717,615
Cocoatonne4,1096,1484,3297,345
Winelitre (000)2,0392,2822,7512,661
Whiskyproof litre (000)2,2932,5433,6083,784
Tobacco, unmanufacturedtonne2,8953,4644,0873,613
Synthetic and artificial fibrestonne2,9965,0735,2073,728
Woven fabrics—     
  Synthetic fibressq metre (000)31,72239,68858,49340,986
  Artificial fibressq metre (000)9,5149,26413,23310,052
Yarn and thread of silk, rayon, and synthetic fibrestonne2,7873,1824,6494,553
Yarn of wool and animal hairtonne22680215319
Meat wraps, cottontonne2,0361,6802,1331,918
Textile fabrics coated with plasticsq metre (000)1,8983,6354,8954,762
Bags, sacks, wool packsdoz (000)632549338554
Cotton yarn and threadtonne3,4603,3845,0253,759
Cotton fabrics, woven, unbleachedsq metre (000)8,9636,35712,2467,900
Cotton canvas and ducksq metre (000)1,4801,2092,1332,370
Cotton fabrics suitable for the manufacture of apparel     
  Flannelette, winceyette, diaper clothsq metre (000)8,3328,13613,72312,703
  Other kinds"22,96526,21939,21721,120
Cotton furnishing and household fabrics"24,45515,81330,47923,254
Woven silk fabrics"145125155174
Woven woollen fabrics"1,5231,0491,2161,599
Woven linen, ramie, and hemp fabrics"1,1361,2011,4081,435
Woven jute fabrics"26,32024,95028,09325,825
Rubbertonne21,37823,07031,17322,708
Timber, sawncu metre31,20439,55864,56553,081
Wood and paper pulptonne12,92013,85311,5214,102
Nitrate of sodatonne3811,4171,103964
Fertilisers, phosphatictonne (000)1,1731,1031,1021,211
Gypsum, crudetonne104,380127,503199,219163,612
Sulphurtonne181,093273,065243,939240,604
Salttonne27,15844,69144,07726,034
Asbestos"6,7138,8127,11712,438
Petroleum, crudetonne(000)1,9462,2602,4732,536
Petroleum, partly refined"825915804902
Motor spiritlitre (000)400,701347,387753,274476,526
Distillate fuels"254,636295,648509,633377,355
Kerosene and white spirit"248,952315,059332,441384,379
Lubricating oils and preparations"53,67761,42370,84072,630
Cream of tartar and substitutestonne4,1405,1345,7015,286
Acids"2,0572,6375,0584,901
Caustic soda"12,82513,08010,85516,217
Carbonate of soda"33,40322,95737,10233,893
Calcium carbide"3,1933,5272,8703,345
Sulphate of ammoniatonne19,40256,63644,42623,817
Potash"180,106257,976301,418236,983
Pig iron and ingotstonne9,53437,82626,20533,686
Bars and rods of iron or steel"30,71330,45049,56296,829
Angles, shapes and sections of iron or steel"43,12855,04580,58080,152
Universals, plates and sheets of iron or steel"267,327318,616398,066394,964
Hoops and strip of iron or steeltonne13,09416,22421,96024,708
Rails of iron or steel—     
fish plates, etc.tonne10,64411,63111,02114,466
Iron and steel wire"17,92819,70733,81430,864
Tubes, pipes, and fittings of iron or steel 35,21930,00240,84480,808
Silver and platinum not fully workedgram (000)36,473.845,50565,19334,452
Copper and copper alloystonne10,57311,72615,38613,017
Aluminium and aluminium alloys"16,3315,2337,99511,036
Aluminium Oxide"140,394176,065291,114145,609
Lead and lead alloys"7,0406,1337,6357,797
Finished structural parts and constructions"14,17210,9344,22511,017
Wire products"4,3924,6386,0959,681
Nails, screws, nuts, bolts, etc."3,2473,0073,4355,185
Hand toolsdoz(000)482.4542.0754.6761.4
Knives, kitchen and table"103.075.5117.7122.1
Spoons and forks"239.7273.1435.0426.0
Internal combustion engines (not aircraft)number79,031105,500149,589156,864
Agricultural mowers—crops, lawn, weed, scrub cutting"1,7441,2661,8442,868
Agricultural harvesters and threshers—forage, tobacco"210176280392
Earthmoving machines"2553711,3661,405
Typewriting, calculating, and accounting machines"37,59940,879127,686149,799
Domestic sewing machines"38,91545,14255,76759,457
Electric motors—     
  Under 1 bhp"398,053428,436412,154621,616
1   bhp and over"16,73319,65225,37448,084
Sparking plugs(000)476598675719
Tractorsnumber4,2715,2185,8725,254
Motorcars—     
  Unassembled"65,73869,54974,22063,465
  Assembled"22,14417,19430,17513,215
Lorries, trucks, buses, vans, etc.—     
  Unassembled"20,89211,03213,42814,235
  Assembled"7413012,2171,980
Motor cycles"19,73926,13540,45220,566
Bicycles"7,7397,82515,59319,021
Rubber tyres and tubes (excl. bicycle)tonne2,1604,2708,8507,262
Plywoodsq. metre (000)1463311,5291,632
Newsprint papertonne3595477,5467,861
Printing and writing paper—     
  Machine made, not processed"4,8654,6376,4357,559
  Impregnated, coated, or printed"8,0949,40313,61313,992
Machine-made paper and paperboards, n.e.s."3,1173,4525,86112,362
Greaseproof paper, etc."1,9601,3432,0142,000
Wallpaperrolls (000)47.258.067.2130.5
Linoleum and similar floor coveringssq metre (000)700.21,396.4937.9368.2
Carpets and carpeting of or with wool"36.622.566.218.5
Glass plate and sheetsq. metre (000)780.21,001.61,445.51,695.1
Tableware and toilet potterytonne1,3101,2139341,450
Footweardoz pr(000)97.8103.8132.2161.8
Cameras, photographic(000)94.7155.7172.5205.3
Watches(000)249.9219.3344.1291.9
Clocks, other than electric"315.0312.7421.2425.4
Electric clocks"37.156.5111.5144.7
Electric capacitators"14,88019,10451,63457,103
Insulated wires and cablestonne2,0151,9882,1504,360
Telephone handsets(000)91.923.627.357.5
Electric accumulators"35.349.274.6163.0
Electric lamp bulbs and tubes"6,740.48,330.613,027.916,228.9
Thermionic, etc., valves and tubes"1,7641,8092,9253,047
Crystal valves"4,4878,39619,38926,432

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 ImportedYear Ended 30 June
197119721973x1974*1975*

*Provisional.

†For more detailed list of items included under each heading see relevant table in Monthly Abstract of Statistics.

 $(million)
Finished Capital Goods164.2187.7205.6273.8429.8
Agricultural machinery and plant20.318.623.327.236.8
Industrial machinery and plant53.678.469.382.4131.0
Construction machinery and plant6.24.911.120.417.0
Transport and communication items18.924.627.343.482.0
Other complete items65.361.174.6100.4163.1
Components and Materials for Capital Goods149.7137.1138.9185.9314.0
For agricultural machinery and plant7.25.66.88.812.3
For industrial machinery and plant14.816.216.423.341.1
For construction machinery and plant1.11.51.82.13.9
For transport and communications items50.351.646.554.484.1
For building, construction, roads10.610.09.013.822.3
For other capital items65.652.158.583.5150.3
Finished Goods and Components (Classed as consumption or capital according to type of buyer)157.5206.1219.7280.8312.5
Complete transport items29.660.649.973.858.6
Parts for transport items77.796.2114.5137.0146.6
Other complete items18.718.022.428.744.0
Parts for other items31.431.232.841.363.4
Consumer Goods280.2308.3351.2515.4630.9
Finished consumer goods136.6152.4178.0257.7310.4
Components for consumer goods143.6156.0173.2257.7320.5
Materials Used in the Production Process and Items Unable to be Separately Classified Elsewhere391.0389.6443.8746.81,029.6
Stores Used Only for Defence13.010.214.911.420.5
Totals1,155.51,239.01,374.12,014.22,737.5
Class of Goods ImportedYear Ended 30 June
197119721973x1974*1975*

*Provisional.

†For more detailed list of items included under each heading see relevant table in Monthly Abstract of Statistics.

 percent
Finished Capital Goods14.2315.214.913.615.7
Agricultural machinery and plant1.81.51.71.41.3
Industrial machinery and plant4.66.35.04.14.8
Construction machinery and plant0.50.40.81.00.6
Transport and communications items1.62.02.02.23.0
Other complete items5.74.95.45.06.0
Components and Materials for Capital Goods13.011.110.29.211.5
For agricultural machinery and plant0.60.50.50.40.5
For industrial machinery and plant1.31.31.21.21.5
For construction machinery and plant0.10.10.10.10.1
For transport and communications items4.44.23.42.73.1
For building, construction, roads0.90.80.70.70.8
For other capital items5.74.24.34.25.5
Finished Goods and Components (Classed as consumption or capital according to type of buyer)13.616.615.913.911.4
Complete transport items2.64.93.63.72.1
Parts for transport items6.77.88.36.85.4
Other complete items1.61.51.61.41.6
Parts for other items2.72.52.42.12.3
Consumer Goods24.324.925.625.623.1
Finished consumer goods11.812.313.012.811.3
Components for consumer goods12.412.612.612.811.7
Materials Used in the Production Process and Items Unable to be Separately Classified Elsewhere33.831.432.337.137.6
Stores Used Only for Defence1.10.81.10.60.8
Totals100.0100.0100.0100.0100.0

IMPORTS BY PORTS—In 1973 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 1969June Year 1970June Year 1971June Year 1972June Year 1973
 $(thousand)
Whangarei37,31536,98243,35943,95552,227
Auckland345,966418,284473,792525,894594,308
Hamilton2,7523,8774.2855,2238,668
Tauranga7,6418,04712,27611,86613,816
Gisborne829818610588700
Napier17,16918,64221,71520,65026,409
Taranaki15,47816,35217,16018,85725,893
Wanganui1,1301,2141,4001,4191,709
Palmerston North2,9014,3403,9984,9188,364
Wellington222,266271,201306,508318,829345,211
Picton238254390395502
Nelson5,5006,2089,6148,8176,978
Greymouth4054045113,4712,221
Lyttelton102,163114,606117,358129,598138,264
Timaru3,2973,5862,4363,1782,771
Otago24,92728,90529,13128,90834,044
Bluff9,22010,60626,02426,17020,100
Totals799,197944,324x1,070,5671,152,7361,282,185

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, the commodities and their countries of origin are listed in a supplement to the Monthly Abstract of Statistics. Some figures of imports and exports by air are given by main commodity groups in section 11E of this Yearbook.

GOODS SHIPPED FROM COOK, NIUE, AND TOKELAU ISLANDS—Trade with the Cook Islands, Tokelau Islands, and Niue is not included in the export and import totals for New Zealand. The following table shows the movement of goods from these islands to 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)
19651,867
19661,582
19671,564
19681,656
19691,852
19702,659
19712,664
19722,531
1973x2,809
1974*3,167
1975*3,698

The values of principal goods brought to New Zealand from the Cook, Niue, and Tokelau Islands during the latest available June years were as follows:

ItemYear Ended 30 June
1973x1974*1975*

*Provisional.

 $$$
Oranges, whole fruit6,828183,202
Tangerines and mandarins, whole fruit32,99868,81126,320
Lemons, grapefruit, etc., whole fruit8,17711,7219,143
Bananas46,675118,210109,809
Honey6,69011,7865,392
Citrus fruit juices823,7341,009,417937,438
Pineapple juice100,123101,079153,418
Preserved fruit193,698231,349308,972
Fresh tomatoes2,5562,444244
Arrowroot, etc.4305,8803,558
Copra63,417346,4651,186,236
Wood manufactures (not furniture)35,18830,61831,674
Textile clothing (not knitted, etc.)—   
  Men's and boys' outer garments797,715830,326533,824
  Women's and girls' outer garments7,7942,2572,073
  Men's and boys' undergarments187,186210,326149,871
  Women's, girls' and infants' undergarments-1,8384,528
Basketwork, wickerwork, etc.1,9863,6886,598
Compressed gas cylinders, etc.17,88311,0398,188
Other miscellaneous items476,045169,672217,798
Totals2,809,1233,166,9443,698,286

22 D-CUSTOMS TARIFF AND REVENUE

THE TARIFF—The objects of the Customs Tariff are as follows:

  1. The collection of revenue.

  2. The development of New Zealand industries.

  3. The maintenance and extension of markets for New Zealand's exports.

  4. The implementation of New Zealand's tariff commitments in multilateral and bilateral trade agreements.

  5. Harmonisation with New Zealand's external political objectives including the provision of assistance to developing countries.

HISTORICAL BACKGROUND—New Zealand's first Customs Ordinance was proclaimed in 1841 with the objective of raising revenue and to some extent giving preference to goods of British origin. The prevailing economic philosophy in the latter half of the nineteenth century was directed at free trade but a tariff revision in 1895 was aimed at protecting a small range of industries. Subsequent revisions in the early part of this century which continued this practice, eliminated some duties on items which entered into the cost of living of those residing in urban areas, and extended further British preferences.

The Ottawa Agreement of 1932 stemmed from a recognition that policies had tended to become protective. In return for concessions from the United Kingdom including duty-free entry for practically all New Zealand products (see Section 21A—Marketing of Farm Produce) New Zealand agreed to restrict the use of the tariff for purely protective purposes and to give further preference to British goods. In 1934 a Tariff Commission submitted a report which conformed broadly to the principles of the Ottawa Agreement and reduced the protection for New Zealand industries in some cases. Thus, the acceptance of the Tariff Commission's recommendations reflected the fact that New Zealand placed its economic emphasis on primary production, the market for which was mainly in the United Kingdom.

In November 1957 the Board of Trade completed a comprehensive review of the structure of the tariff and reported to Government. The board's recommendations were taken into account when a revised tariff was introduced on 1 July 1962 based on the Standard International Trade Classification. A new tariff based on the Brussels Tariff Nomenclature was introduced on 1 July 1967.

Consequent to the United Kingdom's entry into the European Economic Community a further revised tariff was introduced on 1 July 1974 to phase out the preferences on goods of United Kingdom origin. This tariff provided separate rates for British preferential countries (the United Kingdom of Great Britain and Northern Ireland, the Isle of Man, the Channel Islands, and the Republic of Ireland), other preferential rates of duty in favour of Australia, Canada, Malaysia, other Commonwealth countries, and developing countries, and a normal tariff rate.

The rates of Customs and excise duty enforced in New Zealand are set out in the publication entitled the Customs Tariff of New Zealand available from the Government Printer, Wellington.

GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)—New Zealand was one of the original members of the General Agreement on Tariffs and Trade reached in Geneva in 1947 and has since taken an active part in the work of the GATT in attaining its general objective of reducing barriers to trade and providing a forum for the discussion and settlement of international trade problems and disputes.

The majority of the world's trading nations have now become contracting parties to the GATT and entitled to most-favoured-nation treatment. The non-discriminatory provisions within the GATT assist New Zealand to at least some degree in promoting its objective in seeking the right to trade on a multilateral basis.

The results of the tariff negotiations which took place in 1947 and on subsequent occasions are embodied in schedules to the General Agreement and are applied multilaterally so that New Zealand receives the benefit of reductions made by all participants and, conversely, accords reciprocal concessions to all other contracting parties. These concessions are of two kinds—actual reductions in duty rates and bindings on duties against increase.

Developments have, however, tended to whittle away most of the trading advantages which countries relying heavily on agricultural exports might reasonably expect to get from GATT membership. There has been a growing disparity between the benefits accruing under GATT to the industrialised nations and the far less tangible advantages it provides for primary producing countries such as New Zealand. This has been due principally to the maintenance of quantitative restrictions on agricultural products by most of the large industrialised countries as an aspect of their policies of agricultural protectionism.

The Kennedy Round of negotiations which was concluded in June 1967 has not corrected this imbalance although New Zealand did obtain improved access and some tariff concessions on a limited range of products exported to some GATT countries in compensation for a reduction in rates of duty of up to 50 percent on a number of items. A new round of multilateral trade negotiations was initiated in Tokyo in September 1973. Although progress towards obtaining its objective of further reducing trade barriers has been slow, New Zealand has taken an active part in restating its interest in promoting liberalised trade in agricultural products.

PREFERENCES AND OTHER BILATERAL TRADE AGREEMENTS—New Zealand maintains preferences in favour of Commonwealth and developing countries and has accepted certain contractual obligations on a reciprocal basis under various trade agreements. These are discussed below.

United Kingdom—The Ottawa Agreement of 1932 which was important until recent years in defining New Zealand's relationship with the United Kingdom was modified by a New Zealand - United Kingdom Trade Agreement signed in Wellington in August 1959 and a subsequent "Record of Understanding" signed on 24 November 1966.

A radical change in New Zealand's trade and tariff policy was necessitated by the United Kingdom's decision to enter into the European Economic Community on 1 January 1973 and the effect of this action on New Zealand's exports to that country. The tariff preferences accorded to British goods in the New Zealand market are accordingly being phased out in four steps which began on 1 July 1974 and which will be completed by 30 June 1977. Some exceptions to this phasing arrangement are made for certain classes of goods such as plant and raw materials not produced in New Zealand. For such goods preferences were eliminated in one step on 1 July 1974.

Australia—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 preferential tariff, except with regard to certain classes of goods, enumerated in the Schedules to the agreement, on 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.

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 were higher than the equivalent British preferential rates were to be reduced to the British preferential level not later than 1 January 1974.

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 and 1 July in every year since 1969.

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.

On 7 May 1973 an exchange of letters took place between the New Zealand and Australian Governments. Among the mutual agreements reached was a general undertaking not to increase the duties and margins of preference on each others goods beyond those existing on 31 January 1973.

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.

On 26 July 1973 an exchange of letters took place between the New Zealand and Canadian Governments. Among the mutual agreements reached was a general undertaking not to increase the duties and margins of preference on each others goods beyond those levels existing on 31 January 1973.

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.

Other Commonwealth Countries—Although there was no contractual obligation to do so, in the revised tariff effective from 1 July 1974 New Zealand has maintained preferences in favour of other Commonwealth countries using as a basis the preferential rate established for Canada in terms of the New Zealand - Canada Exchange of Letters dated 26 July 1973.

Developing Countries—New Zealand has responded to the recommendation of the United Nations Committee on Trade and Development (UNCTAD) that developed countries introduce Generalised Systems of Preference in favour of developing nations. Special developing country rates were incorporated in the Customs tariff as from 1 January 1972. In the revised tariff effective from 1 July 1974 margins of preference are accorded developing countries in comparison with the normal rate in 445 cases, including 321 items where the preferential rate has been set at Free.

OTHER TRADE OBLIGATIONS—New Zealand is also a party to certain commercial treaties, conventions and arrangements with countries outside the Commonwealth resulting from direct negotiations with the countries concerned. In practice, some of the earlier arrangements (which generally provided for reciprocal most-favoured-nation tariff treatment) became superseded by New Zealand's accession to the General Agreement on Tariffs and Trade. Trade agreements which are still operative include those with: Switzerland (1938 and since extended to Liechtenstein in 1956); Federal Republic of Germany (1959); Japan (1958, amended 1962); the Union of Soviet Socialist Republics (1963); the Polish People's Republic (1965); Republic of Korea (1967); People's Republic of Bulgaria (1968); Republic of the Philippines (1968); Socialist Republic of Romania (1969); Hungarian People's Republic (1970); People's Republic of China (1973).

These agreements contain, in the main, provision for non-discriminatory treatment, the facilitation of trade and the treatment of foreign exchange for trade purposes.

ELIGIBILITY OF GOODS FOR TARIFF PREFERENTIAL RATES-In order to qualify for entry at preferential rates imported goods must meet certain origin requirements before they can be deemed to be the produce or manufacture of the countries entitled to the preferences. The provisions are contained in the Customs Regulations 1968 as amended. In general, with minor variations, they include the following:

  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 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.

TARIFF REVIEW—In 1975 Government announced that a review of tariff rates conducted by the Tariff and Development Board would be replaced by a 2-year departmental tariff review with the objective of providing domestic industry a reasonable degree of protection against competing imports. In addition the structure of, and descriptions used in, the tariff, as well as its statistical requirements, would be examined. The review is being conducted progressively on a chapter by chapter basis. Interested parties have been invited to supply information by means of questionnaires supplemented by written submissions if desired.

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, applying to goods from the United Kingdom and the Republic of Ireland; (b) other preferential rates, chiefly those applicable to goods from Australia, Canada, other Commonwealth and developing countries; (c) the normal tariff, applying to goods from other countries.

Duty is generally calculated according to ad valorem rates; but specific duties are also prescribed in a number of items and in some cases a combination of ad valorem and specific rates are used.

EXCISE DUTIES—Excise duty is a tax on certain commodities manufactured in New Zealand. Duties on major commodities are as follows.

Beer—From 1 July 1974 the excise duty on beer became $13.20 per 100 litres where the specific gravity does not exceed 1,036 advancing by 36.66c. per 100 litres for every unit of specific gravity above 1,036. The specific gravity of distilled water at 15.64°C 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 from 30 July 1976.

DescriptionRate of Duty
Cigarettes— $
  Exceeding in weight 1.134 kg per 1,000per kg13.32
  Not exceeding in weight 1.134kg per 1,000per 1,00015.11
Cigars and snuffper kg8.34
Other manufactured tobaccoper kg9.91

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, $0.80c per proof litre; toilet preparations, $0.75c; culinary and flavouring essences, $0.44c; medicinal preparations containing more than 50 percent of proof spirit, $0.10c per proof litre. 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 two rectifying and compounding distilleries, is at the rate of $3.45 per proof litre. The excise duty on whisky made or distilled in New Zealand is $3.386 per proof litre. These rates applied from 30 July 1976.

CUSTOMS REVENUE—Revenue from Customs and excise duties is shown in the following table.

Year Ended 31 March Excise Duties  Other Excise and Customs DutiesTotal Excise and Customs Duties
 BeerSpiritsTobaccoSugar

*Includes gross motor spirits duty credited to Consolidated Revenue Account.

$(000)
197037,2827,18050,1732,47059,695*156,800*
197139,6537,23057,3972,54671,702*178,528*
197240,7007,66769,5312,38177,695197,974
197341,9018,23072,199-87,910210,240
197444,6749,46571,603-120,096245,838
197546,23311,20375,197-142,685275,318

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.

INTERNATIONAL COMMODITY AGREEMENTS: Sugar—New Zealand's annual requirement of sugar is some 189,000 tons. Some two-thirds of this amount is usually imported from Australia and Fiji under long-term contracts. In recent years additional cargoes have been bought from Cuba, Colombia, and the Dominican Republic.

World trade in sugar takes place largely under bilateral contracts and special arrangements such as the home convention between the EEC and the ACP (Africa, Caribbean, and Pacific) nations. Until 1973, New Zealand's sugar has been bought according to a 1957 Memorandum of Understanding agreed between New Zealand and the parties to the Commonwealth Sugar Agreement—New Zealand is not a member of the agreement itself. This understanding simply determined the quantity New Zealand would buy from Commonwealth suppliers at 75,000 tons.

The price at which New Zealand bought sugar however was the world price, the "London daily price", subject to a small adjustment in the case of the 75,000 tons bought under the Memorandum of Understanding.

Before 1957 New Zealand's purchases of sugar 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.

The Commonwealth Sugar Agreement terminated at the end of 1974 as part of the phasing out of Commonwealth trading arrangements resulting from the United Kingdom's entry into the EEC.

New Zealand has been a member of the International Sugar Agreements of 1958 and 1968. These agreements incorporated mechanisms that regulated the supply and price of sugar on world markets. Under the agreements exporters undertook to regulate their sales on the free market according to agreed quotas while importers were to restrict their purchases from non-members during times when sugar prices remained within the range specified in the agreement. The 1968 agreement terminated in 1973 and the United Nations Conference on Trade and Development (UNCLAD) convened a conference to negotiate a new agreement. Against a background of record free market sugar prices (moving from around £75 per ton at the end of 1972 to over £200 per ton at the beginning of 1974), agreement on appropriate indicator prices proved impossible to find and the conference settled for a consultative form of agreement without control measures of any kind. Work is proceeding within the consultative organisation on the drawing up of a new agreement containing economic clauses. In the meanwhile, New Zealand is also engaging in discussions with the sugar supply authorities in Queensland and Fiji, our two principal sources of supply, concerning the conditions of purchase for sugar.

Coffee—New Zealand was a party to the International Coffee Agreement of 1968. This agreement relied for its operation on a system of export and import controls by means of documents of origin and export stamps. Since it expired in 1973 a purely administrative agreement lacking control measures has been in force, as no agreement could be reached between producer and consumer countries on prices.

However, negotiations towards a new International Coffee Agreement are considerably advanced. New Zealand supports the proposals for this agreement as part of a wider support for commodity agreements.

Cocoa—At the end of 1972 the United Nations Cocoa Conference succeeded in drawing up an International Cocoa Agreement which had been subject of negotiation for the best part of a decade. The agreement entered into force in June 1973 and New Zealand adhered to it shortly after that date. It expires in 1976.

The International Cocoa Agreement incorporates features common to other commodity agreements but, unlike the former International Coffee and Sugar Agreements, depends largely for the stabilising of prices on the operation of a buffer stock. Cocoa beans would be bought into the buffer stock at times of low prices and sold when prices pass an agreed maximum level.

The agreement entered into force at a time when world cocoa prices were rising steeply, reaching record levels by the latter part of 1973. As a result the buffer stock has not come into operation. A new agreement is under negotiation, and it is hoped that this will be more effective in stabilising the international cocoa trade.

Chapter 24. Section 23 PRICES AND HOUSEHOLD EXPENDITURE

Table of Contents

CONTROL OF PRICES*—The control of prices has become the responsibility of the Commerce Commission set up under the Commerce Act 1975. The Commerce Commission replaces both the Price Tribunal and the Trade Practices and Prices Commission. The Stabilisation of Prices Regulations 1974, which were made under the Economic Stabilisation Act, continue in effect.

Substantial jurisdictional changes have been made by the Commerce Act. The Secretary of Trade and Industry is given original jurisdiction to fix prices of those goods and services which are subject to price control under the Act, although subject to a right of appeal to the Commission. Collective pricing practices and individual resale price maintenance agreements are subjected to strict control. Provisions relating to profiteering have been strengthened.

Part IV of the Commerce Act replaces the provisions of the Control of Prices Act 1947. While many of the provisions of this Part closely follow provisions of the earlier Act there are a number of important differences. Besides providing for goods and services to be placed under price control, provision is also made for regulations to be made placing goods and services under price restraint. Decisions take the form of price orders or special approvals as previously. The secretary is required on request to give his reasons for a decision to the applicant or to interested parties. The Commerce Commission sits as a judicial authority for the determination of appeals from decisions of the Secretary of Trade and Industry.

Decisions of the Secretary of Trade and Industry are made following investigations by him, upon receipt of an application in accordance with procedures set out in the Act. Provision is also made for the secretary to review prices on his own motion with the consent of the Minister of Trade and Industry. Before making a determination in respect of an application or following a review on his own motion, the secretary is required to fulfil certain duties which accord applicants the benefit of the rules of natural justice which applied under the previous judicial jurisdiction.

Where requested to do so by the Minister, the Commerce Commission may however exercise original jurisdiction in the determination of prices. At any such inquiry the Secretary of Trade and Industry is to be represented. Provision is also made, where appropriate, for the representation of consumer-class interests. The Commerce Commission also possesses original jurisdiction where certain applications are made on a group basis.

The Minister of Trade and Industry publishes a Positive List of Controlled Goods and Services, which specifies the goods and services subject to price control. There is provision for other goods and services to be subject to a form of pricing restraint.

Criteria considered by the Secretary of Trade and Industry or the Commerce Commission in dealing with pricing matters include the cost of production and distribution of the goods concerned; the ability of the applicant to absorb costs; profit margins and return on capital; stable internal prices; improvements in productivity and efficiency; market competition; and subsidies or import protection given.

It should be observed that certain prices controlled under other legislation do not come within the scope of the Commerce Act 1975. For example, maximum and minimum prices of motor spirits are fixed by Order in Council (on the recommendation of the Minister of Trade and Industry) 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.

The Stabilisation of Prices Regulations 1974 had effect from 15 July 1974 and replaced the Stabilisation of Prices Regulations 1973. The 1974 Regulations simplified previous procedures while maintaining control over practically all goods and services (both Category A and B) with further restraints on the profits on Category B items through the maximum profit ceiling concept.

Price increases may be made on Category B items, but only to the extent provided in the Regulations. In general, this may be stated as the recovery of costs, plus the established percentage margin of profits.

*This subsection describes the position prior to the "price freeze" in August 1976.

Unless approval has been obtained from the Secretary of Trade and Industry for a more frequent increase, there must be a minimum interval of 6 months between price increases. All manufacturers and packers and suppliers of Category B goods and services must maintain a record of their price increase calculations. Any such manufacturer with an annual turnover of $1.5 million is required to send a copy of that record to the department.

Manufacturers with a turnover of $5 million or more and suppliers of services with a turnover of $500,000 or more are required to give 28 days notice of their intention to increase prices. If the Secretary of Trade and Industry does not object to the increase within the 28 days the increase may be implemented. If an objection is made, the trader must await clearance from the Secretary of Trade and Industry before increasing prices.

The maximum profit ceiling provisions of the Regulations require all traders to ensure they do not exceed their maximum profit ceiling in any year. The maximum profit ceiling is the average percentage of profit to sales achieved during the last four years immediately preceding July 1974. If a trader does obtain any excess profit he is required to liquidate it either through reducing prices or charges or absorbing cost increases.

Provision exists in the Regulations for the Secretary of Trade and Industry to grant approval to traders to retain excess profits or to reassess a maximum profit ceiling. In considering such applications the Secretary has regard to the following:

  1. The need for a profit ceiling higher than the enterprises' maximum profit ceiling in order to sustain a programme of capital expansion approved by the Secretary, to effect improvements in productivity, or to provide for investment in the interests of national, regional, or export development.

  2. Demonstrable improvements in productivity that have been achieved in the business of the enterprise.

  3. Whether full compliance with the maximum profit ceiling is affecting or will affect prejudicially the financial stability and viability of the business of the enterprise.

  4. Significant changes in the activities or structure of the business of the enterprise which render its maximum profit ceiling unreasonable.

  5. Any other matters which the Secretary considers relevant, including the need to protect consumers and to maintain the stability of prices.

The Stabilisation of Prices Regulations 1974 continue the control on wholesalers' and retailers' margins. The Regulations gave Category B companies subject to unit margins the opportunity to translate these to percentage margins.

There have been some amendments to the Regulations:

  • Amendment No. 1 to the Regulations, which was published in the Gazette of 19 December 1974. vested in the Reserve Bank of New Zealand responsibilities in respect of the control of profits realised by financial enterprises and the control of prices charged for financial services.

  • Amendment No. 2 (Gazette of 10 July 1975) amended the definition of "pre-tax" profit by excluding the first year depreciation rates allowable for income tax purposes on new plant and equipment purchased on or after 1 April 1975 from the calculation. Instead depreciation in respect of such plant and equipment will be admissible at the ordinary rate and the special rate allowed for similar assets before 1 April 1975 under the Land and Income Tax Act 1954.

  • Amendment No. 3 (Gazette of 30 October 1975) contained a number of provisions to adjust certain requirements of the Stabilisation of Prices Regulations to those of the Commerce Act.

Except for building services the price freeze implemented on 14 November 1973 on the labour and overhead elements of specified services has been discontinued following the approval of charge-out rates.

The Maximum Retail Price Marking Scheme was mandatory from 1 October 1975 until 19 February 1976. Manufacturers and packers were required to mark the maximum price and the MRP emblem on a range of grocery items specified in the Maximum Retail Prices Marking Notice 1974.

Trade Practices—Part II of the Commerce Act incorporates, with substantial amendments, most of the provisions of the Trade Practices Act 1958.

The Commerce Commission may make orders if it finds certain practices to be contrary to the public interest. Other trade practices are prohibited unless approved by the Commission. Certain prohibited practices are offences.

A trade practice is contrary to the public interest, if in the opinion of the Commission, it has the effect of maintaining certain costs, prices, or profits at an unreasonably high level. Collective pricing agreements need to be approved.

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—The Consumer Council, whose functions are to protect and promote the interests of consumers of goods and services, was established in 1959 and reconstituted 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. The Secretary of Trade and Industry, the Director-General of the Department of Scientific and Industrial Research, and the Director-General of Health are also members.

The council lays down the policies to be followed by the staff of Consumers' Institute. It has appointed three District Consumer Committees and encourages the formation of local consumer associations. Citizens are invited to become members of the institute on payment of an annual subscription of $4. Membership was almost 130,000 at the end of 1974 (It has been estimated that Consumer is read by at least 2 non-members for each subscribing member, which gives a total readership at the end of 1974 of nearly 400,000.) Subscriptions provide 70 percent of the institute's finance; the rest comes from Government grants.

The institute's work includes comparative tests and surveys of consumer goods and services, research into and advice on legislative and financial matters, consumer education, and advice on and investigation into complaints.

Subscribing members receive the institute's monthly publication Consumer. A separate $3 subscription entitles members to receive the quarterly Consumer Review, which covers financial and welfare matters. In addition, the institute prepares teaching notes for schools, books on various subjects, and a weekly radio broadcast.

The Consumer Council is a council member of the International Organisation of Consumers Unions, and co-operates with and assists other consumer organisations throughout the world.

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 were being achieved. Over the years the Council has issued a valuable series of reports on monetary and economic policy, and on trends in the New Zealand economy.

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, farm input prices, export prices, import prices, share prices, and wool prices. In the case of retail, wholesale, and farm input 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 Marketing Corporation. 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 (CPI) measures changes in the general level of the prices of the goods and services which households purchase; it thus provides the best available measure of the effect of changes in retail prices on the average household budget. Index series of retail prices have a long history in New Zealand, starting with a food and rent index for the 4 chief centres back to 1891, and increasing in comprehensiveness both as to commodity and geographical coverage over successive series since that time. The most recent revisions to the Consumers Price Index were made in 1949, 1955, 1965, and 1974 (the 1974 revision was the subject of a special article in the 1975 Yearbook).

The salient features of this index may be summarised as follows:

  1. The basic formula used is that of Laspeyres in its aggregative form.

  2. The index relates to the expenditures of all New Zealand residents living in private households.

  3. The number of items regularly priced is 565.

  4. The base expenditures are quantities for 12 months ended June 1974 at prices for the quarter ended December 1974.

  5. The sources of group and commodity weights are the average expenditure per household from the Household Sample Survey of the year ended June 1974 supplemented by crosschecks from other statistical sources. Where considered appropriate, the base weight assigned to selected items represent expenditure on kindred items not selected for pricing.

  6. Prices for most items are collected by field officers in 25 centres, including 2 combined areas. A few are obtained by mail.

  7. Rent movements are determined by means of a quarterly survey of a sample of rented houses and flats.

  8. Special techniques are employed for costs of owner-occupiers, for prices of seasonal fruits and vegetables, and for transport charges.

  9. Index numbers are compiled for all food and its sub-groups at monthly intervals, and for all other groups and sub-groups at quarterly intervals.

  10. Index numbers are published for 7 chief market centres and 10 larger market centres individually. Combined index numbers are also published for each of these two groupings and for all centres combined. Each centre and groupings of centres is shown on its own base and on a common all-centre base.

  11. To provide continuous series, the pre-revision all-groups index and food index series were converted to a base of December quarter 1974.

  12. Expenditures on the following items are, for various reasons, excluded: direct taxation; purchases of shares, bonds or debentures; payments to superannuation funds and the like; savings; collectors' items; gifts; gambling; court fines; legal expenses for traffic cases, criminal and civil cases, estates, family settlements, divorces, adoptions, etc; charitable and church donations; wages of domestic servants, home aids, home nurses, jobbing gardeners, etc; catering and other service charges for private receptions; training, racing and stabling fees for race or trotting horses; purchase, boarding and breeding charges for animals; pet requisites (other than pet food); and grazing fees and fees for pony clubs.

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 H. 40 were accepted in June 1972 and the revised index commenced to operate early in 1975.

The revised Consumers Price Index retains its basic objective of providing a multi-purpose indicator of retail price changes of those goods and services which are purchased by New Zealand residents living in New Zealand, and substantially retains the previous group and sub-group structure.

The weights in the revised Consumers Price Index are based on the pattern of expenditure of the population covered by the index rather than on what is consumed by them.

Data to revise and update the Consumers Price Index are to be obtained mainly from continuing household expenditure surveys. These are to be supplemented and tested by additional data on housing, national consumption, production, and expenditure.

The selection of goods and services to be priced—inevitably only a small percentage of goods and services can be priced—has been widened to include more fields of expenditure and more pricing outlets. This reflects more adequately both the expenditure patterns of all New Zealand residents living in New Zealand and the movement in prices of consumer goods and services.

Consumers Price Index (1974 Revision)—The tables which follow relate to the Consumers Price Index (1974 Revision) 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 COMBINED

Base: Weighted average twenty-five centres, December Quarter 1974 (= 1000)

PeriodFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Groups—       
  Percentages of base expenditure17.8227.8014.318.5514.7016.82100.00
Calendar year—       
19751074109610741089112610951093
Quarter ended—       
1974—31 Dec1000100010001000100010001000
1975—31 Mar1007104510291029103010361031
30 Jun1047108610561081108810711072
30 Sep1094110810891092116511131111
31 Dec1148114511231153122211601157
1976—31 Mar1197116011821174133812251208
PeriodFoodHousingHousehold Operation
Fruits and VegetablesMeat, Fish, and PoultryOther Foods and EggsRentHome OwnershipFuel and LightHome FurnishingsDomestic Supplies and Services
Subgroups—        
  Percentage of base expenditure2.915.199.723.5024.301.987.954.38
Calendar year—        
197510971019109710991096105210871061
Quarter ended—        
1974—31 Dec10001000100010001000100010001000
1975—31 Mar984975103210371046101310281038
30 Jun1040978108510761087104910621049
30 Sep11441016112111181107106311041073
31 Dec12191107114911641142108211541086
1976—31 Mar12451130121811971155112412041169
PeriodApparelTransportationMiscellaneousAll Groups
ClothingFootwearPublic TransportPrivate TransportTobacco and AlcoholOther SuppliesOther Services
Subgroups—        
  Percentage of base expenditure.6.951.591.0813.626.425.524.87100.00
Calendar year—        
197510921074109211291058113311011093
Quarter ended—        
1974—31 Dec10001000100010001000100010001000
1975—31 Mar10321015101910301016105310431031
30 Jun10861057106110901037109610871072
30 Sep10961075113911671070116211141111
31 Dec11541150114812281109121911581157
1976—31 Mar11751170131313401141132112281208

The average level of consumer prices rose by 14.7 percent in 1975, compared with a rise of 11.1 percent during the preceding year. Although price increases were recorded in all main groups of the index the major contributions to the overall result came from the miscellaneous supplies and services, private transport, rent, fruit and vegetables, other food, and home ownership 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 CENTRES

Base: Weighted average each centre and grouping, separately, December Quarter 1974 (=1000)

CentreFoodHousingHousehold OperationApparel
Fourth Quarter 19741975Fourth Quarter 19741975Fourth Quarter 19741975Fourth Quarter 19741975
Auckland10001079100010781000106610001072
Hamilton10001084100010991000108410001092
Napier-Hastings10001069100010991000108610001109
Palmerston North10001079100010991000107810001083
Wellington-Hutt10001073100010561000108110001087
Christchurch10001068100011261000107210001100
Dunedin10001069100010981000107710001101
Seven chief market centres10001075100010871000107410001086
Whangarei10001072100011071000107510001069
Tauranga10001073100010741000107810001097
Rotorua10001084100011211000106010001106
Gisborne10001076100011261000107810001067
New Plymouth10001073100011271000108010001105
Wanganui10001060100011301000108710001060
Masterton10001087100011021000107210001090
Nelson10001071100011911000107610001106
Timaru10001066100011281000107010001102
Invercargill10001058100010921000107710001105
Ten larger market centres10001071100011151000107510001091
Twenty-five market centres combined*10001074100010961000107410001089
CentreTransportationMiscellaneousAll Groups
Fourth Quarter 19741975Fourth Quarter 19741975Fourth Quarter 19741975

*Includes eight smaller market centres, viz Tokoroa, Whakatane, Taupo, Hawera, Blenheim, Greymouth, Ashburton and Gore.

Auckland100011201000110210001086
Hamilton100011221000109310001096
Napier-Hastings100011131000109610001094
Palmerston North100011331000109110001094
Wellington-Hutt100011301000109910001082
Christchurch100011381000109110001101
Dunedin100011311000109210001094
Seven chief market centres100011261000109710001090
Whangarei100011121000108810001091
Tauranga100011221000108710001085
Rotorua100011201000109910001100
Gisborne100011141000107910001094
New Plymouth100011381000108410001103
Wanganui100011321000108410001096
Masterton100011301000110610001099
Nelson100011251000108710001117
Timaru100011301000109510001100
Invercargill100011381000109310001092
Ten larger market centres100011261000109010001096
Twenty-five market centres combined*100011261000109510001093

CONSUMERS PRICE INDEX—ANNUAL GROUP INDEX NUMBERS FOR INDIVIDUAL CENTRES AND GROUPINGS OF CENTRES

Base: Weighted average twenty-five centres combined, December Quarter 1974 (=1000)

CentreFoodHousingHousehold OperationApparel
Fourth Quarter 19741975Fourth Quarter 19741975Fourth Quarter 19741975Fourth Quarter 19741975
Auckland98710651129121799810639921064
Hamilton10331121953104896410449431029
Napier-Hastings955106390910001031112010181128
Palmerston North992107198910871032111210111095
Wellington-Hutt1012108511321195998107910381128
Christchurch99210609611082991106210481152
Dunedin100810788459281040111910071108
Seven chief market centres9991024107410421133100110751008
Whangarei1098938103998910648989601095
Tauranga1003107611021183101310929541046
Rotorua10021087929104299910599611063
Gisborne10281106847953972104710271096
New Plymouth99810719331052101010919431042
Wanganui10241085801905956103910201081
Masterton988107387496399410659961085
Nelson100310759351114102411029681071
Timaru99410608199231000107010741184
Invercargill9781035804878989106510391148
Ten larger market centres10041075904100899510709851075
Twenty-five market centres combined*10001074100010961000107410001089
CentreTransportationMiscellaneousAll Groups
Fourth Quarter 19741975Fourth Quarter 19741975Fourth Quarter 19741975

*Includes eight smaller market centres, viz. Tokoroa, Whakatane, Taupo, Hawera, Blenheim, Greymouth, Ashburton, Gore.

Auckland102811511028113310411131
Hamilton968108698110739751069
Napier-Hastings1062118299610919881081
Palmerston North970109997910699931087
Wellington-Hutt98811161006110510411126
Christchurch9871123102111149921093
Dunedin1004113697810689621052
Seven chief market centres100511321010110810151106
Whangarei1025114197610629771065
Tauranga9641082973105810171103
Rotorua970108798510839701068
Gisborne1061118296510419641055
New Plymouth975110998510689711071
Wanganui9741102101410999431033
Masterton982111096910729541048
Nelson989111297910659781093
Timaru983111097010639471042
Invercargill1006114598210739411028
Ten larger market centres993111898010689681061
Twenty-five market centres combined*100011261000109510001093

AVERAGE RETAIL PRICES—New Zealand retail prices (weighted average prices over 25 centres) at 15 November 1975 of a number of the commodities which enter into the Consumers Price Index arc shown hereunder.

CommodityUnitPrice
  Cents
Apples, eatinglb44.42
Orangeslb28.91
Cabbagelb10.12
Carrotslb24.75
Onionslb28.24
Potatoeslb16.60
Peaches, canned16oztin34.82
Peas, green, frozen1 kg pkt82.24
Beef, blade steakkg179.47
Beef, corned silversidekg190.82
Beef, porterhouse steakkg265.74
Beef, prime rib, rolledkg160.78
Beef, rump steakkg242.46
Hogget, chops, middle loinkg162.86
Hogget, cut leg, knuckle endkg163.69
Hogget, forequarterkg101.10
Lamb, leg, wholekg170.34
Pork, cut leg, knuckle endkg241.34
Pork, loin chopskg244.24
Bacon, side rasherslb168.41
Ham, cooked, pressed, slicedlb227.03
Mince, beefkg123.48
Sausages, beefkg98.35
Sole or flounder, wetlb81.28
Fish, fresh, filleted—e.g. tarakihi or groperlb98.62
Salmon, canned7 3/4 oz83.46
Chicken, deep frozenMedium223.74
Eggs, min. 636g/dozenDozen80.54
Milk, delivered600 ml4.01
Butterlb32.41
Cheese, tastylb77.32
Milk powder, full cream1 kg tin138.08
Bread, sliced, wrapped24 oz18.03
Biscuits, chocolate wheaten7 1/2 oz42.28
Cake, block, light fruitlb78.88
Breakfast flake biscuits24 oz pkt45.96
Flour, white1 1/2 kg26.10
Oatmeal, packaged3 lb pkt67.77
Rice, short grainlb35.80
Honey1 lb ctn56.94
Jam, apricot14 oz tin47.35
Coffee, instant4 oz jar96.18
Coffee, ground, packaged8 oz pkt66.25
Tea250 g54.46
Margarine, tablelb70.62
Salt, iodised4 lb bag28.86
Soup, tomato16 oz tin32.42
Spaghetti in tomato sauce16 oz tin34.37
Sugar, white6 lb pkt122.77
Vegetable cooking oil20 oz bot98.77
Aerated waters26 oz bot25.78
Ice cream, vanilla2 litre86.09
Chocolate, block250 g69.72
Meals, coffee and 2 sandwichesEach49.94
Meals, grill, steak and eggsEach239.38
Takeaways, chicken, hotEach250.39
Takeaways, hamburger, hotEach45.38
  $
Timber, dressed, 150 mm x 25 mm finishing tanalised radiata pinePer 100 lineal metres57.44
Concrete blocks, 400 mm x 200 mm x 150 mm waterproofPer 10040.24
Paint, house, waterbased, high-gloss4 litre tin13.60
Wallpaper, N.Z. plain, sunproofper roll3.55
Local body ratesAnn. demand161.64
Coal, delivered1/4 ton10.76
Electricity with water heating1400 units per 2 months16.95
Gas10 therms per month4.77
Electric blanket, single, thermostat controlEach22.12
Clothes drier, tumblerEach161.36
Home-freezer, 11 cu ftEach253.49
Electric radiator, 2500 w 4 elementsEach59.66
Radio, transistorised, 8 transistors 6VEach50.94
Electric range, 4 elementEach285.80
Electric razor, double header (in travel case)Each29.44
Refrigerator 11 1/2 cu ft dual temperature, freezer-fridgeEach366.87
Modular stereo, turntable, 3 speed, single playEach440.34
Television set, black and whiteEach364.48
Television set, colour, 26 inchEach947.30
Vacuum cleanerEach95.36
Washing machine, spin dry, fully automaticEach366.82
Bedroom suite, 4 ft. 6 in. including dressing table, tallboyEach368.70
Motor mower, rotaryEach203.73
Tallboy, 4 drawer, rimuEach56.56
Dining room suiteEach192.05
Lounge suite, 3 pieceEach461.93
Mattress, foam rubber, 4 ft. 6 in.Each90.40
Blinds, Venetian, 175 cm wide, 130 cm dropEach59.41
Cot, wooden, painted, dropsideEach43.02
Piano, upright, iron frameEach1,108.34
Carpet, embossed, broadloomper metre53.03
Carpet, 80/20 broadloomper metre54.86
Blankets, all wool, singlePair30.43
Sheets, singlePair10.64
Towel, turkish, 24 in. x 48 in.Each3.11
Casserole dish, 3 pint pyrexEach5.31
Clock, alarmEach13.35
Mixing bowl, stainless steel 8 in.Each3.54
Saucepan, 8 in. aluminiumEach11.63
Cup, saucer, plateSet4.72
Forks, table, stainless steel1/2 doz3.38
Hammer, 20 ozEach8.27
PlaneEach12.24
Spade, gardenEach11.96
Bulb, electric light, 100WEach0.50
Cat food, tinned14 3/4 oz0.33
Detergent, liquid, plastic container1 pint/9 fl oz0.70
Disinfectant20 oz0.52
Flyspray, aerosol12 fl oz can1.06
Soap powder40 oz pkt0.73
Washing powder2 lb pkt1.04
Postage, surface letters, 1 ozEach0.04
Telegrams, 15 wordsEach0.44
Telephone rental, privatePer year61.10
Dry cleaning, mens 2 piece suitEach2.14
Television licence, black and whitePer year27.50
Television licence, colourPer year45.00
Man's cardigan, all wool, fully fashionedEach24.02
  HandkerchiefEach0.50
  Jeans, navyPair12.44
  Raincoat fabricEach51.68
  Shirt, businessEach12.59
  Singlet, athleticEach1.96
  Socks, half-hose, wool/nylonPair2.43
  Suit, ready-made two-pieceEach96.80
  Swimming trunks, bri-nylonPair5.33
  Trousers, sports, terylene or woolPair26.41
Woman's brassiereEach5.09
  Cardigan, lightweightEach13.53
  Coat, winterweightEach62.92
  Frock, lightweightEach14.76
  Nightdress, nylonEach8.04
  Nightdress, dacron/cottonEach7.92
  Panties, nylonPair1.28
  Panty hosePair1.21
  Slacks, lightweightPair14.51
  Skirt, winterweightEach20.90
  Suit, two-piece, heavy-weightEach61.00
  Swimsuit, nylonEach16.24
  Underslip, nylonEach5.17
  Vest, at least 50 percent woolEach3.57
Boy's shortsPair4.52
Girl's panties, interlockPair1.26
  Pyjamas, heavyweightPair4.75
  Socks, ankle, nylonPair1.20
Infant's nursery squares, 30 in. x 30 in.Dozen9.49
Infant's vest, eyelet meshEach1.19
Fabric, sailcloth, cotton 90 cmPer metre1.17
  Synthetic, dress, light-weight, 115 cmPer metre2.34
  Woollen/cotton mixture, 90 cmPer metre3.51
Paper pattern, dressmakingEach1.09
Knitting wool 4 plyPer 25 g ball0.43
  double knitPer 50 g ball0.79
Men's boots, heavyweight, commando solePair22.85
  Sand shoesPair3.81
  Shoes, lightweightPair23.15
Women's fashion shoes (summer)Pair20.34
  Fashion shoes (winter)Pair20.16
  SlippersPair5.99
Boy's shoes, schoolPair11.40
Girl's shoes, schoolPair11.21
Car, new, basic without extras 1051-1350 ccEach4,793.00
Bicycle, 21 in. frameEach97.85
Petrol, 96 octanePer 10 litres.2.20
Car repairs, overhaul of brakesPer job52.81
  Overhaul of gearbox, (new seals, bearings, and gaskets only)Per job91.55
Cigarettes, filter tippedPkt 200.47
Cigarette tobacco50g pkt0.75
Beer, in a public bar7 oz glass0.13
Wine, N.Z. sherry, medium dryPer qt btl1.43
AspirinPkt of 250.35
Make-up, foundation (tinted)1 oz2.24
Lipstick, 12 mm, popular colourEach2.24
Baby talc110 80.51
Razor blades, stainless steelPkt of 50.79
Toilet paperPer 3 rolls0.55
Toilet soap, bath size tabletEach0.19
Toothpaste, family sizePer tube0.50
Ring, diamond, engagementEach328.69
Watch, wrist, man'sEach72.33
Pad, writing, 9 in. x 7 in. 40 leaves ruledEach0.26
Long playing recordEach7.46
Construction set, child's toyEach7.23
Teddy bear, 13 in.Each10.76
Tricycle, child'sEach53.47
Bowls, outdoorSet of 462.91
Golf club, no. 5 ironEach20.26
Rifle, 243 calibreEach200.69
Tennis ballsPer pair1.34
Tennis racquet, juniorEach17.62
Newspaper, dailyEach0.08
Library subscription, 14 days1 book0.19
Optician's fee, full examination and spectacles with caseEach31.91
Dental fillingsEach4.39
DenturesPer set141.99
Medical, general practitioner's fee (in excess of G.M.S. benefit)Per visit2.26
Specialist consultation, (in excess of G.M.S. benefit)Per consultation6.52
Private general hospital, medical wardPer day18.19
Cinema admission, adult, eveningEach1.25
Rugby admissionEach0.52
Golf club subscription, adult, male, netPer annum89.84
Rugby club subscriptionPer annum7.84
Tennis club subscriptionPer annum20.39
Motel tariff, 3 star, 2 personsPer night12.01
Funeral, burialEach421.50
Funeral, cremationEach381.16
Haircut, man'sEach1.22
Haircut, woman'sEach1.92
Hairset, woman'sEach3.29

INTERNATIONAL COMPARISONS—The table following provides a comparison of retail prices 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.

Prices shown for the United States of America do not include sales tax. A similar table of wholesale prices is shown later. Currency conversion basis: Australia, A$1 = NZ$1.20; Great Britain, £1 = NZ$1.9436; South Africa, 1 Rand = NZ$1.11; United States, US$1 = NZ95.831c; Canada, Can$1 = NZ93.362c.

INTERNATIONAL COMPARISON OF RETAIL PRICES OF BASIC FOODSTUFFS

(At December 1975 in New Zealand currency)

ItemUnitNew Zealand (Average 25 Centres)Australia (Sydney)Great Britain* (London)South Africa (Cape Town)United States (Average 56 Cities.)

* November (Great Britain)

† 1 3/4 lb

‡ Sirloin.

§ Cake flour.

Sources:

Australia: Commonwealth Statistician.

Great Britain: New Zealand High Commissioner.

South Africa: Bureau of Census and Statistics.

U.S.A.: Bureau of Labour.

 centscentscentscentscents 
Bread2 lb16.553.329.317.967.3
Flour1.5 kg26.158.936.042.6§61.4
Tea500 g108.9113.186.0134.3..
Coffeelb132.5..155.887.3145.0
Sugarlb20.513.922.47.725.2
Milk (fresh)600 m4.025.818.416.320.5
Butterlb32.491.462.363.8119.4
Cheeselb77.395.485.990.5163.1
Baconlb168.4224.9143.0109.9182.2
Beef, rib roastkg160.8212.4..240.6406.1
Lamb, legkg170.3213.2262.5229.8..
Pork—      
  Legkg241.3341.8258.1175.8..
  Chopskg244.2299.2438.9181.4422.3
Margarinelb70.672.448.853.855.1

Comparisons in annual movement of Consumer Price Indexes of selected countries are given in the following table. (The base is December Quarter 1974 = 1000.)

YearNew ZealandAustraliaCanadaFrance (Paris)JapanUnited KingdomUnited States
1965529570617562467507612
1966543587640576491527630
1967576605663594510541649
1968601622690622538566676
1969631640721662566597712
1970672664745699611635754
1971742705766736649695786
1972793746803782678745813
1973858817864839758812863
1974953941958954941942958
19751093108210611065105411711045

WHOLESALE PRICES INDEX—This 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 INDEX

Base: 1958 (= 1000)

Index Numbers of Commodity Prices by Sectors of Destination*

Calendar YearPrices Paid for Commodities Used byAll Users
Domestic IndustryConsumersDomestic Industry and ConsumersOther Countries (Exported)
ImportedHome ProducedTotalImportedHome ProducedTotalImportedHome ProducedTotalImportedHome ProducedTotal
19581000100010001000100010001000100010001000100010001000
19651058111110931054111110971057111110941184105711261109
19661075113111131076112411131075112911131159107511351120
19671104112311171143119811851114114811381042111411251122
19681238117411951287126312691250120412181144125011911206
19691299124512631322131713181305126912801224130512591271
19701392131013371375140814001388134313571234138813181335
19711496139514291483153915251493144414591382149314301446
19721597151115401571161216031591154615591867159116151609
19731700180717721652174517231689178617572,324168919031849
1974x2,012182718881945192019261996186519001939199618761906
1975||2,55418902,1092,3972,1992,2452,51519942,1512,0422,5152,0052,133
Calendar YearPrices Paid for Commodities Used by Domestic Industry
Primary IndustriesPrimary Produce Processing IndustriesAll Other Industries
 Home Produced       
ImportedFarmingAll Other IndustriesTotalImportedHome ProducedTotalImportedHome ProducedTotal
195810O0100010001000100010001000100010001000
19651028114910561091105910911090106111221094
19661046126111061162108810751075107711411113
19671068116211471139113310031007110711751144
19681154105812101134125610841089124512361240
19691213112012431184125811961198130812921299
19701309127012871257124912341235140213711385
19711381128713691336140612561260150814911499
19721472144314481450159213501358160916171614
197315452,00415521746164718261820171618031764
1974x18772,083169418961884168216882,02718781945
1975||2,4361443199218362,432151115392,5672,1502338
Calendar YearPrices Paid for Commodities Used by Domestic Industry
Manufacturing IndustriesBuilding and Construction
 Home Produced 
ImportedOther Manufacturing IndustriesAll Other IndustriesTotalImportedHome ProducedTotal
19581000100010001000100010001000
19651044108411721084109611411124
19661063109212091105111011711149
19671091116311541125114912031183
19681250123112241239128412541265
19691322129813011312134912981316
19701407137613311381150814201452
19711500147814091473164916081623
19721601160516401611175516961717
1973170417222,1201806184517921812
1974x2,0391902190419722,07119902,020
1975||2,5312,25219052,3112,8512,4292,583
Calendar YearPrices Paid for Commodities Used by Domestic Industry
Transport and CommunicationOther Industries§
ImportedHome ProducedTotal ImportedHome 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.

1958100010001000100010001000
1965107210721072108311031097
1966107310821076110811061107
1967109611111100113711871173
1968118911481178121312461237
1969122711861216125212881278
1970130712541292130913701353
1971143013581410141514811463
1972153614271506149915531532
1973172014831655157116451625
1974x2,08015941947183117561777
1975||2,5652,0532,4252,3152,0022,089

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.

195810001000100010001000100010001000
196511131231110011091106111211141106
196611181286111711261116112611331105
19671027132710461158117811021134994
196810531431114312301292116711911086
196911191486123612961298123512581161
197011511531127313841308129213311163
197112011700134015121322138214301222
197214201791160716291386155515381613
19732,0001875191717721427186217862,112
1974x17932,039180119221467184618611797
197516132,42318062,302154119702,0111834

COMPARISON OF WHOLESALE PRICES OF CERTAIN COMMODITIES

(At November 1975 in New Zealand currency)

For currency conversion basis see page 656

ItemUnitNew Zealand*CanadaGreat BritainUnited States

* Priced once each quarter.

† July 1975.

‡ October prices.

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.

  $$$$
Wheatbushel2.4983.5823.3194.591
Oatsbushel1.4501.5442.1691.897
Flourshort ton135.470....201.891
Sugarcwt20.57020.944..21.923
Butterlb0.3100.8070.6930.985
Cheesekg1.014..1.6082.437
Motor spiritgallon0.884..1.065..

FARMING COSTS PRICE INDEXES—Three farming costs price indexes are calculated. These cover sheep farming, dairy farming, and all farming. There is also a farming capital expenditure price index.

These indexes are designed to measure price movements only as they would affect a fixed quantity and pattern of materials and services used by the farmers in each category.

The base is the year ended June 1971 (=1000).

It is emphasised that these indexes are not cost of production indexes, i.e., they do not purport to measure the actual total costs of running a farm, but only measure the movements in prices paid for commodities and services used by farmers.

Full descriptions of these indexes were published in supplements to the Monthly Abstract of Statistics; the sheep farming index in the September 1973 issue; the dairy farming index in the October 1973 issue; and the all farming index in the March 1974 issue. All these indexes are published regularly in the Monthly Abstract.

The index values for the all farming index since the base period, year ended June 1971, are set out below.

ItemPercentage of Base ExpenditureYear Ended June
19711972197319741975

*Excludes depreciation 9.63 percent.

†Provisional.

Wages and rations13.7110001111123214121623
Sharemilkers5.4310001269141116571400
Animal health and breeding expenses3.211000996109012451376
Electricity1.32100010341039x1061x1076
Feed8.5710001032115713711580
Freight2.8810001070111012231515
Fertiliser and lime11.191000978102212641339
Seeds1.321000932106915331353
Shearing expenses3.6310001074112012691531
Weed and pest control1.2810001039106713201663
Other farm working expenses2.8110001056112112211509
Repairs and maintenance8.7310001039114712571484
Vehicle expenses7.5710001063112212561530
Administrative expenses2.8710001084117012621424
Insurance1.0710001043106410651070
Rates3.0810001065122413751544
Interest10.011000102710541091x1144
Rent1.6910001012101310251059
All Groups90.37*1000105811401295x1439

EXPORT PRICES—The Export Prices Index was revised in 1972 and the base changed to the year ended June 1971. The revision of the Export Prices Index had as its main objectives:

(a) The broadening of the commodity coverage with the adoption of a more detailed and expanded classification. (The first full trade year for which statistics using this new classification were available was the year ended 30 June 1971). (b) Revision of the classification of commodity groupings, (c) The devising of an index which provides for a continuous updating of the pattern of exports, (d) The provision of complementary price and volume indexes.

Approximately 95 percent by value of all exports in the new index are explicitly dealt with. The proportion of manufactured exports so treated is higher than this overall average.

To qualify for inclusion as an explicit indicator of price movement in the index a commodity must have an aggregate value of at least $20,000 in an annual period, both base and current, and a minimum of $16,000 in the current quarterly period. This represents some 525 different items as well as subdivisions of these items.

A departure from the previous index is that the f.o.b. value of wool as recorded on export documentation is used, and not data derived from the Department of Statistics' wool price index which is based on auction sale data adjusted to an f.o.b. basis. (During the 1974-75 season 297,458 bales of wool were sold privately.

In the following table are given export price index numbers for years ended 30 June.

EXPORT PRICES INDEX

Base: Year ended June 1971 (=1000)

Year Ended 30 JuneButterCheeseDairy ProduceMeatWoolMeat, Wool, and By-productsAll Pastoral and Dairy ProduceFood, Beverages, and TobaccoManufactured Goods other than FoodCrude Materials other than FuelsAll Groups

*Provisional.

196510628269817381377948957......944
19669588239407211365958952......938
19679098259067211218892897......887
1968933912944787944834867......862
19699509249428571151964957......953
19709519229359551070991974......973
197110001000100010001000100010001000100010001000
1972x1687144416469881131104011721206105110991160
1973*13331601153612732,260159315551363106318581477
1974*11331708150414932,61018241728149511792,1331647
1975*12641452173311441806136814711372139717211507

The next table shows export prices index numbers for all pastoral and dairy produce groups and for all groups combined on a long time series. Separate series are prepared for calendar years and years ended June, the latter relating more closely to the farming year.

EXPORT PRICES INDEX

Base: Year Ended June 1971 (=1000)

YearAll Pastoral and Dairy ProduceAll Groups

*Provisional.

Calendar Year
1924397390
1925418410
1926337334
1927335331
1928374367
1929358353
1930278277
1931210213
1932191194
1933189194
1934236239
1935228233
1936264266
1937311311
1938286288
1939279282
1940324325
1941331334
1942341342
1943356357
1944374376
1945405406
1946443444
1947561557
1948624619
1949605599
1950860846
19511009992
1952806798
1953900888
1954915905
1955939929
1956917906
1957906893
1958767761
1959879868
1960851843
1961802797
1962818813
1963903890
1964987970
1965950937
1966942927
1967854846
1968914911
1969972966
1970974971
19711071x1052
19721294x1266x
1973*1714x1620x
1974*1626x1590x
June Year
1925430422
1926366361
1927334331
1928369362
1929373367
1930308305
1931227229
1932202204
1933183188
1934235237
1935217221
1936254257
1937303304
1938296297
1939281282
1940317320
1941327330
1942342342
1943351352
1944366368
1945398399
1946416417
1947517513
1948623618
1949599594
1950694685
195110841062
1952809803
1953871859
1954921909
1955912903
1956934922
1957934923
1958781773
1959814805
1960900889
1961813807
1962797791
1963859850
1964976960
1965957944
1966952938
1967897887
1968867862
1969957953
1970974973
197110001000
197211721160
19731555x1477x
1974*1728x1647x
1975*14711507

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 quantitative weighting pattern of the previous year and the other the 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. Differential changes in prices of and freight rates for a substantial number of import items with a low value per unit of weight 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 shows changes in the true cost of imports to the New Zealand economy.

The Import Prices Index has been revised and the base changed to the year ended June 1971. Opportunity has been taken to prepare sub-indexes for several commodity groupings of major interest.

IMPORT PRICES INDEX

Base: Year Ended June 1971 (=1000)

Year Ended JunePetroleum and ProductsTextile Yarn, Fabrics, etc.Iron and SteelMachinery Other than ElectricElectric Machinery and ApparatusTransport EquipmentFood, Beverages. and TobaccoManufactured Goods other than FoodCrude Materials other than FuelsFuelsAll Groups

*Provisional.

1965734901671702851650........730
1966752895664720839660........734
1967691881661714798680........733
1968898892719787902762........808
1969946929779912990828........898
1970898970880919974864........935
197110001000100010001000100010001000100010001000
19721048105196710761078102610481046102010481044
197310521102100211671056110911601100100910531095
1974*18391247119912111145119213221222115218441269
1975*3,272144217451522131814171600154816893,2791678

The following table shows a long time series of all groups import prices index numbers on the new expression base. Series are available for years ended March, June, and December.

IMPORT PRICES INDEX

Base: Year Ended June 1971 (= 1000)

YearYear Ended 31 December (Calendar Year)
1926315
1927301
1928284
1929279
1930276
1931258
1932244
1933250
1934247
1935243
1936242
1937257
1938258
1939258
1940297
1941331
1942363
1943402
1944420
1945428
1946478
1947569
1948581
1949529
1950580
YearYear Ended
31 March30 June31 December (Calendar Year)

*Provisional.

1951592612679
1952709730741
1953732716698
1954698694689
1955690692703
1956706715721
1957729735745
1958746743742
1959740734724
1960725732734
1961734732738
1962735733721
1963716718721
1964724727732
1965734730732
1966733734734
1967734733745
1968776808878
1969887898912
1970920935967
197198310001027
1972103310441068x
19731084x1095x1142*
1974*1182x1269x1472x
1975*159016781919*
1976*2,030  

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, export prices, and terms of trade.

IMPORT AND EXPORT PRICES AND TERMS OF TRADE—ALL COUNTRIES

Base: Calendar Year 1957 (=100)

Year Ended JuneImport Price IndexExport Price IndexTerms of Trade

*Provisional.

†Calendar year (base).

‡All quarterly figures from September 1972 published previously have been revised.

1957100100100
196497108111
196598106108
196699105107
19679899101
19681089789
196912110788
197012610987
197113411283
197214013093
1973147x165x113x
1974*170x184x108x
1975*22516975
Quarter   
1972—30 Sep14614599
31 Dec146154106
1973—31 Mar149173116
30 Jun148184124
30 Sep*158187118
31 Dec*158186118
1974—31 Mar*169185109
30 Jun*19218194
30 Sep*20517384
31 Dec*21917279
1975—31 Mar*24316468
30 Jun*24216669
30 Sep*25317770
31 Dec*29219968

SHARE PRICES INDEX—This 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 11 calendar years.

SHARE PRICES AND DIVIDEND YIELDS—GROUP INDEX NUMBERS

Base: 1960 (= 1000)

Calendar YearIndustrialDistributionFinanceAll Groups
 Prices
19601000100010001000
19651369111910581245
1966127990210421153
1967112573810281031
1968133475313481232
1969168688116881541
1970174189517051581
1971149783715291380
1972162494016591500
19731956114118291770
1974163588014081440
1975154782611821328
19601000100010001000
19651054113812821120
19661166143213681250
19671369171814261433
19681196159711701238
19691019138410461068
19701083148511071135
19711310168812751351
19721214153411841251
19731118137212351183
19741527197218711663
197517252,1712,1611876

SUMMARY OF PRICE MOVEMENTS—The long-term comparative tables of index numbers of various related prices series, included in this position in previous Yearbooks, have been moved to the Statistical Summary section near the back of the book.

HOUSEHOLD SAMPLE SURVEY—The Household Sample Survey arose from the acceptance of the Consumers Price Index Revision Advisory Committee's recommendation in 1971 that an essential feature of the revision of the Consumers Price Index should be the establishment of average expenditures of private households and that this information should be a major source for determining the relative importance (or weights, in the statistical sense) of the many items of goods and services to be included in the new index. The first year of collection of the Household Sample Survey designed to provide this basic information ran from 1 July 1973 to 30 June 1974.

Sample surveys are an internationally accepted activity when the collection of information from the total population is either administratively impracticable or would be prohibitive in cost. To meet the needs of the Consumer Price Index revision, the Household Sample Survey was designed to produce data on a national basis, representative of the average New Zealand private household.

A fuller description of the Survey, together with the concepts, definitions, and collection methods involved, was given in a special article in the 1975 Yearbook, and a full description in a separate report, Household Sample Survey 1973-74, is available from the Government Printer.

The number of responding households in the 1973-74 survey was 3,812, containing a total of 12,986 persons, an average of 3.4 persons per household. Persons aged 15 or over and earning $30 or more per week totalled 6,139, an average of 1.6 earners per household. The following table shows households by income of household.

Weekly Income of Responding HouseholdsNumber of Responding Households
$ 
Under 30205
30-39112
40-4977
50-59226
60-69137
70-79178
80-89232
90-99248
100-119393
120-139513
140-159405
160-179296
180-199217
200 and over573
Totals3,812

The system used was similar to that in use in many similar surveys overseas. This involved collecting data on the more frequently purchased items by asking respondents to keep a daily record of their spending for a short period (in the New Zealand survey a fortnight of diary-keeping was sought) and at an interview conducted in the household asking respondents to recall their expenditure on major items in the preceding 12 months. The recall action usually concerned expenses of $50 and therefore related to the acquisition of such things as housing units, major household appliances, motor vehicles, etc. Again for practical reasons, the diary-keeping requirement was restricted to those household members aged 16 years and over, expenditures by younger members being recorded in the diaries of adult members.

For the purpose of the Consumers Price Index revision private household expenditure was processed in considerable detail, as is shown in the full report of the Household Sample Survey. However, for summary purposes, average expenditure was treated under eight main headings.

Expenditure group coverage—

  • Food—Purchases, including meals away from home where separately recorded by respondents.

  • Housing—Rent, mortgage repayments, repairs and maintenance, and net capital costs of house sale and purchase.

  • Household Operation—Fuel, light, and power; household equipment and appliances; furniture; domestic supplies and services.

  • Apparel—Clothing and footwear.

  • Transportation—Public transport; net cost of vehicle sale and purchase; repairs and maintenance; vehicle insurance, registration fees, etc.

  • Tobacco and Alcohol— Purchases.

  • Other Supplies—Medical, health, and personal goods; recreational, educational, and cultural goods.

  • Other Services—Medical and health services; entertainment charges; education fees; accommodation charges; personal services; licence fees; life insurance premiums.

In each group the expenditures comprised the total cost of particular goods or services, including credit costs, hire and repair charges.

All expenditures were expressed (either as percentages or in money values) as average weekly expenditure per household in the particular category. Households were categorised according to their total income, number of occupants, the family types of the members (census definition), and the age of the head of the household.

In all cases information as reported by households was given without adjustment. Overseas experience has shown that expenditure on tobacco and alcohol, meals away from home, and food items such as ice cream and confectionery tend to be understated in household surveys. There is reason to believe that this Household Sample Survey collection contained similar features. There also is a possibility that households occupying houses built since the 1971 Census were under represented.

Income, as defined in the Household Sample Survey, related to current gross income from all sources (including Social Welfare and other benefits) for each income recipient in the household, the one exception to this being interest from deposits in savings banks. (Unless such interest was $200 or more a year).

No endeavour was made to obtain precise income details from respondents, the method of collection used being on similar lines to that used in the Census of Population, where respondents have a broad-banded range of income categories and mark the category pertaining to themselves.

For statistical purposes, the mid-point in this range was selected to represent the income of the individual responding. The total weekly income of the household was obtained by summing the values attributed to each income earner in the household. In some cases average expenditure appeared to exceed average weekly income. This was caused by the purchase of major items, mainly houses, within the period covered.

A selection of summary tables is reproduced here.

HOUSEHOLD SAMPLE SURVEY 1973-74

PERCENTAGE OF WEEKLY EXPENDITURE BY AGE OF HEAD OF HOUSEHOLD

Expenditure GroupAge Group (Years) of Head of HouseholdAll
Under 2020-2425-2930-3940-4950-5960-6465 and Over
 Percentage of Weekly Expenditure
Food17.014.714.917.418.019.017.221.517.6
Housing21.528.331.825.521.38.317.913.921.5
Household operation11.514.315.013.813.215.615.820.614.7
Apparel11.07.27.18.510.010.39.39.29.0
Transportation13.717.215.115.417.223.521.917.817.7
Tobacco and alcohol7.75.13.93.73.74.83.73.44.0
Other goods8.65.44.75.96.16.75.05.15.8
Other services9.17.77.59.910.111.89.28.59.7
  All groups percent100.0100.0100.0100.0100.0100.0100.0100.0100.0
Total expenditure $82.02108.97123.53124.39139.99105.8489.4351.99109.5
Total households322914258407776022635823,812

PERCENTAGE OF AVERAGE WEEKLY HOUSEHOLD EXPENDITURE BY FAMILY TYPES

Expenditure GroupCoupleCouple 1 Child*Couple 2 ChildrenCouple 3 ChildrenCouple 4 or More ChildrenOne Adult With or Without ChildrenExtended FamiliesNon-Family Household§

*"Child" and "children" refer to children of any age who have never been married.

†Single, separated, divorced, or widowed man or woman with or without children.

‡Extended families cover normal family units with one or more additional persons, e.g. bonders, relatives, etc.

§Households of which the members are not related, e.g. students, or workmates sharing flat, etc.

||One category, relating to 4 only of the 3,812 households surveyed, has been omitted as the number is too small to be representative.

 Percentage of Weekly Expenditure
Food15.716.317.418.321.421.719.017.1
Housing23.323.823.021.818.410.713.420.7
Household operation15.614.914.013.314.916.414.117.3
Apparel7.67.98.610.79.810.110.98.8
Transportation20.017.817.116.215.619.220.616.3
Tobacco and alcohol4.04.44.03.33.54.34.65.0
Other goods4.85.35.76.16.28.57.46.0
Other services9.19.510.210.210.39.010.08.8
  All groups percent100.0100.0100.0100.0100.0100.0100.0100.0
  All groups $97.58118.95129.70143.26118.3180.38137.1457.29
Total households||833514726549261133188604

AVERAGE WEEKLY EXPENDITURE BY OCCUPATION GROUPS OF HEAD OF HOUSEHOLDS

 Professional and TechnicalAdministrative and ManagerialClericalSales WorkersService WorkersAgricultural*ProductionWorkers Not Classified by OccupationMembers of Armed ForcesNot Actively Engaged

*Agriculture, animal husbandry and forestry workers, fishermen and hunters.

†Production workers, transport equipment operators, and labourers.

 Average Weekly Expenditure ($)
Food22.1125.2020.2420.7919.1118.0221.7019.3622.7511.71
Housing43.7647.7726.9737.9924.946.6323.0757.4910.818.50
Household operation20.7120.5316.5218.0615.7216.7015.6513.3422.4511.07
Apparel11.7613.8510.4711.969.4210.5510.3222.0410.015.35
Transportation25.3524.7622.7918.1115.8723.2019.8814.1114.4910.64
Tobacco and alcohol4.355.554.805.355.383.305.616.227.912.18
Other goods9.028.906.786.695.767.056.2112.259.213.32
Other services14.7018.9610.7712.029.1614.309.656.7912.864.66
  All groups151.74165.52119.33130.96105.34100.05112.08151.60110.5057.43
Total households5112053032361284771,163821755

PERCENTAGE OF AVERAGE WEEKLY HOUSEHOLD EXPENDITURE BY TOTAL WEEKLY INCOME

Expenditure GroupTotal Weekly Income of Households ($)All
Under 2020-3940-5960-7980-99100-119120-139140-159160-179180-199200 and Over
 Percentage Weekly Expenditure
Food18.024.222.421.119.119.418.018.016.215.514.817.6
Housing24.010.514.614.121.321.923.320.226.223.022.421.5
Household operation20.225.719.517.216.314.614.814.712.414.012.814.7
Apparel20.810.59.49.38.68.28.68.88.29.79.69.0
Transportation3.012.417.019.016.717.416.118.517.917.619.217.7
Tobacco and alcohol2.92.93.64.54.44.33.94.14.13.73.94.0
Other goods7.16.35.76.35.95.35.76.25.56.35.65.8
Other services4.07.77.98.57.98.99.79.59.510.311.69.7
All groups percent100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0
  All groups $49.3332.6850.9371.2090.7499.80111.45126.45141.50157.09178.17109.54
Total households33143033154803935134052962175733,812

Chapter 25. Section 24 CONSUMPTION OF FOOD

Table of Contents

FOOD AVAILABLE FOR CONSUMPTION—Each year the Department of Statistics prepares statistics of the amount of food available for consumption in New Zealand, from data supplied by the Ministry of Agriculture and Fisheries and from other sources. These statistics are estimates of the total amounts of basic foodstuffs available in New Zealand for human consumption during the calendar year, making allowances for estimated quantities which are produced by households for their own consumption, including the households of commercial producers. The estimates are not of the amounts actually consumed, nor of the actual average intake of nourishment. Nor can these figures be reconciled with the figures for the average per household expenditure on food for the year 1974 recorded by the Household Survey, as the latter figures are of the expenditure on food in the form it is actually bought, perhaps in a much more highly processed form.

Dairy Products—New Zealanders are the world's largest consumers of butter per head, but are fairly moderate consumers of cheese. The annual amounts available of the main items of dairy produce, eggs, and ice cream, estimated per head of mean population, are shown in the following table.

ProductUnit19381969197219731974

*Includes condensed milk, evaporated milk and cream, milk powders, and sugar of milk.

† Provisional.

Fresh milklitre125141143142142
Creamlitre43333
Processed milk*kg27699
Cheesekg24445
Ice creamlitre217161718
Butterkg1918171714
EggsNo.240300282314320

Meat, Poultry, and Fish—Gradual changes are taking place in consumption patterns for meat, poultry, and fish, of which the most notable is the increase in the consumption of poultry. New Zealanders remain among the world's largest consumers of meat, judging from the amount available per head.

Estimates of the amounts of meat available per head are expressed on a bone-in dressed carcass basis.

Allowances have been made for non-commercial catches of fish, and for home production of poultry.

ProductUnit19381969197219731974*

*Provisional.

†Years ended 30 September.

Beefkg5245545755
Vealkg44344
Mutton and lambkg3140444338
Pigmeatskg1214151211
Edible offalkg45665
Poultrykg257710
Fish—      
  Fresh, frozenkg54223
  Shellfishkg11211
  Cannedkg11112

Vegetables and Fruits—The estimates in the following table are based on commercial production plus allowances for production in home gardens and orchards. 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 or a bountiful one, consumer resistance to higher prices, fluctuations in the supply of imported fruit, or a change in consumption pattern.

Availability per head of mean population for individual items is estimated as follows.

ProductUnit19381969197219731974§

*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.

§Provisional.

Fresh vegetables      
  Potatoeskg547359x6352
  Kumaraskg43333
  Cabbagekg14151287
  Carrotskg513101010
  Cauliflowerkg..121054
  Lettucekg..7645
  Onionskg..105109
  Pumpkinkg..7744
  Tomatoeskg910999
  Other vegetables*kg..12944
Canned vegetableskg1881312
Quick-frozen vegetables kg ..8111015
Fresh fruit      
  Orangeskg76746
  Other citrus fruitkg32335
  Bananaskg9710914
  Appleskg2020242330
  Pears and quinceskg35554
  Berry fruitskg..2222
  Apricotskg..2222
  Peacheskg..8787
Other fruitkg..511x1911
Dried fruitkg..3433
Canned fruitkg86899

Other Foodstuffs—Most of the foodstuffs in the following table show relatively slight fluctuations in the amounts available per head in different years. It is obvious, however, that the consumption per head of wheat has fallen substantially since before the Second World War.

ProductUnit19381969197219731974

*Includes treacle and golden syrup.

†Includes dried peas, beans, and lentils.

‡Includes barley, and corn used for cornflower and maize used for corn flakes only.

Foodstuffs      
Refined sugarkg4441404244
Syrups, etc.*kg..4223
Honeykg..2112
Pulseskg111x11
Nutskg..3323
Cocoakg1..2x12
Cereals—      
  Wheatkg8174737272
  Oatskg42222
  Ricekg212  
  Otherkg..1111
Lard, tallow, animal fatskg..3433
Vegetable oils and other fatskg..1334

Beverages and Tobacco—The estimated average consumption of most alcoholic beverages continues to rise. Wine continues to grow in popularity, while beer consumption on a per-head basis is approximately two and a half times the prewar figure. Coffee consumption also continues to rise, partly at the expense of tea.

ProductUnit1938195119611971197219731974
Beerlitre5186100121121125126
Winelitre1227899
Spirits prooflitre..222233
Teakg3333332
Coffeekg....12212
Tobaccokg2222222

PROPORTION OF FOODSTUFFS EXPORTED—New Zealand is a major exporter of dairy produce and meat, and has a growing export trade in fruit and vegetables. The following table shows for these commodities the percentage of the New Zealand production that is exported.

Product19681969197219731974*

*Provisional.

 Percentages
Dairy products     
Processed milk7387769975
Cheese8494949298
Butter8079758386
Meat, poultry, fish     
Beef6164606056
Veal5864534457
Pig meat311....
Mutton6159525756
Lamb9293918989
Offal7675707173
Other meat2318192212
Fresh fish2526625651
Shellfish5247213733
Fruit and vegetables     
Apples4044484835
Pears1714141914
Berryfruits5952721
Potatoes22244
Onions3514393233
Canned vegetables99956
Quick-frozen vegetables302628x3621
Other foodstuffs     
Barley2199..
Honey4528347
Pulses554960x7881
Eggs231135
Tallow and animal fats7776727469

CONSUMPTION OF DAIRY PRODUCTS IN SELECTED COUNTRIES—The following table shows consumption per head of butter, cheese, and margarine in various countries in 1973.

CountryButterCheeseMargarine

*Twelve months ended 30 June of following year. Source: Commonwealth Secretariat.

kg kgkg
Australia*8.264.585.67
Canada5.817.304.54
Denmark7.769.7118.46
France8.8014.063.22
Germany (West)7.216.088.53
Netherlands2.139.3015.92
New Zealand*15.284.82-
Sweden4.459.2517.24
United Kingdom7.625.765.81
United States2.095.995.13

INTERNATIONAL COMPARISONS—The table which follows, which is taken from the FAO report, The State of Food and Agriculture 1974, shows for selected groups of developed and developing countries the annual rates of growth of population and food production, and the dietary energy supplies per head. In terms of food availability, New Zealand is among the most-favoured nations. The developed countries, with only about 30 percent of the world's population, accounted in 1971-73 for about 60 percent of the world's food production. The FAO states that, in 1974, malnutrition affected around 460 million people, and that this was a conservative estimate.

CountryAnnual Rates of GrowthPer Head Daily
PopulationFood Production*Domestic Demand for FoodDietary Energy SupplyProtein Supply
Kilo-caloriesRequirement

*Food component of crop and livestock production only (i.e., excluding fish production).

†Supply as percentage of physiological requirements plus 10 percent for waste at household level.

‡Total food, including fish.

  percent  percentgrams
Developed Countries      
Australia2.13.72.43,280123108
Canada2.22.22.53,180129101
Denmark0.71.61.33,24012093
France1.03.02.03,210127105
Germany (West)1.02.51.93,22012189
Japan1.14.33.72,51010779
Netherlands1.33.01.73,32012387
New Zealand2.12.72.03,200121109
Sweden0.70.91.02,81010486
U.S.S.R.1.53.93.03,280131101
United Kingdom0.52.80.73,19012692
United States1.52.01.63,330126106
Developing Countries      
Afghanistan1.91.72.21,9708158
Bangladesh3.51.6 1,8408040
Ethiopia1.82.33.02,1609372
Ghana2.93.93.22,32010149
India2.12.43.02,0709452
Indonesia2.52.02.61,7908338
Nigeria2.42.03.12,2709663
Pakistan3.03.04.22,1609356
Rwanda2.61.81.91,9608458
Somalia2.21.11.51,8307956

SUBSIDIES—Government subsidies on food items apply from time to time as part of the economic stabilisation policy. Milk and eggs have been subsidised for a long period. The average subsidy on milk for the year ended 31 August 1975 was 11.544 cents per litre, and the subsidy on eggs (previous to its abolition) was 3.33c a dozen.

The following table shows the total cost of subsidies paid under the stabilisation vote. Other subsidies, involving farm incentives, etc., 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
19721973197419751976
 $(thousand)
Bread-1,6503,5455,2645,603
Eggs1,5461,7561,6891,7921,696
Meat--10,6471,189-
Milk25,70031,04042,25650,36250,311
Sugar--11,600--
Wool--21,7611,953-
Coal gas9351,1901,4521,4602,056
Subsidy on Shipping services----2,859
Industrial coal (rail transport)519559535493458
Subsidy to meet losses on—     
  Post Office operations--7,00021,00038,000
  Railways operations--11,70046,10068,500
  Electric supply---18,53913,070
Totals28,70036,195112,185148,152182,553

Higher postal charges, rail fares, and electricity charges from early 1976 resulted in sharp cuts in the level of subsidies designed to meet losses in these areas. Milk and bread prices were increased at the same time, and at the end of March 1976 the subsidy on bread and flour was abolished. The egg subsidy was abolished at the end of April 1976.

Chapter 26. 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 and pay and allowances of armed forces represent the return to labour for services rendered, and included in this concept is 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. Surplus of producer boards and of primary produce stabilisation accounts represents the increase (or, if negative, the decrease; in the revenue balances of producer boards, and the credits relating to primary production stabilisation schemes held by producer boards.

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 since these transactions represent the transfer of existing assets. 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

Item1967-681968-691969-701970-711971-721972-731973-741974-75*

*Provisional.

National income$m3,5133,6974,0974,6845,5356,4897,4688,162
Gross national product$m4,1284,3554,8095,5396,4657,5258,6289,421
Personal expenditure on consumer goods and services$m2,5832,5942,8283,3353,7704,6175,0675,734
As percentage of gross national product 6260596058615961
Gross capital formation in New Zealand$m8699641,0911,2631,4291,6392,0672,510
  As percentage of gross national product 2122232322222427
Public authority current expenditure on goods and services$m5986507218611,0371,1171,3291,596
  As percentage of gross national product 1415151616151517
Private income$m3,7393,9254,3414,9995,8736,9468,0318,925
Private savings$m3765316155818309091,157891
  As percentage of private income 1014141214131410

The gross national product as the main aggregate of production is the total unduplicated value of goods and services produced by New Zealand residents and enterprises during the year; it was $7,525 million in 1972-73, $8,628 million in 1973-74, and $9,421 million in 1974-75. National income in 1972-73 was $6,489 million; 1973-74, $7,468 million; and 1974-75, $8,162 million.

The three main items of income in 1974-75 were salaries and wages $5,772 million, an increase of 21.0 percent over 1973-74; other personal income $1,159 million, 15.0 percent down; and company incomes $1,036 million, up 1.5 percent. Within other personal income ($1,159 million) business and investment income rose by 18.8 percent to $866 million, and net farming incomes (including producer board surpluses) decreased by 57.0 percent to $268 million. Total private income increased by 11.1 percent, with social security benefits and pensions rising by $81 million to $675 million (an increase of 13.6 percent).

Total domestic spending rose by 23.5 percent over 1973-74 to reach $10,800 million. Increases were recorded in most of its components—personal expenditure on consumer goods and services 13.2 percent, current spending by Central and local Government 20.1 percent, and expenditure on new fixed capital assets in the private sector 15.4 percent; public authority expenditure on new capital assets increased from $585 million in 1973-74 to $799 million in 1974-75. There was a marked increase in the value of stocks held—$960 million—compared with a rise of $282 million in the preceding year and $13 million in 1972-73.

Private savings fell by $266 million to $891 million in 1974-75 and the revenue balances of public authorities grew by $25 million to $519 million. However, even with increased depreciation allowances (from $607 million to $674 million), this was insufficient to finance the private capital formation and the increase in stocks, the difference being financed by overseas borrowing, i.e. a balance of payments deficit.

Exports of goods and services in 1974-75 were $118 million lower than in 1973-74. Imports, however, rose by $1,141 million and the combination of these two factors contributed towards the deficit on current account for 1974-75 of $1,385 million.

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 these national income aggregates, no allowances have been made for any possible understatement of income shown in the taxation returns on which the estimates are based. Also, because these aggregates are based on taxation data, there has been no deduction of current years' losses incurred by companies and by individuals operating businesses, while losses in past years carried forward for taxation purposes do result in a reduction of these aggregates. Any over or understatement of the gross product total arising from these sources will therefore be reflected in a similar over or 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 1974-75, 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 indicative economic planning. 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 by 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 1965-66. 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 1965-66 prices in the following table.

YearAt Current PricesAt Constant 1965-66 Prices
Gross National ProductGross Domestic ProductGross Domestic ExpenditureGross National ProductGross Domestic ProductGross Domestic Expenditure

*Provisional.

 $(million)
1955-561,9651,9792,0222,4902,5082,531
1956-572,0612,0782,0852,5342,5552,529
1957-582,2082,2252,2942,6662,6872,706
1958-592,2972,3212,3292,7352,7642,654
1959-602,4632,4822,3732,8512,8732,732
1960-612,6502,6872,7463,0053,0473,045
1961-622,7522,7832,8503,1133,1483,106
1962-632,9532,9992,9853,1953,2453,144
1963-643,2313,2733,2483,3993,4433,404
1964-653,5303,5893,5503,5963,6563,667
1965-663,8233,8773,9783,8233,8773,978
1966-673,9734,0394,1083,9584,0244,121
1967-684,1284,1834,1893,9363,9893,904
1968-694,3554,4364,2894,0004,0753,818
1969-704,8094,9074,7594,1944,2804,030
1970-715,5395,6145,7174,3804,4394,332
1971-726,4656,5406,4784,5004,5524,395
1972-737,5257,6457,3864,6744,7494,666
1973-74*8,6288,7608,7454,9945,0715,255
1974-75*9,4219,55610,8005,1225,1955,575

The annual percentage changes illustrated in the previous graph are shown in the following table.

Year Ended 31 MarchAt Current PricesAt Constant 1965-66 Prices
Gross National ProductAnnual Percentage ChangeGross National ProductAnnual Percentage ChangeG.N.P. Per Head of PopulationAnnual Percentage Change

*Provisional.

 $(m)%$(m)%$%
19653,5309.263,5965.801,382.43.71
19663,8238.303,8236.311,444.24.47
19673,9733.923,9583.531,468.81.70
19684,1283.903,936-0.561,439.0–2.03
19694,3555.504,0001.631,449.20.71
19704,80910.434,1944.851,503.93.78
19715,53915.184,3804.441,547.02.87
19726,46516.724,5002.741,564.61.13
19737,52516.404,6743.871,593.91.88
1974*8,62814.664,9946.851,667.24.60
1975*9,4219.195,1222.561,673.60.38

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 description of 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 IncomeSurplus of Producer Boards and Primary Produce Stabilisation AccountsCompany IncomePublic Authority Trading IncomePublic Debt Interest Paid in New ZealandNational Income at Factor CostIndirect TaxationSubsidiesNational Income at Market PricesDepreciation AllowancesGross National Product

*Provisional.

 $(million)
1954-558622440462119560-411,603161-271,7381221,860
1955-5693724434621118864-421,688171-251,8331321,965
1956-579902446512-1019761-471,773168-271,9151462,061
1957-581,0682648567-3921165-531,894182-272,0501582,208
1958-591,1162550522121974-571,950208-272,1311662,297
1959-601,18126515612024282-592,103217-262,2941682,463
1960-611,2772751609-1129191-652,270226-312,4651852,650
1961-621,3652760586-10288100-702,345231-282,5482042,752
1962-631,44529816236323105-772,536228-292,7342192,953
1963-641,55430866919370123-892,775254-302,9992323,231
1964-651,723329671911418136-953,040276-353,2812493,530
1965-661,89036109748-6480147-1043,301289-393,5502733,823
1966-672,04140114720-9474147-1163,412301-393,6733003,973
1967-682,12742124717-4464167-1243,513316-213,8083194,128
1968-692,24045130714-6525185-1363,697343-194,0223334,355
1969-702,49347140766-8605202-1484,097377-284,4453644,809
1970-713,004561568101644171-1584,684462-525,0944455,539
1971-723,555681691,01750648199-1715,535537-895,9824836,465
1972-733,993702011,307-3891220-1906,489603-1016,9915347,525
1973-744,768792171,363-101,021250-2197,468687-1348,0206078,628
1974-75*5,772842251,159-251,036149-2388,162717-1328,7476749,421

GROSS DOMESTIC EXPENDITURE

March YearPersonal Expenditure on Consumer Goods and ServicesPublic Authority Current Expenditure on Goods and ServicesGross Capital Formation New ZealandChanges in StocksGross Domestic ExpenditureExports of Goods and ServicesImports of Goods and ServicesExpenditure on Gross Domestic ProductsNet Factor Payments to Pest of WorldExpenditure on Gross National Product
PrivatePublic Authority

*Provisional.

 $(million)
1954-551,201227277164581,927507-5571,877-171,860
1955-561,282249266187382,022563-6061,979-141,965
1956-571,332274256203202,085595-6022,078-172,061
1957-581,474287287214322,294593-6622,225-172,208
1958-591,492302290214312,329576-5842,321-242,297
1959-601,500324297226262,373671-5622,482-192,463
1960-611,757346366233442,746630-6892,687-372,650
1961-621,829363393241242,850634-7012,783-312,752
1962-631,914394387255352,985673-6592,999-462,953
1963-642,030417423286923,248793-7683,273-423,231
1964-652,1784605003121003,550843-8043,589-593,530
1965-662,4005165733421473,978842-9433,877-543,823
1966-672,4445655893711394,108897-9664,039-663,973
1967-682,5835984933761394,189871-8774,183-554,128
1968-692,594650590374814,2891,127-9804,436-814,355
1969-702,8287217093821194,7591,278-1,1304,907-984,809
1970-713,3358618314322585,7171,302-1,4055,614-755,539
1971-723,7701,0379324972426,4781,543-1,4816,540-756,465
1972-734,6171,1171,047592137,3861,952-1,6937,645-1207,525
1973-745,0671,3291,4825852828,7452,238-2,2238,760-1328,628
1974-75*5,7341,5961,71179996010,8002,120-3,3649,556-1359,421

The following tables provide some more detailed analyses 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 PensionsOther Personal IncomeSurplus of Producer Boards and Primary Produce Stabilisation AccountsCompany Income Before DistributionPrivate Income (Before Tax)
Rental value of Owner-occupied HousesFarmingBusiness and Investment

*Provisional.

 INCOME $(million)
1954-55862241224025221011951,706
1955-569372412843244218111881,794
1956-579902413246278234-101971,891
1957-581,0682613948298269-392112,021
1958-591,116251605026126112192,092
1959-601,1812619851291270202422,279
1960-611,2772721351302307-112912,457
1961-621,3652721860265321-102882,534
1962-631,445292198128633763232,726
1963-641,554302298633835393702,970
1964-651,7233223496340379114183,233
1965-661,89036242109345403-64803,500
1966-672,04140252114312408-94743,632
1967-682,12742269124310407-44643,739
1968-692,24045278130305409-65253,925
1969-702,49347298140326440-86054,341
1970-713,0045632815632348716444,999
1971-723,55568366169492525506485,873
1972-733,99370488201696611-38916,946
1973-744,76879594217634729-101,0218,031
1974-75*5,77284675225293866-251,0368,925
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)
1954-551,2012336571101,706
1955-561,282-348421221,794
1956-571,332-370461441,891
1957-581,474-1345451582,021
1958-591,492344264912,092
1959-601,5006420772762,279
1960-611,7578493831162,457
1961-621,8298531611052,534
1962-631,9149505872112,726
1963-642,03075421082832,970
1964-652,178106291013153,233
1965-662,400176911542383,500
1966-672,444177561592563,632
1967-682,583137671502263,739
1968-692,59487922193123,925
1969-702,828108882593564,341
1970-713,33551,0782393424,999
1971-723,770-141,2872276035,873
1972-734,617-401,4604184916,946
1973-745,067-481,8554477108,031
1974-75*5,734-282,3284344578,925

REVENUE ACCOUNT OF PUBLIC AUTHORITIES (CENTRAL GOVERNMENT AND LOCAL AUTHORITIES)

March YearTaxationTrading IncomeDirect Taxes Paid by Public Authority Trading UndertakingsTotal Revenue
DirectIndirect

*Provisional.

 REVENUE $(million)
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
1967-68780316167-121,251
1968-69806343185-141,321
1969-70904377202-161,467
1970-711,093462171-151,711
1971-721,300537199-142,022
1972-731,478603220-182,283
1973-741,876687250-212,791
1974-75*2,351717149-233,194
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)
1954-5522712244127138558
1955-5624912834225135582
1956-5727413244727116599
1957-582871394532782593
1958-5930216045727174724
1959-6032419845926107718
1960-6134621346531151809
1961-6236321847028178862
1962-6339421947729115838
1963-6441722968930148919
1964-65460234595352121,040
1965-665162426104392201,127
1966-675652526116392251,203
1967-685982696124212331,251
1968-696502787136192321,321
1969-707212988148282631,467
1970-718613289158523031,711
1971-721,03736611171893492,022
1972-731,117488151901013722,283
1973-741,329594222191344942,791
1974-75*1,596675342381325193,194

COMBINED CAPITAL ACCOUNT

   Depreciation Allowances Gross Capital Formation in New Zealand   
March YearPrivate SavingsRevenue Balances of Public AuthoritiesPrivateCentral Government Trading UndertakingsLocal Authorities Trading UndertakingsTotal SavingsPrivateCentral GovernmentLocal AuthoritiesChanges in StocksNet Investment OverseasTotal Investments

*Provisional.

   Saving   $(million)  Investments  
1955-561901161271644522561386520- 28452
1956-57203821351844432871407432- 89443
1957-581551741412054962901377731- 39496
1958-59353107141225629297142842680629
1959-601991511552465363661498444-107536
1960-611661781732465473931479424-110547
1961-6229811518526763238715310235- 45632
1962-6339114819727777142318010692- 29771
1963-64416212213279877500196116100- 35877
1964-653922202352810885573218125147-178885
1965-664152252573310941589242129139-158941
1966-673762332723512928493244132139- 81928
1967-6853123227939151,09559023713681+ 511,095
1968-6961526330543161,242709235147119+ 321,242
1969-7058130338544161,329831270162258-1931,329
1970-7183034942045181,662932309188242- 91,662
1971-7290937246748191,8161,04738820413+ 1651,816
1972-731,15749453256192,2581,482367218282- 912,258
1973-74*89151959163202,0841,711523276960-1,3852,084

REST OF WORLD ACCOUNT

March YearExports ofImports ofNet Factor PaymentsNet TransfersSurplus on Current Account
GoodsServicesGoodsServicesPrivatePublic Authorities

*Provisional.

 $(million)
1954-5547136- 459- 98- 17- 2- 4- 72
1955-5652439- 498-108- 14-- 3- 60
1956-5754847- 488-114- 17-- 4- 28
1957-5854053- 545-117- 171- 4- 89
1958-5952848- 468-116- 24- 3- 4- 39
1959-6062249- 442-120- 19- 6- 480
1960-6157456- 546-143- 37- 8- 4-107
1961-6258153- 550-151- 31- 8- 4-110
1962-6360766- 509-150- 46- 9- 4- 45
1963-6472073- 601-167- 42- 7- 5- 29
1964-6576776- 616-188- 59-10- 5- 35
1965-6674993- 722-221- 54-17- 6-178
1966-67787110- 723-243- 66-17- 6-158
1967-68753118- 638-239- 55-13- 6- 81
1968-69978149- 722-259- 81- 8- 7+ 51
1969-701,117161- 828-302- 98-10- 8+ 32
1970-711,110192-1,043-362- 75- 5- 9-193
1971-721,311232-1,071-410- 7514-11- 9
1972-731,671281-1,224-469-12040-15+ 165
1973-741,869369-1,585-638-13248-22- 91
1974-75*1,625495-2,579-785-13528-34-1,385

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)Surplus of Producer Boards and Primary Produce Stabilisation AccountTotal Company Income (Before Distribution)

*Provisional.

DISPOSABLE INCOME $(million)
1959-601,035(146)23(3)648 (160)20133 (111)1,859(420)
1960-611,130(148)24(3)657 (213)-11165 (129)1,965(493)
1961-621,197(168)24(3)653 (208)-10138 (153)2,002(531)
1962-631,272(173)26(3)739 (180)6179 (148)2,221(505)
1963-641,378(177)27(3)808 (195)9207 (167)2,428(542)
1964-651,517(206)29(4)826 (219)11221 (200)2,604(629)
1965-661,654(236)31(4)861 (235)- 6268(216)2,808(691)
1966-671,772(269)35(5)836 (246)- 9243 (236)2,876(756)
1967-681,844(283)37(5)866 (238)- 5229 (240)2,972(767)
1968-691,933(308)40(6)863 (253)- 6304 (226)3,133(792)
1969-702,146(346)41(6)914 (284)- 8361 (251)3,454(888)
1970-712,541 (463)48(9)979 (307)1352(300)3,921 (1,078)
1971-722,946(609)57(11)1,191 (351)50342(315)4,586(1,287)
1972-733,305(688)58(12)1,544(442)- 3582(319)5,487(1,460)
1973-743,895(873)65(13)1,604(559)-10622(410)6,176(1,855)
1974-75*4,577(1,195)66 (18)1,394(654)-25586(461)6,598(2,328)

GROSS PRIVATE INCOME ON A PERCENTAGE BASIS

March YearSalary and WagesPay and Allowances of Armed ForcesSocial Security Benefits and PensionsRental Value, Owner-occupied HousesOther Personal Income (Excluding Company Dividends)Surplus of Producer Boards and Primary Produce Stabilisation AccountCompany Income (Before Distribution)Private Income

*Provisional.

PERCENT
1959-6051.81.18.72.224.60.910.6100.0
1960-6152.01.18.72.124.8-0.411.8100.0
1961-6253.91.18.62.423.1-0.411.4100.0
1962-6353.01.18.03.022.80.211.8100.0
1963-6452.31.07.72.923.30.312.5100.0
1964-6553.31.01.1.3.022.20.312.9100.0
1965-6654.01.06.93.121.4-0.213.7100.0
1966-6756.21.16.93.119.8-0.213.0100.0
1967-6856.91.17.23.319.2-0.112.4100.0
1968-6957.11.17.13.318.2-0.213.4100.0
1969-7057.41.16.93.217.6-0.213.9100.0
1970-7160.11.16.63.116.2-12.9100.0
1971-7260.51.26.22.917.30.811.0100.0
1972-7357.51.07.02.918.8-12.8100.0
1973-7459.41.07.42.717.0-0.112.7100.0
1974-75*64.70.97.62.613.0-0.311.6100.0

PUBLIC AUTHORITY SECTOR—The Revenue Account of Public Authorities shown earlier is a consolidation and simplification of two separate and more detailed accounts—the 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.

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].

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.

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 1974-75 the proportion was 12.2 percent.

CENTRAL GOVERNMENT—REVENUE ACCOUNT

Item1969-701970-711971-721972-731973-741974-75*

*Provisional.

1. TAXATION      
(a) Direct:REVENUE $(million)
  Income tax779.2957.31,161.11,314.51,697.92,136.0
  Land tax2.93.13.83.43.33.4
  Death duties26.129.224.828.433.841.1
  Other----0.20.3
Totals808.1989.51,189.71,346.31,735.22,180.8
(b) Indirect:      
  Sales tax97.6125.3139.5171.1206.4234.7
  Customs and excise duties152.8178.5198.0210.2245.8275.3
  Motor vehicles taxation98.4104.0108.6115.7124.8125.3
  Other24.127.330.537.149.448.6
  Payroll tax-20.540.846.333.50.8
Totals372.9455.6517.3580.4659.9684.7
2. Totals, all taxation1,181.01,445.11,707.01,926.72,395.12,865.5
3. TRADING INCOME158.5126.8154.7174.0219.0120.1
4. Less direct taxation paid by trading departments-16.0-14.6-13.7-18.0-20.7-23.1
Totals142.5112.2141.0156.0198.397.0
5. TOTAL REVENUE1,323.51,557.31,848.02,082.72593.42,962.5
6. CURRENT EXPENDITURE ON GOODS AND SERVICESEXPENDITURE $(million)
  (a) General administration63.273.493.5100.8123.1159.3
  (b) Interest30.832.136.338.334.141.3
  (c) Law and order16.320.726.631.539.149.9
  (d) Development of primary and secondary industries49.164.564.283.498.9121.6
  (e) Health86.8103.7114.0103.0120.5151.9
  (f) Education168.4214.9279.6309.1367.2432.6
  (g) Other social services4.95.87.820.324.427.0
  (h) Defence102.6122.8121.8135.5140.5165.5
  (i) Rehabilitation1.11.00.90.80.80.9
  (j) Maintenance of public works and services16.118.921.525.124.132.6
Totals539.3657.8766.2847.8972.71,182.6
7. TRANSFERS      
  (a) Monetary social security benefits and pensions292.4319.5361.4483.9590.3671.1
  (b) Family benefit advances6.08.54.53.63.34.1
  (c) Net transfers to rest of world7.79.310.715.122.034.2
8. Interest on Central Government debt paid in New Zealand113.4120.9130.5146.5166.2179.7
Totals419.5458.2507.1649.1781.8889.1
9. TRANSFERS TO LOCAL AUTHORITIES      
  (a) Hospital boards113.3135.0169.1230.8269.6337.5
  (b) Other41.944.047.956.260.160.6
Totals155.2179.0217.0287.0329.7398.1
10. SUBSIDIES28.551.689.4100.7133.7131.8
11. TOTAL PENDITURE1,142.51,346.61,579.71,884.62,217.92,601.6
12. Balance of revenue over expenditure181.0210.7268.3198.1375.5360.9
13. TOTAL EXPENDITUREPlus REVENUE BALANCES1,323.51,557.31,848.02,082.72,593.42,962.5

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 1974-75 the Central Government contributed 62.5 percent of the revenue of local authorities through transfers. Trading profits contributed a further 5.1 percent, and rates and licence fees at 32.4 percent continued the pattern of recent years.

Current expenditure on goods and services by local authorities in 1973-74, at $283.8 million, was 16.3 percent higher than in the previous year, whereas the increase in Central Government current expenditure on goods and services was 21.6 percent. The limitation 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

Item1969-701970-711971-721972-731973-741974-75*

*Provisional.

14. TAXATIONREVENUE $(million)
  (a) Direct: Rates95.5103.6110.5131.6140.7170.1
  (b) Indirect: Licence fees4.06.019.422.326.632.7
Totals99.5109.6129.9153.9167.3202.8
15. Trading income43.944.044.646.430.729.1
16. Transfers from Central Government155.2179.0217.0286.9329.7398.1
17. TOTAL REVENUE298.6332.6391.5487.2527.7630.0
 EXPENDITURE $(million)
18. Current expenditure on goods and services181.6202.8270.7269.6356.0413.9
19. Interest on local authority debt paid in New Zealand35.037.540.644.053.258.1
20. TOTAL EXPENDITURE216.6240.3311.2313.6409.2472.0
21. Balance of revenue over expenditure82.092.380.3173.6118.5158.0
22. TOTAL EXPENDITUREPlus REVENUE BALANCES298.6332.6391.5487.2527.7630.0

25 B—BALANCE OF PAYMENTS

GENERAL—A country's balance of payments is an account 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 1974-75, 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 not 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 basis (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 exchange 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, and included Western Samoa until 1961-62. 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 the rest of the world account.

The regional areas and countries comprising them have been defined as follows:

United Kingdom (including Channel Islands).

Australia (including Norfolk Island, but excluding Papua New Guinea).

USA and Canada—United States of America, Canada, Newfoundland, Panama Canal Zone, Puerto Rico, Virgin Islands, American Samoa, Guam, and other American islands in the Pacific.

EEC Countries—The 6 members of the European Economic Community which formed a common market in 1958; Belgium, the Netherlands, Luxembourg, France, Italy and the Federal German Republic, together with their associated and dependent overseas territories. From and including 1973-74 Denmark and Ireland are included with EEC. The United Kingdom has also become a member of the EEC but it is being shown separately.

Other Sterling Countries—Other Commonwealth countries (excluding United Kingdom, Canada, Newfoundland, and from 1968-69 Australia) 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. From 1972-73 this region has been merged with "other countries" as below.

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 International Finance Corporation, the Asian Development Bank, South Pacific Air Transport Council, and other international organisations.

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

Item1970-711971-721972-731973-741974-75*

*Provisional.

Minus (-) sign denotes excess of imports over exports or payments over receipts.

 NZ$(million)
 Credits    
  Exports f.o.b.1,102.71,305.51,665.91,862.01,618.1
  Non-monetary gold..........
  Transportation106.5132.0134.4194.2266.3
  Travel33.845.157.478.5107.0
  Insurance0.90.25.77.323.8
International investment income—42.746.255.082.972.3
Income from direct private investment13.513.010.417.320.4
Other private investment income24.813.813.614.610.0
Government and official institutions4.419.431.051.041.9
Government transactions—15.717.831.531.136.4
Foreign Government expenditure8.811.020.421.627.0
New Zealand Government receipts6.96.811.19.59.4
Miscellaneous receipts35.237.352.157.761.3
Transfers—47.969.299.6122.9123.1
Government transfers-----
Personal remittances and other donations35.549.255.458.161.0
Migrants' funds8.314.635.257.355.1
Legacies4.15.49.07.57.0
Total credits1,385.21,653.32,101.62,436.62,308.3
 Debits    
  Imports f.o.b.1,042.01,070.31,222.41,582.82,576.6
Non-monetary gold..........
Transportation171.4189.1203.8294.4396.3
Travel61.975.598.2143.4180.3
Insurance4.44.910.520.825.2
International investment income—117.8121.0175.0214.8207.3
Income from direct private investment70.278.416.765.1115.2
Other private investment income14.69.620.815.841.5
Government and official institutions32.632.937.333.950.5
Local authority interest0.40.10.1-0.1
Government transactions—29.939.846.252.069.3
New Zealand Government expenditure 29.9 39.846.252.069.3
Miscellaneous payments94.5100.9110.2127.5114.1
Transfers—61.865.474.896.1128.8
Government transfers and contribution to Colombo Plan9.310.715.121.434.2
Personal remittances and other donations and transfers21.323.423.927.633.2
Migrants' funds23.922.626.237.451.6
Legacies7.38.89.69.79.8
Total debits1,583.71,666.91,941.02,531.83,697.9
Balance on current account-198.5-13.6160.6-95.2-1,389.6

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

Item1970-711971-721972-731973-741974-75*
Increase inIncrease inIncrease inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities

Minus (—) sign denotes decrease.

*Provisional.

†Allocation of special drawing rights and holdings in New Zealand currency are not increases in liabilities, but are entered here as contra entries to maintain the correct balance of the capital account.

Long-term capital (Private)—NZ$ (million)
Overseas direct investment in New Zealand..130.0..97.5..106.4..152.7..163.5
New Zealand direct investment overseas7.8..10.7..2.7..15.5..14.5..
Other long-term capital movements-8.7-93.3-90.5-52.7-208.1
Long-term capital (Government)—....................
Government investments31.3..12.2..8.9..13.8..104.1..
Public debt..50.6..72.2..-49.6*-58....300.9
Local Authority debt..-1.3..-1.4..-1.1..-0.5..-0.7
Asian Development Bank—....................
Holdings of New Zealand securities..1.0..-..1.2..1.1..1.3
Encashment of securities----0.3-0.4..0.2..
New Zealand subscription2.0..-..2.0..1.9..2.1..
International Bank for Reconstruction and Development (World Bank)—....................
Holdings of New Zealand securities..-..0.4..-..-..-
New Zealand subscription and security-..0.4..-..-..-..
Other..-11.6..1.4..10.5..35.70.139.5
Monetary institutions—....................
Reserve Bank of New Zealand—....................
International Monetary Fund—....................
Drawings and repurchases..-35.0..-..-..--45.1100.4
Allocation of Special Drawing Rights..19.3..19.lt..-..-..5.6
Increase in quota40.2..-..-..-..-..
IMF holdings in New Zealand currency-30.1..-..-..-..-
Other borrowing and lending..-5.1..-5.4..-..-..-
Monetary gold-0.1..-..-..-..-..
Other............5.4..4.8106.1
Reserve Bank of New Zealand and other banks—....................
Assets of New Zealand banking system32.4..159.0..318.9..46.8..-218.7..
Special Drawing Rights of IMF-4.0..27.9..4.9..-..-47.2..
Official export credits5.7..4.3..0.5..0.3..3.4..
Short-term capital (Government)—....................
Government cash balances-......-..-..-
Other-0.3-57.6..73.1..-38.4..-89.6..
Other short-term capital movements including errors and omissions-62.0-8.6-92.842.8--193.5
Balance on capital account-198.5-13.6160.6-95.2-1,389.6

ANALYSIS OF CURRENT ACCOUNT—The balance of payments estimates show that for the year ended 31 March 1975 New Zealand's balance with the rest of the world on current account was a deficit of $1,389.6 million. It was $95.2 million in deficit for the 1973-74 financial year.

(a) Merchandise Transactions—As compared with 1973-74 the value of exports declined by $243.9 million to $1,618.1 million, and imports (measured f.o.b. country of purchase) were $993.8 million greater than in 1973-74 at $2,576.6 million. The resulting deficit on merchandise transactions of $958.5 million was only the second such deficit since balance of payments estimates were first published in 1950-51.

In recent years major changes have occurred in New Zealand's trading patterns. In 1955-56, 64.9 percent of New Zealand's exports, by value, were sold in the United Kingdom; by 1970-71 this proportion had fallen to 35.7 percent and by 1974-75 it had further declined to 22.2 percent. Conversely the percentage of exports sold in "other countries" has increased from 23.4 percent in 1970-71 to 39.4 percent in 1974-75. Similar changes have occurred with imports; the percentage of imports purchased from the United Kingdom declined from 29.3 percent to 21.5 percent and the percentage of imports purchased from "other countries" increased from 24.2 percent to 30.1 percent between 1970-71 and 1974-75.

The following table shows how trade with each area has moved.

Year Ended 31 MarchUnited KingdomAustraliaUnited States and CanadaEEC CountriesOther Countries*Total, All Countries

*Includes International Organisations and other Sterling Countries.

†Provisional.

Exports (f.o.b. N.Z.)NZ$(million)
1971-72443 1112.7250.7167.7331.31,305.5
1972-73486.5126.4304.8244.8503.41,665.9
1973-74419.3168.0360.6214.4699.71,862.0
1974-75359.0187.1254.7179.7637.61,618.1
Annual Change—      
1972-73+43.4+ 13.7+54.1+77.1+172.1+360.4
1973-74-67.2+41.6+ 55.8-30.4+196.3+196.1
1974-75-60.3+ 19.1-105.9-34.7-62.1-243.9
Imports (f.o.b. Overseas)      
1971-72325.4245.4146.682.5270.41,070.3
1972-73302.5318.1202.386.2313.31,222.4
1973-74320.2421.3283.4137.6420.31,582.8
1974-75554.5544.6482.4220.6774.52,576.6
Annual Change—      
1972-73-22.9+72.7+55.7+3.7+42.9+152.1
1973-74+17.7+103.2+81.1+51.4+ 107.0+360.4
1974-75+234.3+123.3+199.0+83.0+354.2+993.8
Balance of Trade (Exports Less Imports)      
1971-72117.7-132.7104.185.260.9235.2
1972-73184.0-191.7102.5158.6190.1443.5
1973-7499.1-253.377.276.8279.4279.2
1974-75-195.5-357.5-227.7-40.9-136.9-958.5
Annual Change—      
1972-73+66.3-59.0-1.6+73.4+129.2t208.3
1973-74-84.9-61.6-25.3-81.8+89.3-164.3
1974-75-294.6-104.2-304.9-117.7-416.3-1,237.7

(b) Invisibles—The deficit on invisibles for 1974-75 was $425.4 million against $401.2 million in 1973-74 and $307.8 million in 1972-73. This outcome confirms the historical trend of a widening deficit on "invisibles" account which has continued over the years with only temporary reversals.

In 1974-75, 4 out of the 5 categories making up invisibles showed increased deficits over the previous year. The largest increase was $29.8 million in transportation, being an increase of 29.7 percent, while the largest proportional increase was in Government transactions with a 57.4 percent increase of $12.0 million. The deficit on "other transactions" (non-merchandise insurance and miscellaneous transactions) declined by $29.1 million, a movement of 34.9 percent. The item that was the most stable was net investment income which rose by $3.1 million or 2.4 percent.

The greater deficit on transportation was accounted for by a rise in the transportation debit item of $101.9 million compared with a rise in the transportation credit item of $72.1 million.

The transportation debit item includes freight on imports, passenger fares to non-resident shipping lines and air carriers, and disbursements overseas by New Zealand carriers (such as port disbursements, ships' stores, and bunkers). The 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 declined from $82.9 million to $72.3 million in 1974-75. The major portions of the decrease came from interest on Reserve Bank and other private investment income. On the other side of the account, income debts, there was also a decrease (from $214.8 million to $207.3 million) caused by a decrease in income from overseas direct private investment in New Zealand. This declined from $165.1 million to $115.2 million.

The following table gives details of invisible transactions by areas.

NET DEFICIT ON INVISIBLE ACCOUNT BY AREAS

YearUnited KingdomAustraliaUnited States and CanadaEEC CountriesOther CountriesTotal, All Countries
 NZ$(million)
1972-73-164.9-38.6-42.2-16.5-45.5-307.8
1973-74-187.2-66.1-67.9-28.7-51.4-401.2
1974-75-165.0-43.8-71.7-41.9-102.9-425.4

In 1974-75, transactions with the United Kingdom accounted for 38.8 percent of the invisible deficit; those with Australia accounted for 10.3 percent; those with the United States and Canada for 16.9 percent; those with the European Economic Community countries for 9.8 percent; and those with other countries for 24.2 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 rose from $122.9 million to $123.1 million, an increase of 0.2 percent. Transfer debits rose from $96.1 million to $128.8 million, an increase of 34.0 percent.

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 1974—75 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-357.2
Long-term Government-234.4
Monetary institutions-514.9
Short-term Government-89.6
Other short-term (including errors and omissions)-193.5
Excess of capital inflows over outflows (equals balance on current account)1,389.6-
Totals1,389.61,389.6

The two main categories of private long-term capital movements are direct investment in New Zealand by overseas firms in branches and subsidiaries, and other private long-term capital movements. In 1974-75 the inflow of direct investment capital was $163.5 million compared with $152.7 million in 1973-74. Other private long-term capital movements showed a net inflow of $208.1 million, compared with an inflow of $52.7 million in 1973-74. This increase was largely due to overseas borrowing by New Zealand firms.

The main components of Government long-term capital movements are Government investment overseas, which increased by $104.1 million during 1974-75 (i.e., an outflow of capital), and the external public debt which increased by $300.9 million. Short-term Government investments overseas decreased by $89.6 million during 1974-75.

Under the heading, monetary institutions are the international transactions entered into by the Reserve Bank and the trading banks. The main components for 1974-75 were the assets of the New Zealand banking system, which declined by $218.7 million, and overseas borrowing by the Reserve Bank (from the International Monetary Fund's oil facility and from the Bank of International Settlements) which rose by $206.5 million.

It should be noted that movements in claims and liabilities caused by changes in exchange rates are excluded from the balance of payments.

Finally, the inflow of short-term private capital, timing errors, and omissions amounted to $193.5 million. No precise breakdown of this figure can be given. It is a residual and shows the amount by which the ascertained capital movements do not account for the balance on current account. Such a residual is very sensitive to relatively small timing or other errors in the very large magnitudes of both the current and capital accounts.

BALANCES BY AREAS—The following tables for current account and capital account for 1974-75 respectively, analyse the balance of payments by area.

A. CURRENT ACCOUNT BY AREAS 1974-75*

ItemUnited KingdomAustraliaUnited States and CanadaEEC CountriesOther CountriesInternational OrganisationsTotal, All Countries

*Provisional.

 CreditsNZ$(million)
Exports f.o.b.359.0187.1254.7179.7637.6..1,618.1
Non-monetary gold..............
  Transportation112.085.028.417.323.6..266.3
  Travel13.566.519.80.96.2..107.0
  Insurance10.83.63.80.15.5..23.8
International investment income—       
Income from direct investment overseas5.97.81.1-5.6..20.4
Other private investment income-0.58.61.90.1-0.30.210.0
Interest on investments of Government and official institutions32.6..0.13.45.8..41.9
Government transactions—       
Expenditure by foreign governments in New Zealand1.13.14.10.814.83.127.0
New Zealand Government current receipts from overseas4.51.13.4..0.4..9.4
Miscellaneous receipts18.221.99.92.58.8..61.3
Transfers—       
Government transfers----..- 
Personal remittances and other donations and transfers24.117.19.93.26.7..61.0
Immigrants' funds37.510.03.41.72.5..55.1
Legacies3.91.60.60.40.5..7.0
Total credits622.6413.4341.2210.1717.73.32,308.3
 DebitsNZ$(million) 
  Imports f.o.b.554.5544.6482.4220.6774.5..2,576.6
  Transportation173.281.947.244.249.8..396.3
  Travel46.072.124.64.533.1..180.3
  Insurance19.64.2-2.3-0.44.1..25.2
International investment income—       
Income from direct investment in New Zealand39.649.822.20.82.8..115.2
Other private investment income4.35.817.56.17.8..41.5
Interest on Government debt34.1-3.41.16.75.250.5
Interest on local authority debt----0.1-0.1
Government transactions—       
Current Government expenditure6.47.46.13.742.03.769.3
Miscellaneous payments40.020.125.77.021.3..114.1
Transfers—       
Government transfers and contribution to Colombo Plan1.00.5....23.19.634.2
Personal remittances and other donations and transfers7.57.23.61.213.7..33.2
Emigrants' funds17.817.45.11.210.1..51.6
Legacies3.73.91.40.20.6..9.8
Total debt947.7814.9636.9290.2989.718.53,697.9
Balance on current account (minus sign (—) denotes deficit)-325.1-401.5-295.7-80.1-272.0-15.2-1,389.6

B. CAPITAL ACCOUNT BY AREAS 1974—75*

ItemUnited KingdomAustraliaUnited States and Canada
Increase inIncreaseIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities

*Provisional.

Minus (—) sign denotes decrease.

Long-term capital (private)—NZ$(million)
Overseas direct investment in New Zealand..47.9..57.7..44.9
New Zealand direct investment overseas4.1..1.1..2.1..
Other long-term capital movements-2.540.5-0.54.9-0.4135.5
Long-term capital (Government)—      
Government investments24.6..-..-4.0..
Public debt..8.2..-..66.9
Local authority debt..-..-..-
Asian Development Bank holdings of New Zealand securities............
Encashment of securities............
New Zealand subscription............
Other-......-25.9
Long-term capital (monetary institutions)—      
Reserve Bank of New Zealand—      
Other borrowing and lending--1.3-0.4-
Reserve Bank of New Zealand and other banks-228.1..-10.6..71.9..
Assets of New Zealand banking system Official export credits-..-..-..
Short-term capital (Government)-15.5..-..-21.2..
Other short-term capital movements including errors and omissions-11.1-330.1-71.3
Multilateral transfers............
Balance on capital account-325.1-401.6-295.7
ItemEEC CountriesOther Countries and unallocatedInternational OrganisationTotal, All Countries
Increase inIncreaseIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities

*Provisional

† Allocation of Special Drawing Rights and holdings in N.Z. Currency are not increases in liabilities but are entered here as contra entries to maintain the accounting balance of the capital account.

Minus (—) sign denotes decrease.

 NZ$(million)
Long-term capital (private)—        
Overseas direct investment in New Zealand..0.9..12.1......163.5
New Zealand direct investment overseas-..7.2....14.5.. 
Other long-term capital movements-0.23.20.621.0....-3.0205.1
Long-terra capital (Government)—        
Government investments90.6..-2.9..-4.2..104.1..
Public debt..166.0..65.8..-6.0..300.9
Local authority debt..-..-0.7--..-0.7
Asian Development Bank holdings of New Zealand securities..........1.3..1.3
Encashment of securities........0.2..0.2..
New Zealand subscription........2.1..2.1..
Other-6.70.16.9....0.139.5
Long-term capital (monetary institutions)—        
Reserve Bank of New Zealand.................
I.M.F.-Drawings and Repurchases.    -45.1100.4-45.1100.4
Allocation of Special Drawing Rights     5.6 5.6
Other borrowing and lending.--1.2106.11.9-4.8106.1
Reserve Bank of New Zealand and other banks................
Assets of New Zealand banking system-52.2..0.3......-218.7..
Special Drawing Rights of I.M.F.........-47.2..-47.2..
Official export credits-..3.4......3.4..
Short-term capital (Government)-50.1..-7.0..4.2..-89.6..
Other short-term capital movements including errors and omissions108.6--63.7174.1--193.5
Multilateral transfers        
Balance on capital account-80.1-272.0-15.2-1,389.6

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, 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 KingdomAustraliaOther Sterling CountriesU.S.A. and CanadaEEC CountriesOther CountriesTotal, All Countries

*Provisional.

†Other Sterling Countries included with Other Countries after 1972-73.

 NZ$(million)
1961-6219.87.010.2--0.836.2
1966-670.714.913.30.1-0.128.9
1970-7137.028.22.512.923.725.7130.0
1971-72-7.236.02.167.6-8.07.097.5
1972-73x38.335.72.325.13.02.0106.4
1973-74x61.936.1..48.83.52.4152.7
1974-75*47.957.7..44.90.912.1163.5

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.

YearUnited KingdomAustraliaOther Sterling CountriesU.S.A. and CanadaEEC CountriesOther CountriesTotal, All Countries

*Provisional.

†Other Sterling Countries included with other Countries after 1972-73.

 NZ$(million)
 Dividends
1961-625.7 3.55.50.10.215.0
1966-675.7 5.77.40.10.319.2
1971-729.47.60.68.41.62.029.6
1972-7310.510.10.77.32.03.033.6
1973-7413.310.3..9.41.82.837.6
1974-75*11.911.1..6.90.21.831.9
 Undistributed Earnings
1961-623.9 2.8 1.90.28.8
1966-6712.710.0 4.30.20.327.5
1971-7214.911.20.215.1-0.2-3.837.4
1972-7334.814.50.218.9-1.1-3.264.1
1973-7438.929.0..26.71.43.499.4
1974-75*25.924.9..12.7-0.40.363.4
 Net Earnings of Branches
1961-625.23.3 0.60.30.19.5
1966-679.34. 1.0-15.2
1971-723.03.80.43.0-1.211.4
1972-7312.03.8-0.22.6-0.31.219.1
1973-7416.28.4..3.10.8-0.428.1
1974-75*1.813.8..2.61.00.719.9
 Total Income from Direct Investment in New Zealand
1961-6214.9 9.68.00.40.433.3
1966-6727.7 20.512.70.30.661.9
1971-7227.222.61.126.61.5-0.678.4
1972-7357.328.30.728.80.51.1116.7
1973-7468.447.7..39.24.05.8165.1
1974-75*39.649.8..22.20.82.8115.2

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.

Industry1971-721972-731973-741974-75*

*Provisional.

 NZ$(million)
 Direct Investment   
Farming, hunting, and fishing1.8-1.81.1
Forestry and logging    
Mining and quarrying2.51.3-5.1-1.0
Manufacturing—    
Food, drink, and tobacco1.12.86.222.0
Meat and dairy products-0.211.89.5-35.3
Textiles, clothing, and footwear1.80.92.01.6
Wood, cork, and furniture production0.2-0.2-0.10.4
Pulp, paper, and printing4.111.6-1.43.0
Leather and rubber products1.91.81.65.8
Chemical and mineral products16.810.118.121.0
Metalworking39.0-5.7-0.90.3
Engineering and transport equipment10.86.222.532.1
Miscellaneous manufacturing2.34.28.911.5
  Building and construction2.52.72.82.7
Electricity, gas, water........
  Wholesale and retail trade9.546.071.960.6
  Banking, insurance, and ownership of property11.314.29.034.1
  Transport and communications-9.7-2.25.20.2
  Services1.80.90.73.3
Totals97.5106.4152.7163.5
Income from Direct Investment
  Farming, hunting, and fishing0.10.20.5-0.1
Forestry and logging    
  Mining and quarrying1.11.21.20.8
Manufacturing—    
Food, drink, and tobacco5.36.08.87.4
Meat and dairy products-2.510.29.6-15.0
Textiles, clothing, and footwear2.11.93.01.5
Wood, cork, and furniture production0.10.20.30.2
Pulp, paper, and printing3.65.24.23.4
Leather and rubber products1.12.11.81.8
Chemical and mineral products11.012.615.49.8
Metalworking0.91.78.61.1
Engineering and transport equipment11.613.920.512.8
Miscellaneous manufacturing3.85.610.17.2
  Building and construction2.52.32.93.4
Electricity, gas, water........
  Wholesale and retail trade25.435.745.244.7
  Banking, insurance, and ownership of property9.015.029.032.6
  Transport and communications0.72.02.01.5
  Services2.61.12.02.1
Totals78.4116.7165.1115.2

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 KingdomAustraliaOther Sterling CountriesUnited States and CanadaOther CountriesTotal, All Countries

*Provisional.

†Other Sterling Countries included with Other Countries after 1972-73.

 NZ$(million)
 Direct Investment
1970-71-3.16.22.60.71.47.8
1971-7210.92.1-0.1-2.80.610.7
1972-73-11.96.63.46.6-2.02.7
1973-74x9.08.9..-0.7-1.715.5
1974-75*4.11.1..2.17.214.5
 Income from Direct Investment
1970-715.91.85.50.6-0.313.5
1971-727.22.32.70.60.213.0
1972-735.71.52.30.80.110.4
1973-74x5.08.0..0.53.717.3
1974-75*5.97.8..1.15.620.4

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 Department of Statistics has published 2 major inter-industry studies of the New Zealand economy. The Inter-Industry Study of the New Zealand Economy 1959-60 was published in 4 parts and the Inter-Industry Study of the New Zealand Economy 1965-66 was published in 2 parts. In both studies the productive sector is divided into 109 industries, and both include in addition to input-output tables and derived tables a description of the industrial classification and an explanation of the input-output system of analysis.

The Department of Statistics publication Inter-Industry Study of the New Zealand Economy 1965-1966 Part 1 may be used for general guidance to both the 1959-60 and the 1965-66 studies.

It should be noted, however, that because in some cases data were not available from the same source in both years, and for various other technical reasons, conclusions from the latest study regarding shifts in the technological inter-dependence of industries should be made with some caution.

A study based on the year 1971-72 is now in preparation.

The contributions to net output by the 21 industry groupings as adopted for national development planning are shown in the following table for 1965-66.

Industry GroupNet OutputProportion of Total Net Output
 $(m)Percent
Farming and hunting504.315.0
Pastoral products processing104.13.1
Non-pastoral farm products processing17.10.5
Fuel production8.90.3
Other mining and quarrying12.10.4
Fishing3.70.1
Fishery products processing0.3-
Forestry and logging20.30.6
Forestry products processing72.02.1
Other manufacturing502.215.0
Mineral products processing29.30.9
Fuel products processing7.50.2
Transportation200.66.0
Wholesale and retail trade617.418.4
Fuel and power generation and distribution77.42.3
Building and construction253.17.5
Banking and insurance68.82.0
Ownership of property228.06.8
Services to households30.20.9
Services to government284.08.5
Other service activities315.19.4
Totals3,356.3100.0

A special article in the 1975 Yearbook provided a general introduction to inter-industry studies and input-output analysis. Copies of this article are available from the Department of Statistics on request.

25D—REAL GROSS DOMESTIC PRODUCT

The Gross Domestic Product is the total value of all goods and services produced by the economy in the year. The "Real" Gross Domestic Product for a number of years is the total amount of the goods and services produced in each of those years valued at constant prices, so that the differences in the volume of production are apparent.

INDEX OF REAL GROSS DOMESTIC PRODUCT—The Index of Real Gross Domestic Product measures changes in the real gross domestic product, with each sector of the economy represented in proportion to its contribution to gross domestic product at factor cost in 1965-66; the basis for these analyses being the input-output tables for 1965-66. The economy has been divided into eleven industry groupings representing the major divisions of the New Zealand Standard Industrial Classification (N.Z.S.I.C.), but with major division 1 "Agriculture, Hunting, Forestry and Fishing", split into 3 groups, namely: Agriculture, Hunting and Fishing, Forestry and Logging.

The industry groupings, and the contribution made by each to the gross domestic product in the base year 1965-66, are shown below.

Industrial GroupsPercentage of Base Year Gross Domestic Product
Agriculture15.0
Hunting and fishing0.2
Forestry and logging0.6
Mining and quarrying0.7
Manufacturing21.7
Electricity, gas, and water2.6
Construction7.3
Wholesale and retail trade, restaurants and hotels18.8
Transport, storage, and communication8.2
Financing, insurance, real estate, and business services12.0
Community, social, and personal services12.9
 100.0

Throughout this section, the year used is that ended 31 March.

The Index of Gross Domestic Product is presented in the following table, analysed by the industry groupings.

INDEX OF REAL GROSS DOMESTIC PRODUCT

Base for each Industrial Group and for All Industrial Groups combined: 1965-66 (= 1000).

Industrial Groups1965-661966-671967-681968-681969-701970-711971-721972-731973-74*1974-75*

*Provisional.

†From 1972-73 measures real net output.

‡Decrease.

Agriculture10001032106510931080110211331004922888
Hunting and fishing1000111011591317123212931378128012441195
Forestry and logging1000101110161153130213701327139914941473
Mining and quarrying1000107294293598110681105123514061427
Manufacturing1000105510431071119912511303138415661631
Electricity, gas, and water1000106310961146121312961456166617691812
Construction10001041998965104210391018115612131295
Wholesale and retail trade, restaurants and hotels10001032970984103210961109120913191347
Transport, storage and communication 1000103410161057111011381151123314071465
Financing, insurance, real estate and business services1000102910411063110211481184124013061319
Community, social and personal services1000102510531074108311081130115611891222
All industrial groups combined1000103810291051110411451174122513081340
Annual percentage increase—          
All industrial groups combined..3.8-0.92.15.03.72.54.36.82.4

INDEX OF EMPLOYMENT—The Index of Employment is based on the movements in the total labour force as estimated by the Department of Labour. The total labour force includes all persons actively engaged for 20 or more hours per week and excludes the unemployed.

This employment index differs from that published with the volume of production index as the number of persons in the armed forces in New Zealand is now included. As with the former index, no allowance is made for variation in the proportion of full and part-time employment.

INDEX OF REAL GROSS DOMESTIC PRODUCT PER LABOUR FORCE MEMBER—Increases in real production are due in part to other factors (additions of productive fixed capital assets, improvements in management, organisational measures) as well as to greater labour effort or improved skills of the labour force. While the elements pertaining to labour input are relatively easy to quantify, the measurement of the other factors is exceedingly difficult.

The three indexes are compared in the following table. Although the methodology and weighting have been substantially revised from 1965-66 a link with the previous 1954-55 based production index has been made through the 1965-66 year. Revisions to the index of employment have been incorporated back to 1954-55. All three indexes are on base 1965-66 = 1000.

YearIndex of Real G.D.PAnnual Percentage IncreaseIndex of EmploymentAnnual Percentage IncreaseIndex of Real G.D.P. Per Labour Force MemberAnnual Percentage Increase

*Provisional.

†Decrease.

1954-55623..787..792 
1955-566473.98011.88082.0
1956-576591.98151.78090.1
1957-586935.28312.08343.1
1958-597132.98492.28400.7
1959-607413.98591.28632.7
1960-617866.18772.18963.8
1961-628123.38972.39051.0
1962-638373.19111.69191.5
1963-648886.19362.79493.3
1964-659436.29653.19773.0
1965-6610006.010003.610002.4
1966-6710383.810303.010080.8
1967-681029-0.910310.1998-1.0
1968-6910512.110350.410151.7
1969-7011045.010612.510412.6
1970-7111453.710902.710500.9
1971-7211742.511031.210641.3
1972-7312254.311181.410963.0
1973-74*13046.411593.711293.0
1974-75*13322.111892.61127-0.2

NATIONAL AGGREGATES AT CONSTANT PRICES—The index of real gross domestic product is readily convertible into a series of national aggregates expressed in the dollar values of some base year, in this case the year ended March 1966. The following table presents the 3 significant national accounts aggregates at current prices as published in the Report of National Income and Expenditure 1973-74, and also at 1965-66 prices. (Many of the figures below differ from the later figures shown in section 25A National Income and Expenditure. These later figures incorporate revisions where more recent data has become available.)

YearIn Current PricesAt 1965-66 Prices
Gross Domestic ProductGross National ProductGross Domestic ExpenditureGross Domestic ProductGross National ProductGross Domestic Expenditure

*Provisional.

 $(million)
1954-551,8771,8601,9272,3912,3692,443
1955-561,9791,9652,0212,4832,4852,506
1956-572,0782,0612,0342,5292,5082,503
1957-582,2012,1842,2702,6602,6392,679
1958-592,2942,2702,3022,7362,7072,626
1959-602,4532,4342,3442,8442,8222,703
1960-612,6592,6222,7173,0172,9753,015
1961-622,7532,7222,8203,1163,0813,074
1962-632,9672,9212,9563,2123,1623,113
1963-643,2393,1973,2163,4083,3643,371
1964-653,5503,4913,5143,6193,5593,640
1965-663,8383,7843,9443,8383,7843,944
1966-673,9983,9324,0733,9843,9184,094
1967-684,1674,0824,1483,9493,8963,877
1968-694,3884,3074,2494,0343,9603,783
1969-704,8514,7534,7124,2374,1513,995
1970-715,5225,4475,6384,3944,3344,296
1971-726,4146,3396,3634,5064,4534,358
1972-737,4217,2977,1624,7024,6234,622
1973-74*8,7278,5938,6985,0054,9285,240

GROSS DOMESTIC EXPENDITURE—Gross domestic expenditure is derived by deducting exports of goods and services from gross domestic product and adding imports of goods and services. The relationship between gross domestic product and gross domestic expenditure at 1965-66 prices is shown in the following table.

YearGross Domestic ProductExports of Goods and ServicesImports of Goods and ServicesGross Domestic Expenditure at 1965-66 Prices

*Provisional.

 $(million)
1954-552,3915315832,443
1955-562,4835946172,506
1956-572,5296215952,503
1957-582,6606266452,679
1958-592,7366935832,626
1959-602,8447105692,703
1960-613,0176906883,015
1961-623,1167356933,074
1962-633,2127726733,113
1963-643,4088217843,371
1964-653,6197998203,640
1965-663,8388379433,944
1966-673,9848739834,094
1967-683,9498988263,877
1968-694,0341,0618103,783
1969-704,2371,1388963,995
1970-714,3941,1311,0334,296
1971-724,5061,1971,0494,358
1972-734,7021,2331,1534,622
1973-74*5,0051,1981,4335,240

EFFECTIVE GROSS DOMESTIC PRODUCT—In the following table, movements caused by changes in the terms of trade are assessed by showing gross domestic product at 1956-66 prices corrected for the terms of trade. By making this correction to the gross domestic product at 1965-66 prices a better picture can be obtained of the changes in the purchasing power of the income it represents.

YearGross Domestic ProductExports of Goods and ServicesExports of Goods and Services Corrected for the Terms of TradeEffective Gross Domestic Product

*Provisional.

 $(million)
1954-552,3915315392,399
1955-562,4835945872,476
1956-572,5296215982,506
1957-582,6606265822,616
1958-592,7366935702,613
1959-602,8447106782,812
1960-613,0176906292,956
1961-623,1167356323,013
1962-633,2127726873,127
1963-643,4088218013,388
1964-653,6197998313,651
1965-663,8388378373 338
1966-673,9848738813,992
1967-683,9498988033,854
1968-694,0341,0619263,899
1969-704,2371,1381,0114,110
1970-714,3941,1319624,225
1971-724,5061,1971,0874,396
1972-734,7021,2331,3394,808
1973-74*5,0051,1981,4635,270

25 E—ECONOMIC PLANNING

GENERAL—In its long-term economic planning and development of natural resources, the Government is assisted by a Planning Advisory Group and sector councils with wide coverage of economic, social, and cultural life in New Zealand, namely, Agricultural Production Council, Manufacturing Development Council, Forestry Development Council, Mineral Resources 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 Development Council, and Cultural Council.

The objectives of the planning include:

  1. A faster economic growth rate than would otherwise be possible;

  2. Balanced growth in which the aspirations of all main sectors are reconciled with total available resources; and

  3. The linking of economic and non-material objectives.

During the 1950s and 1960s, "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 631 recommendations. Two-thirds of these recommendations have been implemented.

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 represented a broad range of interest groups. The Council's terms of reference were to review and propose changes where necessary in New Zealand's long-term planning objectives, and the policies necessary to achieve them. Details of the targets for exports and for productivity growth are set out in earlier Yearbooks.

In March 1974 the Government decided that the top committee of Cabinet responsible for establishing policy and priorities should assume the functions which the National Development Council had undertaken since 1969. Individual ministers were to become more closely involved in sector planning and each sector council was to report primarily to the Minister holding the relevant portfolio. The Ministers, in turn, were to report to the Cabinet Committee on Policy and Priorities and this committee would invite the chairmen of sector councils and others to participate in its deliberations as appropriate.

In May 1975 the Government announced that the Tariff Development Board was to be replaced by a smaller Industries Development Commission to study industrial needs. The aim was to enable comprehensive long-term assessments to be made of each industry's performance and prospects as a basis for determining Government assistance. It was stated that approaches from any industry wishing to instigate a study would be welcome and the Government would be prepared to extend financial and other assistance, provided that the study did not conflict with the basic programme or draw too heavily on the Government's own resources.

The planning advisory group and the National Research Advisory Council are studying the broad considerations involved in achieving greater integration between science policy and economic development, the rate at which resources available to science should be expanded, the basis on which Government science resources should be available to the private sector, and the industrial framework for advising Government on the allocation of resources. (See Section 7B Science and Scientific Services.)

PRODUCTIVITY CENTRE—A Productivity Centre was established within the Department of Trade and Industry in January 1973 to improve productivity in New Zealand's manufacturing and servicing industries. The work programme of the centre is guided broadly by the Productivity Advisory Council which is made up of representatives of both the Government and private sectors.

The objects of the centre are to stimulate interest in improving productivity, to disseminate and develop productivity measurements and techniques, and to generally encourage a better use of resources. The centre is acting as an extension service to industry and co-operating with other agencies working in this field. Particular attention is being paid to encouraging industry to use specific productivity techniques, and to identifying productivity problem areas in individual companies and industries. Advice and assistance from the wide range of financial, technological, managerial, and other advisory facilities available in the public and private sectors is then channelled to these problem areas.

The centre's programme includes general publicity, financial sponsorship of interfirm comparisons of selected industries, promotion of productivity groups, and productivity research. Close liaison with industry and all organisations interested in productivity is maintained especially through the centre's industry liaison officers in the Auckland, Wellington, and South Island areas.

REGIONAL DEVELOPMENT—Regional development policies are basically concerned with creating balanced growth among the different geographical areas of a country as it develops. These policies assume that the economic and human resources of all the regions of New Zealand must be fully utilised to maximise the quality of life. They are particularly concerned to maintain the social and economic welfare of those regions with lagging growth rates, and to promote an adequate range of good employment opportunities within them.

It is clearly important to ensure that the economic structure of each region remains linked to the mainstream of national economic growth. As manufacturing is a key catalyst of economic development, the Government's regional development policies have so far been based on developing this sector in slow-growth regions, whose economies have been heavily dependent on primary industry. However, it is recognised that regional development must be a total, balanced process, and that needs and techniques will vary region by region.

In June 1973 the Government announced a scheme of regional development financial incentives to industry, administered by the Department of Trade and Industry. The measures of this programme include interest-free suspensory loans for plant and machinery, and buildings in appropriate cases; assistance with costs of approved training programmes; assistance with employee housing where necessary; assistance with transfer costs of key employees; regional studies assistance grants; and a small business grants scheme.

One of the first items in the programme, the setting up of regional development councils in priority areas, began with the establishment of the Otago Regional Development Council in May 1973. Ten further councils have since been established for Northland, King Country, East Coast (North Island), Taranaki, Wanganui, Wairarapa, Marlborough, West Coast, Southern Canterbury, and Southland. These councils are aimed at ensuring regional participation in policy implementation, in monitoring development, and in identifying potential growth points. The Department of Trade and Industry directly services areas without a regional development council.

The councils have specific responsibility for promoting, accepting, and making appropriate recommendations on applications from their areas for regional development assistance. These are then processed by the Department of Trade and Industry before going to the Minister of Trade and Industry and the Minister of Finance for final approval. Councils are also encouraged to promote research into the development of their regions.

People with diverse backgrounds such as manufacturers, local body representatives, farmers, university staff, and trade unionists, are selected for their personal abilities to serve on councils. Each council includes one local member of Parliament, while representatives of the Department of Trade and Industry and the Ministry of Works and Development attend as advisers. The active participation of people in the regions themselves is seen as a vital element of the programme.

The Development Finance Corporation, as part of its statutory role of promoting development of New Zealand industry, takes a sympathetic attitude towards applications for finance for projects in regional development priority areas. The Corporation's team of skilled analysts works in cooperation with the Department of Trade and Industry in the implementation of the regional development programme. The Corporation itself offers a wide range of commercial assistance, including loans and guarantees on loans and bank overdrafts, which can often be combined with regional development incentives to give maximum assistance to desirable projects in priority areas.

Chapter 27. Section 26 CENTRAL GOVERNMENT FINANCE

26 A—REVENUE AND EXPENDITURE

GENERAL—Central Government is concerned with the future of the nation arid 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 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.

GOVERNMENT EXPENDITURE—The following table shows gross Government expenditure and the net amount of expenditure which requires financing from the Public Account. The functional classification is intended to focus attention on the broad areas in the economy in which there is substantial Government activity. Figures for the latest year are included in the Latest Statistical Information section at the back of the Yearbook.

It is to be remembered that the Public Accounts as shown in this section are prepared on a receipts and payments (cash) basis, and consequently the accounts of the operations of various departments (prepared on an accrual basis) shown in other sections will differ to some extent from those appearing here.

The functional classification of Government expenditure is shown in the following table.

Item1972-731973-741974-75
GrossNet*GrossNet*GrossNet*

*Net expenditure is generally arrived at by deducting trading and departmental receipts from gross expenditure.

†The reason for net expenditure being greater than gross expenditure is that the increase in imprests outstanding of $10 million for 1973-74 and $21.8 million in 1974-75 has been included in arriving at net expenditure. Net miscellaneous investment transactions exclude Maui project credit of $4.5 million in 1974-75.

‡Included in miscellaneous investment transactions.

Administration—$(million)
General administration68.461.685.078.1111.0101.7
Law and order54.639.863.346.379.261.0
Government services52.740.260.647.186.370.1
Miscellaneous services15.04.217.75.119.75.4
Stabilisation43.543.5120.1120.1162.1162.1
 234.2189.3346.7296.7458.3400.3
Foreign Relations—      
Defence129.8128.1140.5138.7166.9163.0
Foreign Affairs28.227.338.537.752.351.2
 158.0155.4179.0176.4219.2214.2
Development of Industry—      
Land use193.4100.0194.374.7255.5151.4
Fuel and power156.530.0165.631.5244.589.0
Other industrial services42.238.748.143.760.756.3
 392.1168.7408.0149.9560.7296.7
Education—      
Education379.4376.8442.7440.2529.8526.6
Social Services—      
Social welfare509.5506.0621.0616.2711.0703.4
Other social services24.121.334.730.691.886.1
 533.6527.3655.7646.8802.8789.5
Health—      
Health343.8343.1401.9401.1493.6492.3
Transport and Communications—      
Transport308.6157.6321.6144.3392.1172.3
Communications203.825.5235.224.4287.138.9
 512.4183.1556.8168.7679.2211.2
Debt Services and Miscellaneous—      
Debt services186.5186.5201.9201.9221.8221.8
Miscellaneous investment transactions96.689156.464.945.661.7
  Miscellaneous financing transactions86.6..196.5..
 283.1275.6344.9266.8463.9283.5
Totals2,836.62,219.33,335.72,546.64,207.53,214.3

The following table shows financing of Government expenditure.

Item1972-731973-741974-75

*Amount to be financed from borrowing excluding miscellaneous financial transactions.

†Excludes Treasury bills issued and redeemed of $318.4 million in 1971-72, $598.0 million in 1972-73, and $478.1 million in 1973-74.

‡Includes $10 million deposited with trading banks in 1970-71; $20 million in 1971-72, which was repaid in 1972-73.

§Includes the purchase of Governments securities from the Reserve Bank of $40.3 million in 1971-72, and $12.2 million in 1972-73, and the sale of Government securities to the Reserve Bank of $131.1 million in 1973-74.

||Includes sales of Government securities to the Reserve Bank of $131.1 million in 1973-74, and $170.5 million in 1974-75.

¶Excludes supplier's credit and currency realignments adjustments.

Expenditure—$(million)
  Administration189.3296.7400.3
  Foreign relations155.4176.4214.2
  Development of industry168.7149.9296.7
  Education376.8440.2526.6
  Social services527.3646.8789.5
  Health343.1401.1492.3
  Transport and communications183.1168.7211.2
  Debt services and miscellaneous investment transactions275.6266.8283.5
Total expenditure2,219.32,546.63,214.3
Financed from   
Taxation—   
  Income tax1,314.51,697.92,136.0
  Customs, sales tax, and beer duty381.4452.2510.0
  Highways tax95.7103.2104.8
  Other taxation135.0141.5114.5
Total taxation1,926.62,394.82,865.3
Interest, Profits, and Miscellaneous Receipts86.7Dr. 3.3155.1
Total taxation, interest, etc.2,013.32,391.53,020.4
Amount to be financed from borrowing*206.0155.1193.9
Borrowing in New Zealand:658.4460.9§209.6§
Less repayments in New Zealand340.0§130.1144.7
Less miscellaneous financing transactions86.6244.2196.5
 318.4244.2-131.6
Plus sales (less purchase) of investments+20.5-67.9-75.0
Net borrowing in New Zealand338.9176.3-56.6
Internal surplus (+) deficit (-)+132.9+21.2-250.5
Borrowing overseas29.51.5316.8
Less repayment overseas100.766.635.1
 -71.2-65.1281.7
Less purchase of overseas investments-48.3+50.9-35.6
Net borrowing overseas-119.5-14.2246.1
Cash surplus (+) deficit (-)+13.4+7.0-4.4

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
19711972197319741975

*Provisional.

Direct taxation—$(million)
Income tax957.31.161.11,314.51,697.92,136.0
Estate and gift duty29.325.028.633.841.0
Land tax3.03.83.43.33.4
Property speculation tax----0.3
Total—Direct taxation989.61,189.91,346.51,735.22,180.8
Indirect taxation—     
Motor vehicle fees and charges17.918.920.021.620.6
Customs duty138.9157.3168.3201.2229.1
Beer duty39.740.741.944.746.2
Sales tax125.3139.5171.1206.4234.7
Racing duty13.215.616.519.221.9
Stamp and other duties13.414.219.929.425.9
Motor spirits duty3.9----
Highways taxation82.089.795.7103.2104.8
Payroll tax820.540.846.333.50.8
Other taxation0.60.30.30.40.6
Total—Indirect taxation5.4517.0580.2659.6684.5
Total—Taxation receipts1,445.01,706.91,926.62,394.82,865.3
Interest—     
On capital liability—     
  Electric supply36.338.341.445.250.9
  Post Office12.914.715.516.718.0
  Other41.044.049.153.160.5
On other public moneys7.59.413.012.516.3
Total—Interest97.7106.4119.0127.5145.6
Profits from trading undertakings16.115.422.316.025.7
Departmental receipts71.280.265.574.588.9
Special receipts19.03.398.22.525.3
Total—Other204.0205.3306.0220.5285.5
Total—Receipts1,649.01,912.22,231.52,615.33,150.8
Total taxation as percentage of national income x30.9%30.8%29.7%32.1%35.1%

The following table shows expenditure from the Consolidated Revenue Account.

ItemYear Ended 31 March
1972197319741975

*Includes contributions for losses incurred in Post Office ($7,000,000 in 1973-74 and $21,000,000 in 1974-75), Railways $11,700,000 in 1973-74 and $46,100,000 in 1974-75), and Electric Supply ($18,539,000 in 1974-75).

Permanent appropriations—$(000)
Under Special Acts of Legislature—    
  Civil List9901,1281,5601,602
Debt services—    
  Interest166,808184,817200,323221,030
Transfer to Loans Redemption Account—    
New Zealand Loans Act 1953—    
  Section 5937,39738,39841,51644,334
  Section 57 (c)12,60311,6028,4845,666
Administration and management1,2001,6891,601736
Total—Debt services218,008236,506251,924271,766
Special Acts—    
  Superannuation Act 195620,18219,15518,87921,935
  Miscellaneous6,3707,5278,05812,606
Total—Special Acts26,55226,68226,93734,541
Total—Permanent appropriations245,551264,316280,421307,909
Annual Appropriations—    
Administration—    
General Administration—    
Vote—    
Accident Compensation--2022
Audit1,1221,3461,5761,725
Broadcasting23284170
Customs4,6315,0946,0096,636
Inland Revenue10,11711,32413,19317,295
Internal Affairs11,61311,57617,23422,293
Legislative1,4721,6282,0682,323
Prime Minister's Department84137227389
Rural Banking and Finance Corporation......9
Housing Corporation8151816
State Services Commission1,0396,1539,3749,908
Statistics3,5863,2864,5184,603
Treasury2,6433,0413,2914,112
Valuation2,8012,9703,5144,684
Total—General administration39,13946,59861,08374,087
Law and order—